4.103.1. CDE Application and Procedures

(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, and deliver returns. It also allows for the electronic assignment to examiners of returns which will be uploaded into RGS. CDE also provides a secure environment for input and data retention of LIHC program data.

(1) IRM 1.1.16.5.5.3, Exam Case Selection

(2) IRM 1.1.16.6.1.6, Examination System & Projects

(3) IRM 1.2.1.2.36, Policy Statement 1-236, Fairness and Integrity in Enforcement Selection

(4) IRM 1.2.1.5.7, Policy Statement 4-9, Highest Integrity Expected

(5) IRM 1.2.1.5.10, Policy Statement 4-21, Selection of Returns for Examination

(1) The Director SB/SE Examination is the owner of CDE. The office of the Director SB/SE Examination is responsible for setting national standards and policies for the implementation and operation of CDE. This office is responsible for providing staffing and funding to ensure the ongoing operation of CDE.

(2) The Director SB/SE Operations Support (OS), Technology Solutions (TS) has overall authority and responsibility for the security and proper operation of CDE. TS ensures the following national guidelines and standards are met:

1. Security requirements are met and continuously maintained with support from SB/SE Business Systems Planning (BSP).

2. Privacy and disclosure safeguards are met.

3. All Information Technology (IT) policies and standards are followed.

4. TS provides program direction, oversight, and monitoring of Exam Systems and Projects (ESP).

(3) The Director SB/SE Operations Support, Technology Solutions, Exam Systems & Projects (ESP) is responsible for the development, enhancement, and maintenance of CDE which includes:

(4) Director, Exam Case Selection (ECS) is responsible for providing policy guidance, assistance, and oversight to the areas and campuses.

(5) Program Manager, Field Case Selection (FCS) is the program manager responsible for providing guidance on the selection of cases and delivery of inventory for SB/SE Field Exam. FCS serves as a liaison between the CDE users and ESP on policy related issues.

(6) The Planning and Special Programs (PSP) Territory Manager (TM) is responsible for the selection of cases and delivery of inventory within their exam area. The responsibility for the proper use and administration of CDE includes the following:

• Ensuring security incident and integrity procedures are followed

• Ensuring HQ policies and procedures are followed

• Approving research requests

• Approving access to IRS employee returns

(7) The Director, Security Operations & Standards Division, Associate Chief Information Officer (ACIO) certifies CDE operates within all IRS security parameters.

(8) The PSP coordinator responsibilities are dependent on their authorized CDE user role. A coordinator's responsibilities can include the following:

• Developing compliance projects designed to identify noncompliant taxpayers and preparers

• Coordinating classification, case building and assignment of CDE returns

• Preparing and analyzing the appropriate CDE reports to manage and maintain their CDE inventory and monitor classification details

• Providing area profile(s)

• Promoting awareness of CDE as a compliance system through presentations, memorandums, local procedural documents and individual assistance

• Serving as a point of contact for program related inquiries and providing technical, clerical and managerial personnel with instruction, guidance and feedback on program operations

(1) The following program reports can be generated in CDE:

• Inventory Report

• Select Rate Report

• Statute Report

• Strategy Sets Report

• Filter Summary Report

• Filter Stratification Report

• Filter Sample Utility Report

(2) Only certain CDE users can create these reports.

(3) Other reports can be created outside of CDE using a standalone program linked to specific data exported by CDE.

(4) The reports can be used to analyze inventory, classification selection, issue identification, surveys, and other trends related to the selection of inventory.

(1) Access to CDE is through the Employee User Portal(EUP). Request this access first.

(2) Then submit a BEARS request (Business Entitlement Access Request System) for the requested user roles. See IRM 4.103.1.4, CDE Roles for examples of the available roles.

