7.15.7. Electronic Case Processing

(1) Tax Exempt Determination System (TEDS) is a web-based information system that provides an electronic case and inventory management system Tax Exempt and Government Entities (TE/GE) Determinations business units use to manage cases.

(2) TEDS was launched as a pilot in 2003 and from that time on, with a few exceptions, the EP Determination applications have been processed using this electronic system. EP Determination applications are uploaded to TEDS and, using on-screen capabilities, specialists review and process cases in TEDS.

(1) Delegation Order 7-1, IRM 1.2.2.8.1, states the Director, Employee Plans has authority to issue favorable DLs on the qualified status of:

1. Pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans under IRC 401, IRC 403(a),IRC 409, IRC 4975(e)(7).

2. The status for exemption of any related trusts or custodial accounts under IRC 501(a).

(2) Find a complete list of delegation orders governing EP Rulings and Agreements at http://www.irs.gov/uac/Delegation-Orders-by-Process1.

(1) The table lists commonly used acronyms and their definitions.

(1) TEDS has several case assignment options. An assigner can assign:

• One or several cases to an individual.

• One or multiple cases to the group.

(1) The group managers and other case assignors can assign cases to:

• A group's unassigned inventory in status 75.

• A specialist.

(2) The group manager’s inventory consist of unassigned group cases available for assignment to group members.

(3) To start the case assignment process, the assigner runs an advance search for the desired:

1. Unassigned inventory (status 51, 61, 71, or 91).

2. Case criteria (control dates, case categories, form numbers, etc).

(4) Using the advanced search results the assigner follows the steps in the table below:

(5) The Selected Status screen displays the statuses in a drop-down menu. See Exhibit 7.15.7-3, Select Status Screen.

(6) The Assign Case screen displays a list of cases available for assignment. See Exhibit 7.15.7-4, Assign Case Screen. The assignor can assign case(s) to the group (status 75) or assign cases to individuals within the group. To assign cases to the unassigned group inventory, the assigner must either:

• Select the Group Number.

• Select "view screeners" next to the group number.

(7) To complete the assignment, scroll down to select the individual specialist to whom the case(s) will be assigned.

(8) A confirmation screen displays the newly assigned:

1. Case name(s).

2. Case number(s).

3. Group or assignee number.

(9) If case assignment is successful, TEDS updates the case:

• To status 52, 62, 72, or 75.

• History to reflect the activity.

(10) Click Close at the bottom right of the screen to return to the main screen.

(1) Each manager has cases in various status codes that are considered part of their group inventory. Group inventory is considered part of the National Assigned Inventory (NAI).

(2) Group inventory includes cases:

1. Assigned directly to members of the group – these cases can be in various stages of completion.

2. Completed by the specialist and are waiting for managerial review.

3. In unassigned group inventory or "group suspense".

(3) Group inventory is "owned" by the group. If a group manager changes, all group inventory remains associated with the group rather than the individual manager. Group manager changes are completed via an Online 5081 request. Temporary group manager delegations are completed by the group manager through role delegation. See IRM 7.15.4, Tax Exempt Determination System (TEDS) Roles and Delegation.

(4) The group manager and:

1. The Specialist have dual ownership of a case assigned directly to members of the group.

2. Anyone above the group manager (e.g., Area Manager) can view the group inventory and may have other permissions to the case(s).

(5) The group manager’s "My Cases" inventory:

1. Lists all cases assigned in the group.

2. Identifies specialist assigned to the case.

(6) The group manager can also view cases assigned to each specialist within the group by using the "User Cases" cabinet or selecting “Reports” and then clicking “Specialists Inventory”.

(1) A manager may need to reassign/transfer case(s) to another user. Only a group manager or assigner can reassign cases assigned to the group or the group members. Cases can be assigned from one user to another or from one group to another.

(2) To reassign or transfer a case, the case must be updated to status 74, 74PC or 75 before reassignment to another specialist or group.

