4.5.2. TE/GE Examined and Non-Examined Closures

(1) Item A, CC TSCLS, is to be entered by the Tax Examiner.

(2) Place a check in the box if the Form 5650 is for a full closure of a TEFRA related return. CC TSCLS must be entered at the terminal before a final closure of a Partnership Control System (PCS) linked case. CC TSCLS releases a freeze on AIMS to allow input of CC AMCLSP. Partnership Information Control File (PICF) Codes 5 and 6 denote cases linked through PCS and prevent the premature closing of the investor return unless all necessary flow-through adjustments from the key-case(s) to the investor have been resolved. Refer to IRM 4.29, Partnership Control System and IRM 4.31, Flow-Through Entity for procedures on TEFRA-PCS.

(3) CC TSCLS should not be input if only a partial assessment is being made, the case is being transferred to the Ogden Campus Center PCS Function; or is being closed to Appeals. CC TSCLS will automatically check all of the investor’s linkage to see if they have been closed. If all linkages are 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 the AIMS data bases. When the "REQUEST COMPLETED" message is transmitted to the screen, the Terminal Operator can proceed to enter the CC AMCLSP.

(4) If all linkages were not properly closed upon input of the CC TSCLS, the error message "CANNOT CLOSE, PCS CONTROL" will be displayed on the screen. The Terminal Operator must input CC TSUMY, secure a print, attach it to the Form 5650 and route the case file back to the originator.

(1) Item CC AMCLS_ is completed by the Closing Function.

(2) The Closing Function must enter the definer to indicate the type of closure necessary, e.g., AMCLSA (Appeals), AMCLSP (EP Examination), AMCLSU (Unpostable), or AMCLSO (EO, EP & GE Form 5599).

(1) Positions 7-18, TIN, is to be completed by the Agent.

(2) The Taxpayer Identification Number (TIN), i.e., EIN or SSN, will be included on the audit label or must be entered in the left-most position.

(3) Enter EIN for all 5500 Series Returns beginning in the left-most position followed by File Source "P". Form 5330 NMF returns closed with an EIN, should have a File Source "N" entered after the EIN. When closing Form 5330 NMF returns with an SSN, should have a File Source

1. EIN format is NN-NNNNNNN followed by the applicable File Source

2. SSN format is NNN-NN-NNNN followed by File Source "N"

(4) When closing Form 990T, use Form 5599, TE/GE Examined Closing Record. When the 990T is picked up by EP for a 401(a) Trust, you must use the EIN of the Trust, not the employer’s EIN.

(1) The MFT is to be entered by the Agent.

(2) Enter the Master File Tax (MFT) Code of 76 when closing NMF Forms 5330. Enter the Plan Number when a 5500 Series Return (MFT 74) is being closed with Form 5650.

(1) The Tax Period is to be entered by the Agent.

(2) Enter the Tax Period/Plan Period in "YYYYMM" format. For example, if a calendar year 2003 return, enter 200312. If the tax period is a fiscal year, (i.e., September 30,2003) enter 200309. The tax period on Form 5650 should match that of the return on EPMF. To verify if the tax period is correct, utilize IDRS CC EMFOLT.

(1) The Name Control/Check Digit is to be entered by the Agent.

(2) A Check Digit is two-alpha characters printed on the examination label following the tax period on the first line. If there is no check digit, or name control on the first print line of the examination label, underline the name control on line two (generally the first four characters). The name control or check digit is also enter by the Agent when using the work center.

(3) If a check digit was used to establish the account, the check digit must be used to close the account. Enter the check digit in the last two positions of the name control section on Form 5650.

(1) The Name is to be entered by the Agent.

(2) Enter the name as it appears on the tax return and/or EPMF.

(3) The total number of characters in a taxpayer’s name cannot exceed 35. If it does, edit the name to reduce the length.

(1) The Batch Position Indicator is to be entered by the Closing Function.

(2) Only NMF accounts require a batch position indicator. This item 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.

(3) It must be one of the following: "F," "C," "L," "R," or "S."

(1) The Block Number is to be entered by the Closing Function.

(2) This item must always be entered with the first closing and must be three characters in length. The first character must always be numeric and the remaining characters may either be numeric or "X." See Exhibit 4.5.2-1.See Exhibit 4.5.2-1, MF Sorting and Blocking Series for Document Code 47 Adjustments. The Terminal Operator assigns a Blocking Series for NMF accounts.

(3) Valid blocking series by Command Code:

1. AMCLSA (Appeals) - NNN, 70X, 75X, 76X, 77X, 78X, or 79X.

2. AMCLSP (EP) -3XX for paper file, OR 4XX (complete electroni closing) with MFT 74 on a Form 5500 from the RICS system;.

3. NMF Form 5530 or any other NMF from being closed must be assigned a blocking series by the Terminal Operator.

4. AMCLSO (TEB) - 0XX, 6XX and 9XX with MFT 46.

(1) Terminal Sequence Number is to be entered by the Terminal Operator in the closing unit.

(1) Plan Number is to be entered by the Agent.

(2) Enter the three digit Plan Number of the Form 5500 return being closed with this Form 5650.

(1) Disposal Code is to be entered by the Agent.

(2) A disposal code must be entered for all examined returns. Valid disposal codes used on Form 5650 for examined cases are 01 through 14 and 19.

(1) The Statute Extended to Date is to be entered by the Agent.

(2) If a valid Form 872, Consent to Extend the Time to Assess Tax is in the file, the Statute Extended to Date must be entered in item 14 on Form 5650. Form 5595 TE/GE Update, must also be completed and submitted to the terminal area before the Form 5650 is forwarded for closure off of AIMS. The extended date must always be in "MMDDYYYY" format.

(3) IDRS/AIMS through RCCMS only allows updates to alpha status.

(4) When attempting to close alpha statutes through RCCMS/AIMS they automatically revert to a numerical date appearing as expired (e.g. 07/PP/2017 would show as 07/31/2017).

(1) Appeals Code is to be entered by the Agent.

(2) If the case is going to an Appeals Office, enter the applicable three-digit Appeals Office Code. See Exhibit 4.5.2-6 and Document 6209 for Appeals Office codes.

(1) Examiner's Time is entered by the Agent.

(2) This item must contain an entry.

(3) Examiner's Time can be reported in 15 minute intervals. Valid entries for Item 28 are:

• .0 = 00 minutes

• .3 = 15 minutes

• .5 = 30 minutes

• .7 = 45 minutes

(1) The Technique Code is to be entered by the Agent.

(2) This item must have an entry if Item 13 (Disposal Code) is 01 through 15. The valid codes are:

1. 1 = Office Interview Examination

2. 2 = Office Correspondence Examination

3. 4 = Field Examination

4. 5= Office Interview Examination

5. 6= Office Correspondence Examination

6. 7= Field Examination

7. 8= Office Interview Examination

8. 9= Office Correspondence

(1) Examiner's Grade is to be entered by the Agent.

(2) This item must have an entry if Item 13 (Disposal Code) is 01 through 15. Valid range is 05 through 14.

(1) The Case Grade is to be entered by the Group Manager.

(2) Must be 09 or 11-14.

(1) The Agent's Name is to be entered by the Agent.

(2) Enter last name, space and first initial. This item is a required entry for all examined returns.

(1) The Hash Total is to be entered by the Closing Function.

(2) A Hash Total entry must be made for all closures using Form 5650. "Hash Total" is a term applied to the sum of several unrelated items entered on Form 5650. The computer will compare the Hash Total to the total of individual items as entered by the Terminal Operator. This should ensure the accuracy of the individual item as entered by the Terminal Operator. Minus figures will be treated as minus.

(3) Items to be included in the Hash Total are:

(1) The Project Code is to be entered by the Agent.

(2) Enter the current fiscal year's —four-digit Project Code that indicates which special project code the case was worked under. Document 6476 Employee Plans Systems Codes for valid project codes.. Ensuring that the current fiscal year's Project Code is entered will eliminate Campus Center and Detroit Computing Center rejects.

(1) The ARDI Code is to be entered by the Agent.

(2) In order to track agreed deficiencies for ARDI (Accounts Receivable Dollar Inventory) as a result of an examination, this item must be completed if the DC is 03, 06, 09 or 15. Otherwise, leave this item blank. Valid ARDI codes are as follows:

(1) The Employee Group Code (EGC) is to be entered by the Agent.

(2) A four-digit code that is the group code number establishing the account on AIMS. An EGC is a required entry on all Examined full closures with the exception of DC 34 - Surveyed Claims. Valid range is 7600-7699.

(1) Fax Agreement Indicator is to be entered by the Agent.

(2) A one-digit code on AIMS. Enter a "1" if the taxpayer faxed the agreement to the Agent, otherwise leave this item blank. If entered, DCs must be 03 or 15.

(1) The Operator Employee No./Date is entered by the Closing Function.

(2) This item is entered by the Terminal Operator after the Form 5650 is input on the terminal. The entry should include the Terminal Operator’s employee number, sequence number and the date of input.

(1) This item is completed by the Closing Function Terminal Operator only if Form 5650 is rejected.

(2) The Terminal Operator will enter the date in the reject (Rej.) block when an entry on Form 5650 does not meet a validity check at the terminal. The Terminal Operator must attach a print of the CC AMCLSP to the Form 5650 and indicate the item that failed to meet the validity check and the reason it failed. This procedure will alert the Tax Examiner of what item failed to meet the validity check. Local procedures may require returning the case to the originator or AIMS Coordinator.

(1) The Document Locator Number is to be entered by the Closing Function Tax Examiner.

(2) The appropriate blocking series must be determined by the Tax Examiner and annotated on Form 5650 for an EPMF account. For NMF accounts, the Tax Examiner must notate on a 3 x 5 paper the notation "NMF Blocking needed". The 3 x 5 paper is to be stapled to the front of Form 5650.

(3) The renumbered DLN must be entered for NMF closing. A log, consisting of DLN, EIN, Plan and Tax Period, must be maintained by the Terminal Operator to keep track of the DLN’s assigned to each account.

(4) When an EPMF case has been closed, only a portion of the DLN is assigned by the terminal. The remainder of the DLN (last digit of the block number, two digit serial number, and list year) is not determined and assigned until the end of the day computer processing. The refile DLN is not entered on MF closing documents.

(1) Correction is to be entered by the Closing Function Tax Examiner.

(2) The date the correction is made will be placed in the corrected (Cor.) block by the Tax Analyst or person making the correction to the item rejected. Form 5650 should then be returned to the terminal area for re-input. Refer to IRM 4.5.1, TE/GE AIMS Processing for additional information on terminal rejects.

(1) EP Taxes is to be entered by the Agent.

