4.4.23. Openings

(1) AIMS is the main inventory control system for Examination. AIMS Programming has specific values and consistency checks for establishing an AIMS record. The checks help maintain the integrity of the AIMS/AMDIS record, throughout the audit process. An AIMS record can be manually input using Command Code (cc) AM424 for Master File (MF)and AMNON for Non-Master File, which creates an AIMS Skeletal record and sends a Transaction Code (TC) 424 to Master File to generate a full AIMS record (TC420) with taxpayer entity, address and statute information. An AIMS record can also be created through automated processing, at Master File, and passed to the AIMS program as a full AIMS Opening.

(1) IRM 2.8.1.1.1, Audit Information Management System (AIMS), Introduction to AIMS Realtime Processing, Background/Authority. This IRM provides the requirement request for a new information management system, for Examination.

(1) Users of AIMS have the responsibility of maintaining the data fields, on the AIMS record, by updating field values and correctly reporting closing actions. The information reported, through AIMS, provides an audit trail of the actions taken on the taxpayer account, as determined during the audit process.

(1) Document 6209, IRS Processing Codes and Information, Section 12 Examination and Section 13 Appeals and TE/GE.

(2) IRM 2.8.2, Audit Information Management System (AIMS), AIMS Command Code AM424.

(3) IRM 2.8.8, Audit Information Management System (AIMS), AIMS Command Codes AMNON, AMTIN, AMBLK, AMFRZ, AMREQ and AMLAB.

(4) IRM 4.29.1, Pass-Through control System (PCS) Handbook, Overview of the PCS.

(1) CC AM424 is used to request MF control. This is the most common AIMS opening command code. See IRM 2.8.2, Audit Information Management System (AIMS) - AIMS Command Code AM424, for input information.

(1) CC AMNON is used to request NMF records on AIMS. These are open for specific account situations. See IRM 2.8.8-1, Exhibit, Command Code AMNON , for input information. See IRM 4.4.23.8.5, Non-Masterfile (NMF) Processing.

(1) Partnership Inventory Control File (PICF) requests are input using CC TSLOD in campus examination.

(2) When establishing a flow-through entity and/or related investor returns, see IRM 4.31.1, Pass-Through Entity Handbook.

(1) Compliance Data Environment (CDE) is a workload identification, planning and delivery system that operates in a web-based environment. It is used to filter, order, classify deliver returns and electronically assign returns to examiners for upload to the Report Generation System (RGS). It provides a secure environment for input and data retention. See IRM 4.103.1, compliance data environment (CDE).

(1) AIMS controls are created through automatic openings for most Form 1120, U.S. Corporation Income Tax Return returns and through filtered selection for Form 1065, U.S. Return of Partnership Income.

(2) AIMS records are transferred to groups based on current inventory and staffing levels.

(1) Form 5346 is prepared when an issue is discovered that has an impact on a return not yet filed, not yet under examination, or under another area's jurisdiction.

(1) The field examiner will initiate Form 5346, have their group manager sign the form, and forward the form to the Chief, PSP in the applicable Area Office. See IRM 4.10.5.14, Examination of Returns, Required Filing Checks Form 5346, Examination Information Report for additional information.

(1) If the information report is for a future file year, the Form 5346 is input with Command Code AM424, Push Code 039 and Source Code 60. AIMS will hold the input as a skeletal record for 26 months. If a return is filed within the 26 months, it will automatically generate an AIMS record. If a taxpayer return is not filed, the skeletal record will drop off AIMS.

(2) If an AM424 is input with Source Code 60 but without Push Code 039, a TC 424 is not sent to MF.

(3) If at a later date the return is selected for examination, the literal Information Report Available will be printed on Form 5346.

(4) For information pertaining to the input of Form 5346 by AM424 for the Intercept File see IRM 4.19.11, Liability Determination, Examination Classification of Work.

(1) The AIMS control for the partnership must be fully established on AIMS, prior to any linkage of the partners. The Campus TEFRA function establishes AIMS controls and PCS linkage of the partners to the examined partnership return via the Pass-Through Control System (PCS) using the PCS command code TSLOD. The AIMS controls for the partners will be established on AIMS in status 33 or 34, Employee Group Code (EGC) 5400 or 5800.

(2) If the Form 1040, U.S. Individual Income Tax Return, record is already fully established on AIMS in another status code and EGC, Form 5546, Examination Return Charge-Out Sheet, is systemically sent to the controlling area to alert them to the linkage.

(3) The Campus TEFRA Function (CTF) will send Form 6658, Related TEFRA Pass-Through Examination Information, with the attached Schedule K-1, to the controlling area. Unless the status code is 06 or 08, the CTF will request that the AIMS database be transferred to the CTF, because of the partnership linkage.

