4.4.21. Non-Examined Closures and Deleting AIMS Records

(1) Other than the Transaction Code (TC) 640 credit that must be resolved before the case can be closed as non-examined, leave other credits on the module. The credits will be systemically moved to the Unapplied Statute Credits Account after the refund statute expires. See IRM 4.4.21.1.2.4, TC 640, for information.

(1) Records closed and then reopened cannot be reclosed as non-examined. See IRM 4.4.26, Reopening/Reclosing/Reinputting Records.

(1) You cannot close a case as non-examined if there is an amount in the EXAM-ASSESS-CUM-AMT field on page two (2) of the AMDISA.

(1) Records cannot be closed non-examined if there is an advance payment, TC 640, on the module. The TC 640 must be resolved.

(2) You must determine the reasons(s) the taxpayer made an advance payment of deficiency on a tax period that is being surveyed.

1. Research Information Data Retrieval System (IDRS) and AMDIS to determine if posting errors, cycling problems or examination errors caused the advance payment to post to an incorrect tax module.

2. Check the spouse's taxpayer identification number (TIN) for possible incorrect posting of the payment.

3. Secure the payment document to screen for use of the wrong TIN, tax period, or other data that caused the TC 640 to be posted incorrectly.

4. Contact with the taxpayer may be necessary to determine why the payment was made.

(3) If the TC 640 was used in error, reverse the TC 640 and post the correct transaction as appropriate by submitting Form 3870, Request for Adjustment.

(4) If the payment was posted to the incorrect module, determine the correct TIN or tax period and input a credit transfer. See IRM 4.4.3, Credit Transfers and Reprocessing Returns, for procedures on credit transfers.

(5) If research indicates the TC 640 posted correctly but there is no correlating posted or pending assessment on the module and the assessment statute expiration date (ASED) is imminent, determine whether a quick assessment is required. Take all appropriate measures to ensure that any required assessment is posted to the account and/or assigned a timely document locator number (DLN) prior to the expiration of the ASED.

(1) A case cannot close as non-examined if there is a TC 976 or TC 977 freeze on AIMS (Freeze Code "-A").

(2) Generally, the amended return or duplicate return must be secured to determine the correct disposition of the case.

(1) All Partnership Control System (PCS) linkages must be released before the investor return can be surveyed. Partnership Investor Control File (PICF) Codes 5 and 6 prevent the premature closing of the investor return until all necessary flow-through adjustments from the key case(s) to the investor return have been resolved.

(2) 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 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 data bases. When the "Request Completed" message is transmitted to the screen, the operator can proceed to enter the CC AMSOC.

(3) 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 suspensed by the appropriate function. Coordination with the Area TEFRA coordinator in Technical Services may be required to transfer the file to the Campus TEFRA function.

(1) AIMS Freeze Codes A - T, V, W, Y and 1 - 9 must be released before the case can be closed.

(2) AIMS Freeze Codes U and X will not prevent a non-examined closure.

(3) AIMS Freeze Code Z will prevent a non-examined closure if the disposal code is 29.

(1) This input generates a Substitute for Return TC 150.

(2) A TC 570 is generated if a credit is on the module.

(3) Do not remove the TC 570. The credit will move to excess collection file 5 years after the last TC was input.

(1) One thousand (1,000) AM424Ds can be input per computing campus per day. If more than 1,000 records are input on the same day, you will get a "Request Completed" response but they will reject during the end-of-day run and manual TC 421s must be input.

(2) If your office needs to delete more than 300 records using AM424D on the same day of input, contact the SB/SE Headquarter AIMS Analyst. If necessary, the SB/SE Headquarter AIMS Analyst will coordinate with other requests.

(1) The following rules apply after the day of input. The group is responsible for monitoring its TC 424 overage listing and to take the appropriate steps to correct problems. The group will prepare Form 10904 and send to the local AIMS/ERCS analyst after securing the proper managerial approval.

(1) Skeletal records without push codes that have been on the data base for over 15 days can be deleted. They are called "Hanging TC 424 Records" and usually occur due to a computer problem.

(2) They will appear on the TC 424 Overage Report after 30 days. Enter "Hanging TC 424 Record Over 30 Days - AM424D and TC 421 requested" on the Form 10904.

(1) For true error accounts, complete Form 10904 to request the record be deleted.

(2) If the case is not an error account, it must not be deleted but closed with the appropriate disposal code.

(1) Prepare Form 10904 and request a DC 33 be input.

(1) There are no restrictions on deleting non-Master File (NMF) records. Check the box for a CC AMNOND on the Form 10904.