(3) Security features include:

• Restricting accesses to authorized individuals

• Logging and monitoring accesses

• Maintaining audit trails

• Identifying employee returns to allow appropriate handling

• Setting Negative TIN (Taxpayer Identification Number) Check (NTC) procedures in place to restrict users from unauthorized access

(1) This table lists commonly used terms in CDE and their definitions:

(1) This table lists commonly used acronyms and their definitions:

(1) IRM 4.1.2, Workload Identification and Survey Procedures

(2) IRM 4.1.5, Case Building, Classification, Storage and Delivery

(3) Electronic Delivery SharePoint

(4) CDE SharePoint

(5) Exam Systems Knowledge Base - Home (sharepoint.com)

(1) The table below highlights the benefits of CDE:

(1) Data is available for the most current year and prior three years.

(2) The following return types are available:

• Form 1040 series, which includes Form 1040 - U.S. Individual Income Tax Return, Form 1040SR - U.S. Tax Return for Seniors, Form 1040PR - Federal Self-Employment Contribution Statement for Residents of Puerto Rico, Form 1040NR - U.S. Nonresident Alien Income Tax Return, 1040C - U.S. Departing Alien Income Tax Return, and Form 1040SS - U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) plus schedules related to this series

• Form 1120, U.S. Corporation Income Tax Return and schedules

• Form 1120-S, U.S. Income Tax Return for an S Corporation and schedules

• Form 1065, U.S. Return of Partnership Income and schedules

• Form 1041, U.S. Income Tax Return for Estates and Trusts and schedules

(3) The CDE database contains tax return data from the return posted to Master File using TC 150. Subsequent amendments, duplicates, claims, etc. are not included in the database.

(4) Tax return data refers to those lines that are transcribed at the campus during processing (located in the RTF), as well as certain information from the Master File such as POD, date of birth, audit history, and DIF score.

(1) Data is available for the most current year and prior years per Document 12990, Records Control Schedules, which directs IRS functions on record retention and disposition. The LIHC tax forms are addressed in this document and each have their own computed compliance schedule of retention and disposition.

(2) The following LIHC forms are input into the database:

• Form 8610, Annual Low-Income Housing Credit Agencies Report

• Form 8610(Schedule A), Carryover Allocation of Low-Income Housing Credit

• Form 8609, Low-Income Housing Credit Allocation and Certification

• Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition

(3) The LIHC database contains tax form data transcribed by the LIHC data entry team.

(1) On a yearly basis (from October 1st to December 31st of each calendar year) the HQ CDE Customer Service analyst will generate a user reconciliation report in Excel format. This yearly user listing reconciliation report will be:

1. sent to the CDE Coordinator in each area responsible for working this report (contact info will be provided by FCS) and

2. each area coordinator will work through the listing as indicated in IRM 4.103.1.3.1.2, Working the Report.

(2) This listing should be worked within 90 days of receipt. For retention information see IRM 4.103.1.3.1.3, Document Retention.

(1) Workload creators begin the return identification process by identifying inventory either by criteria search, TIN list upload, or XML file. After the workload creator inputs and saves a new workload set, the classification coordinator takes over responsibility for the classification and review process.

(2) It is recommended the role of workload creator be assigned to the positions commonly referred to as:

• PSP Spigot/DIF coordinator(s)

• Other PSP coordinators

(3) The workload creator duties within CDE include:

• Creating workload sets

• Assigning classification coordinators to manage each workload set

• Adding additional classification coordinators to a workload set

• Attaching documents to a case file or workload set

(1) The classification coordinator manages the progress of workload sets, through CDE from the time the workload sets are created until moved to virtual inventory.

(2) It is recommended the role of classification coordinator be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator (e.g., CIP, RPP, and PSP coordinators)

(3) The classification coordinator duties within CDE include:

• Ensuring new classifiers and reviewers obtain timely access to CDE

• Assigning classifiers and reviewers to CDE workload sets

• Training new classifiers and reviewers in the use of CDE

• Monitoring the progress of CDE classification details

• Auto-classifying returns, as appropriate

• Moving workload sets to Virtual Inventory

• Addressing Command Code (CC) AM 424 rejects generated by AIMS within CDE

• Adding additional classification coordinators to a workload set

• Attaching documents to a workload set or case file

(1) The classifier classifies tax returns assigned within the CDE system. The classifier can be assigned to classify one or more CDE workload sets.

