4.38.1. Organization and Responsibilities

(1) Open the ERCS Assign Tool.

(2) On the Case Info Screen, type the following:

1. TIN,

2. MFT, and

3. Tax Period

   Note: The case information is located on the Form 3198.

(3) Click "Add."

(4) Ensure the information in the box that appears is correct.

• If you determine the case information is incorrect, check the box in front of the incorrect TIN and click "Remove."

(5) ERCS Assign: select the Tax Examiner (TE) that you will assign the cases. Locate the TE’s name on the Form 3210 with the case.

(6) Received Date: This will be the date the email or eFax was received by CCP.

(7) Click on "Research."

(8) Next, IAT will research ERCS for case information. If the Status Code and/or PBC are incorrect, an ERCS Error Screen will appear.

(9) Print any boxes that pop up for WATCH FOR, LQMS, ERCS Error Screens.

(10) When done researching, review the information that is located on the right-hand side of the ERCS Assign window. Be sure to click on every case. If each case is not individually reviewed, the IAT Assign Tool will not assign the cases.

(11) When reviewing the cases you need to identify any:

1. Short statute dates that are 12 days or less.

2. AIMS and ERCS Status Code is 51. If both are not in 51, it needs to be rejected immediately.

3. If ERCS is in 51 and not Managerial Pending and the AIMS Status is 10 or 12, you will use AMSTU AIMS to update the status to 51 and continue assigning.

(12) If all case information is correct, click on "Assign All."

(13) Cases are assigned on IDRS/AIMS first, except for Penalty cases.

• Penalty cases have no records on IDRS, so they are only assigned on ERCS.

(14) When IAT starts updating ERCS there will be 3 boxes that pop up for each case being updated.

(15) Box 1 - "TE’S NAME is associated with ID 00000. Is this correct? (Y/N)"

• Type 1 or Y for Yes.

• Type 2 or N for No. (This will cancel the assigning).

(16) Box 2 - "Form 3210 is pending acknowledgement for the return. Mark as received? Y."

• Type 1 or Yes for Yes.

(17) Box 3 - "Please allow a few seconds for the ERCS system to process your response. Press "OK" when the ERCS screen appears ready to continue."

(18) When ERCS is done assigning all cases, a window will pop up displaying the ERCS prints.

• Click on the print icon on the top left corner.

• Click OK on the print box.

• Click OK to close the window.

(19) The window for the Form 3210 will pop up.

• Then the print box will pop up. Click OK to print.

(20) Go to "File."

(21) Click on what you need printed.

(22) Click "Clear All" to assign your next case.

(1) When assigning cases, IAT will identify all numeric and alpha ASED dates within 120 days of expiration.

(2) If the ASED is fully numeric and within 120 days of expiration, then the case should be assigned to a Restricted Interest Tax Examiner.

(3) If the ASED is within 30 days of expiration (numeric or alpha), then the clerk must personally identify the ASED as statute imminent to the assigned CCP Tax Examiner (TE).

• If the CCP TE is away or off-duty, then the case must be provided to the Team Manager or Lead of the applicable TE.

(1) Close case using manual assessment procedures for Statute Expiration Date(s) less than 60 days in the future. Refer to IRM 4.38.1.7.1.1.4 for Manual Assessment responsibilities.

(1) Follow procedures for After-Hours Assessments if after 3:30 p.m. local time and manual assessment procedures are required.

1. Refer to IRM 4.38.1.7.1.1.4 for more information about Manual Assessment procedures.

(2) If the need arises for an after-hours assessment, follow the guidelines below:

1. The Manual Assessment Originator will contact the Revenue Accounting "After Hour Assessment" telephone number for the local site and follow the instructions provided.

2. Prepare paperwork using manual assessment procedures.

(1) This section defines CCP Department Manual Assessment responsibilities and complies with IRM 4.38.1.7.2. This includes processing procedures to manually assess an adjustment.

(2) CCP Tax Examining Clerks are responsible to:

• Send Form 2859, Request for Quick or Prompt Assessment, to Accounting daily and obtain Form 3210 reflecting Accounting’s "date received" stamp reflecting the Document Locator Number (DLN) of the Manual Assessment, and Form 3552, Prompt Assessment Billing Assembly, from Accounting.

• Date stamp each document with "CCP Received Date" and provide to the Team Lead.

(3) CCP Tax Examiners are responsible to:

1. Prepare Form 2859 and all required attachments.

2. Place Manual Assessment Package in Team Lead’s designated area for review.

3. Maintain a separate copy of Form 2859 in a monitor folder until the approved Manual Assessment Package is received from the Team Lead.

   Note: If an approved copy is not received prior to the 23C date, it is the responsibility of the technician to follow up with the Team Lead to obtain an approved copy.

4. Use processing procedures below titled Information Data Retrieval System (IDRS) Control Procedures to open a control base on IDRS and notate history items.

5. Monitor for the Form 3210 reflecting a date received stamp by Accounting.

   Note: If a copy of the Form 3210 reflecting a "date received" stamp is not received prior to the 23C date, it is the responsibility of the technician to follow up with the Accounting Team to obtain the transmittal reflecting the "date received" stamp before the 23C date.

6. Associate Form 3210 reflecting the date received stamp with the monitor file and Form 2859 until the Form 3210 reflecting the DLN is received.

7. Associate Form 3210 reflecting the DLN with the monitor file and Form 2859 until the Form 3552 is received.

   Note: This is no longer the Lead’s responsibility.

8. Associate Form 3552 with the original Form 2859 and Form 3210 reflecting the DLN in the monitor file until the assessment posts to IDRS.

