1.13.2  Processing Management

Manual Transmittal

June 03, 2014

Purpose

(1) This transmits revised IRM 1.13.2, Statistics of Income, Processing Management.

Material Changes

(1) This section of the Internal Revenue Manual (IRM) describes the Statistics of Income (SOI) program requirements. It includes information on the quality standards associated with the major SOI studies and project schedules that help the submission processing centers meet critical processing dates in 2014 and later processing years.

Effect on Other Documents

IRM 1.13.2, dated June 20, 2013, is superseded.

Audience

Submission Processing Centers across all Operating Divisions.

Effective Date

(06-03-2014)

M. Susan Boehmer
Director
Statistics of Income Division RAS:S

1.13.2.1  (06-03-2014)
SOI Program Requirements

  1. This section of the Internal Revenue Manual (IRM) describes the Statistics of Income (SOI) program requirements. It includes information on the following:

    • Quality standards associated with SOI studies

    • Descriptions of major SOI studies

    • Schedules of critical processing dates in 2014 and later processing years

1.13.2.2  (06-03-2014)
SOI Quality Management

  1. This section identifies the quality standards associated with the Statistics of Income (SOI) programs that the submission processing centers manage in 2014 and later processing years.

  2. The Submission Processing Center Work Plans include resources for carrying out the quality initiatives.

1.13.2.2.1  (01-10-2012)
Scope

  1. SOI selects returns for its studies at all the IRS submission processing centers that continue to accept paper returns and electronically-filed returns. It has centralized SOI edit processing of its samples in five centers: Austin, Cincinnati, Fresno, Kansas City, and Ogden.

  2. SOI expects the submission processing centers to carry out all, or a portion thereof, the tasks described in this IRM section and the other IRM sections SOI publishes.

1.13.2.2.2  (06-20-2013)
Program Standards

  1. Submission processing centers should establish a work environment for its employees that emphasizes quality in its products and services. This includes a locally-developed plan that ensures both manager and employee commitment to producing quality SOI data.

  2. National Office SOI analysts may conduct visits to the SOI submission processing centers for training and on-site reviews, or employ tele- and video-conferencing to communicate with managers and employees at these centers. Closeout meetings should include representatives from SOI editing, SOI programming, Planning and Analysis Staff, Post-Processing Division, and any other function involved in, or affected by, SOI processing at the submission processing centers.

  3. Centers should regularly conduct quality review of each editor's work as prescribed in an SOI study's quality measurement plan. For information about TEPS, see IRM 3.43.401, Total Evaluation Performance System (TEPS) for Managers of Measured Employees. Information about MEPS, which the submission processing centers implemented October 1, 2012, is in IRM 3.43.405, Measured Employees Performance System (MEPS) for Managers. For instructions on conducting individual reviews of SOI editors' work, see IRM 3.30.28, Individual Review.

    1. The SOI edit application quality review systems provide results of editor quality reviews in the form of reports, charts, or graphs. Edit unit managers and editors should receive these outputs on a regular and timely basis.

    2. SOI distributes reports from the quality review systems to managers and editors each week as prescribed in the TEPS agreement. The centers use these guides to measure and improve their progress in quality management.

  4. The submission processing centers should monitor photocopying, scanning, and rendering of SOI returns to ensure that the photocopies and images are complete and legible. They should continually screen a small sample of photocopies and images before releasing the original paper returns back to Files, another IRS function, or a Federal Records Center.

  5. All the submission processing centers should monitor the shipping, or electronic transfer, of returns between centers. Periodic managerial reviews should occur at each step in this process.

  6. Cincinnati and Ogden Submission Processing Centers, with the assistance of National Office SOI staff, will maintain a system to track electronic transmissions among their centers, National Office, and the Enterprise Computing Center in Martinsburg, to ensure timely receipt of SOI data.

    1. The programming staffs in Cincinnati and Ogden should conduct an annual survey of their documentation to ensure that the technical information contained in their operating and programming manuals is complete and current.