(1) Once a Pass-Through Control System (PCS) linkage is established a Partnership Investor Control File (PICF) Code will be present on AIMS. The PICF-CD for the partner return are:

• 4 - Investor with linkages to at least two different investor PICF-CD (5, 6, 9,)

• 5 - Investor with at least one open TEFRA linkage

• 6 - investor with at least one open ILSC linkage

• 9 - Investor with at least one open Chapter 2/2A linkage

(2) AIMS freeze code "H"is input by the CTF to prevent the partnership from closing prematurely. The freeze code appears on the AMDISA.

(3) AIMS freeze code "6" is input by the CTF to prevent the closure of a related return that would have a PICF code of "0". The freeze code appears on the AMDISA.

(1) The AM424 opening request can reject at the IDRS terminal for a variety of reasons. IRM 2.8.2, AIMS Command Code AM424, contains explanations of the error messages.

(1) The AM424 opening request can also reject when attempting to post at MF. These types of rejects will appear on the TC424 Reject Register which is distributed to each Area office on a weekly basis. See IRM 4.4.27, Audit Information Management System (AIMS) - Validity and Consistency, Reports, for an explanation of the TC424 reject register.

(1) If a return is not received timely there are multiple methods to obtain the document, depending on the return type being requested.

(2) First, determine if the return was filed by paper or electronically by researching CC IMFOLI or CC BMFOLR. IMFOLI research

(3) On AIMS there will be 4 values for the Electronic Code. The following literals will be displayed on Line 10 of page 2 of the AMDISA:

(1) Most LB&I returns will have an LB&I Image Network (LIN) link to access the return using a password protected process. LB&I groups can request the LINK link if there is an open AIMS control in Ogden or an AIMS control assigned to the group. SBSE groups must request the original return from Files as they do not currently have the ability to access LIN links.

(1) A filed claim or amended return must be reviewed by the examiner during an audit. To obtain the amended return, determine if it has been scanned by the Correspondence Imaging System (CIS). To determine if a return is a CIS image, review CC TXMODA control history section for a CIS locator code. The letters "CIS......." will appear under the "ACTIVITY" column of the TXMODA. If present, request a transcript from your local CIS contact following CC ESTAB procedures. See IRM 4.4.23.7.1.1.2 for CC ESTAB procedures.

(1) Older, inactive tax periods are moved to the RRR. Prior to requesting AIMS controls, these records must be brought back to active status. If they are on retention at the time of input, the request will reject. Follow the procedures below to bring the account back to MF:

1. Secure an IMFOLI if the return is for an individual or a BMFOLI if the return is for a business. An "R" in the first column of the IMFOLI/BMFOLI indicates the master file tax code (MFT) and tax period in retention.

2. To remove the tax period from the retention register, input IMFOLB or BMFOLB as appropriate. Print out the "Request Completed" screen and save for your records.

3. The Message "RRR RE-ESTABLISHMENT PENDING" will appear on the IMFOLT and "RETENTION" will appear on the BMFOLT.

4. Monitor the IMFOLT/BMFOLT for the "RRR RE-ESTABLISHMENT PENDING" or "RETENTION" to drop off (approximately 1-2 weeks).

5. Once the "RRR RE-ESTABLISHMENT PENDING" or "RETENTION" drops off, a TC 370 will post for an individual return and a TC 466 will post for a business return.

6. AIMS/ERCS controls can be established when the TC 370 or TC 466 have posted.

(2) See IRM 2.3.51.4, Command Code IMFOL, for additional IMF information and IRM 2.3.59.4, Command Codes BMFOL and BMFOR, for additional BMF information.

(1) Reopening of previously closed AIMS records may be necessary for many reasons. The method used to reopen the record will depend on the current AIMS status and examiner need.Reopening AIMS records

(2) If the current AIMS record is not available, it has "dropped from AIMS" and may be requested as a normal examination opening using AIMS command code AM424. ERCS users will answer "Y", Yes, when prompted if this is a second examination. See IRM 4.4.26, Audit Information Management System (AIMS), Validity and Consistency, Reopening/Reclosing/Reinputting Records for additional reopening guidance.

(1) Push codes are a three digit code input at the time of request for unfiled returns, substitute for returns and delinquent returns. They are also used to process requests for cases that would otherwise reject, such as Criminal Investigation Division (CID) controlled cases. In instances where there is no TC150 posted, the use of push codes will allow a TC 424 to post at MF to bring the account under AIMS control. See Document 6209, IRS Processing codes and Information, Section 12 Examination.

(1) All discoveries of non-filing should be handled in accordance with IRM 4.12.1, Nonfiled Returns.

• For IMF returns research the spouse SSN for potential joint filing.

• For BMF returns research CC INOLES for valid filing requirements. If necessary set filing requirements before inputting request for control. S-Elections can not be set without the taxpayer initiating the request for small business status. Complete Form 2363 , Master File Entity Change, as appropriate, to set the filing requirement.