9. After the Manual Assessment has posted to Master File, Form 2859, Form 3552, and Form 3210, can be destroyed.

10. File DMI history per Alert 13 procedures. The history sheet should be filed within one week of the assessment’s posting.

11. Input the following on Automated Information Manager System (AIMS):

If the case is not being full closed,	AMAXU the current Manual Assessment amount, plus any prior Manual Assessment amounts posted after the current Transaction Code (TC) 420. This is completed using Command Code (CC) AMAXUE - Item 35.
If the case is being full closed,	Enter the current Manual Assessment amount, plus any prior Manual Assessment amounts that posted after the current TC 420, in Item 35 of the Form 5344.

Note: The Manual Assessment amount input should be for the tax period you are working only.

Note: Input dollars only. Do not input cents.

(4) If the Assessment Statute of Expiration Date (ASED) expires on the same day as the 23C date:

1. Prepare the Form 2859, and all required attachments.

2. Deliver the completed Manual Assessment Package to Team Lead for review.

3. Ensure faxed copy of Form 3210 is received back with a DLN the same day.

(5) CCP Team Leads are responsible to:

1. Review the Form 2859. This review should be a thorough review of all of the required boxes, amounts and attachments to prevent the Form 2859 from being rejected from Accounting.

   Reminder: Do not review interest computations.

2. Sign and date Form 2859.

3. Prepare three (3) copies of Form 3210, for each Manual Assessment Package.

4. Send the Manual Assessment Package to the appropriate Accounting SharePoint site.

5. Provide a copy of the Form 3210 reflecting the date received stamp, the Form 3210 reflecting the DLN of the Manual Assessment, and the Form 3552 from Accounting to the applicable TE within 24 hours of receiving each form back from Accounting.

(6) IDRS Control Procedures

• Open an IDRS control base on all Manual Assessment cases to ensure an appropriate audit trail and visual comments for anyone needing to verify current activity.

(7) IDRS Control Activity and IDRS History must include:

1. MAAS23Cdate (i.e. MAASMMDDYY)

2. HOLD4DOC51

(8) Special Notes:

1. Elevate to the Team Lead or Manager any manual assessment that does not post within the 6-8 week time period, including those in an unpostable status.

2. File DMI history per Alert 13 procedures. The history sheet should be filed within one week of assessment’s posting.

(9) Follow the processing procedures below in situations where it is discovered (before the 23C date) the amount of a manual assessment request is incorrect.

(10) Accountability:

1. TEs are responsible for ensuring the Form 2859 and the Form 3210 reflecting a date received stamp is received prior to the expiration of the 23C date.

2. Accounting is accountable for the manual assessment from the time they received and date stamp the Form 3210 for receipt of the Form 2859 until the assessment is journaled into Interim Revenue Accounting Control System (IRACS) and subsequently to IDRS.

3. In unpostable situations, Accounting may make contact with the initiator to obtain information to correct the unpostable condition. The TEs are responsible for a case assessment until it posts. TEs will monitor unpostables created by Accounting and assist in the resolution of the unpostable, if needed.

(1) Memphis CCP Tax Examiners (TE) should send a technical request to the FORT team for clarification on any Statute Expiration Date that is questionable. The CCP Statute Coordinator will verify what the valid statute expiration date is.

(1) If a CCP employee discovers a potentially expired statute, the Tax Examiner (TE) should complete a CCP Exam Field Office Resource Team (FORT) Referral Form. The TE needs to identify that this is an expedite statute case. In the additional case information box, write "Potential Barred Assessment" and immediately send the form to their manager. The manager will initial and date the bottom of the referral form. The manager will follow procedures outlined in Alert 14 and work the CCP Department Manager and CCP Statute Coordinator to take appropriate action.

(2) Find the definition of a Barred Statute in IRM 25.6.1.13.2.4, Statute of Limitations Processes and Procedures.

(1) Form 5344 and Form 3198 are required when closing examined closures.

(2) Form 15292, Case Closing Cover Sheet, is used by LB&I to close cases electronically.

(1) The following items must be completed before the form can be input for closing. Report Generation Software (RGS) carries over items from Form 4549, Report of Income Tax Changes, and other fields within RGS such as grade of examiner, hours, etc. to the Form 5344.

(1) Depending on the function closing the case to CCP, a check mark will be placed in the box if the Form 5344 is for a full closure of any Pass-through Control System (PCS) linked investor. CC TSCLS releases a freeze on AIMS to allow the return to close. A PICF Code 4, 5 or 6 denotes an investor case is linked through Pass-through Control System (PCS) and prevents the premature closing of the investor return until all necessary pass-through adjustments from the related key-case(s) to the investor return have been resolved. CC TSCLS must be entered at the terminal before a final closure of a PCS linked case. CC TSCLS should not be input if a partial assessment is appropriate and the case is being transferred to the Campus Pass-through Function (CPF), or it is being closed to Appeals. When entered, the CC TSCLS will automatically check all of the investor’s linkages to determine if they have been closed. If all linkages are closed, then CC TSCLS will set the PN-SUM-CLOSED-IND on the partner PCS record. The PICF-DC will update to a closed status 7 or 8 on the PCS and AIMS databases. When the “Request Completed” message is transmitted to the IDRS screen, CCP can proceed to enter the CC AMCLS.

(2) Should all linkages not be properly closed upon input of the CC TSCLS, the error message “Cannot Close, PCS Control” will be displayed on the IDRS screen. CCP will input CC TSUMY, secure a print, attach it to the Form 5344 and route the case file back to the originator for resolution.