(2) When an examination results in the assessment of additional tax (excise on prohibited transactions, minimum funding, etc.), the applicable amounts must be reflected in Item 602. Item 602 should also include the tax reflected on original Form 5330 delinquent returns sent to the Campus Center for processing, unless additional tax or penalties were assessed during examination. The Closing Function Tax Examiners must calculate interest on any additional tax assessed. If the DC is 03, an entry of at least one dollar ($1) must be entered in Item 602. Item 602 should be entered through the terminal and may be positive or negative. An ARDI Code must be entered in Item 42 on Form 5650.

(1) The Penalty and Section is to be entered by the Agent. The Interest is entered by the Closing Function Tax Examiner.

(2) This item must reflect the interest to be assessed on Item 602 amounts. In addition, the type and amount of penalties assessed during examination should be reflected in item 603. Enter any penalties picked up during the exam that is not reflected on Form 5599 of a related Form 5330. This entry is necessary for processing the adjustment using NMF procedures. Item 603 should not be entered through the terminal. The penalty amount and IRC section must be entered by the Agent. The Closing Function Tax Examiners must compute and enter the interest amount.

(1) Total penalties and/or interest from Item 603 must be entered by the Closing Function Tax Examiners.

(2) Item 604 must be entered through the terminal and may contain a positive or negative amount.

(1) Adjustments to SB/SE, W&I, LB&I or Adjust To Income/Deductions is to be entered by the Agent.

(2) Enter the amount of proposed adjustment referred to SB/SE, W&I or LB&I.

(1) Total Deductions Claimed is to be entered by the Agent.

(2) Enter the total deductions claimed (whole dollars only) as reflected on the taxable return (i.e., the deductions claimed on Form 1120, etc.). No commas or decimal points are to be used.

(3) The valid range is 1-999999999. If a deduction is not claimed, a minimum entry of one dollar ($1) must be reflected in Item 606.

(1) Total Trust Assets is to be entered by the Agent.

(2) Enter the total gross assets of the trust pertaining to only the plan referenced in P53–55 or Item L. An entry must be made. Enter total trust assets as of the end of the plan year. The asset amount may be variable up to 12 digits (include whole dollars only, must be at least $1). No commas or decimal points are to be used.

(1) Number of Participants Affected is to be entered by the Agent.

(2) Enter the number of participants directly affected by the results of the exam

(3) The valid range is 0-99999999.

(1) Type of Plan is entered by the Agent.

(2) Enter the Type of Plan. Valid entries are

• "1" for Defined Benefit Plans

• "2" for Defined Contribution Plans

(1) EP Issue Code is to be entered by the Agent.

(2) Enter the three-digit EP Issue Code. An Issue Code must be selected that relates to the disposal code. The Issue Code must be entered beginning in the first three positions of Item 610 of Form 5650. Only one Issue Code must be entered if the case is closed with DC 01 or 02. Up to four Issue Codes may be entered, only if each subsequent Issue Code relates to a disposal code other than DC 01 or 02. Disposal Code (DC) 02 should only have Issue Code 37Z and that is the only DC that issue code is good for. Any remaining spaces must be filled in with zeros.

(3) The Issue Code must be carefully selected because it is used with the disposal code to validate the accuracy of Condition Codes in selecting returns with examination potential, and to report the accomplishments of the examination program. Refer to Document 6476 for valid EP Issue Codes.

(1) EP NAICS Code is to be entered by the Agent.

(2) Enter the EP NAICS Code, must be six-digit numeric character. Refer to Document 6476 for valid EP NAICS Codes.

(1) EP Closing Agreement Results is to be entered by the Agent.

(2) Enter the Closing Agreement Results, must be 12 numeric character, based on the sanction amount.

(1) The Reviewer’s signature and date the report was approved must be entered, if the return was reviewed.

(1) The Tax Examiner closing the case that codes, edits, verifies, assembles and sends the case for input through the computer will complete Item K. Item K will include the first initial, last name, and may include the unit employee number. The date that the case was completed and sent for input must also be completed.

(1) Form Number is to be entered by the Agent.

(2) Enter the Form Number of the return being closed with this Form 5650.

(1) CC TSCLS is to be completed by the Agent to release the AIMS Freeze on Investor Closures.

(2) Not a valid item for EP BMF Form 5330s.

(3) PICF, Partnership Information Control File, Code 5 or 6 will prevent premature closing of the investor return unless the Agent responsible for final case closure has considered any necessary flow-through adjustments from the key case(s) to the investor return.

(4) If a partial assessment is appropriate, entries will not be made in this item. CC TSCLS is only used as part of the final closing action. Do not complete this item when a return is transferred to the service center or closed to Appeals.

(5) When entered, CC TSCLS will automatically check all of the investor’s linkages to see if they have been closed. If all linkages are closed, then CC TSCLS will set the indicator on the partner record and the PICF-CD to a closed status on the Partnership Control System, PCS, and AIMS data bases. When the "REQUEST COMPLETED" message is transmitted to the screen, the Terminal Operator can proceed to enter the CC AMCLSO.

(6) If the terminal rejects the input of CC TSCLS, the closing error message "CANNOT CLOSE, PCS CONTROL." The Terminal Operator will return the case to the Closing Function Tax Examiner with a CC TSUMY (one line summary display for the line 1 Partnership/Partner record and each of its linked Partner/Partnership accounts) print attached.

(1) Partial Agreement (Item B) is to be completed by the Closing Function Tax Examiner to indicate that a partial agreement is being made.

(2) Partial closures of AIMS will allow an adjustment to be made to the tax module without closing the AIMS database. Placing a check in the box marked "Partial=F" instructs the Terminal Operator to input the account as a partial and not a final closure on AIMS. Enter the letter F in P1-6 CC AMCLS. Form 3198–A should be prepared and attached to the case file by the Agent providing instructions as to return the case file and copies of assessment documents (i.e., Form 5599 or Form 2859) once the partial has posted.

(3) The only valid item numbers on a partial closures on Form 5599 are 02, 03, 04, 05, 6a, 6b, 6c, 07, 08, 09, 11, 12, 13, 14, 15, 36, 38 and 43.

(4) When a partial assessment is being processed, even though a Hold Code 1 is automatically generated to prevent the release of an advance payment pending the processing of the final adjustment action, TC 570 must be posted to the account. The TC 570 is necessary if a payment has been posted and the TC 30X transaction has or will have a 23C Date that is later than the transaction date of the TC 640. A subsequent posting of a TC 29X/30X will release the TC 570, or when the module balance becomes zero or debit.

(5) For partial assessments with open TEFRA linkages, an original and copy of Form 5599 must be included in the case file. The copy of the closing document will remain with the case file and will be forwarded to the Campus, Examination Suspense Unit. The original closing document will be forwarded to the Campus Center Files Function as a source document after terminal input.

(6) For closures to Appeals where the tax adjustment is processed as a partial and is quick assessed, after processing the quick assessment via Form 2859, Request for Quick or Prompt Assessment, prepare Form 3177, Notice of Action for Entry on Master File, to input TC 570. TC 570 will prevent the erroneous refund of a credit balance or advance/subsequent payment that may be on the tax module. Where the partial closure to Appeals is not quick assessed, Hold Code 1 is entered on Form 5599 to prevent erroneous refunds.

(7) The following special rules apply when processing a partial assessment:

1. The system automatically generates Hold Code 1, but a TC 570 must be posted to the account to prevent any refund from being issued (See (4) above). A refund will not be released unless indicated on Form 3198-A, Special Handling Notice, in which case a TC 570 must not be input.

2. When the refund is to be released, input Hold Code 3 on the adjustment document. Hold Code 3 will allow systemic release of the refund, eliminating the need for cycling and subsequent input of a TC 290 with a zero to release the refund.

3. If a partial assessment is to be refunded using manual refund procedures, Form 5599 for the partial overassessment must be processed within four weeks (from the scheduled date of manual refund) to prevent the taxpayer from receiving a bill resulting from a debit balance when the manual refund posts to MF.

(8) Final disposition of the case will require use of another Form 5599 and will follow normal procedures, with the following exceptions:

1. During final closing, except closing to Appeals, the amount of tax shown in Item 12 of Form 5599 must be only the amount increasing or decreasing the amount processed as a result of the partial closure.

2. If the case is closed to Appeals, Item 12 must be left blank and the amount in Item 18 must include the agreed amount that was previously assessed as a partial assessment.

3. If the final closing is ready to be processed at the same time as the partial assessment, cycle the final closing so that it will be input on the terminal no earlier than one cycle after input of the partial assessment.

4. The EXAM-CUM-ASSMNT-AMT on page 2, line 4 of a CC AMDISA print will reflect the cumulative amount of all partial assessments processed through AIMS. Upon final closing, the file will contain the total of all assessments processed through AIMS.

(1) CC AMCLS with a definer code "O" is to be entered by the Closing Function to indicate a final closing on AIMS.

(2) The upper left corner of Form 5599 must be completed with the definer code to CC AMCLSO. The definer will be entered in the space immediately following CC AMCLS. Depending upon the type of closure, the valid Form 5599 definer codes are:

1. A = Appeals

2. F = Partials

3. O = EO, GE and EP (Form 990Ts, Form 5330s posted to BMF for the Form 5330 and discrepancy adjustments)

4. U = Unpostables

5. I = IRAF, Individual Retirement Account File

(1) The TIN is to be entered by theAgent.

(2) The Taxpayer Identification Number (TIN) identifies the specific taxpayer's account being adjusted. The first digit of the TIN will be entered in the left most position of P7-18. The File Source designates which specific Master File they represent. There are different formats to the TIN, according to the type of return being adjusted. Section 2 of Document 6209, IRS Processing Codes and Information, lists the different types of returns and their respective File Source. The File Source designates which specific Master File they represent. The following are examples of the various TIN formats.
Designation of Master File Sources:

(3) An adjustment can be made against a temporary SSN. The Campus Entity Control Function will attempt to secure the correct SSN from the taxpayer and perform the "merge" of the correct number to the account after the SSN is secured. In situations where a taxpayer does not have an EIN or refuses to file Form SS-4, Application for Employer Tax Identification Number, the Examining Officer is required to secure a permanent EIN from the Campus Center Entity Control Function. The Examining Officer will have the return controlled NMF until the permanent number is received.

(4) If an asterisk (*) is present, indicating an invalid SSN, correction may have been made during the examination. Research both the correct number and the invalid number to determine where the original return posted. It may have posted to the invalid number. Carefully study transcripts of all accounts involved before making adjustments. These cases may also involve a duplicate filing condition caused by returns of two different taxpayers trying to post the same account.

(5) CC BNCHG will be used to process merge transactions (TC 011) and fiscal year end changes (TC 05X). THIS COMMAND CODE IS RESTRICTED TO THE ENTITY CONTROL FUNCTION IN THE CAMPUS CENTERS. Cases meeting criteria for CC BNCHG should be identified and sent to Entity Control with the proper research attached.