(2) It is recommended the role of classifier be assigned to the positions commonly referred to as:

• Revenue Agent

• Tax Compliance Officer

• Returns Coordinator

• Returns Classification Coordinator (i.e., CIP, RPP, and PSP coordinators)

(3) The classifier duties within CDE include:

• Online classification of CDE returns which includes reviewing IDRS, FinCEN, third party data (when funding is available), related returns and K-1's, if ordered for classification, and any attached documents.

• Making a determination to either "Accept as Filed" or "Select for Audit".

• Completing the ECC for each selected return.

• Selecting a "Type of Work" Employee Group Code for each selected return.

• Important: There should be no comments for accepted returns however selection of a reason code for accepted as filed returns is required. Comments are optional for selected for audit returns unless otherwise instructed.

(1) The reviewer evaluates a sample of classified returns in each workload set and determines whether the classifier made an appropriate decision to select or accept the return.

(2) The CDE ECC includes a section for reviewer feedback. This reviewer feedback section should include comments related to the return and issues only and not specific evaluative feedback to the classifier. Form 5126, Classification Quality Review Record is to be used for evaluative feedback to classifiers. Classifiers will receive an e-mail on any comments included in the reviewer feedback section. It is recommended that the reviewer maintains a spreadsheet of reviewed returns with the information which will be required to complete Form 5126. They will need to review 10 percent of each classifiers’ classified returns AND at least one return in each workload set.

(3) It is recommended the role of reviewer be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator (i.e., CIP, RPP, and PSP coordinators)

• PSP Section Chief

• Group Manager

(4) The reviewer duties within CDE include:

• Reviewing CDE classified returns.

• Ensuring the classifier has selected a "Type of Work" Employee Group Code for all classified returns.

• Determining whether the classifiers’ decisions are correct.

• Reviewing a minimum number of classified returns (per national guidelines) - See IRM 4.1.5.3.3, Review of Classification

• Completing Form 5126 for each classifier.

• Notifying the classification coordinator when a workload set is completed. CDE sends an e-mail notification to the classification coordinator after the first case file is reviewed.

(1) The delivery coordinator delivers the case files once the workload sets are moved to VI.

(2) The delivery coordinator role can only be assigned to an area user or campus user. An area delivery coordinator can only deliver returns in their area. A campus delivery coordinator can only deliver case files from workload sets created by campus workload coordinators within their same BOD.

(3) It is recommended the role of delivery coordinator be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator (i.e., CIP, RPP, and PSP coordinators)

• Tax Examiner

• Management/Program Assistant

(4) The delivery coordinator duties within CDE include:

• Delivering CDE case files by: workload set, criteria search, or individual cases

• Building/assembling case files

• Delivering and releasing electronic delivery sets

• Reprinting the delivery set or the delivery set Form 3210, Document Transmittal, if needed

• Viewing the delivery sets

• Addressing Command Code (CC) AMSTU rejects generated by AIMS within CDE

• Attaching additional documents to workload sets, case files or delivery sets

(1) The VIA manages the CDE virtual inventory. Case files selected for audit and moved to VI by the classification coordinator sit in a virtual shelf until ready for delivery. Case files that are not delivered by the delivery coordinator remain in VI until the VIA deletes (surveys) them.

(2) The VIA role can only be assigned to an area user or campus user. An area VIA can only delete case files in workload sets created by workload creators in their area. A campus VIA can only delete case files in workload sets created by campus workload coordinators within their same BOD.