(3) All Pass-through Control System linkages must be released before the investor return can be surveyed. Partnership Inventory Control File (PICF) Codes 4, 5 and 6 prevent the premature closing of the investor return until all necessary pass-through adjustments from the key case(s) to the investor return have been resolved. Command Code (CC) TSCLS releases the freeze on AIMS to allow the input of CC AMSOC. When CC TSCLS is entered, it will automatically check all the of the investor’s linkages to determine if they have been closed. If all linkages have been closed, then CC TSCLS will set the PN-SUM-CLOSED-IND on the partner record and the PICF-CD to a closed status on the PCS and AIMS databases. When the "Request Completed" message is transmitted to the screen, the operator can proceed to enter the CC AMSOC.

(4) Should all linkages not be properly closed, upon input of the CC TSCLS the error message "Cannot Close, PCS Control" will be displayed on the screen. Secure a CC TSUMY print, attach it to the closing request and route the case file back to the originator. The file should be suspended by the appropriate function. Coordination with the Technical Services Pass-through Coordinator (TSPC) may be required to transfer the file to the Campus Pass-through function (CPF).

(1) Add the definer to CC AMCLS depending on the type of closure. Definers are:

1. E = Examination (Long Closure),

2. F = Examination/Appeals (Partial Assessment),

3. I = IRAF (Individual Retirement Account File),

4. S = Separate Spousal Agreement (MFT 31 adjustment), or

5. U = Unpostable (input of correction).

   Note: For RGS users, the AMCLS definer is input by CCP. If you are trying to set up an MFT 31 case on RGS, the Form 5344 will have to be manually prepared for input of the AMCLSS closure.

(1) Complete Positions 7-34 and Item B using the following instructions.

(1) Only NMF accounts require a batch position indicator. This field is used to indicate whether the record being processed is the first, last, continuation, addition to a block, or a single closing of a block.

(2) Valid indicators are as follows:

1. "F" - first closing within a block. After this record is processed, the computer will change the F to a C.

2. "C" - continuation with a block as interrupted and left open.

3. "L" - last closing within the block. If this is not entered with the last closing, it is not possible to begin a new book.

4. "R" - reopen a previously closed book. After this record is processed, the computer will change the R to a C.

5. "S" - single closing (one case for the block). This indicator will open the block, process the account, and close the block.

(1) All closures require a blocking series number. For a list of blocking series, refer to Document 6209, Section 12, Examination.

(1) This field is used by the terminal operator to number the input documents.

(1) Enter the SSN of the spouse when there is an adjustment to the spouse’s Individual Retirement Account (IRA).

(1) The Penalty Reason Code is a two-digit number and a required entry if penalties are being abated.

(2) Refer to IRM 20.1.1, Introduction and Penalty Relief, for procedures pertaining to penalties.

(3) For additional information on penalty reason codes, refer to Section 10-9 in Document 6209.

(1) When preparing Form 5344 for any partial assessment or final closing, input of this date causes the taxpayer’s account to reflect a Master File Status 30. If the C-Corporation taxpayer does not pay the balance timely, 30 days are added to this date to establish a Large Corporate Underpayment (LCU) trigger date. The accuracy of this date is critical because once the 30th day from the notice date elapses without a payment, the taxpayer is subject to an underpayment interest rate which is 2% higher than the normal interest rate until the account is full paid.

(2) Refer to IRM 20.2.5, Interest, Interest on Underpayments, Large Corporate Underpayments (LCU) Introduction, for all procedures pertaining to interest.

(1) When Item 03 is entered, Items 04 and 05 must also be completed.

(2) The amount must be over $100,000 in tax.

(3) Item 04 letter amount must equal the tax amount on the earliest 30 or 90-day letter sent to the "C-Corporation" taxpayer.

(4) Refer to IRM 20.2.5.8, Interest, Interest on Underpayments, Large Corporate Underpayment (LCU) Introduction, for all procedures pertaining to interest.

(1) This entry must be 30 days later than the date entered in Item 03 and serves as the trigger date for LCU interest accrual. Entry in this item requires a TC 340 for interest and Item 6A "Debit Interest to Date". CCP will enter the TC 340 amount and the Item 6A date.

(2) Refer to IRM 20.2.5.8, Interest- Interest on Underpayments, for all procedures pertaining to interest.

(1) Refer to IRM 20.2.5, Interest, Interest on Underpayments, for all procedures pertaining to interest.

(1) Refer to IRM 20.2.4, Interest, Overpayment Interest, for all procedures pertaining to interest.

(1) Refer to IRM 20.2.8.11, Interest, Restricted Interest, Non-Restricting Transaction Code (TC 340), for all procedures pertaining to interest.

(1) Hold codes, ranging from 1 through 5, are used to restrict certain Master File actions with the posting of adjustment transactions. Only use one of the following when applicable.

(1) This date is used at Master File (Waiver 870 date) to identify if the agreed and unpaid assessment was posted to the account within 30 days of the waiver being signed. If the date of the agreed and unpaid assessment (known as the 23C date) is later than the waiver plus the 30-day date, then interest on the agreed amount is suspended from the 30th day after the agreement, until full paid, or the 23C date of the assessment.

(2) Only returns with an MFT of 02, 05, 12, 30, 31, 51, and 52 require an agreement date. If an agreement date is entered other than for the MFTs above, Master File will allow for an interest-free period, which is not correct.

(3) An agreement date is required to be entered on agreed deficiency cases if the disposal code is 03, 04 or 09 and Item 12 contains an increase in tax and the MFT is 02, 05, 12, 30, 31, 51, or 52.