    2. Personnel should follow established documentation standards for the programs operating at their centers. They should work with National Office SOI staff to establish standards for documentation about hardware, software, processes, and user operations.

  7. SOI improves its chances of meeting its quality standards when the SOI edit units at the centers:

    1. maintain a staff of trained and experienced editors and clerks;

    2. consider experience in returns processing as one criterion for selecting new editors and clerks;

    3. keep the same editors on a program for the entire processing cycle;

    4. provide additional training and coaching to improve the performance of editors who do not achieve minimum quality standards, as reflected in the quality review reports;

    5. monitor each editor's performance in meeting the minimum quality standards;

    6. recognize outstanding performances by employees, managers, management officials, analysts, programmers, statisticians, statistical assistants, tax examiners, etc., who work on SOI projects;

    7. identify mutually acceptable system improvement initiatives with National Office SOI analysts who conduct on-line reviews of actual editing during site visits, or query the SOI databases and convey their findings through other mediated communications;

    8. rank local issues and take action to resolve the more significant problems; and,

    9. forward systemic issues outside their control to National Office for consideration.

  8. SOI will provide centralized training for editors who work with returns selected for the major studies. The submission processing centers augment this training with local training when they deem it necessary. The centers should also measure the effectiveness of the local and centralized training with class evaluations.

  9. Centers should implement "100 percent reviews" of the work of all the SOI editors as prescribed by each of the various SOI studies, and, share the results with the appropriate National Office SOI analysts. The SOI program overall benefits from these types of reviews because they

    1. identify systemic and training problems;

    2. refresh the skills of experienced editors who return to a study or shift to more complex returns in a particular study;

    3. generate suggested improvements in the editing procedures and future training sessions; and,

    4. initiate more immediate refresher training sessions for specific problem areas.

1.13.2.2.3  (06-20-2013)
Measuring Fulfillments of SOI Requests for Paper and Electronically Filed Returns

  1. While SOI can identify many critical phases in its workflow, it considers the controlling of its samples as one of the most important. Although SOI control unit clerks no longer operate in the Files area of a submission processing center, SOI continues to measure the success of each submission processing center in obtaining and controlling paper returns, transcripts of electronically filed returns, and electronic records (text and images) of paper and electronically filed returns.

  2. SOI relies on its infrastructure and the IRS infrastructure to increase the likelihood SOI edit unit managers will have an inventory of paper and electronically filed returns to distribute to their editors (i.e., tax examining technicians).

    1. The Research, Analysis, and Statistics Distributed Processing System (RAS DPS) includes databases, applications, and scanning/rendering processes Data Management (DM) Division and SOI personnel in National office and at the submission processing centers utilize to meet the Service’s requirement to report at least annually to the Secretary of Treasury and Congress on the numbers and types of returns filed, the characteristics of those returns, and the money amounts and text reported on those returns. DM scanning operations include the LMSB Image Network (LIN), the Statistics of Income Exempt Organizations Return Image Network (SEIN), and the Distributive Processing System Image Network (DIN), the last giving SOI editors and analysts access to scanned images of the returns SOI selects for its Corporation, Partnership, and Estates programs.

    2. The Service Center Recognition Image Processing System (SCRIPS) scans Forms 940 and 941, and the Schedules K-1 filers attach to Forms 1041, 1120S, and 1065. SCRIPS performs data capture via reading the printed 2D Bar Code, if this code is present on the Schedule K-1, and character recognition of data printed on the forms. SCRIPS operators perfect the data which is then output to Data Edit Validation (DED), and then the Generalized Mainline Framework (GMF). The SCRIPS unit sends the output data and scanned images of the Schedules K-1 to the RAS systems in Ogden and Cincinnati.