(6) When it is definitely determined that a return has posted to a different taxpayer’s account, perform the following actions:

1. Secure and thoroughly analyze complete transcripts for all account numbers involved, correct and incorrect.

2. If necessary, requisition the second taxpayer’s return.

3. If it is discovered that another taxpayer’s return posted to the same account, prepare Form 5599 to abate the tax/penalty and reduce any credits if necessary for the return posted to the wrong account using partial agreement procedures through the terminal.

4. For NMF accounts, use Form 1331, Notice of Adjustment (NMF), to abate the tax/penalty. Do not use Form 5599 to make adjustments.

5. Prepare Form 2424, Account Adjustment Voucher, if necessary, to transfer any payments for the return posted to the wrong account.

6. Re-input the original return posted to the wrong account to the correct TIN and retain a copy for monitoring purposes. Prepare Form 13596, Reprocessing Returns and forward to the Campus Center along with the original return so it can be re-input.

7. Prepare Form 5599 to process the taxpayer’s account posted to the correct number.

8. If it is necessary to process more than one Form 5599 for the same taxpayer, audit labels (when available) should be used to prepare them.

(1) MFT is to be entered by the Agent.

(2) The Master File Tax Code (MFT) or Non-Master File Tax Code (NMFT) must be entered. The MFT designates the numerous types of tax returns as a two-digit code. MFT Codes help to identify the specific tax module in which the adjustment is to post. MFT 76 is the valid entry for Form 5330. Refer to Document 6209, IRS Processing Codes and Information,, Section 2, for a complete listing of MFTs.

(1) Tax Period is to be entered by the Agent.

(2) For TEB, enter the bond issue date in this item.

(3) The tax period is the measure of time for which a return is required to be file. The format for tax period is YYYYMM. The first four-digits represents the year, the next two digits represents the month. For Form 11C and Form 730, the beginning of the tax period must be entered. The most common types of filing periods are:

(1) The Name Control/Check Digit is to be entered by the Agent, when using RCCMS (Reporting Compliance Case Management System) TE/GE Work Center.

(2) The name control must appear completely and legibly. The name control is the first four characters of the name, the last name of an individual, or the first partner for partnership returns. No spaces are used except at the end of the name control. If the last name is less than four letters, the remaining positions will be blank.

(3) A check digit is two alpha characters printed on the examination label following the tax period on the first line. If a check digit or name control does not appear on the first print line of the examination label, underline the name control on line two. If the check digit was used to establish the account, the check digit must be used at closing. Enter the check digit in Positions 33 and 34.

(4) CC AMDISA also shows the check digit on line one after NM-CTRL is established on AIMS with the check digit.

(5) Although IRS can apply no sure rule to determine whether a taxpayer is using his or her mother’s maiden name as part of their last name, rather than a middle name, inspection of the return may help. Consider the taxpayer’s use of initials and spacing, and whether they enter a double name in the last name block. From all the information available, select the name control as accurately as possible.

(1) The Name is to be entered by the Agent.

(2) The name must appear completely and legibly. On IMF (or BMF with a SSN), the last name will appear first, followed by a comma, then the first name and middle initial, if any. On BMF, the portion of the name in the prime sort field will print first.

(3) The total number of characters in a taxpayer’s name cannot exceed thirty-five. If it does, edit the name to reduce the length.

(1) The Batch Position Indicator is to be entered by the Closing Function.

(2) Not a valid item for EP BMF Form 5330s.

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

(4) It must be one of the following:

(1) The Block Number is to be completed by the Closing Function.

(2) All closures require a blocking series number. The block number identifies the type of return being adjusted and whether or not the return is an original. The Block Number is incorporated into the Document Locator Number (DLN) as the ninth, tenth and eleventh digits. See Exhibit 4.5.2-1 for MF Sorting and Blocking Series for Document Code 47 Adjustments. The Terminal Operator will assign a Blocking Series for NMF accounts.

(3) An original Block Number signals to the computer system that there are no other documents that will need to be associated when filing the Form 5599, original return and audit package. Use an original return blocking series for electronically filed returns, and cases in which the TC 150 is a Dummy TC 150. The original return blocking series is necessary, since a paper original return for either of these cases is not available.

(4) A copy Block Number signals to the computer system that there is an original document filed in another location. If the copy blocking series is used, a CP notice will be generated, instructing Files Function in the Campus Center to pull the original return and associate it with the examined closing documents being filed.

(1) The Sequence Number is to be entered by the Closing Function.

(2) The Terminal Operator, for each case, will enter the sequential number assigned by the terminal within the block on the input document.

(1) The Unpostable Indicator is to be entered by the Closing Function.

(2) This is a required entry for CC AMCLSU and is used to input adjustments that have unposted or were deleted using CCs TERUP or QRACN. It also identifies the type of unpostable being corrected. The case must be in Status Code 8X or 90 or a partial assessment must have been made. The TC 300 Indicator must be "5." The TC 300 Indicator can be changed with CC AMAXU. A two-digit alpha character is entered and must be one of the following: "LO," "LA,", "PO," or "PA."

(1) The Plan/Report Number is to be completed by the Agent.

(2) This is a required entry for MFT 46 (GE-TEB Form 8038 returns series). For MFT 46, enter the Report Number for Tax Exempt Bond Returns (Form 8038 return series). For MFT 76, enter the Plan Number of the annual related return.

(3) For MFT 76, valid Plan Numbers are 000-999

(4) For MFT 46, valid Report Numbers are as follows:

• 000 - No longer a valid Report Number.

  Note: Returns and payments posted with Report Number 000 under TC973 are being reprocessed to a valid Report Number related to the return

• 100-199 (Form 8038)

• 300-399 (Form 8038-G)

• 500-599 (Form 8038-GC)

• 700-799 (Form 8038-T)

• 900-999 (Form 8328)

• MFT 85, 100–499 (Form 8038B)

• MFT 86, 100–499 (fORM 8038TC)

• MFT 46, 200–299 (Form 8038CP)

• MFT 46, 400–499 (Form 8038CP)

• MFT 46, 800–899 (Form 8038CP)

(1) Individual Retirement Account is to be completed by the Agent.

(2) The IRA SSN of the spouse is a required item when there is an adjustment to the spouse's IRA account.

(1) The Penalty Reason Code is to be completed by the Agent.

(2) If applicable, complete this item for all EO, FSLG or ITG returns in which abatements of penalties or a penalty is considered but not asserted.

(3) This item is not applicable for TEB returns.

(4) The penalty reason code is a required input for abatements of penalties, TC 161, 171, 181, 201, 235, 271, 281, 311, 321, 351 and 241 with Reference Numbers (negative amounts only) 680, 681, 685, and 686. For EP Form 5330 returns the abatement of penalties will be for TC 161, 271, 281, 321, 351 and 241 with Reference Numbers (negative amounts only) 680, 681, 685 and 686.

(5) The reason code can also be input (but not required) with TC 300, 304, and 308. This processing will allow the capture of data when a penalty is considered but not asserted, and when a penalty is considered for abatement, but not abated.

(6) The case file should be returned to the originator if a penalty is being abated and the reason code is not entered. See Exhibit 4.5.2-2 for valid Penalty Reason Codes.

(1) Letter Date and Letter Amount are to be completed by the Agent.

(2) If the Form 5330 is not for a "C" corporation, these items should remain blank.

(3) If applicable, complete this item for all EO, FSLG or ITG returns.

(4) This item is not applicable for TEB returns.

(5) A 2% increased rate of interest is imposed on large corporate underpayments. A "C" corporation defines a large corporate underpayment as any underpayment of tax for any taxable period, if the amount of the underpayment exceeds $100,000. "C" corporations are any corporations other than subchapter S (Small Business) Corporations. Thus, Section 6621(c) applies to Form 990s, Form 990PFs, Form 990EZs, Form 1120-POLs and Form 5330s. However, it applies only to corporations, not trusts or associations. A "C" corporation indicator is set in the entity section of corporations defined as "C" corporations. These fields are completed to allow MF to calculate 2% interest when warranted.

1. Letter Date (LD) - The 30 or 90-Day Letter Date will be entered, whichever is earlier. If only one of these letters was issued, use the date of that letter.

2. Letter Amount (LA) - The 30 or 90-Day Letter Amount will be entered, (whichever is applicable). The TE/GE group will complete the date and the amount of the 30-Day letter, after issuance of the letter. The amount in the letters will include tax and penalties.

3. Items LD and LA are entered to allow MF to calculate a 2% interest, IRC 6621(c), on accounts that DO NOT require manual computations of interest. The 30/90-Day Letter Date and Letter Amount must be entered on all BMF accounts being closed through the terminal. Items LD and LA will be completed on closures to Appeals, DCs 07 and 11.

4. MF will determine whether the account is a "C" Corporation and calculate the applicable date to begin 2% interest based on the 30/90-Day Letter date and notice a history record on MF. The EARLIEST notice issued, that was NOT PAID within thirty days will be the applicable date used by MF for the 2% calculation. The actual date used will be the LATER OF: The notice date plus thirty days. The trigger date used will be reflected on transcripts or CC TXMOD prints.

5. The Letter Date and Letter Amount ARE NOT to be used with the 2% Interest Date field. Any time MF is allowed to calculate the interest on a BMF taxable entity, the LD and LA fields are to be entered. If a 30/90-Day Letter has not been issued, do not complete these fields.

(1) The 2% Interest Date is to be completed by the Closing Function.

(2) This item is not applicable for TEB returns.

(3) This item is completed when interest is manually computed and input with TC 340 and 2% is applicable. The date that the 2% interest begins will be entered.

(4) The date to use will be the LATER OF: The trigger date plus thirty days or January 1,1991. A terminal reject will occur if:

1. The date is entered without a TC 340/341

2. Date is prior to January 1,1991

3. It is a future date.

(5) The 2% Interest Date field is not to be used with the Letter Date and Letter Amount fields. Enter this field when 2% applies and interest is manually computed and input with TC 340.

(1) The Interest to Date is to be completed by the Closing Function.

(2) This item is not applicable for TEB returns.

(3) Enter the Interest to Date field as an information item for personnel making updates to the account. Providing this information will help toward eliminating the need for retrieving the source document to determine how a restricted interest calculation was done.

(4) This field is always completed when interest is manually computed and input with TC 340 or 341. For debit interest, this date will be the date that the interest calculation stopped. This date can be the waiver plus 30-Days, a payment date, or 23C assessment date. The date that the final interest calculation stopped on is to be used. For example, partial payment is made on an account before the waiver date. The calculation continues to the waiver date, since the tax is not full paid. The "Interest to Date" will be the waiver date plus 30-days. For credit interest calculations, enter the refund schedule date or the last date that the interest calculation stopped.

(5) If TC 340 for a zero amount is entered, enter the current date in Item 6a. For Offer in Compromise cases, where the adjustment may not be calculated based on an actual "FROM" and "TO" date, enter the date to which the Offer in Compromise was agreed. For bankruptcy cases, which involves an abatement of interest, enter the bankruptcy discharge date.