(3) It is recommended the role of VIA be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator (i.e., CIP, RPP, and PSP coordinator)

• PSP Section Chief

• Tax Examiner

• Management/Program Assistant

(4) The VIA duties within CDE include:

• Monitoring inventory in appropriate employee group codes using the CDE or AIMS reports

• Deleting excess CDE inventory in VI (short statute cases or cases no longer needed)

• Reprinting CDE case files

• Retrieving the "Status of TIN" when there are questions on the status of specific cases in CDE

• Addressing CC AMSOC rejects generated by AIMS within CDE

(1) A strategy creator creates a strategy set by entering the required information and uploading a TIN list. The TIN list is created in an external text file. TIN lists can be for CIPs, RPPs, training returns, employee audits, other strategic initiatives or to get supplemental case building information on previously built returns. AIMS controls are not requested for tax returns included in a strategy set. However, CDE can check for AIMS controls, if requested.

(2) A strategy creator can create a non-filer set by entering required information and uploading a csv file. The non-filer set builds a case file for each TIN and specified tax years where no return is filed. AIMS controls are not requested for tax returns included in a non-filer set.

(3) It is recommended the role of strategy creator be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator (i.e., CIP, RPP, and PSP coordinator)

• Tax Examiner

• Tax Examining Technician

• Management/Program Assistant

• Audit Aide

• Program Analyst

(4) The strategy creator duties within CDE include:

• Creating a TIN list using Notepad, if needed

• Converting a TIN list from Excel, if needed

• Creating a TIN list using Excel csv file for non-filers

• Creating strategy sets and non-filer sets

• Requesting case building information

• Viewing strategy sets and non-filer sets

• Creating strategy set reports

• Managing strategy sets

(1) The filter creator creates, executes, tests, analyzes, and modifies Filters in CDE.

(2) It is recommended the role of filter creator be assigned to the positions commonly referred to as:

• Returns Coordinator

• Returns Classification Coordinator. (i.e., CIP, RPP, and PSP Coordinator)

• Tax Analyst

• Program Analyst

(3) The filter creator duties within CDE include:

• Creating a filter by either copying existing filters, creating a new filter, or uploading a TIN list.

• Running an execution filter which will search the entire CDE database and find all returns that meet the filter criteria.

• Running a test execution filter which will search the CDE database and find the first 25 returns that meet the filter criteria.

• Analyzing filter result sets by creating and reviewing CDE stratification, summary, and sample utility reports.

• Analyzing case files identified by the sample utility report to determine if the filter is identifying cases meeting the filter criteria.

• Creating and running an elimination filter to reduce the size of or eliminate specific criteria from the execution or test execution filter result set.

• Using the filter result set to create either a strategy set or a workload set.

(1) A user administrator manages the user profiles within CDE.

(2) The user administrator role can only be assigned to the Technology Solutions staff.

(3) The user administrator duties within CDE include:

• Creating CDE user profiles

• Updating CDE user profiles

• Disabling CDE user profiles

• Assisting users with their profiles

(1) The system administrator role can only be assigned to the Technology Solutions staff.

(2) The system administrator adds additional classification coordinators to a workload set.

• Adding additional classification coordinators to a workload set

• Post customer news to banner such as information about CDE downtime, dataloads, and maintenance

(3) The system administrator can run all CDE reports at the national level.

(1) The CDE group manager/proxy assigns electronic case files to examiners in their group.

(2) It is recommended the role of CDE group manager/proxy be assigned to the positions commonly referred to as:

• Group Manager

• Group Clerk, Management Assistant, Secretary or anyone else acting in an assistant to the manager role

• Acting Group Manager

(3) The CDE group manager/proxy duties pertaining to electronic case file delivery:

• Assigning case files to examiners

• Reviewing delivery sets and case files

• Monitoring inventory for timely downloads by examiners

• Surveying case files from CDE

• Updating assignment/survey information on ERCS

(1) The CDE examiner downloads assigned electronic case files for upload to RGS.