(1) These codes must be used to post adjustments to the Master File (MF) when certain conditions exist. Failure to use the priority code when specified will cause the transactions to unpost, causing erroneous notices, refunding or billing especially in cases where multiple adjustments and/or credit transfers are being processed. If an adjustment needs a priority code it may indicate that Collection, Examination, or Statute should be consulted. It may also question the validity of a tax abatement, such as an abatement of tax on a return with a Collection Field Function Secured Return Code, no math error code, and the module is in Status 60 is questionable as the return was assessed as filed, filed late, and contained the information the taxpayer wanted the Revenue Officer to review.

(2) Priority Codes (PC) 1, 2, 3, 4, 5, 6, 7, 8, or 9 must be used with extreme care. Priority Codes are input by CCP.

(3) The table below provides an explanation of the priority codes, when to use them and which Unpostable Code (UPC) with the applicable Reason Code (RC) will be bypassed when you enter a particular PC.

(1) For Cases closed with a TC 304, 305, 308, or 309, CCP will enter the interest computation date which identifies the interest start date for the tax adjustment amount entered with a TC 304/305/308/309.

(1) This field is used to enter the examination adjustments. This entry is dependent on the disposal code.

(1) 01-04, 09, 10, 12, 13, or 34 is required on all examined closings.

(1) If the statute expiration date has been corrected or extended, and has not been updated on AIMS, enter the extended date in Item 14.

(2) Failure to input a numeric date will cause an unpostable condition if the MF statute date has expired and an assessment attempts to post.

(3) Item 14 is a required entry if making an adjustment to an Individual Retirement Account (IRA) MFT 29 module.

(1) Entries in this item are used to:

1. Update information fields on Master File (not applicable for non-taxable returns),

2. Adjust credits on individual, fiduciary and corporation returns,

3. Post changes to adjusted gross income or self-employment tax on individual returns,

4. Provide Master File a means to distinguish certain miscellaneous penalties on which to generate interest, and

5. Adjust and identify the types of tax being adjusted on excise or employment tax returns.

(1) This item is entered by the employee inputting Form 5344.

(2) The entry should include the operator’s employee number and the date of input.

(1) This item is only to be completed if the Form 5344, is rejected at input.

(2) The employee enters the date rejected, the item number that rejected or a screen print of the reject message.

(3) The employee who corrects the item writes the correction date in Item F block and returns the form for input.

(1) A fourteen-digit number by which returns can be stored and associated.

(1) The date the correction is made will be placed in the corrected block by the person making the correction to the item rejected.

(2) The Form 5344 will then be reinput.

(1) Valid only for MFT’s 01, 02, 04, 06, 10, 11, 14, 16, and 30 for tax periods 199812 and subsequent.

(2) If the NAICS Code is not accurate on the AIMS database, enter Reference Number 410 and the 6-digit NAICS Code in Item 19.

(1) Enter the agreement date of the formal claim disallowance form, e.g., Form 2297, Waiver of Statutory Notification of Claim Disallowance, if the taxpayer signed the waiver.

(2) If the taxpayer does not agree, enter the date the formal claim disallowance letter is sent to the taxpayer.

(3) If this item is entered, Item Numbers 22, 23, 24 and an amount claimed are also required.

(4) If a date is entered, the Disposal Code must be 01, 03, 04, 08, 09, 10, 12 or 13.

(1) Enter the amount of the claim as defined in IRM 4.10.11.2.2.1, Claims for Refund - Forms. The claim amount is only tax and cannot exceed the amount paid by the taxpayer.

(1) Protection of the revenue base is the work performed by Examination personnel to prevent the release of money from the Treasury to a taxpayer.

(2) The most common example is the examination of a claim for refund filed by a taxpayer. If the claim is disallowed, Examination is preventing the release of money from the Treasury. The protection of revenue is measured through the completion of the Revenue Base Protection (RBP) Section of Form 5344 Items 20-24.

(1) Enter the dollar amount of the refund requested by the taxpayer that was protected (disallowed) from leaving the Treasury. This amount cannot exceed the amount claimed (Item 21 or claim amount on AMDISA).

(1) The first five digits represent whole hours.

(2) The right most digit:

1. For field EGCs enter 0, 3, 5 or 7 which represents quarter hours (0; 15; 30 and 45 minutes).

   Note: Do not include time entered in Item 28.

(1) An alpha code (A-Z) that identifies the type of claim for refund. Please refer to IRM 4.38.1.7.1 for more information.

(1) The Examiner’s time is a required entry made up of the total amount of time spent on non-revenue base protection issues for each return examined. Field groups can only enter time in 15-minute increments.

(2) The first five digits represent whole hours

(3) Enter one of the following numbers in the right most digit to indicate the fraction of an hour charged:

1. 0 for 00 minutes,

2. 3 for 15 minutes,

3. 5 for 30 minutes, and

4. 7 for 45 minutes.

(1) An entry of 1-4 or 6-9 is required for all examined returns.

(1) Enter the grade of the examiner who closed the case.

(2) The entry must be two digits, 03 - 14 are valid entries.

(1) Group managers determine grade of case for all returns with a 1XXX employee group code.

(2) The final grade level of difficulty is determined when the examination has been completed. The manager will consider both the primary and related returns to determine the grade level.

(1) This item is required for area examinations only. The examining revenue agent must enter their last name and first initial only.

(1) This field is used to reflect adjustments to non-taxable returns to estimated tax results. It is the revenue agent’s responsibility to verify the adjustment amount is accurate.

(2) This is a dollars only field - Do not enter cents.

(1) Enter the net of all adjustments that are processed using the quick (manual) assessment procedures. For information on quick assessments, refer to IRM 4.38.1.7.3.4, Quick Assessments.