    3. The Tax Return Database (TRDB) contains tax return source information for all electronically filed (1040, 1041, 1065, 940 and 941) tax returns. It also contains electronically filed tax forms. It is the legal repository for all electronically filed returns for Tax Year 1998 and beyond. Beginning with Tax Year 2002, it also contains copies of the transcribed portions of paper returns. These files are accessed via TRDB maintained CICS command codes TRDBV and TRERS using IRS developed software called TRDB Graphics (TRDGRA). Transcribed Form 8453 (Paper Signature) data is likewise stored on TRDB and is available through command code R8453.

    4. Beginning with Tax Year 2006, Modernized e-File (MeF) began processing electronically filed 1065 tax returns which are stored on Modernized Tax Return Database Data Store (M-TRDB DS). Beginning with Tax Year 2007, Electronic Filing System - 1065 (EFS-1065) and TRDB will no longer process electronically filed 1065 Tax Returns; however, previously filed returns will remain on TRDB until they expire. In Tax Year 2010, 1040 tax returns began migrating to Modernized e-File (MeF). Along with legacy e-File returns TRDB stores transcribed portions of paper and Modernized e-File returns.

    5. Modernized e-File (MeF) receives and processes e-file returns in an Internet environment. Many returns are received through the Registered User Portal (RUP) using a component called the Internet Filing Application (IFA). Returns that can be filed using MeF are the 1040, 1065, 1120, 1120S, 990, 990EZ, 990PF, 1120POL, 8868, and 7004. MeF provides for real time processing, streamlined error detection, standardization of business rules and requirements across form types, capability to attach PDF files, and capability for IRS employees to view MeF return data through the Employee User Portal (EUP).

    6. The Modernized Tax Return Database Data Store (M-TRDB DS) is the legal repository for original electronically filed returns the IRS receives under Modernized e-File (MeF). Tax return data also includes Code and Edit Sheet Value Data, the DLN generated by the e-file system, and a copy of the data sent to Generalized Mainline Framework (GMF).

    7. The Employee User Portal (EUP) is a Web hosting infrastructure. It supports an intranet portal that allows IRS employees to access business applications and data (e.g. Integrated Financial Services (IFS), e-Services (e-Services), Modernized E-File (MeF) and Customer Account Data Engine - Individual (CADE-I) in the future). The EUP infrastructure is located at ECC-MTB.

    8. The Customer Account Data Engine 2 (CADE 2) leverages existing systems and components, including Individual Master File (IMF) applications, to perform functions related to accessing and updating taxpayer account data, managing cases, and resolving account issues. It is a system that uses a relational database to process on a daily basis accounts that are currently supported by the IMF and current CADE databases. Additionally, CADE 2 addresses relevant financial material weaknesses and security weaknesses associated with core tax account processing.

      Note:

      Below is the CADE 2 Implementation Schedule.

      Phases Date Operational Objectives
      Transition State 1 January 2012
      1. Modify the Individual Master File to run daily

      2. Process daily, instead of weekly, individual taxpayer accounts

      3. Establish a new relational database to store all individual taxpayer account information

      Transition State 2 N/A*
      1. Use a single set of applications

      2. Address previously identified financial material weaknesses

      Target State N/A*
      1. Use elements of the Individual Master File and the current CADE to assemble a single system

      2. Eliminate all transitional applications such as those used to link the current CADE, the Individual Master File, and the Integrated Data Retrieval System

      *IRS is performing additional analysis to establish an estimated date for implementation.
    9. Individual Master File (IMF) is a reference term representing a number of systems such as Individual Master File Pre-Posting (IMF PRE-POSTING, IMF INPUTS), Individual Master File Posting and Analysis (IMF ANALYSIS), Individual Master File Outputs (IMF OUTPUTS), IMF Discriminant Index Function Inventory (IMF DIF INV), and Individual Master File On-Line (IMFOL). These systems make up the systems in the IMF E300. These systems are part of the Individual Master File Mainline Processing, except for IMF Doc Specific, which is considered part (sub system) of the Generalized Mainline Framework (GMF).