(1) If it is determined that an examination is not warranted, the account can be approved for closing.

(1) If it is determined that an examination is warranted or is already in progress, and all attempts to locate the return are unsuccessful, and an electronic print is not sufficient, contact with the taxpayer should be made to secure the necessary information in order to complete the examination. This could be a copy of the return, claim, examination report, etc.

(2) If the original return was received and subsequently lost, or if the return was examined and the case file cannot be located, the following procedures will be used to reconstruct the case file when a copy cannot be secured from the taxpayer:

1. The examining function will prepare a "DUMMY" return and annotate at the top of the return "ORIGINAL DESTROYED/MISSING/LOST".

2. The file must include documentation to support the preparation of the "DUMMY" return, specifically information on the efforts made to locate the missing/lost return.

3. The file must also contain an electronic print of the account, a copy of the examination report, and a current AIMS print.

(3) Close the examination using normal procedures. Identify the closure as being "Closed Using a DUMMY."

(1) CC AM424D with a Disposal Code 36 through 41 will generate a TC 59X which will close the Master File controls. If a disposal code is not input, and there is a TC 59X at Master File, it will remain open.

(1) CC AMSOC with a Disposal Code 36 through 41 will generate a TC 59X which will close the Master File controls. If the disposal code is not input, and there is a TC 59X at Master File, it will remain open.

(1) Managerial approval is required for all non-examined closures except DC 20 if the EGC is 5XXX.

(2) The manager's signature and date is entered on the applicable form.

(1) This form is used for LB&I Imaging Network (LIN) closings.

(2) Enter the two digit disposal code on the form.

(3) Attach the prepared Form 4251 to the return or electronic print.

(1) Only one type of tax (Master File Transaction-MFT) can be used on each form.

(2) Each form can be used to transmit up to 20 closings when the MFT is the same. Additional pages can be attached so that up to 100 closings of the same MFT can be transmitted at the same time.

(3) If more than one page is used, indicate the page number and the total number of pages (maximum of five) in the upper right corner of the form.

(4) More than one disposal code may be used.

(5) Enter the requester's initials, organization routing symbols and date.

(6) Attach the "Audit" label of the case being closed.

(7) Enter the two digit disposal code in the lower left of the label below "Status." If you do not have a label, write "DC XX" (where XX is the disposal code) in the lower left corner of the block for that specific taxpayer.

(1) Enter the two digit disposal code in the space on the second line of the form that follows the words "Non-Examined Disposal Code."

(2) Attach the prepared Form 5546 to the return or electronic print.

(1) Attach Form 4251, Form 5351, or Form 5546 to the return or electronic print and forward to CCP.

(2) If there are workpapers or other documentation (no original return) which must be retained and the information should be retained, send to Files in the Campus. The case can be closed non-examined a nonexamined disposal code (except 28 or 33) with an electronic print. Forward the case to CCP for closure.

(1) If the only paper in the case file is an electronic print, (BRTVUE, CDE, TRDBV, TRPRT, TRDBB, IMFOLT, TXMOD) and no Form 1900, Income Tax Survey After Assignment, no workpapers, etc., and the original return was NOT requested (line 8 on page 2 of the AMDISA does not state "Return Requested"), a paperless closure can be requested.

(2) The disposal codes to be used on a paperless closure are: 31, 32, and 42.

(3) Prepare Form 5351 as stated above and Form 3210, Document Transmittal.

(4) Update the return to Status Code 51 on ERCS.

(5) Fax the Form 5351 and Form 3210 to CCP:
Cincinnati: 859–669–2674
Memphis: 901–786–7106
Ogden: 801–620–2103

(6) Shred the electronic print. Do not send to CCP.

(1) Close the case on ERCS to Status Code 90 using Disposal Code 20 - 22, 25, 31, 32, 35, and 42.

(2) Do not update the ERCS status code to 51.

(3) Do not fax any documents to CCP.

(1) For Individual Master File (IMF) returns, use Blocking Series 130 - 179 for non-TEFRA (Tax Equity and Fiscal Responsibility Act) surveys and 190 -199 for TEFRA surveys.

(2) For Business Master File (BMF) returns, use Blocking Series 28X.

1. Close BMF cases directly on AIMS.

2. Do NOT close BMF cases through ERCS.

(1) Form 6759, Request for Taxpayer Information, is used to request an account be zapped.

(2) Attach the following supporting documentation to the request:

1. Current IDRS printout of AMDISA

2. Written explanation of the zap request

3. IDRS number of the requester