(2) If more than one quick assessment has been processed, ensure that this entry is the total of all assessments processed. Refer to IRM 4.38.1.7.3, Examined Closings, Surveyed Claims, and Partial Assessments, Reopened Cases.

(1) All items that are to be included in the hash total are listed on the Form 5344 under Item 36, Hash Total. The Hash Total will include the following items from Form 5344:

1. P24-29 - Tax Period,

2. 12 - Tax, Penalty and Interest Adjustments,

3. 15 - Credit, Tax Computation Credit Adjustments and Penalties with REF Numbers,

4. 18 - Unagreed Amount Appealed/Petitioned,

5. 21 - Amount Claimed,

6. 22 - Dollars Protected,

7. 23 - RBP Hours,

8. 28 - Examiner’s Time,

9. 34 - Adjustment Amount,

10. 35 - Manual Assessment Amount,

11. 44 - NOL CF Disallowed Amount,

12. 46 - Credit CF Disallowed Amount,

13. 402 - International Examiner Time,

14. 403 - International Exam Results,

15. 404c - Form 720, Abstract Time,

16. 404d - Form 720, Abstract Examination Results,

17. 404e - Form 720, Abstract Claim Time,

18. 414 - Delinquent Return Amount,

19. 415 - Amended Return Amount, and

20. 418 - 3121Q Amount.

    Note: For items 12 and 15, include only the amounts to the right of the transaction code and ignore the decimal point.

(2) The computer will compare the hash total entered in Item 36 to the total of individual items as entered by the terminal operator. This will ensure the accuracy of the input of individual entries.

(1) Item 37 must always be completed when closing delinquent returns picked up during the examination and sent to the campus of a posting for TC 150.

(2) This entry gives Examination credit for a delinquent return pick-up on Table 37.

(3) If the delinquent return is incorporated into the examination, this item must be blank.

(4) If a TC 150 SFR has posted, this item must be left blank.

(5) If Item 37 is entered, Item 414 is required.

(1) "F" will be entered if criminal prosecution has been successfully concluded.

(2) "C" will be entered if the 75% fraud penalty was asserted under IRC 6663.

(3) "B" will be entered if both criminal and civil apply.

(1) The appropriate three-digit state agency code is entered when disclosure is made to a state agency. The entry of this field causes a TC 120 to be generated. Refer to IRM 11.3.37-4 State Agency Codes, for a list of the codes.

(1) Identifies examined issues that resulted in no change to taxable income. The no-change issue codes are stored at Master File and can be viewed using IMFOLZ/BMFOLZ. If a subsequent return is examined, these codes are printed on the Form 5546, Examination Return Charge-Out Sheet.

(2) The codes are entered by the RA/TCO without periods or dashes from Pub 1102, Uniform Issue List.

(3) Alpha codes are valid in Item 41.

(4) Up to five entries may be made. If there are more than five no change issues, the five most significant issues may be entered.

(1) The posting of the adjustment can be delayed from 1-6 cycles. CCP will enter a posting delay code when necessary.

(1) Reviewer’s signature and date must be entered in this field if the return was reviewed.

(1) The name of the tax examiner that processed the Form 5344 must be entered in the space provided.

(1) A three-digit numeric code that indicates the reason a particular adjustment is being made or why a particular reference number is being used. There are several reason codes valid on master file. However, only the reason codes listed below are valid on AIMS.

(2) The same reason code can appear only once in Items 51-53. Valid reason codes are:

1. First-Time Homebuyer Credit (FTHBC): 109-110, 112-123, 125-129, 130, 132 and 133. Requires a credit reference number in Item 15 of Form 5344.

2. 2010 Gulf Region Oil Spill: 135. There is no associated credit reference number with this reason code.

3. Affordable Care Act (ACA): 136 and 137. Requires a credit reference number in Item 15.

4. Identity Theft: 139. There is no associated credit reference number with this reason code.

5. Criminal Restitution: 141-148. There are no associated credit reference numbers with these reason codes.

(3) For additional information, refer to the Issues and Procedures tab, Close a Case, on the Examination home page, Form 5344 Items 51-53 Valid Reason Codes.

(1) When a Form 720 is established on AIMS, the database contains only one abstract code which is located in the activity code field. All activity codes that were examined must be entered in Item 404.

(2) Entries for the total time spent on the case and all assessments are made on the front of the Form 5344.

(3) Entries for AIMS statistical reporting purposes are made in Items 404a - 404e on the back of the form.

(1) When the entry in Item 408 is an "S", Items 405-407 are a required entry for all examined returns worked by:

1. Revenue Agents in 1XXX Employee Group Codes,

2. Tax Compliance Officers/Tax Resolution Representatives in 2XXX Employee Groups Codes, and

3. LB&I examiners in PBC’s 320 - 328 and 330.

(2) Exempt from this requirement are CPF cases in 54XX, 57XX and 58XX employee group codes. EGC 54XX is for ILSC cases and 57XX is for BBA Ch2/2A cases. All three EGCs are for CPF controlled cases.

(3) The information entered must be from the primary return which is the initial return that started the examination.

(4) If several returns were assigned initially, the Examining Officer will designate one return as primary.

(5) Missing or conflicting information will cause a terminal reject.

(6) Item 405 is for the TIN of the primary return.

(7) Item 406 is for the MFT of the primary return.

(8) Item 407 is for the Tax Period of the primary return.

(1) An entry of "P" indicates Primary Return and Items 405-407 must be left blank.

(2) An entry of "S" indicates Secondary Related (return). The Primary Return information must be entered in Items 405-407.