• Review tax account information for TC 150 or delinquent return posting.

• Use valid non-filer source codes. See Document 6209, IRS Processing codes and Information, Section 12 Examination.

• Non-filer statutes are the month and year as if timely filed until a valid return is filed along with the alpha code "EE". For example, a return with a due date of 04/15/2020 will have a non-filer statute date of 04/EE/2023.

• Form 5345-B, Examination Request Non-ERCS Users - this form is used to request an AIMS record. Form 5345-B users will enter 1 or 3 in the Return Needed field when they do not want the original return.

• Form 5345-D, Examination Request - ERCS (Examination Returns Control System) Users. This for is for use in setting up AIMS through ERCS. Select "N", no, for "Original Return Request?" in ERCS.

• Push Codes:

Non-Filer Push Codes

If:	Then use push code:
TC150 present on masterfile	NO PUSH CODE - use will result in reject
Delinquent return in possession of examiner.	020
Delinquent return will be submitted to examiner. This will establish a skeletal record on AIMS, an SFR will not be generated.	021
an SFR TC150 is requested	036
a previous SFR TC150 has posted	050
TC 150 is for a SFR Form 720, Quarterly Federal Excise Tax Return, with a paid claim	051

(1) NMF control is requested for specific case types.

(2) The following are some reasons why accounts are established NMF:

1. The TP does not have a TIN.

2. In the case of non-filed returns, MF establishment will remain a skeletal record until a return posts. On occasion, NMF AIMS controls can be used which will cause the records to appear on an inventory validation listing (IVL) and statute tables.

3. Accounts that cannot be established on MF AIMS because of a MF reject.

   Example: Duplicate SSN’s assigned to two different taxpayers, or name control discrepancies.

4. Additional reasons based on current examination requirements, such as transferor/transferee openings.

(3) ERCS users will complete Form 5345–D to establish NMF controls. The ERCS request will send CC AMNON to AIMS, opening a NMF record.

(4) For AIMS input of a NMF record use Form 5354 Examination Request Non-Master File - CC AMNON. this immediately establishes a NMF record and generates a Form 5546, Examination Return Charge-Out Sheet, and labels if requested.

(5) In order to have the DLN on the Form 5546 when it is generated, the DLN from the transcript must be entered in Item 58 on Form 5349, Examination Correction Request, at the same time the Form 5354, Examination Request Non-Masterfile, CC AMNON is entered.

(6) A valid two digit non-masterfile tax code, NMFT, must be entered. See Document 6209 , Section 2 Tax Returns and Forms, , for a list of valid NMFT codes.

(7) See IRM 2.8.8, AIMS Command Codes AMNON, AMTIN, AMBLK, AMFRZ, AMREQ and AMLAB, for detailed NMF required input information.

(1) In rare instances, it is necessary to request a paper return without going through AIMS. Approval of the Field Territory Manager or Examination Group Manager is required if CC ESTAB is used for the following reason:

• Documented emergencies, approved by the Field Territory Manager or designee, and controlled by the PSP Support Manager or Centralized Case Processing Support Manager. AIMS establishment of these cases must be initiated simultaneously.

• Approval by a Campus Examination Manager.

(2) Approval is not required if requesting paper returns for the following reasons:

• Returns requested by Examination personnel for other offices such as the Taxpayer Advocate Office (TAO) or Disclosure

• Examination unpostables

• Cases requiring an AIMS follow-up request in which the employee group code information is not sufficient to route the return to the requester

• Cases requiring an AIMS follow-up and the return is not located in your campus or Federal Records Center

• Post review cases (Status Code 90)

(3) Form 2275 is initiated by examination personnel when requesting returns using CC ESTAB. See IRM 4.4.23.7.1.1.2 for additional information.

(4) For LIN requests, per the Service Level Agreement (SLA) between SOI (Statistics of Income) and LB&I, LB&I returns being accessed via a LIN link must have an open AIMS control. This includes any return that is being requisitioned for inspection, reference or information purposes. For additional information on requesting LB&I returns, see the LB&I website article at: LB&I Image Net (LIN) User Guide.

(1) Foreign Estates or Trusts will file Form 1040-NR, Nonresident Alien Income Tax Return, to report income received. This can include foreign fiduciaries with respect to a foreign trust or estate with income from U.S. sources. See IRM 3.21.25.20, Form 1040-NR Estate or Trust (KCSPC Only).

(1) Appeals uses CC AM424A to initiate AIMS openings. For more information on the input of CC AM424A see IRM 2.8.2, AIMS Command Code AM424.

(1) If a taxpayer is identified as being in a Combat Zone (CZ), AIMS controls can only be established if the CZ indicator on IMFOLE is a 2. You will find the CZ indicator on line 11 of the IMFOLE. In addition there will be a -C freeze on the MF account (IMFOLT).