(6) If TC 340/341 is used and Item 6a is not completed, a terminal reject will occur. The reject will occur to CC AMCLS and CC ADJ54. The Interest to Date cannot be later than the 23C Date or an unpostable condition will occur (Unpostable Code 291, Reason Code 05).

(7) When a quick assessment is warranted, enter the Interest to Date in Item 17 of Form 2859, Request for Quick or Prompt Assessment.

(1) The Credit Interest to Date is to be completed by the Closing Function.

(2) This item is not applicable for TEB returns.

(3) The Credit Interest to Date is input for IMF and BMF. Enter the "TO" date used to manually compute credit interest. This is a required entry when a TC 770 is input for an amount other than zero. This entry is not required for TC 770 with a zero amount. Items 6a and 6b may both be entered when processing TC 770 and TC 340.

(1) Compute Interest Amount is to be completed by the Closing function.

(2) This item is not applicable for TEB returns.

(3) The Compute Interest Amount is input for both IMF and BMF. Enter the amount, which will include the manually computed interest (TC 340 amounts and any TC 772 netted interest), module balance, accrued and assessed interest, and assessed failure to pay. If the taxpayer does not pay the bill within ten days from the 23C Date, this entry allows the computer to update the interest systemically.

(1) The Hold Code is to be entered by Closing Function.

(2) The Hold Code is a single digit code that is used to restrict certain MF actions. Hold Codes are used when it is necessary to prevent or delay the issuance of a refund and/or notice. Hold Codes should not be used indiscriminately. If the DC is 07 or 11 and a TC 640 is present on MF, then a Hold Code is required. Refer to Document 6209, IRS Processing Codes and Information, Section 8. Valid Hold Codes are as follows:

(3) Examples of Situations requiring a Hold Code:

(1) The Agreement Date is to be entered by the Closing Function.

(2) An agreement date is required on the following types of returns when the DC used in Item 13 is 03.

(3) For agreed deficiency cases, enter the date (in MMDDYYYY format) an agreement was received. An entry is not required for overassessment cases or surveyed claims.

(4) Determining the Agreement Date - The agreement date is the received date in the IRS office or the date the Agent received the agreement from the taxpayer. This should be a date stamp or a handwritten date initialed by the person receiving the document. The following guidelines should be followed in determining the agreement date:

1. If the received date is missing or illegible, enter the postmark date (excluding metered mail) or the signature date of the taxpayer, whichever is closer to the current date.

2. If the agreement form contains instructions as to the effective date of the agreement, that effective date should be entered (i.e., Joint Committee case). This date cannot be greater than the current date.

3. If the payment is accepted in lieu of signature, the received date of the payment should be considered as the agreement date. It should be stated on the Form 3198–A and Revenue Agent Report (RAR) that the payment is accepted in lieu of signature. This would not apply if the taxpayer indicates that payment does not constitute an agreement, the payment is received after the 90-Day letter (Statutory Notice) has been issued or the payment is a cash bond.

4. If, because of an additional assessment, a second signed agreement is obtained, the most current date should be entered in Item 08 as the agreement date.

   Example: Two agreements received for the same taxpayer, tax period and for different amounts. One was received 04/21/2001 and the other agreement was received 06/30/2001. The entry in Item 08 would be "06302001" as the agreement date.

   Caution: A manual computation of interest is required for cases where there are two agreements secured. Exception: When the first agreement amount is paid in full.

(5) Situations Not Requiring an Agreement Date

1. An entry is not required on Defaulted 90-Day cases, DC 10.

2. An entry is not required on overassessment cases where the adjustment are abatements of previous assessments.

3. An entry is not required for DC 34, Surveyed Claims which is a type of an overassessment of tax/penalties.

4. An entry is not required on No Change cases.

5. Never make an entry on Employment Tax or Excise Tax cases (i.e., MFT 01, 03, 10 and 60).

Note: An agreement date entry for Employment Tax or Excise Tax cases would cause the inaccurate computation of interest.

(6) Do not make an entry for cases that have no signed agreement, e.g., default cases and United States Tax Court decision cases.

(7) If a second signed agreement is obtained because of an additional assessment, enter the most recent agreement date. A manual computation of interest may be required. Manually compute and restrict interest ONLY when the tax, penalties, and interest are not paid, since interest must be computed to more than one interest stop date. For example: interest on the tax, penalties, and interest from the first agreement will stop on the respective waiver pIus 30-days and interest on the tax and penalty difference between the two agreements will end on the respective waiver plus 30-days. Manual computation is required since MF cannot compute interest to the separate dates.

(8) If the tax, penalties, and interest are FULL paid on two agreements, do NOT manually compute and restrict interest. Interest on the tax, penalties, and interest due, based on the two agreements, will stop as of the payment date. Computing TWO separate interest "STOP" dates is not necessary.

(9) Manual computation of interest is computed in the following manner:

1. Compute interest on the deficiency amount of the first agreement, from the return due date to 30-days after the waiver date.

2. Compute interest on the difference between the first agreement from the return, and the second agreement from the return due date, to 30-days after the second waiver date.

3. Enter the total interest on Form 5599 using TC 340.

(10) When a payment is accepted in lieu of a signed agreement, the received date can be entered in Item 08 to close the case. If the agreement was received after a payment, enter the received date of the agreement. MF will use the TC 640 date and the "Form 870 date" to compute interest correctly.

(1) The Priority Code is to be entered by the Closing Function.

(2) A priority code is a single digit code that must be used in order to post adjustments to MF when certain conditions exist. Failure to use the priority code when specified will cause the transactions to unpost. A transaction going unpostable may cause erroneous notices, refunds or billings. Valid Priority Codes to close AIMS cases are 1, 2, 3, 4, 5, 8 and 9. Priority Code 2 or 3 is a required entry for all examinations closed without the original return in the file. The definitions for Examination (AIMS) priority codes are not necessarily the same priority codes for Data Processing (DP) adjustments. See Exhibit 4.5.2-3 for the valid Priority Codes. Refer to Document 6209, IRS Processing Codes and Information, Section 8, for additional information on the definitions for data processing priority codes.

(3) The use of Priority Codes to release amended returns is needed only after it has been considered by the Agent.

(1) The Settlement Amount is to be entered by the Closing Function.

(2) The Settlement Amount is the amount of the tax liability currently posted on the tax module. An entry is required on all cases closed on a copy of a return, unless the case is being closed to Appeals.

(3) On Form 5599, Item 10, enter the amount of "Tax Shown on Return or as Previously Adjusted" from the examination report. If the tax per return is zero, enter a $1.00.

(4) The tax liability amount of $850.00 in the previous example should match the tax previously adjusted line from the examination report for the specific tax period. Also, $850.00 is the "Settlement Amount" that would be entered in Item 10 on Form 5599.

(5) For DC 01–06, 08–10, 12–19, 34, 50, 52–55, if the tax per return is zero, enter $1.00 in Item 10, Settlement Amount.

(6) For DC 01 and 02, enter an amount in Item 10 to be compatible with RCCMS programming. A Priority Code 2 or 3 must be entered in Item 09. Use Priority Code 3 only when Priority Codes 1 and 2 both apply.

(7) Make an entry in Item 10 required if Priority Code 2 or 3 is entered in Item 09.

(8) If the settlement amount for an examination case, closed on a copy of a return, does not equal (within $10.00) the original tax liability amount plus any subsequent adjustment transactions, an unpostable condition will result unless Priority Code 2 or 3 is present.

(1) The Interest Computation Date is to be entered by the Closing Function.

(2) This item is not applicable for TEB returns.

(3) If IRC 6205 Interest Free Adjustment is applicable, (TC 340) this field must be completed.

(4) For cases closed with TC 304, 305, 308, or 309, enter the date interest begins. For further information refer to IRM 20.2, Interest Manual.

(1) The Tax Liability Adjustment is to be entered by the Closing Function.

(2) Transaction Code (TC) is identified as "Code" on Form 5599. The "Code" must be three digits. The DOC Code for each TC placed on Form 5599 must be 47. Refer to Document 6209, IRS Processing Codes and Information, for TC’s and DOC Codes. The Increase in Tax Dollars and Decrease in Tax Dollars may be up to 11-digits. The Adjustment Penalty, Penalties and Interest may also be up to 11-digits.

1. Data in the Increase or Decrease Tax Dollars, Penalties and Interest is dependent on the DC used:

Function	Directions
EP	For DCs 02, 04-07, 11 and 13, these fields must be left blank.
EO	For DCs 02, 04-08, 11, 13, 14, 16, 18, 19, 50, and 52–55, these fields must be left blank.
GE	For DCs 02, 04-08, 11, 13 and 14, these fields must be left blank.

2. EP and GE - For DC 01, a TC 300 should be entered in Tax Liability Adjustment section under Code, and a zero in the Increase in Tax Dollars. EO - For DCs 01, 15, and 17 a TC 300 should be entered in the Tax Liability Adjustment section under Code, and a zero in the Increase in Tax Dollars.

3. EP - DCs 03, 09, 10 and 56, may or may not contain an entry. EO and GE - DCs 03, 09,10, and 12, may or may not contain an entry.

4. EP, EO or GE - DC 34 must contain an entry (not zero) in the Tax Liability Adjustment Decrease in Tax Dollars, unless an amount is entered in item 12 and/or 15, and the net amount may be a decrease in amount due. For example, there is an Increase in Dollars and Increase in a refundable credit in an amount greater than the tax increase.

5. EP, EO or GE - If DCs are 07 or 11, entries in Items 12 or 15 are not allowed.

6. EP - If DC’s are 03, 09 or 10 with MFT 76 entry in Item 12 with money must have amount in Item 15.

7. Claims fully established DC 03 must contain an entry (not zero), TC 301 must be entered in Tax Liability Adjustment in the decrease column.

8. Abatement of Delinquency Penalty (TC 161) and Failure to Pay (TC 271) must be assessed accordingly if applicable.

(3) The Adjustment/Penalty and Penalties may be up to 11 digits. The DOC Code to assess or abate a penalty on the Form 5599 must be 47. See Exhibit 4.5.2-4 for valid Transactions Codes.

1. The first page of the AMDISA print has a field titled “DELQ-RET-IND”, if the delinquent return indicator is a “1” the delinquency penalty must be addressed on the Form 5599. Thee must be a TC 160 or TC 161 in Item 12. If no delinquent penalty is to be asserted enter TC 160 for 0.00.

2. If the Revenue Agent indicates “No Penalty or No Penalties assessed” in “Other Instructions” on Form 3198-A for an SFR enter TC 160 for 0.00 and TC 270 for 0.00.

(4) Determination of the Tax Adjustment - It is very important that the person closing the case accurately identify the tax adjustment. The correct tax adjustment is determined by the following formula: Corrected Tax minus Previously Adjusted Tax = Tax on Form 5599.