(1) Required entry on all cases (except employee group code 58XX). This code is used to monitor the number of cases in which Examination has secured a payment and whether the payment has resulted in the account being full paid, full paid due to an offset or part paid.

(2) To determine whether the account is full paid or part paid, Field Exam will consider the tax, penalty, and interest, adjusted by credits per the Examiner’s report. Use the interest amount from the Examiner’s report even if a payment is secured at a later date.

1. Select the code based on the payment status of the account at the time of closing from the group.

2. No other codes may be used without Headquarters approval.

(1) Required on all Field Exam cases.

(2) Field Exam should include the code based on the information below:

1. I = Installment agreement request received (this includes Estate Tax Return installment agreement requests under IRC Section 6166).

2. C = Coordinated with collection (no installment agreement request received).

3. N = No installment agreement request received (includes a statement by the taxpayer they will pay within 120 days or are unable to pay.

(1) This item is for delinquent returns secured by Examination and forwarded to the campus for posting of the TC 150.

(2) Do not input if an SFR TC 150 DLN is posted to the module.

(1) Reflects the amount of FICA adjustment made by issuing notice and demand to the business for employer’s share of FICA on unreported tips.

(2) Only valid for MFT 01, 11, or 14.

(1) Reflects dollars protected during audits of Estate and Gift Tax returns for Disposal Code 01 cases, which do not necessarily yield tax dollars at the present time but do reflect a tightening of the tax gap.

(2) Only valid for MFTs 51, 52, 53 and 54.

(1) Reflects the Deceased Spouse Unused Exemption (DSUE) Amount from audits of Estate and Gift Tax returns.

(2) Only valid for MFTs 51, 52, 53 and 54.

(1) Form 5344 is used for closing surveyed claims. Surveying a claim is considered an examined closure, not a non-examined closure. The purpose of surveying the claim is to allow the entire refund requested by the taxpayer. The only way to allow the refund it is to complete Form 5344. The form has indicators next to the item numbers to indicate required (#) and optional (&) item numbers when using Disposal Code 34.

(1) Item numbers 12, 13, 21 and 36 are required on Form 5344.

(2) Item numbers 02, 6A, 6B, 6C, 07, 09, 11, 15, 19, 39, and 43 are optional on Form 5344.

(1) When it becomes apparent that the case has an imminent statute date and an assessment is needed for part of the tax, the Field must contact the Field Office Resource Team (FORT) Manager for Small Business/Self-Employee (SBSE) and Large Business & International (LB&I) cases or CCP Field Liaison for Specialty cases to notify them that a partial assessment is needed on the case.

(2) Email or eFax CCP (depending on the site requirements):

1. Form 4549, Report of Income Tax Examination Changes, or equivalent. Be sure to include the taxpayer’s signature, as well as any relevant tax and/or penalty computations needed to process the assessment,

2. Form 5344, Examination Closing Record,

3. Form 3198, Special Handling Notice for Examination Case Processing, and

4. Form 2285, Concurrent Determinations of Deficiencies, whenever carryback and restricted issues may apply.

(3) In the subject line of the email or eFax, notate "Partial Assessment Request."

(4) Do not ship the entire case file.

(5) Do not update Examination Return Control System (ERCS) out of the group status.

(6) CCP will:

1. Acknowledge the request within 48 hours of receipt.

   Note: Requests received on Friday afternoon will be acknowledged by Close of Business (COB) Monday).

2. Complete the assessment within five business days of receipt in the FORT, whenever possible. Assessments involving complex and restricted interest computations may take longer.

3. Stamp Form 5344Request Completed.

4. E-Fax a copy of the Form 5344 back to the group for association with the original case file to verify the assessment was completed.

(7) Please allow at least 10 business days from your original request before following up with CCP.

(1) Form 5344, Examination Closing Record, is used to input a partial assessment. The Form 5344 has indicators next to the item numbers that are required (*) and optional (&) when making a partial assessment.

(1) Item numbers 02-09, 11-15, 36 and 38 are valid. Refer to specific instructions below.

(1) Check tax module for credit balances. If a hold code is present, refer to the following instructions.

(1) A Hold Code 1 is automatically generated to prevent the release of an advance payment pending the processing of the final adjustment return.

(2) When a partial assessment is processed as a quick assessment, after Centralized Case Processing (CCP) has processed the quick assessment with Form 2859, Request for Quick or Prompt Assessment, prepare Form 3177, Notice of Action for Entry on Master File, requesting input of Transaction Code (TC) 570. The TC 570 will prevent the erroneous refund of a credit balance and advance/subsequent payment that may be on the tax module. Form 3177 should be e-Faxed to your CCP site. E-Fax numbers for CCP can be found at: CCP eFax Numbers.

(1) If the Examination groups wants a credit balance to be released, they must advise CCP accordingly. Notation should be made on Form 3198, Special Handling Notice for Examination Case Processing, in the "Other Instructions" section. Refer to the instructions below:

1. If a partial overassessment is to be released and Command Code (CC) AMCLSF is used, annotate Form 3198 requesting input of Hold Code 3 on Form 5344. Hold Code 3 will allow systemic release of the refund, eliminating the need for cycling and subsequent input of a TC 290 for zero to release the refund.

2. If a partial overassessment is to be refunded using manual refund procedures, annotate Form 3198 with "manual refund requested". Form 5344 for the partial overassessment must be processed within four weeks from the schedule date of the manual refund to prevent the taxpayer from receiving a bill resulting from a debit balance when the manual refund posts to Master File (MF).

   Note: A regular refund can be processed through AIMS and IDRS up to $10 million. Therefore, the only time a manual refund would be necessary is if the refund meets the requirements of IRM 21.4.4.2, Refund Inquiries, Manual Refund.

