4.29.1. Overview of the PCS

(1) PCS was created to monitor and control pass-through entity investors. Pass-through entities can have many partners and many levels of tiering. Tiering occurs when an investor in a pass-through entity is also a pass-through entity. This complexity can make it difficult to keep track of statutes and monitor all the investors.

(1) PCS control is a policy that was establish in response to the partnership provisions of the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982. It has been expanded to cover other pass-through entities that fall outside of TEFRA.

(1) The Director, SB/SE, Headquarters, Examination Field and Campus Policy (SE:S:E:HQ:EFCP) is responsible for:

1. Coordinating and implementing PCS enhancements;

2. Coordinating resolutions for PCS systemic problems; and

3. Updating this Handbook.

(2) The SB/SE Program Manager, Examination Field and Campus Policy, Campus Exam & Field Support (SE:S:E:HQ:EFCP:CEFS) is responsible for:

1. Ensuring that PCS procedural changes and computer program changes are implemented and coordinated with area office and campus examination personnel; and

2. Monitoring and evaluating area office and campus examination PCS quality control procedures.

(3) Field Territory Managers, Field Area Directors, Director over LB&I Ogden and Director, Examination - Brookhaven, are responsible for ensuring that:

1. An accurate database is established by designating PCS responsibilities and activities; and

2. A PCS quality control system is implemented. This includes timely action on PCS record establishments, PCS reports, and AIMS TC424 Reject Registers. It also includes timely processing of TEFRA notices and Appeals settlement letters (campus only).

(4) Area office Examination Managers and campus Field Support Operations managers are responsible for:

1. Maintaining an updated copy of IRM 4.29, Pass-Through Control System (PCS) Handbook, in their respective functions;

2. Ensuring the training of technical and clerical employees in PCS procedures; and

3. Establishing PCS records and acting on PCS reports in a timely manner to assure an accurate PCS database.

(5) The campus PCS Coordinator works with:

• The other PCS coordinator(s)

• Technical Services TEFRA Coordinators

• Their local employees

• Other campus functional areas to ensure timely processing of PCS related activities

(6) The campus PCS Coordinator is charged with:

• Identifying and resolving technical problems

• Identifying and coordinating the resolution of PCS systemic problems

(7) Following are specific campus PCS Coordinator responsibilities:

1. Coordinate PCS operations among areas, Campus Pass-through Functions (CPFs), and other campus functions;

2. Ensure timely processing and distribution of PCS output;

3. Ensure that all requests for establishment and linkage on PCS are reviewed for accuracy, completeness, and timeliness;

4. Maintain accuracy of the PCS database by ensuring that action and error reports are worked in required time frames;

5. Resolve Audit Information Management System (AIMS) problems;

6. Assist in the training of examination personnel in PCS procedures and the system;

7. Establish and update CPF and Appeals parameter files;

8. Review completed Form 8346, PCS Notice Parameters, prepared by the CPF and Appeals;

9. Create, load, print, proofread, and edit parameter file data using Form 8346, PCS Notice Parameters;

10. Coordinate with Computer Systems Analyst (CSA) whenever a change is made to parameters;

11. Review and input all campus Command Code (CC) Mass Change (MSCHG) and linkage deletion (TSDEL) requests;

12. Coordinate requests for PCS IVLs with campus computer services and the requesting function.

(1) Program Reports: PCS generates a variety of reports used to monitor the inventory and related statutes. These reports are explained in detail in IRM 4.29.4.

(2) Program Effectiveness: PCS is used to help identify the effectiveness of the CPF program. PCS shows the number of investors linked within a pass-through structure. Failing to link partner returns timely can result in barred statutes or the need to follow burdensome procedures such as manual assessments or untimely notice procedures.

(1) PCS is a Integrated Data Retrieval System (IDRS) based system. Access to command codes are restricted based upon need. For example, generally only the PCS Coordinator is allowed to delete records from the system.

(1) There are several terms unique to PCS. Examples of these words:Defined Terms

(2) See Exhibit 4.29.1-1 for a list of acronyms.

(1) The following IRM cross references may be helpful to PCS coordinators:

1. Terminal Operator Instructions: IRM 2.2 Sections 1–10

2. Processing: IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates Handbook

3. Handling of Output: IRM 3.13.62, Media Transport and Control Handbook

4. Management of Interrelated and Related Cases: IRM 4.31, Pass-Through Entity Handbook

5. AIMS: AIMS/Processing Handbook, IRM 4.4