(2) It is recommended the role of CDE Examiner be assigned to the positions commonly referred to as:

• Revenue Agent

• Tax Compliance Officer and Tax Examiners who have received income tax training and are working audit cases

(3) The CDE examiner duties pertaining to electronic case file delivery include:

• Reviewing assigned CDE case files

• Downloading assigned CDE case files

• Uploading CDE case files to RGS

(1) The LIHC user inputs data from LIHC Form 8610, Annual Low-Income Housing Credit Agencies Report, Form 8610(Schedule A), Carryover Allocation of Low-Income Housing Credit, Form 8609, Low-Income Housing Credit Allocation and Certification, Part 1 and Part 2, and Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, into the CDE LIHC database.

(2) It is recommended the role of the LIHC user be assigned to the positions commonly referred to as:

• Tax Examining Technician in the LIHC unit at the Philadelphia campus

• Anyone who is helping to input form data

(3) The LIHC user duties within CDE include:

• Entering and updating data from the LIHC tax forms

• Viewing the LIHC tax forms

• Reconciling Form 8610 and its attached Schedule A, and Form 8609 Part I

• Accessing CDE reporting functions

(1) The LIHC manager/analyst manages the LIHC data input process. This may include the input of data from the LIHC forms.

(2) It is recommended the role of the LIHC manager/analyst be assigned to the positions commonly referred to as:

• Unit Manager

• Department Manager

• HQs Analyst

• LIHC Subject Matter Expert

(3) The LIHC manager/analyst duties within CDE include:

• Entering and updating data from the LIHC tax forms

• Viewing the LIHC tax forms

• Reconciling Form 8610 and its attached Schedule A, and Form 8609 Part I

• Accessing CDE reporting functions

• Viewing/printing other tax forms in the CDE databases

• Deleting erroneous LIHC records

(1) The inventory report lists the case files in CDE VI. An inventory report example can be found in the CDE portion of the Knowledge Management Site.

(2) The classification coordinator, delivery coordinator, or VIA can create an Inventory report.

(3) The inventory report can be used for the following:

• To analyze available returns by POD

• To analyze available returns by grade of case

• To analyze returns by type of case

• To analyze inventory by activity code

• To analyze aging of inventory

(1) The select rate report provides select rates for inventory in active workload sets, VI or both. Training returns can be either included or excluded from the report. A select rate report example can be found in the CDE portion of the Knowledge Management Site.

(2) Only the classification coordinator can create a select rate report.

(3) The select rate report can be used for the following:

• To monitor the select rates of specific inventory

• To evaluate the efficiency of classifiers

• To determine the number of returns to order

• To determine the select rate of each activity code for ordering purposes

• To determine the select rate of returns within a specific POD

(1) The statute report provides the VIA with a listing of CDE cases with short statute dates. A statute report example can be found in the CDE portion of the Knowledge Management Site .

(2) Only the VIA can create a statute report.

(3) The statute report can be used for the following:

• To monitor pending statutes,

• To determine what returns need to be deleted,

• To monitor returns in each Employee Group Code, and

• To compare to the AIMS Table 4.1, Returns with Statute Date Pending, and fix any variances - See IRM 25.6.23 , Statute of Limitations, Examination Process-Assessment Statute of Limitations Controls.

(1) The strategy sets report provides a list of strategy sets that have been created in CDE. An area or campus report will only include strategy sets created for their specific area or campus location. A national user can create reports that include all strategy sets created in CDE. A strategy sets report example can be found in the CDE portion of the Knowledge Management Site under Job Aids in the column titled PSP customers.

(2) Only the strategy creator can create a strategy sets report.