(3) To reassign, update the status, or transfer a case, the manager or assigner must take the following steps:

(4) If a specialist transfers to another work group, case(s) in an active assigned status automatically transfers with him/her. Specialist group reassignment is completed via Online 5081 request. This is the only action that the group manager or designee takes.

(5) Cases in status 74, 74PC, or 37 don't transfer with the specialist even though they may appear in the specialist’s My Cases listing. Cases in these statuses are considered unassigned group inventory and remain with the group.

(1) To ensure case accuracy, you will verify application entity information with scanned data.

(2) Make changes as necessary to the data.

(1) Entity information can be viewed and must be edited from the File drop-down menu. Entity information consists of:

• Applicant name.

• Employer Identification Number (EIN).

• Name control.

(2) To change entity information follow these steps:

(1) The disclosable indicator consists of a "T" for Non-Disclosable & "F" for Dis-closable. The indicator is changed much like the entity information is modified. See Exhibit 7.15.7-12, Make Case Disclosable/Confirmation.

(2) To change the disclosable indicator:

(1) To ensure accuracy, you will also compare the information on an application with the data that is stored in the "Case Information" file. You may also need to enter additional case information for case closing. You can make changes to many of the Case Information data items.

(2) From the case level view, access the Properties Information screen:

1. Right click on the "Case Information" line.

2. Left click "Properties" line in dialog box.

(3) Access to the Properties information screen can also be obtained by clicking on the blue icon to the right of the Case Information line from the My Cases view on search results. See Exhibit 7.15.7-13, Accessing Case Information From the Case Information View and Exhibit 7.15.7-14, Accessing Case Information From the My Cases View or Search Results.

(1) You can modify case information from the "Case Information: Info" screen. The "Case Information: Info" file lists case data under several different headings. See Exhibit 7.15.7-15, Case Information: Info.

(2) The" Case Information: Info" screen has the following tabs:

• General Case Info.

• Plan Info.

• Receipt and Handling.

• Entity Data.

• Contacts.

• EP Closing Data.

• Permissions.

(3) Each of these tabs contains different information. You must click OK at the bottom of the screen for TEDS to accept the entries or corrections. Generally, you will update information on all tabs prior to selecting OK. You will be asked whether EDS should be updated and then be returned to the case main screen.

(1) The Case Information file opens to the General Case Info. tab. See Exhibit 7.15.7-16, General Case Info.

(2) Authorized TEDS users can make changes or enter information into open fields including:

• Expedite Reason Code.

• Closing Code.

• Request Type.

• Case Grade.

• Plan Name

• Plan Number

(3) Authorized TEDS users can update the following indicators:

• Potential Duplicate Flag.

• Pending Action.

• Cycle On.

(4) TEDS users can view the status of the EDS Block Indicator and Routing Slip Indicator from the EP Properties Info Screen.

(1) Case Categories (e.g., Initial application/submission, amended plan, Affiliated Service Group, etc.):

• Are initially determined by the opening business rules.

• Can be edited by the case owner or other authorized TEDS user.

(2) Editing Case Category is similar to the process described in IRM 7.15.6.7.3, Adding Column Headers or IRM 7.15.6.4.4, Removing Column Headers.

(3) To edit a Case Category:

(1) The specialist must, if necessary:

• Enter plan information.

• Make changes to fillable fields.

(1) The specialist is responsible for ensuring that the user fee payments are correct. Use the Receipt and Handling Tab to verify that user fee payments are correct. See Exhibit 7.15.7-20, Receipt and Handling Tab.

(2) The specialist will correct the Payment Status and Fee Code as necessary or review for dishonored check information.

(3) The Receipt and Handling Tab displays:

• Case receipt data.

• Scanning information (including indication of non-scannable items).

• User fee indicator.

• Dishonored check indicator.

(1) The specialist is required to correct or compete the fillable fields such as applicant address and phone number as necessary. See Exhibit 7.15.7-21, Entity Data Tab.

(2) This tab also displays total time charged to the case. If time charged is inaccurate, it must be corrected within the incorrect case chronology entry.