(2) If the final closure will result in a credit balance that the taxpayer wants to offset to another module, annotate on Form 3198 with "Move overpayment to MFT and Tax Period XX/XXXXXX". For BMF returns, offsets have to be manually moved if the debit balance module has a -E freeze or is being assessed at the same time.

(1) When a partial assessment is necessary on a module with an amended return freeze, CCP will input Priority Code 4. This will allow the partial to post without releasing the MF freeze.

(2) On Individual Master File (IMF) partials, if the failure to pay (FTP) penalty should be assessed and there is an amended return on the module, CCP will input Priority Code 3.

(1) When a partial assessment has been input and there is an open PCS linkage, an original and copy of the closing document must be included in the case file. The copy of the closing document will remain with the case file which will be forwarded to the Campus Pass-through Function (CPF). Technical Services will provide CPF transfer guidance on the second page of Form 3198. The original Form 5344 must be forwarded to the campus files area as the source document after terminal input.

(2) CC TSCLS should not be input if only a partial assessment is appropriate, or the case is being transferred to the CPF.

(1) Another Form 5344 must be prepared for the final closure. Refer to the information below for Form 5344 instructions.

1. If there are no additional adjustments to the tax previously assessed as a partial, enter a TC 300 for 0.00 in Item 12, use the agreement date from the partial assessment previously input in Item 08 and use Disposal Code 03, 04 or 09 in Item 13. Complete the remainder of Form 5344 items as required (i.e. TIN, MFT, tax period, etc.).

2. If there are additional adjustments to the tax previously assessed as a partial, enter only the increase or decrease from the amount processed as a partial assessment. Complete the remainder of Form 5344 items as required using the applicable disposal code. Depending on the final resolution of the additional adjustments, the return will either be forwarded to CCP (for an agreed closure) or to Technical Services (for an unagreed closure).

3. If the final closing is to Appeals, Item 12 must be left blank and the unagreed amount entered on Item 18 must not include the amount of tax previously assessed as a partial assessment. Complete the remainder of Form 5344, entries as required.

(2) If a situation exists where the final closing is ready to be processed at the same time as the partial assessment, CCP will cycle the final closing Form 5344 using a Posting Delay Code of 1 which delays the final closing one cycle after input of the partial assessment.

(1) All partial assessments processed through AIMS using CC AMCLSF will be reflected in the EXAM-CUM-ASSMNT-AMT field found on Page 3 of an AMDISA print. Upon the final closing, this field will be included in the AIMS/Exam Results field.

(2) If a partial was assessed as a manual or quick/prompt assessment, be sure to enter the net of all tax adjustments in Item 35, Manual Assessment Amount, of Form 5344. Manual and quick/prompt assessments are not input through AIMS. Therefore, entering the appropriate amount in Item 35 gives Examination credit for the tax.

(1) Additional information for partial assessments can be found on the CCP Knowledge Management SharePoint site: Quick Prompt and Partial Assessments.

(1) Quick assessments cannot be transferred to Master File (MF) for amounts of $100,000,000 ($100 million) or more.

(2) If the case is being worked in CCP, they will split and process these as multiple assessments on separate documents. CCP will also alert the campus accounting function by phone that the assessment is being split due to the large assessment.

(1) Upon receipt of the e-Faxed documents from Field Exam, CCP will:

1. Acknowledge your request within 48 hours of receipt.

   Exception: Requests received on Friday afternoon will be acknowledged by close of business the following Monday.

2. Complete the assessment within 5 business days whenever possible. Assessments involving complex and restricted interest computations may take longer.

3. Stamp Form 5344, "Request Completed."

4. E-Fax a copy of Form 5344 back to the group for association with the original case file to verify the assessment was completed.

(1) Prepare Form 2859, Request for Quick or Prompt Assessment, according to the Form 8278.

(2) Civil penalties are not controlled on AIMS. Therefore, after a civil penalty quick assessment has been input to MF, the entire civil penalty file will be sent to Files in the campus for refiling under the quick assessment Document Locator Number (DLN).

(1) Research IDRS Command Code (CC) TXMOD to determine if a payment has been made on the account, but has not posted to MF.

(2) Input a history item on CC TXMOD, "MAAS with the 23C date," to alert other IRS employees that an assessment is in the process of being posted. The history item will also prevent a manual refund of any payments sitting on the account that should be used to pay the deficiency.

(3) Also input on CC TXMOD, "HOLD4DOC51," which translates to holding for the Document Code 51 (assessment document). This action will cause the module to stay active on IDRS until a Doc Code 51 posts to MF.

(4) Research CCs INOLES, IMFOLE, BMFOLF, AMDIS or ENMOD to verify the most current address for the taxpayer.

(1) Following is a table used to determine the 23C date based on when the assessment statute will expire:

(1) If excess credits are on the account requiring a quick assessment, enter a TC 570 with a zero amount to prevent the credit(s) from refunding.

(1) Prompt or quick assessments may sometimes involve a deficiency for one tax period and an overassessment for another tax period. Refer to IRM 20.2, Interest, regarding debit and credit interest computations and dates to use for offsetting. In addition, process these situations as follows:

1. For the overassessment tax period(s), manually compute the interest and enter it with the applicable transaction code on the adjustment document along with a Hold Code 2.

2. Make the appropriate credit transfers on IDRS. If there is a Form 3870, Request of Adjustment, in the case file, make the appropriate credits transfers according to the form.

3. Enter the following caption on Form 2859 to alert the accounting branch of the available credit: Credit of $ (amount) being transferred from (period)”. Attach the Form 2859 to the deficiency year and forward to the accounting branch.