(3) The strategy sets report can be used for the following:

• To monitor the type of work created by the strategy creators

• To determine how many strategy sets were created by strategy creators

• To see how many returns were created in each strategy set

(1) A filter summary report provides an overview of returns in a filter result set. This report does not provide any taxpayer identifying information. It summarizes the filter return counts based on non-dollar fields showing the total and average dollar amount for each group. For example, a report analyzing total income may be summarized by activity code. The report will show one line for each activity code with the total income for each activity code, total number returns in each activity code and the average income per return. A filter summary report example can be found in the CDE portion of the Knowledge Management Site.

(2) Only the filter creator can create a filter summary report.

(1) A filter stratification report is used to analyze the data in a filter result set. It is the process of grouping tax returns in a filter result set into homogeneous groups or tiers, also known as stratums. This report does not provide any taxpayer identifying information. A filter stratification report example can be found in the CDE portion of the Knowledge Management Site.

(2) Only the filter creator can create a stratification report.

(1) A filter sample utility report generates a TIN list after a filter has been stratified. The user may choose to select either all returns or a statistical sample. The returns in each stratum of the TIN list are in numerical order by TIN. A filter sample utility report example can be found in the CDE portion of the Knowledge Management Site.

(2) Only the filter creator can create a sample utility report.

(1) CDE Tableau is a commercial-off-the-shelf (COTS) program linked to specific CDE and LIHC data exported by CDE. Approved users run analytical reports based on the CDE or LIHC data. Tableau produces weekly and monthly reports regarding inventory, has copies of four of the standard reports available in CDE, and allows users to create ad hoc reports through flexible query of the data. Request access through BEARS and select entitlement PROD ELEV CDE TEV (TABLEAU ENTERPRISE VISUALIZATION-CDE TEV).

(1) Case building provides additional information related to a tax return for both filed and non-filed returns. The following information is available to order in CDE:

• CDE facsimiles in non-filer sets include the tax year before or after the non-filed year

  Note: The CDE facsimiles resemble original tax returns in a 1 year or 3 year comparative format.

• Related returns

• K-1's

• Third party data (option available with approved funding)

• IDRS

• FinCEN data

• Attached documents

(1) A population analysis is a summary of one or more significant filing characteristics of a population of returns. It is limited to the information contained in the CDE database.

(2) CDE can analyze actual return filings of areas by the makeup of their populations. Understanding the characteristics of a filing population can improve the processes of allocating resources, developing outreach activities, and identifying filing trends.

(3) National users can analyze a multi-area or national level.

(4) Some analysis examples are:

• Return type analysis by POD. For example, it can identify the number of Form 1040, Form 1120, Form 1065, Form 1120-S and Form 1041 returns filed by POD and activity code. An analysis indicating a large increase in the number of Form 1120-S filings could indicate a change from Form 1120 to Form 1120-S returns and a need to reallocate resources to Form 1120-S audits.

• Trend analysis. For example, the number of returns with Schedule A’s, Earned Income Credit, foreign earned income, businesses with losses, etc. can be identified through this type of population analysis.

(1) CDE can identify returns containing specific issues. For example, all returns in a specific market segment with a net profit percentage of less than 5 percent.

(2) CDE can statistically stratify a filter result set as well as generate a random sample of returns for testing. The filter result set can be used to create a workload set, a strategy set, a TC 424 request file or tickler file for campus use.

(3) A CIP is required for all CDE identified projects. The exception is for any group of taxpayers that fall within an issue, strategy, or workstream specifically identified on a business operating unit's annual work plan for examination or compliance check - See IRM 4.17, Compliance Initiative Projects.

(1) CDE is used for the online classification of returns. It contains the current processing year and 3 prior years data. It allows for a 3-year comparison of the taxpayer's return information (if it is available and ordered for classification). The multi-year comparison gives the classifier a better financial overview of the taxpayer, improving the selection process.

(2) Through the CDE system, returns are identified and classified for various programs including, but not limited to the following:

• DIF

• Training

• CIP

• Return Preparer Program (RPP)

(3) When classifying individual returns, CDE can be used to view the K-1's received by that individual and also the related business returns of the K-1 payer, if ordered for classification.