(1) The Contacts tab contains Power of Attorney information. See Exhibit 7.15.7-22, Contacts Tab.

(2) The specialist is required to correct the fillable fields, as necessary, including checking the box(es) to indicate copies of letters that go to the POA(s). (IRM 7.11.1).

(1) When the application is ready to be submitted for closure, the Closing Letter Number is to be entered. The format to be used is the Letter number, followed by .000. (ex. 5274.000).

(2) After verifying that all information is correct click:

• "OK" to accept changes.

• "Cancel" to delete changes.

(3) An Update to EDS screen appears. Unless procedures otherwise require an update, it isn't necessary for you send this manual update to EDS. An update is automatically sent to EDS when a status change occurs. Select as appropriate:

1. "OK".

2. "Cancel".

(1) After successfully importing, the document can be moved to the appropriate destination folder. See Exhibit 7.15.7-23, Import: File Screen.

(2) To import a document:

(3) To import any file located on the computer use the Choose File box:

(4) After the documents are selected for import, you will identify the document on the Import: Object Definition screen. This information must be entered for each imported document to ensure correct identification and placement in the electronic case file. See Exhibit 7.15.7-24, Import: Object Definition Screen.

(5) On the Import: Object Definition screen:

(1) After the import is complete, the document appears in the Working folder (or other targeted file) and is part of the case file. Documents imported to a case’s Working file or placed in an incorrect folder must be moved to the appropriate destination folder (for example, from the Working folder to the Disclosable or Non-disclosable folder).

(2) The specialist can move documents between the following folders:

• New Documents folder.

• Working folder.

• Disclosable folder.

• Non-disclosable folder.

• Purge folder.

(3) Specialists must ensure that all documents are in the correct folders for case closing and archival purposes before submitting the case to the manager for review.

(4) All documents in the New Documents must be moved to the appropriate folder in order to close the case in TEDS. See Exhibit 7.15.7-25, Document to be Moved/New Folder Destination, and Exhibit 7.15.7-26, Destination Confirmation Screen.

(5) To move a document:

(1) You can make changes within the system to documents imported into the case file. See Exhibit 7.15.7-27, Select Document for Editing/Select File Edit.

(2) To edit an imported document:

(3) The selected document will open in the appropriate program (i.e., Word, Excel, or Adobe). After you make the desired changes, save the document using the program’s save functions and then close the document.

(4) After saving and closing the document, go back to the TEDS folder where the original is located (the document still has a key next to it indicating that the document has been checked out and is being edited). See Exhibit 7.15.7-28, Checked Out Locked Document (Key Showing).

(5) To complete the editing process:

(6) To check in the edited document:

(7) Ensure that all documents are checked in or that check outs are cancelled prior to case closing.

(8) You can view the edited document by clicking on the document link.

(1) Copied documents are tracked in the destination case’s history. Tracked information includes:

• Originating case number.

• Copied document(s).

(2) Access case history information from the main case screen Case History link or in the case level reports. No information is tracked in the originating case.

(1) TEDS will generate an error message when the selected documents can't be copied, Error messages are generated if the target case isn’t assigned to the user or an unrecognized case number is entered.

(1) State in your case chronology entry the reason for updating the case to the manager. The primary reasons to send a case to the manger are:

• Is ready for proposed closure.

• Needs to be reassigned.

• Must be placed in suspense.

(2) Updating a case to the manager is basically the same in all three circumstances. However, the closing information only needs to be completed for proposed closure cases updated to the manager in Status 74PC.

(3) Before submitting a case to the manager for closure, you must:

1. Verify case data is correct (for example, total case time, transcribed data in pre-populated fields, user fee data, etc.)

2. Verify all documents are in the correct folders. Import all documentation (workpapers, correspondence). (IRM 7.15.7.6.3).

3. Input closing information.

(1) The specialist is responsible for ensuring that all information is correct.