4. Forward the overassessment document for processing.

(1) When the quick assessment is for tax shown on a secured delinquent return (for example agreed/unpaid deficiency over $100,000), process the return the same as for a deficiency, except for the following:

1. CCP will enter the tax shown on the delinquent return in Part C, Item 3a (Tax-Original Return-TC 150) on Form 2859.

2. CCP will enter the return received date in Part C, Item 3b (Return Received Date) on Form 2859.

(2) Do not forward the secured delinquent return to the campus for processing.

(1) E-Fax or scan quick assessments to the Campus Accounting Branch using the following procedures.

1. Assign a control number for each Form 2859 that is e-Faxed, i.e., FAX 49-055-1. The 1st and 2nd digits are the processing campus code, the 3rd, 4th and 5th digits are the Julian date that the Form 2859 is actually e-Faxed; the last digit(s) is the number of the Form 2859. The control number will continue sequentially throughout the calendar year and will start over each January 1st. The control number should be entered in bold print on the top of each Form 2859.

(2) Prepare Form 3210 for each type of tax return. List the following:

1. Name Control,

2. MFT,

3. TIN,

4. Tax Period, and

5. In the remarks area, enter the 23C date and the note FAX QUICK ASSESSMENT.

(3) Address Form 3210 to the appropriate function. If you are e-Faxing the request, include the originator’s complete address, mail stop, and eFax number in the "FROM" section for e-Faxing back the received Form 3210.

(4) E-Fax the assessment forms in the following order with a cover sheet:

1. Form 3210, and

2. Form 2859.

(1) Receipt of a copy of Form 3552, Prompt Assessment Billing Assembly, is verification the assessment has been made.

(2) Upon receipt, verify the accuracy of the assessment amount, as well as the name, address, TIN, and tax period on Form 3552 for consistency with Form 2859.

(3) If any errors are detected on Form 3552 IMMEDIATELY contact the campus accounting function for issuance of a corrected bill.

(1) When a return is ready to be closed on AIMS after a quick assessment, the second adjustment document Form 5344 should not be input until after verification of the Form 3552 and a DLN is obtained from Accounting.

(2) Once the Form 3552 is received, prepare the second adjustment document and process it through IDRS to generate a refile DLN.

(1) When adjustments to Form 940, are processed as a quick assessment, the accounting function must ALWAYS be provided with the amount of the TOTAL CORRECTED 940 WAGES.

(2) If a credit reduction state is involved, the accounting function must also be provided:

1. The credit reduction wages,

2. The state(s) the credit reduction wages applies to, and

3. The total credit reduction amount.

(1) Examination records that were closed (Status Code 90), but still on AIMS, can be reopened using IDRS CC AMSTUR. Examination records that were closed to Appeals (Status Code 8X), can be returned to Examination from Appeals using IDRS CC AMSTUB.

(2) Input of the CC AMSTUR generates a TC 420 to Master File. It does not generate a request for the return.

(1) Restrictions are based on whether the original closing was an examined or no-examined closing.

(1) There are two indicators that reflect if a return has been reopened or backed down from Appeals - the Reopening Indicator and the TC 300 Indicator.

(2) The Reopening Indicator will be set when a return is reopened on AIMS. It remains set after the case is reclosed. The table below provides the definitions for the reopening indicators. This information is also contained in IRM 4.1.1, AIMS Procedures and Processing Instruction, Introduction.

(3) The TC 300 Indicator is set to a "6" if a return has been reopened or backed down from Appeals. The table below provides the definitions for the TC 300 indicators. This information is also contained in IRM 4.4.1, AIMS Procedures and Processing Instructions, Introduction.

(1) The need to reopen a return on Audit Inventory Management System (AIMS) in Centralized Case Processing (CCP) Exam should be rare.

(2) These cases would need to be reopened on AIMS using Command Code (CC) AMSTUR.

1. This should only be done if the Tax Examiner (TE) cannot use CC TERUP / QRACN to delete their erroneous entry on the date of input.

(3) CCP Tax Examiners (TE) will only reopen cases that are in Status 90 if they were closed incorrectly and there is a need to reclose them.

1. These situations are non-examined cases and cases that have been closed on Examination Return Control System (ERCS) but are still open on AIMS.

2. CC AMSTUR is used when closed examination records are in Status 90, but are still on AIMS. TEs will need to complete Form 5348, AIMS/ERCS Update (Examination Update), and submit the form per local procedures.

   Note: Returns that are no longer on AIMS cannot be reopened. Please refer to the Lead if this situation occurs.

(1) For Examination Return Control System (ERCS) users, controls may be requested using Form 5345-D, Examination Request- ERCS (Examination Returns Control System) Users. Input of Form 5345-D, Examination Request- ERCS (Examination Returns Control System) Users, eopens the ERCS controls only. Procedures for reopening depend on whether the return is still on AIMS.

(1) Charge-outs and labels are not generated when a return is reopened on AIMS. Use CC AMLAB if labels are needed.

(1) When reopening a return, you must enter the appropriate source code. The following examples provide guidance for determining the source code.

1. The return is on AIMS (AMDIS available), use the same source code (SC) as the original opening, unless the original closure was non-examined in which case use an appropriate source code.

2. The return is not on AIMS (no AMDIS available), use an appropriate SC.

(2) For additional assistance in determining the appropriate source code, refer to the Source Code job aid at: Source Code Job Aid in the AIMS/ERCS book of the Exam Procedures Knowledge Management Base.

(1) Reopening in the same fiscal year or subsequent fiscal year has no bearing on how the case should be reclosed.

(2) A non-examined closing must be reclosed as examined.