(4) When classifying business returns, CDE can be used to view the K-1's issued by the business, and the related shareholders’ or partners’ (payee) returns, if ordered for classification.

(1) CDE is used to deliver returns electronically to a CDE group manager from the CDE virtual inventory. A user can:

• Deliver an entire workload set

• Deliver case files by criteria search

• Deliver a single case file

(1) Filters allow CDE filter creators to run queries against tax returns (individuals, business or trust) in the CDE database, then further refine the results of the queries by eliminating tax returns from the results with additional queries. A filter is a set of conditions against which all returns in the filing population are compared. CDE allows users to design filters to identify groups of returns containing particular issues or characteristics. For example, filtering may be used:

• To identify returns with potential for specific issues

• To identify returns by a preparer for a RPP

• To identify returns for a CIP

(2) CDE has the following thresholds when filtering:

• Four filters can be run concurrently. If 4 filters are already in process, the 5th filter will go into a queue until 1 of the 4 is finished.

• The maximum number of returns identified by a filter is 500,000.

• The maximum time a filter will run is 24 hours.

(3) The following filters can be created in CDE:

• Execution filter - An execution filter is used to query the CDE database, which contains the current processing year and prior three years RTF data plus related Master File data. When the filter is executed it creates a filter result set with all tax returns that meet the criteria of the execution filter definition.

• Test filter - A test filter is an execution filter with the filter result set being limited to the first 25 returns that meet the filter criteria.

• TIN upload - A TIN upload filter is used to identify a set of tax returns by uploading a TIN list. A filter result set is created by matching the TIN list against the tax returns in the CDE database. Instructions discussing the required TIN list format can be found in the CDE portion of the Knowledge Management Site.

• Elimination filter - An elimination filter is applied to a filter result set (execution filter or TIN upload) to remove specified returns from the filter result set. More than one elimination filter can be applied to a filter result set. Elimination filters can be saved and reused and also be applied to other filter result sets.

(4) A filter result set can then be used to create a:

• Filter summary report - See IRM 4.103.1.5.5, Filter Summary Report

• Filter stratification report - See IRM 4.103.1.5.6, Filter Stratification Report

• Filter sample utility report - See IRM 4.103.1.5.7, Filter Sample Utility Report

(5) After the filter results and reports have been analyzed, the user can create a workload set or strategy set from the filter result set. Campus users can also create a TC 424 request file or tickler file.

(6) Filter results sets are maintained on the system for two weeks and are automatically deleted if not accessed within this time. If the filter result set is deleted, the filter can be re-executed to create a new filter result set.

(1) Areas should submit a Return Needs Analysis, or equivalent, which must be approved prior to creating any DIF workload sets - See IRM 4.1.2.7, Guidelines for Ordering Returns, for more information.

(1) A CDE research request is required for all filtering requests.

(2) Research is defined as any filter activity on the CDE system. All filtering on CDE requires a signed CDE research request except:

• Case building for returns already on AIMS

• DIF classification

• Form 5346, Examination Information Report

• Periodic validity testing of new data or program updates

• Subsequent repetitive profiling requests

(3) Minor modifications may be made to the original research request without submitting a new request. This should be documented by notation or addendum to the request form. Minor modifications must not change the intent of the original request. Examples of minor modifications include:

• Extension to other years

• Refinements of dollar criteria

• Expansion to another POD

(1) An Exam Systems & Projects Data Request for CDE Data form is required for additional CDE data not available through normal channels.

(2) The Exam System & Projects (ESP) Data Request can be completed and submitted on the Intake System. The link to this submission can be found on the CDE Knowledge Management Site home page on the right side under Other Related Resources.

(1) Use the Intake System to submit a change request form and request changes to CDE.