(2) Closing information and case data are located in the Case Information file. Required closing information includes information currently contained on the back of Form 5621 (for example, closing codes, law indicator, vesting code, etc.).

(3) Access the Case Information file:

(1) Prior to updating a case to Proposed Closure in status 74PC you will:

• Document the case file.

• Move documents into proper folders.

• Check the total time.

• Enter the closing information.

• Ensure the user fee is correct or validated.

• Ensure that the transcribed information is correct.

(2) When the case is updated for managerial review or reassignment, the specialist will update the case to the manager in status 74.

(3) The specialist can update a single case or multiple cases for managerial review or proposed closure.

(4) To select cases for review if updating:

• A single case, open the case to the case level view or update the case from My Case view.

• Multiple cases, select the desired case by holding the control key and highlight the line of each case.

(5) After the case(s) has been selected:

(1) The closing business rules:

• Run automatically for a status 74PC update.

• Don’t run for a status 74 update.

(1) TEDS automatically creates a case chronology entry when:

1. A case is transferred from unassigned inventory to assigned inventory or transferred from agent to manager or reviewer.

2. There is a change in case status (even if the case isn't being transferred from one person to another).

(1) Both manual case chronology entries and system-generated entries contain automatically entered information. TEDS enters the following information for all entries:

1. Current date and time stamp.

2. Current status code.

3. Employee name (Last Name, First Name) and SEID (or System if entry is a system generated).

4. Activity (if entry is system generated).

(1) These TEDS users can make manual entries:

• Case owner(s).

• Non-case owner.

• Recipients of routing slips.

(2) TEDS automatically stamps the date and time of creation on a manually generated chronology entry. The user also enters the following:

1. The user's role. (Selected from a drop-down menu).

2. A brief description of the entry.

3. An activity code. (Selected from a drop-down menu).

4. The amount of time it took to perform the activity. (Only available to a case owner or recipient of a routing slip).

(1) To create a case chronology entry perform the following steps:

(1) Select Screener, Specialist, or Reviewer to enter time on a case. If Other is selected, the time won't be added to the total time on a case.

(2) Select multiple activity descriptions by holding the CTRL key while selecting the appropriate activities. All selected activities are shown on the case chronology report.

(3) All follow-up dates you enter are listed in the Case Chronology Folder. The My Cases screen, within Case Information, shows the earliest open follow-up date.

(4) The Awaiting Information (AI) box allows the user to know that a response for information is outstanding. See IRM 7.15.1, Employee Plans TEDS User Manual, Employee Plans User Manual Introduction.

(5) The sub-status remains until the box is:

• Unchecked.

• New documents are scanned into the case folder.

• There is a status change.

(1) You can easily make changes or corrections to the case chronology entries on cases in your inventory. The case chronology will display both the time and date of the original entry as well as the time and date of the most recent modification.

(1) To correct a case chronology entry follow these steps:

(2) See Exhibit 7.15.7-39, Accessing an Existing Case Chronology Entry and Exhibit 7.15.7-40, Accessing an Existing Case Chronology Entry - Using Properties.

(1) To edit activities listed on a case chronology entry follow these steps:

(1) The time on the case chronology must match the total time on the Case Information "Entity Date Tab" or the total tracked time charged to the case. See Exhibit 7.15.7-43, Total Time on Entity Data Tab, Exhibit 7.15.7-44, Case Chronology Folder and Exhibit 7.15.7-45, Case Chronology Report Entry with Missing Role.

(2) If the current role wasn't specified or Other was selected use these steps to correct the time:

(1) Prior to updating the case to status 74, you must export the case chronology report into the Non-disclosable folder.

(2) Exporting the case chronology report creates a Word document that can be used electronically or manually.

(3) The exported case chronology report contains the same information as the screen-generated report but displays it in a different format.

(4) You can make additional chronology entries after the report is created but will need to generate a new report to reflect new entries and information.

(5) To export the Case Chronology Report:

(1) To print the exported case chronology report (Word document):

1. Open the Word document.

2. Use any Word print option.