1. The previously adjusted amount on the report must match the tax liability on the transcript. The tax amount from the transcript is subtracted from the corrected tax liability to arrive at the tax adjustment that will be entered in Item 12 on Form 5599.

2. Increases in Tax are entered in Item 12 with (+) circled.

3. Decreases in Tax are entered in Item 12 with (-) circled.

(5) For MFT 46, if additional tax is being assessed the "Interest Section" should contain a TC 340 -0-, as interest is not applicable.

(1) The Disposal Code is completed by the Agent.

(2) One DC must be entered that best describes the examination results.

(1) The Statute Extended to Date is completed by Agent.

(2) For TEB, MFT 46, this Item is not applicable.

(3) The statute date should be determined for all cases. If the statute expiration date has been extended, and it was not previously updated on AIMS, complete Item 14. When the entry in Item 14 is input, it will generate an extended statute date (ASED/TC 560) on the MF. TC 560 will not post at MF if the only return transaction code is an SFR TC 150. If a valid Form 872, Consent to Extend the Time to Assess Tax, is in the file, the extended statute date must be entered in Item 14.

(4) A date must also be entered when Form 872 has not been secured, but only if the statute has extended the expiration date.

(5) If the AIMS database contains an alpha character in the statute date, that date must be updated to a numeric date before closing, if an assessment is input. (For example, AA = Claim Update, refer to IRM 25.6, Statute of Limitations, for a list of alpha statute codes.) Updating the alpha date is not required on "No Change" cases. Failure to input a numeric date will cause an unpostable condition, if the MF statute date has expired and an assessment attempts to post. Since AIMS does not send an alpha statute update to MF, the original statute date is still present (AIMS Status Update has Failed for. Statue less than 60 days/ Quick Assessment Required. Note: The system has a validity check to identify statues with 60 days or less to prevent unpostables). If "872-A" is reflected on the AIMS data base, Item 14 must be updated to a valid date unless the case is closed to Appeals. Timely filed examined claims that result in a refund will post to MF even when the ASED has expired.

(6) When preparing Form 872-A, use the most current form available. Form 872-A for fully agreed deficiencies and overassessment or for no change and unagreed overassessment cases, extend the period of limitations 90-days after the date the Service mails a written notification (Form 872-T, Notice of Termination of Special Consent to Extend the Time to Assess Tax) to the taxpayer; or 90-days after the date the Service receives an executed Form 872-T from the taxpayer. In the above situations, Form 872-T is always required to terminate the Form 872-A. For unagreed overassessment cases closed from Appeals, the statute extended to date will be entered on Form 5403, Appeals Closing Record. Forms 872-A for fully agreed deficiencies and overassessment extends the period of limitations until the assessment/overassessment is made. Form 872-T would not be required. In this situation, enter a statute extended to date of 120-days from the date the case is expected to close on AIMS at the terminal. Form 872-A for unagreed deficiencies may involve the issue of a notice of deficiency to the taxpayer. See Exhibit 4.5.2-5 Computation of Statute Dates, for computing the statute date.

(7) Form 872-T must be prepared for all "No Change" cases regardless of the Form 872-A revision date. If a Form 872-T, executed by the Director of EP, EO or GE (FSLG or ITG) Examination or their designee is in the case file, it will be mailed to the taxpayer upon closing the case.

(8) Attach copies of executed Forms 872-T, mailed to the taxpayer, to the tax return on which it applies. Copies of Form 872-T should be made for other tax years, if they are present on Form 872-T.

(9) If the case involved Fraud, the period of limitations is not a factor; however, a statute extended to date entry may be applicable. Enter a statute date of 120-days from the date it is expected to close at the terminal. An entry is not necessary if Item 38 (Fraud Condition) on Form 5599 has an entry.

(10) If the examination resulted, from a written request by the taxpayer for prompt assessment under IRC 6501(d), the statute expiration date is 18 months from the date the written request is received, but not to exceed the normal three-year statute. Enter the requested date in Item 14.

(11) The minimum ASED on a bankruptcy case is 60-days after the bankruptcy stay on assessment is lifted plus the number of days remaining on the normal statute before the stay went into effect. Alpha code KK is used to control bankruptcy cases until the case is ready to be closed from the AIMS system. Consult the Special Procedures Staff in Collection Division for further information.

(1) The Credit and Tax Computation Adjustment item is completed by the Closing Function.

(2) A Credit/Item Reference Number is a three-digit code used to adjust taxpayer information according to the type of return being audited.

1. This item will be left blank if the dollar amount in item 12 is zero. If line 12 contains a dollar amount (i.e., additional tax is being assessed on a previously filed return), then a reference number (manual abstract code) should be listed here with the additional amount of tax being assessed (additional tax being assessed is listed in both Items 12 and 15)

(3) When making any entry in Item 15 of Form 5599 you must ensure that the (+) or (-) is identified in the last column. The (+) or (-) must be circled to ensure that the correct Reference Information or Credit Adjustment is made to the taxpayer's account. The IMF Adjusted Gross Income (AGI) amount may be a positive or a negative amount on the transcript (IMFOLR or TXMODA). Therefore, an adjustment to IMF AGI may bring the amount to below zero. This would be shown as a negative figure on the transcript. The IMF Taxable Income (TI) will only reflect a positive amount, or zero. The IMF TI may not be adjusted to below zero.

(4) Entries in this item are used to:

1. Update information fields on the MF.

2. Adjust credits on individuals, fiduciary and corporate returns.

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

4. Provide MF a means to distinguish certain miscellaneous penalties on which to generate interest.

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

(5) An entry identified with a (+) in Item 15 reflects an increased adjustment amount. Therefore, if there is an increase in TI, AGI or Exemptions, that amount is entered in Item 15 with the (+) circled in the last column

(6) An entry identified with a (-) in Item 15 reflects a decreased adjustment amount. Therefore, if there is a decrease in TI, AGI or Exemptions, that amount is entered in Item 15 with the (-) circled in the last column.

(7) Follow the guidelines listed below when processing adjustments to AGI and TI for IMF returns:

• If the TI and AGI are adjusted by the same amount, only REF 888 (AGI) will be input. MF will automatically update REF 886 (TI) by the same amount.

• If the TI and AGI are adjusted by different amounts, both REF 886 and 888 must be entered.

• If an adjustment is made to the AGI and the TI is not being adjusted above "0" an entry of "0" is required for the TI.

(8) IMF Credit/Item Reference Numbers:

(9) Adjustment to Prepayment Credits:

(10) Refundable Credits:

(11) EP BMF Form 5330 Credit/Item Reference Numbers: This field must be completed if assessing or abating 5330 taxes in Item 12 of Form 5599. The Tax (TC 300/ TC 301) must match Reference Codes listed below for final closing. More than one Reference Code must match tax exactly (e.g. Ref 163 = 1000 and Ref 225 = 1500 then TC 300 = 2500). Any mismatch with dollars/cents in Tax or Reference Code will cause a reject case to close. Listed below are the valid Credit/Item Reference Numbers entries for Item 15:

(12) BMF Credit/Item Reference Numbers: (Form 1120, Form 1041 and Form 990T) Any time taxable income is changed due to an adjustment, use Item Reference Number 886 to correct. When decreasing taxable income, use Item Reference Number 886 with a minus (-) after the money amount.

(13) Form 941: On all Form 941 series adjustments all increases and decreases in tax must use reference numbers for employment tax returns. The sum of Reference Numbers 003, 007 and 008 must equal the tax amount that is being adjusted.

(14) Any Form 941 processed after 01/01/2005 (late filed returns and 4th quarter 2004) will be processed using the new reference codes since processing procedures for Submission Processing must be initiated at the beginning of the year.

(15) Form 940: All increases and decreases in tax must use reference numbers associated with the State indicated on the return. The total of the tax reference amounts must equal the tax amount that is being adjusted. If the increase or decrease in wages, a wage reference number is required. Reference numbers for MFT 10 (Form 940) will be alphabetic, and the left most position will be either a "T" (adjustment to tax) or "W" (adjustment to wages).

(16) The second and third positions are standard state abbreviation codes, which are as follows:

(17) Form 720: Is filed to report and pay excise taxes levied on specific services and the manufacturing and sale of certain items. The items are identified by an IRS Abstract Number on the return. When the tax is adjusted on Form 720, the IRS Abstract Number must also be adjusted.

(18) Form 4720: Applicable Item Reference Numbers are as follows:

(19) Adjustments to Certain Penalties - The adjustments to certain penalties in Item 15 on Form 5599 are limited to the following REF:

(20) A total of eight reference items, may be input. The positive and negative fields may be changed according to the reference number if needed. If more than eight reference items are needed, the excess should be processed on Form 8485, Assessment Adjustment Case Record or Form 3870, Request for Adjustment using CC ADJ54. The reference items processed via ADJ54 must be those items that do not affect tax and penalties which are included in Examination Results (e.g., reference items 878, 879, 886, 887, 888, and 889.) Ensure that reference items that do not affect tax and penalties, which are included in Examination Results (e.g., reference items 680, 681, 682, 764/765, 766/767, or 806/807), are processed through CC AMCLS.

(21) If a change to AGI, Taxable Income or Self-Employment Income/Tax, has been made, but it results in no income tax due (no change with adjustment case), process these reference item adjustments using DC 01 and Item 15 with the appropriate reference number and amount.

(1) The Closing Function Terminal Operator will enter Item D after Form 5599 is input on the terminal. The entry should include the operator’s employee number and the date of input.

(1) This item is completed by the Closing Function Terminal Operator only if Form 5599 is rejected.

(2) The Terminal Operator will enter the date in the reject (Rej.) block when an entry on Form 5599 does not meet a validity check at the terminal. The Terminal Operator must attach a print of the CC AMCLSO to the Form 5599 and indicate the item that failed to meet the validity check and the reason it failed. This procedure will alert the Tax Examiner of what item failed to meet the validity check.

(1) The Tax Examiner must determine and annotate the appropriate blocking series on Form 5599 for MF cases. See Exhibit 4.5.2-1 for MF blocking information.

(2) The Terminal Operator will enter the complete renumbered DLN after the closing data has been input. The Terminal Operator will assign a NMF block to all NMF case files.

(1) The date the correction is made will be placed in the corrected (Cor.) block by the Tax Examiner or person making the correction to the item rejected. Form 5599 will then be returned to the terminal area for input. Refer to IRM 4.5.1 for additional information on terminal rejects.

(1) The Appeals Office Code is entered by Mandatory Review.

(2) Enter a three-digit numeric code if the case is to be forwarded to Appeals. Valid DCs would be 07, Non-Docketed cases or DC 11 for Docketed cases. See Exhibit 4.5.2-6 for valid Appeals Office Codes. Cases going to Appeals should not be forwarded out of their jurisdiction. Appeals will update and forward these cases to the appropriate Appeals office.