(1) The following codes are used in CDE:

• Selection Reason Code

• Source Code

• Project Code

• Aging Reason Code

• Tracking Code

• Disposal Code

• Accepted as Filed Reason Code

• Survey Reason Code

(1) All attempts to access IRS returns are recorded by CDE in its SPLUNK audit log file. Users should follow the procedures for Form 11377-E, Taxpayer Data Access, to document accesses that are erroneous or may not otherwise have sufficient documentation.

(1) If, while conducting research on CDE, a return is noted that contains potential issues not necessarily relevant to the purpose of the research, but does have indications of significant noncompliance, then information reporting procedures contained in IRM 4.10.5.14, Form 5346, Examination Information Report, should be followed.

(1) Employee returns and their spouses are included in the CDE database and are subject to the same research processes as other returns. Employee returns must be treated like all other returns identified during research on CDE. Filters should never be rerun for the purpose of eliminating employees from a TIN list.

(2) When an employee's tax return is viewed, this fact will be noted on the CDE facsimile. See IRM 4.2.6.3, Examination of Employee Returns, for guidance on employee audits.

(3) An indication whether the tax return is an IRS employee's tax return is included in the sample report.

(4) On the Form 3210 the comments field is populated if the return belongs to an employee.

(5) Complete Form 11377-E, Taxpayer Data Access, to document.

(6) See IRM 4.2.6.2, Employee Tax Compliance, for additional procedures.

(1) The same security should be provided for any document produced by CDE containing taxpayer identifying information as is given actual tax returns and all other confidential taxpayer information. This includes transmittal via Form 3210 for any documents containing taxpayer identifying information distributed outside of the PSP area support/campus exam operations.

(2) All electronic CDE documents must be encrypted before being sent. All CDE electronically stored documents must be encrypted.

(3) CDE documents containing taxpayer information such as TIN lists, should be properly disposed of by the recipient following IRS security procedures.

(1) The same security should be provided for any document produced by CDE containing taxpayer identifying information as is given actual tax returns and all other confidential taxpayer information. This includes transmittal via Form 3210 for any documents containing taxpayer identifying information distributed outside of the PSP area support/campus exam operations.

(2) All electronic CDE documents must be encrypted before being sent. All CDE electronically stored documents must be encrypted.

(3) CDE documents containing taxpayer information such as TIN lists, should be properly disposed of by the recipient following IRS security procedures.

(1) The following activity codes should be used for time spent on CDE activities:

• Project Coordination, Activity Code 617 (Project Coordination)

• Classification Management, Activity Code 624 is used when reviewing CDE returns

• Return Classification, Activity Code 625 (Classification) to be used when accessing CDE as a classifier

• Return Coordination, Activity Code 621 (Classification Returns) to be used by the returns classification coordinator

(2) See IRM Exhibit 4.9.1-1, Definitions of Miscellaneous Examination Activity Codes.

(1) For CDE system operation questions/issues contact the CDE help desk via email at *SBSE Exam CDE Development Center.

(1) CDE examples of reports can be found on the following website: CDE portion of the Knowledge Management Site under PSP Best Practices and Sample Reports.

(2) Contact the CDE help desk at *SBSE Exam CDE Development Center for CDE training materials.

(3) The PSP CDE SharePoint provides PSP users a single work space to coordinate schedules, organize documents, and participate in discussions within the organization and over the Intranet. Specific PSP user role handbooks can be found on the following SharePoint site: PSP CDE SharePoint.

(4) The Electronic Delivery SharePoint provides job aids, training courses, and discussions relating to CDE electronic delivery. It is found on the following SharePoint site: Electronic Delivery SharePoint.

(1) The CDE program contains a virtual tour for various roles. A virtual tour is an approach to learning CDE that uses a hands-on process without viewing or accessing live data. All the screens are pictures of actual screens. These screens have hot spots where you can click on the screen, usually an icon, to replicate the CDE program. The CDE virtual tours are accessed through the Help button in CDE.