(1) The EO/GE Appeals Issue Code is entered by Mandatory Review.

(2) Not a valid item for EP BMF Form 5330s.

(3) DC must be 07 or 11. For valid Appeals Issue Codes, refer to:

• EO Document 6379

• GE Document 11308

(1) The Unagreed Amount is entered by Mandatory Review.

(2) If a return is being closed to Appeals, the unagreed amount being appealed (DC 07), or petitioned (DC 11), is a required entry. The entry should only reflect the unagreed portion of tax, penalties, and credit adjustments. (Do not include the interest portion of the penalty due to negligence and fraud.) This will be the full deficiency less any partial assessments of the agreed portion of the tax. Circle the "+" or "-" at the end of the line to denote a positive or negative amount.

(3) If a claim without other adjustments is being referred to Appeals, an amount of negative $1 must be entered in Item 18. The claim amount that is being appealed is entered in Item 21 (Amount Claimed).

(1) The AIMS/MF Update Data is to be entered by the Agent.

(2) If the NAICS coder is not accurate on the AIMS data base enter reference number 410/NNNNNN=NAICS Code.

(1) Items 20-24 are to be completed by the Agent.

(2) Protection of the revenue base is the work done by TE/GE personnel to prevent the release of money from the Treasury to a taxpayer. Item Numbers 22, 23, and 24 are to be completed only if Revenue Base Protection (RBP) applies. The most common example of RBP is the examination of a claim submitted by a taxpayer whose account has no outstanding liability for which they filed a claim. If they disallow the claim, Agents are expending resources to prevent the release of money from the Treasury. We measure this valuable contribution by TE/GE personnel, through the completion of the Revenue Base Protection Section of Form 5599, Items 20-24.

(3) A claim is only considered as RBP if we are preventing money from leaving the Treasury. If an outstanding balance is due on the account, the RBP amount will not be the entire amount of the claim. A calculation must be done to determine how much of the claim qualifies as RBP. Since the taxpayer can be making payments on the outstanding liability while the examination is taking place, the Agent must make the calculation when the examination is completed.

(4) Not all claims are considered RBP; therefore, a claim Source Code does not have any relationship with RBP. Although the following situations are sometimes called "claims," they do not qualify as RBP:

1. Reductions of a carry forward to a future return that has not been filed.

2. Audit reconsideration, Source Code 73 (Taxpayer’s Request), (if the tax has not been paid). Since TE/GE received credit for this closure when it was originally closed, if the audit reconsideration is being referred to Appeals, leave the RBP items blank and enter a $1 in Item 18 to get the case through the terminal. Entering the amount of the "audit reconsideration" will cause duplicate results.

3. Innocent spouse claims, since this does not increase or decrease the actual liability, it just changes who is liable.

(1) Claim Rejection Date is to be completed by the Agent if a signed Form 2297 is secured. If a letter needs to be issued, the Claim Rejection Date is to be completed by the Agent.

(2) If the Campus Center previously allowed the claim, an entry should not be made.

(3) If a date is entered, the EP, EO or GE DC must be 01, 03, 07, 10, or 11 and the Source Code must be 30. DC 34 cannot be used.

• Items 21-24 are required entries for DC 01, 07, or 11.

• When DC 03 or 10 is used, Items 21-24 and 28 are required entries.

• Item 28 is needed for DC 07 or 11 if non-revenue issues are involved.

(1) The Amount Claimed is to be completed by the Agent.

(2) Enter the amount of the claim or reduction of tax requested by the taxpayer. If the Source Code is 30, this item is a required entry.

(3) Form 843, Form 1040X, Form 1120X, amended returns, or written claim requests by taxpayers are considered claims. The amount from the applicable form must be entered unless the amount is in error. For example, the taxpayer submits a claim for $1,500. In examining the claim, it is discovered that the taxpayer made a computation error and the correct amount is $2,500. A correction must be made to the Amount Claimed field on AIMS to reflect the correct amount. Form 5598 (CC AMAXUO) is prepared to correct the claim amount. If the AIMS database does not show a claim amount, then use Form 5595 (CC AMSTU) to update the claim amount on AIMS. Claims filed during an examination after an audit report has been written are treated as claims. Protective claims are treated as claims. Oral requests for a refund made during an interview or by telephone are not claims.

(4) If the taxpayer submitted a protective claim for $1, when the correct amount of the claim is determined, AIMS should be updated using CC AMSTU to reflect the correct amount. Enter the corrected amount in Item 21, at closing.

(1) The Claim Amount Disallowed is to be completed by the Agent.

(2) Enter the dollar amount that was protected from leaving the revenue base (a disallowed claim amount). This amount cannot exceed the amount that is entered in Item 21 or in the amount claimed field on AIMS. An entry must not be made if the claim was allowed in full.

• If this item is entered, Items 20, 21, 23, and 24 are also required for DC 01.

• For DCs 03, 07, 10 or 11, Items 20-24 are required entries.

• Item 28 should be completed if non-revenue issues are also involved for DC 03, 07, 10, or 11.

• If Item 28 is completed, do not include the time entered in Item 23.

(3) If the claim is being referred to Appeals, enter the entire disallowed amount in this field and a negative $1 in Item 18. If the taxpayer is also protesting other issues, enter the protested amount of the other issues in item 18 and the claim amount disallowed in Item 22. See Exhibit 4.5.2-7, Claim Amount Examples, for Item 22 entries.

(1) Claim Hours is to be completed by the Agent.

(2) Time spent on revenue base protection must be entered in whole hours only. Agents must include any hours or fractions of hours spent on non-revenue in Item 28.

(3) If Item 22 is entered, Items 20, 21 and 24, are also required.

(1) Claim Type is to be completed by the Agent.

(2) All Claims with examination criteria will be slotted into one of two categories for screening. The examination criteria are divided into two categories: Category A and Category B. Category A criteria denotes high examination potential. Category B criteria are issues that do not meet Category A criteria and have a refund of at least $200.00 or more. The allowable alpha codes identify the type of revenue base protection. These codes represent examples of the types of requests for the release of money which, when examined, would be categorized as Revenue Base Protection. Remember, the codes are only applicable if the tax liability has been paid and the money requested on the claim has not been released. Exhibit 4.5.2-9 for a listing of valid Claim Type Codes.

(1) Examiner's Time is to be completed by the Agent.

(2) Enter the total time spent on non-revenue base protection issues for each return examined. Do not include this time in Item 23. Time should not be entered for partially agreed cases.

(3) If the return has been re-established from Status Code 90 using CC AMSTUR or returned from Appeals using CC AMSTUB, the total time from both closings must be entered in this field.

(4) An entry is required for all examined returns and is reported in full hours and 15 minute increments. The entry must be in the range :i.e. .3 =.15 minutes; .5 = .30 minutes; and .7 = .45 minutes..

(5) The entry for cases also involving protection of the Revenue Base must only include Non-Revenue Production Time. The protection of the Revenue Base Time must be entered in Item 23 in whole hours.

(6) An entry is not made for Surveyed Claims, DC 01 or 34.

(1) The Examination Technique code to be entered by the Agent.

(2) An entry is required for all examined returns. An entry is not made for DC 34 (Surveyed Claims). Valid codes for this item are:

(1) The Agent's Grade is to be entered by the Agent.

(2) Enter the two-digit grade of the Agent who performed the audit. This is a required entry for all examined returns. An entry is not required for DC 34 (Surveyed Claims). Valid range of grades are 05 through 14.

(1) Case Grade is to be entered by the Group Manager.

(2) Group managers determine grade of case for all returns. The manager will consider both the primary and related returns to determine the grade level.

(3) For the EP Form 990-T, the case grade must be 09, 11, 12, or 13.

(4) For Discrepancy Adjustments, all grades of cases must begin with "3."

(5) The related returns are graded to be the same as the primary return, therefore, the same three-digit code is used followed by an "R." When other Agents examine the related entities, each manager grades the separate entities as separate cases and they do not enter the "R."

(6) When entering the case grade in this item, left justify the entry. Refer to the chart below for correct case grade entries.

(1) The Examiner's Name is to be entered by the Agent.

(2) This item is a required entry for all examined returns. An entry is not required for DC 34, Surveyed Claims. Enter the last name first, followed by a space and the first initial.

(1) The Exam Adjustment Amount is to be completed by the Tax Examiner.

(2) Not a valid item for EP BMF Form 5330s.

(3) This field is used to reflect adjustments to non-taxable returns only.

(1) The Manual Assessment Amount is to be entered by the Closing Function.

(2) Enter the net of all adjustments processed using quick (manual) assessment procedures. If more than one quick assessment has been made, ensure that this entry is the total of all assessments processed.

1. Enter the net of all tax and credit adjustments (i.e., TC 300 or 301; Credit Reference 680, 681, 682, 685, 689, 764, 766, 806, etc.) plus any decreases in refundable credits (i.e., Reference Numbers 765, 767, 807, etc.) and minus any increase in credits (i.e., Reference Numbers 764, 766, 806, etc.), if processed as part of the quick assessment.

2. Do not include interest or reference number adjustments that are only used to update information fields on MF or alert MF to make special interest computations (i.e., TC 340, 341, 342, 770, etc., or Reference Numbers 221, 320, 878, etc.).

(3) Do not complete this item for no change cases (DC 01, 02 or 08), or for non-taxable returns.

(4) AIMS contains many computer checks that are based on the DC and the Examination Results. Any changed DC requires Examination Results. Cases that are truly changed cases, but have no examination results, will require an amount of $1 in Item 35. Some examples of these cases are:

1. Barred assessment cases.

2. Interest assessment cases.

3. Tax assessments that are offset by credits.

4. Assessment Amount field and DC 01 in Item 13.

5. Delinquent Return, Item 414 and DC 06 in Item 13.

6. NMF - MFT 99 and DC 12 in Item 13.

(1) The Hash Total is to be entered by the Closing Function.

(2) This entry will be made for all examined returns. "Hash Total" is a term applied to the sum of several unrelated item numbers entered on Form 5599. The computer will compare the Hash Total entered in Item 36 with the total of individual items as entered by the Terminal Operator. This will assure the accuracy of the input of individual entries.

(3) Items to be included (if entered) in the Hash Total are as follows:

(1) The Delinquent Return Code is entered by the Agent.

(2) Item 37 must always be completed when closing delinquent returns picked up during the examination and sent to the Campus Center for processing. This entry is what gives TE/GE credit for a delinquent return pick-up on Report 20.

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

(4) Segregate the closing records of delinquent returns secured by MFT code. For each type of return included in the case file, the Group Clerk will:

1. If there is only one delinquent return, enter a "T" in Item 37 on any return for EP.

2. If there is more than one delinquent return, enter a "T" on the latest year in Item 37 and a "R" on the prior years of the closing records in Item 37.

(1) The Fraud Condition Code is to be entered by the Agent.

(2) The Fraud Condition code identifies the existence of fraud detected during an examination.

(3) This item is not applicable for TEB returns.

(4) This item may be blank or contain an entry of "C" (Civil) or "F" (Fraud) or "B" (Both).

(1) Disclosure Code is to be entered by the Closing Function.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) This item must be completed when disclosure is made to a state agency for state tax administration under Chapter (33)00 of IRM 1272, Disclosure of Official Information Handbook. Exhibit 4.5.2-10 for valid Disclosure Codes.

(1) The Special Project Code is to be entered by the Agent.

(2) Special Project Codes are used to identify a Priority Emphasis Program or a referral to SBSE, W & I or LB&I Areas. Valid project codes are 4–Digits Effective 01/01/06 in the range of 0000-9999. Refer to the following for valid Special Project Codes:
• Document 6476 (EP)
• Document 6379 (EO)
• Document 11308 (GE)

(1) No Change Issue Codes are to be entered by the Agent.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) This entry identifies examined discrepancy issues that resulted in a "No Change" to taxable income. An entry must be present when closing examinations of Form 1040 or Form 1040A (MFT 30) with a "No Change" DC on Discrepancy Adjustments only.

(4) The following codes are valid codes for a "No Change" on a Discrepancy Adjustment:

(1) The ARDI Code is to be entered by the Agent.

(2) Enter a one-digit code in this item for an agreed deficiency under the Accounts Receivable Dollar inventory (ARDI) project.

(3) When closing multiple years and an overassessment from one year will be used to offset an assessment from another year, consider the overassessment as payment secured. Full Paid or Partially Paid depends on the amount of the overassessment.

(4) The ARDI Code is valid for all IMF and BMF MFT Codes. Valid DCs are:

• EP - 03, 06 and 09.

• EO/GE - 03, 06, 09 and 12.

(5) Valid ARDI Codes are as follows:

(1) The Delay Posting Code is to be entered by the Closing Function.

(2) This item is not applicable for TEB returns.

(3) A one position field with values of 1-6. Values indicate the number of cycles (weeks) delayed between posting transactions.

(1) NOL CF Disallowed Amount is to be entered by the Agent.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) This item should be completed if all or part of an NOL Carry Forward year return is not picked-up. If Item 44 is entered, item 45 NOL Indicator is required. If Item 44 is input, DC 02 cannot be entered in Item 13 on Form 5599. NOL CF Disallowed Amount is 1-11 characters. May not be negative or zero. This item is to be included in Item 36, Hash Total.

(1) NOL Indicator is to be entered by the Agent.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) Values are 1, 2, or 3. This item is only used to identify the three types of NOL/Carry Forward Returns.

1. NOL’s Examined: Enter a "1" in Item 45 for tax periods in which the taxable income line on the Form 1040 or 1120 is less than zero, (i.e., 199712, Form 1120 Line 30).

2. Carry Back and/or Carry Forward Tax Periods Related to the NOL: Enter a "2" in Item 45 for all carry back and/or carry forward tax periods related to the case in which you entered a "1" in Item 45, even if the NOL was examined and the final result was a no change.

3. Non-NOL Years Offset by Carry Over: Enter a "3" in Item 45 for tax periods in which adjustments on the return were offset either in part or full by a carry over if the carry forward year return is not picked-up.

(4) NOL/Related Return Examples:

1. You made no adjustment to the 199812 NOL, therefore you did not pick up the related years.
   
   199812 Form 5599, Item 44 = leave blank
   199812 Form 5599, Item 45 = "1" (NOL year)

2. You made a $10,000 adjustment to the 199912 NOL that was carried back to 199712.
   
   199912 Form 5599, Item 44 = leave blank (there was no carry over)
   199912 Form 5599, Item 45 = "1" (NOL year)
   199712 Form 5599, Item 44 = leave blank
   199712 Form 5599, Item 45 = "2" (Related year)
   199712 Form 5599, Item 12 = amount of tax assessed on the $10,000 adjustment

3. You made a $140,000 adjustment to the 199712 NOL. You picked-up the carry back years and applied $20,000 to 199412, $30,000 to 199512, $40,000 to 199612 but the $50,000 for the carry over year could not be applied since the 199812 return was not yet filed.
   
   199712 Form 5599, Item 44 = $50,000 (captures the carry forward amount disallowed)
   199712 Form 5599, Item 45 = "1" (NOL year)
   199412 Form 5599, Item 44 = leave blank
   199412,199512,199612 Form 5599, ltem 45 = "2" (Related years)
   199412, 199512,199612 Form 5599, Item 12 = amount of tax assessed on the $20,000, $30,000 and $40,000 adjustments

4. You made a $140,000 adjustment to the 199612 NOL. You picked-up the carry back years and carry forward years and applied $20,000 to 199312, $30,000 to 199412, $40,000 to 199512 and $50,000 to 199712.
   
   199612 Form 5599, Item 44 = leave blank
   199612 Form 5599, Item 45 = "1" (NOL year)
   199312, 199412, 199512,199712 Form 5599, Item 44 = leave blank
   199312,199412,199512, 199712 Form 5599, Item 45 = "2"
   (Related years)
   199312,199412, 199512, 199712 Form 5599, Item 12 = amount of tax assessed on the $20,000, $30,000, $40,000 and $50,000 adjustments.

(5) Offset Examples:

1. The 199712 return showed taxable income of $75,000 (taxable income before NOLD = $125,000, NOLD = $200,000). You made adjustments to 199712 changing taxable income before NOLD to $175,000. Your $50,000 adjustment will be totally offset by the NOLD carry over of $200,000. The 199812 return has not be filed, therefore cannot be picked-up to adjust the carry over. The 199612 return was examined but no changed.
   
   199712 Form 5599, Item 44 = $50,000 (Amount of adjustment offset by carry over)
   199712 Form 5599, Item 45 = "3" (Offset year)
   199612 Form 5599, Item 44 = leave blank
   199612 Form 5599, Item 45 = "2" (Related years)

2. The 199712 return showed taxable income of $75,000 (taxable income before NOLD = $25,000, NOLD = $50,000). You made a $100,000 adjustment to 199712 changing taxable income before NOLD to $75,000 that is partially offset by the $50,000 carry over from 199612. The 199812 cannot be adjusted since it has not been filed.
   
   199712 Form 5599, Item 44 = $25,000 (NOL C/F amount disallowed) + $50,000 (offset)
   199712 Form 5599, Item 45 = "1" (Both "1" and "3" apply, but "1" always takes precedence).
   199712 Form 5599, Item 12 = amount of tax assessed on the $25,000 adjustment.

3. The 199612 return showed taxable income of $75,000 (taxable income before NOLD = $125,000, NOLD from 199512 NOL carry over = $200,000). You made a $50,000 adjustment to 199612 changing taxable income before NOLD to $175,000. Your $50,000 adjustment will be totally offset by the 199512 NOL carry over disallowed. Since the 199712 return was adjusted, no entries in the NOL fields are warranted unless the 199512 NOL was examined and the 199612 and 199712 were related to the NOL. Then Item 45 would be "2."

(1) Credit CF Disallowed Amount is to be entered by the Agent.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) This item is used if you made adjustments to a credit that was carried forward but did not pick-up the carry forward year return. Enter the amount of the carry forward that was disallowed. Credit CF Disallowed Amount is 1-11 characters. May not be negative or zero.

1. You examined the 199712 return and disallowed the foreign tax credit for $5,000, $2,000 of which was carried forward to 199812. You did not pick up 199812, since it had not been filed.
   
   199712 Form 5599, Item 46 = $2,000
   199712 Form 5599, Item 12 = $3000

(1) CF Credit Type is to be entered by the Aent.

(2) Not a valid item for EP BMF Form 5330s or TEB returns.

(3) Enter the type of credit that was disallowed in Item 46. If more than one type of credit was disallowed, enter "M" for multiple. Values are A through Z and their definitions are as follows:

(1) A four–digit code to be entered by the Agent.

(1) The Secondary Business Code (SBC) is reserved for future use by TE/GE. Must be blank or have an entry of five zeros (i.e., 00000).

(1) The Employee Group Code is to be entered by the Agent.

(2) The Employee Group Code (EGC) is a four-digit code designating a specific group. An EGC is a required entry on all Examined full closures with the exception of DC 34, Surveyed Claims. The following list identifies the EGCs used by TE/GE:

(1) The Check Box is to be completed by the Agent when additional entries are entered on Page 2 of the Form 5999.

(2) The Check Box alerts the Tax Examiner and Terminal Operators of the completion of the additional items on Page 2.

(1) Reviewer/Date is to be entered by the Reviewer.

(2) The Reviewer’s signature and date must be entered, if the return was reviewed.

(1) Tax Examiner/Date is to be entered by the Tax Examiner in the Closing Function.

(2) The Tax Examiner closing the case who codes, edits, verifies, assembles and sends the case for input through the computer will complete Item K. Item K will include the first initial, last name and may include the unit employee number. The date that the case was completed and sent for input must also be entered.

(1) The First Time Homebuyer's Credit Reason Code 1 is to be entered by the Agent.

(2) The credit is valid for 1040's MFT 300 only.

(3) No entry can be a duplicate of another as AIMS will reject the closure..

(1) The First Time Homebuyer's Credit Reason Code 2 and 3 is to be entered by the Agent.

(2) The credit is valid for 1040's MFT 30 only.

(3) No entry can be a duplicate of another as AIMS will reject the closure..

(1) First Time Homebuyer's Credit Reason Code 3is to be entered by the Agent.

(2) The credit is valid for 1040's MFT 30 only.

(3) No entry can be a duplicate of another as AIMS will reject the closure.

(1) The SHIP-LIVE/AMT is to be entered by the Agent.

(2) This item is used when updating the average number of lives covered under these health insurance policies or plans. SHIP-Lives (906) is Specified Health Insurance Policies Average Number of Lives covered.

(3) The value for the first three-digits is pre-populated with 906 the remaining nine spaces are to be completed by Agent.

(1) The ASIHP-LIVE/AMT is to be entered by the Agent.

(2) ASIHP-LIVE (907) is applicable Self-Insurance Health Plans Average number of lives covered.

(3) The value for the first three-digits is pre-populated with 907 the remaining nine spaces are to be completed by Agent.

(1) The SHIP-LIVE-OCT is to be entered by the Agent.

(2) This item is used when updating the average number of lives covered under these health insurance policies or plans after October 1, 2015 and before October 1, 2016 and in subsequent years.

(3) The value for the first three-digits is pre-populated with 908 the remaining nine spaces are to be completed by Agent.

(1) The ASIHP-LIVE-OCT is to be entered by the Agent.

(2) This item is used when updating the average number of lives covered under these health insurance policies or plans after October 1, 2015 and before October 1, 2016 and in subsequent years.

(3) The value for the first three-digits is pre-populated with 909 the remaining nine spaces are to be completed by Agent.

(1) The CIC Case is to be entered by the GE Agent.

(2) Not a valid item for EP BMF Form 5330s.

(3) For EP (5500 Returns),TEB, FSLG and ITG - If the examination is a large case examination, a "L" should be entered. This entry is valid only in the area having primary responsibility for a large case examination.

(1) The Whipsaw Indicator is to be entered by the Agent.

(2) This item is not applicable for TEB returns.

(3) Where the Government's interest is being protected by making the same adjustment against the same taxpayer for different tax periods, or against two or more taxpayers, an alpha indicator (K = Key Case, R = Related Case) must be entered to identify the case as a Whipsaw case.

(4) If there are additional issues on the return that have been adjusted, the indicator should be used only if the majority of the adjustments were due to the whipsaw.

(1) The International Examiner's Time is to be entered by the Agent.

(2) This item is not applicable for TEB returns.

(3) Enter the percentage of the total time (reported in Item 28) that represents the International Examiner's time.

(4) Do not include the international examiners time spent on Revenue Base Protection issues in this calculation.

(1) The International Exam Results is to be entered by the Agent.

(2) This item is not applicable for TEB returns.

(3) Enter the percentage of the exam results (agreed and unagreed) that is due to the international examiners involvement.

(4) Do not include Revenue Base Protection results due to the international examiner.

(1) Abstract Information is to be entered by the GE Agent.

(2) This item is not applicable for TEB returns.

(3) 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.

(4) Entries for the total time spent on the case and all assessments are made on the front of the Form 5599.

(5) Entries for AIMS statistical reporting purposes are made in Item 404a-404d on the back of the form.

(1) This item is not applicable for TEB returns.

(2) The Related Return Information Section is to be completed by the GE Agent.

(3) Required entry for all examined returns worked by Agentss in a 72XX Organization Code. 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 Examiner will designate one return as primary.

(5) An audit label may be used, but the name control must be lined out and Item 408 entered separately.

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

(1) If there is an installment agreement, this code should be entered by the GE Agent.

(2) This code is not applicable for MFT 46 cases.

(3) Select the code based on whether an installment agreement was secured.

(1) Delinquent Return Amount is to be entered by the Agent.

(2) In order to capture accurate results when TE/GE secures delinquent returns, a separate field has been initiated. Previously this amount was entered in the dual-purpose field, Item 34, Adjustment Amount. Effective January 1999, Item 34 will be used to reflect adjustments to non-taxable returns only. Item 414 will be used for delinquent returns secured by TE/GE.

(3) For taxable returns, the amount entered in Item 414 must reflect the balance due or refund amount per the return that was forwarded to the Campus Center for posting of the TC 150. If this amount is zero, enter a $1 in this field.

(4) For EP taxable returns, i.e., Form 5330s, the amount entered in Item 414 must reflect the tax and penalties that were assessed after the return was forwarded to the Campus Center. Zero is an invalid entry.

(5) For non-taxable returns, enter the amount in Item 414 of the ordinary net income/loss or special allocation items per return forwarded to the Campus Center for posting of the TC 150. If this amount is zero, enter a $1 in this field.

(6) If Item 414 is entered, Item 37-Delinquent Return Code must also be entered and vice versa.

(7) If Item 414 is entered, Item 13-Disposal Code must not be 02 (No Change) or 34 (Surveyed Claim).

(8) Item 414 can be corrected by using CC AMAXUO.

(9) If there is no balance due/refund due or no change to income/loss, enter a $1 in Item 414.

(10) The delinquent return amount will no longer be included in "Exam Results." It will appear in a separate column of the AIMS reports.

(1) Amended Return Amount is to be entered by the Agent.

(2) In the past, if a taxpayer filed an amended return with the Service Center, even if it was due to an ongoing examination, TE/GE could not take credit for the adjustment. To accurately capture the Agents’ efforts, a new Item 415 has been initiated. This entry is only valid if MF shows that the examination was started before the taxpayer filed the amended return or an original return, if the TC 150 is a Substitute for Return (SFR). Enter the amount of the TC 29X that has posted to MF, if the return was filed as a result of an ongoing examination. A current transcript must be included in the case file supporting the amount entered in Item 415. The TC 42X date must be prior to the TC 29X date.

(3) For taxable returns, enter the amount of the TC 29X, less any credits posted. In most cases this is the balance/refund due.

(4) For non-taxable returns, enter the adjustment amount to income/loss.

(5) Item 415 can be corrected by CC AMAXUO.

(1) Fax Agreement Indicator is to be entered by the Agent.

(2) This item is not applicable for TEB returns.

(3) If the taxpayer faxed the agreement to the Agent, enter a "1". Otherwise, leave this item blank.

(1) 3121q amount is entered by the Agent, Effective 01/01/06.

(2) This item is valid only for 941 returns.

(1) The IRC Subsection is to be entered by the EO Agent.

(2) Not a valid item for EP BMF Form 5330s or GE returns.

(3) Enter the appropriate two-digit code. If an IRC Subsection does not apply, leave this item blank. Refer to Document 6379, Exempt Organizations Management Information Systems Codes when Item 702 is a required entry.

(1) The Asset Code is to be entered by the EO Agent.

(2) Not a valid item for EP BMF Form 5330s or GE returns.

(3) Entry is valid for 990PFs (MFT 44) only, in all other instances, leave this item blank. Refer to Document 6379, Exempt Organizations Management Information Systems Codes for the appropriate asset amount codes.

(1) Related Return is to be entered by the EO Agent.

(2) Not a valid item for EP BMF Form 5330s or GE returns.

(3) When closing a 990T account related to a 990 examination, enter a "1." When closing a 990T account related to a 990PF examination, enter a "2." In all other instances leave blank.

(1) The Additional EO/GE Examined Closing Information is to be entered by the EO or GE Agent.

(2) Not valid for EP BMF Form 5330s.

(3) Complete for the primary return only.

(1) The Analysis of Change in Tax Liability items are to be entered by the EO or GE Agent.

(2) Not valid for EP BMF Form 5330s.

(3) Complete for the Primary Return ONLY.

(4) GE - In Items 721-724, enter the change in tax liability resulting from the examination. For a non-tax issue or a "No Change" closing, leave these items blank.

(5) EO - On the appropriate line(s), enter the change in tax liability resulting from the examination. For a non-tax issue or a "No Change" closing, leave Items 708 through 721 and 728 through 731 blank.

(6) For Form 4720 complete the following, if applicable:

1. Item 708, IRC Section 4911(a)/Section 4912(a) 4912(b)- enter the deficiency or overassessment.

2. Item 710, IRC Section 4941/Section 4951 - enter the initial deficiency or overassessment.

3. Item 711, IRC Section 4941/Section 4951 Additional - enter the additional deficiency.

4. Item 712, IRC Section 4942(a) - enter the initial deficiency or overassessment.

5. Item 713, IRC Section 4942(a) Additional - enter the additional deficiency.

6. Item 714, IRC Section 4943(a) - enter the initial deficiency or overassessment.

7. Item 715, IRC Section 4943(a) Additional - enter the additional deficiency.

8. Item 716, IRC Section 4944 - enter the initial deficiency or overassessment.

9. Item 717, IRC Section 4944 Additional - enter the additional deficiency.

10. Item 718, IRC Section 4945/Section 4952 - enter the initial deficiency or overassessment.

11. Item 719, IRC Section 4945/Section 4952 Additional - enter the additional deficiency.

12. Item 728, IRC Section 4958(a) - enter the initial deficiency or overassessment.

13. Item 729, IRC Section 4958(a) Additional - enter the additional deficiency.

14. Item 730, IRC Section 4955 - enter the deficiency or overassessment.

15. Item 731, IRC Section 4955 Additional - enter the additional deficiency.

16. Item 473, IRC Section 501(r)(3)- Excise Tax.

(7) For Form 990PF complete the following, if applicable:

1. Item 709, IRC 4940 - enter the deficiency or overassessment.

(8) For Form 990BL complete the following, if applicable:

1. Item 710, IRC 4941/IRC 4951 - enter the initial deficiency or overassessment.

2. Item 711, IRC 4941/IRC 4951 Additional - enter the additional deficiency.

3. Item 718, IRC 4945/IRC 4952 - enter the initial deficiency or overassessment.

4. Item 719, IRC 4945/IRC 4952 Additional - enter the additional deficiency.

(9) For Form 990T complete the following, if applicable:

1. Item 720, enter the deficiency or overassessment.

(10) For Form 940, Form 941, Form 942, Form 943, Form 945, Form CT-1, Form CT-2 or Form 1042, complete the following, if applicable:

1. Item 722, enter the deficiency or overassessment.

(11) For IRC Section 507, Termination Tax, complete the following, if applicable:

1. Item 723, enter the amount of tax imposed.

(12) For IRC Section 527, Political Activity, complete the following if applicable:

1. Item 724, enter the tax imposed (Form 1120-POL Tax).

(13) For IRC Section 6684, Penalty, complete the following, if applicable:

1. Item 725, enter the penalty imposed here and on Form 4881.

(14) For Penalty (Other), complete the following, if applicable:

1. Item 726, enter the penalty imposed by any other code section.

(15) For Fair Market Value Property (Result of Corrections) complete the following, if applicable:

1. Item 727, enter the fair market value of any property recovered by the private foundation as a result of the correction of any Chapter 42 violations.

(16) For IRC Section 6652(c)(1)(A)(i), Failure to File Return

1. Item 732, enter the amount of the penalty imposed.

(17) For IRC Section 6652(c)(1)(a)(ii), Failure to include required information on return.

1. Item 733, enter the amount of the penalty imposed.

(18) For IRC 6652(c)(1)(B), Penalty on Manager for failure to file return/failure to include required information.

1. Item 734, enter the amount of the penalty imposed.

(19) For IRC 6652(c)(1)(C), Failure to disclose annual return for public inspection.

1. Item 7356, enter the amount of the penalty imposed.

(20) For IRC Section 6652(c)(1)(D), Failure to disclose application for exemption for public inspection.

1. Item 737, enter the amount of the penalty imposed.

(21) For IRC Section 6685, Penalties

1. Item 737, enter the amount of the penalty imposed.

(22) For IRC Section 170(f)(10), Excise Tax

1. Item 738, enter the amount of the tax imposed.

(23) For IRC Section 6033(e)(2), Income Tax

1. Item 739, enter the amount of the tax imposed.

(24) Item 740, Section 4965 Excise Tax.

(25) Item 741, Section 4966 Excise Tax.

(26) Item 742, Section 664(c)(2) Excise Tax.

(1) The Comments Section will be completed by the EP, EO or GE Agent.

(2) Cases having related returns will be identified by the EP, EO or GE Agent by writing "Related Case" in the "Comments" area. In addition, the name, EIN, and the return form number of the related case will be shown. Other pertinent information related to the case maybe entered in the "Comments" area, space permitting.