    10. The Executive Control Program for IMF Extract (IMF 701 EXEC) reads all the individual master file accounts and the individual return transaction file. The executive system passes control to a series of load modules. Load modules analyze the taxpayer accounts and return data for reports and extracts. Load modules are documented under the Application System that performs the process that includes the extract. Run numbers are 701-61, 62, 63, 64, 65, 67, 69, 6B, 6C, 6D, 6E, 6F, 6G, 6L, and 445-91.

    11. The Executive Control Program for Business Master File (BMF) Extract (BMF 701 EXEC) is the Executive Control Application System that reads all the business master file accounts. The executive system passes control to a series of load modules. Load modules analyze the taxpayer accounts for reports and extracts. Load modules are documented under the Application System that performs the process that includes the extract. Run numbers are 701-01, 701-0D, 701-0E, 701-02, 701-06, 701-07, 7A102, 7B102, 7C102, 7D102, and 7E102.

  3. Securing paper returns in SOI samples as soon as possible before or after the delivery of charge-outs to Files is one of several steps different IRS offices take to meet the objectives of the SOI program. To ensure SOI can process its samples, various IRS offices, including SOI and DM, will:

    1. Run sampling and sub-sampling programs at the Enterprise Computing Center (ECC-MTB), and the submission processing centers in Cincinnati and Ogden;

    2. Create charge-out files for specific SOI projects;

      Note:

      SOI units at the Cincinnati and Ogden campuses produce BMF outputs, such as charge-outs and selection sheets, from the BMF Statistics of Income Automated Return Tracking System (STARTS).

    3. Transmit charge-out files to the main print rooms at the submission process centers, or the SOI Branch;

    4. Ship charge-outs from SOI sites to the submission processing centers for special projects;

    5. Use the charge-outs to pull returns in the Files area, or other storage areas of a submission processing center;

    6. Monitor the inventory of returns in SOI control at the centers, as well as those returns not in SOI control;

    7. Ship or move returns to the SOI edit units at the centers;

    8. Account for each return in the sample in the SOI edit units;

    9. Update the SOI IMF and BMF STARTS database applications in the SOI edit units, or the SOI Branch;

    10. Check regularly the STARTS Missing Returns Reports which list what is still not in SOI control; and

    11. Report the number of missing returns for each SOI project to SOI National Office.

  4. Between cycles "03" and "52" (or "53" in some years, such as 2012), ECC-MTB, and the Cincinnati and Ogden Submission Processing Centers, produce and transmit information about SOI samples to the submission processing centers in the form of charge-outs (IRS and SOI (i.e., STARTS)) , selection sheets, and other useful media. The centers use this information to pull the samples of paper returns within one week of their selection. SOI Edit units are more productive when the centers secure all of the returns within the first week. Securing the returns first for SOI reduces the costs associated with attempting to obtain them from other IRS functions and increases the likelihood that the SOI edit units will meet SOI program completion dates.

  5. A successful "First Pull" performance for each of the major SOI studies at a submission processing center is presented in the table below. The standards in the table refer to the average number of missing returns one week after the first attempt to find documents in the samples.

    SOI Program Average Number of Returns Missing
    One Week after First Pull Less than or Equal to:
    1040 3
    1120 3
    1065 1
    990 Series 2
    4720 1
    5227 2
    8038 Series 1
    706 1
    706-NA 1
    709 1

1.13.2.2.4  (06-03-2014)
SOI Program Completion Requirements

  1. For SOI to produce accurate and timely tax and financial information for its customers, the submission processing centers need to secure and edit timely the returns in the SOI samples. SOI program completion requirements shown below give the centers a schedule to meet these goals.





    Program/SOI
    Year



    Cutoff
    ECC-MTB1
    Cycle




    Percent Edited
    Standard at PCD2
    Standard
    for
    Maximum
    Number
    Missing
    at PCD


    Program
    Completion
    Date
    (PCD)
    TY 2013 Individual Program
    Advance
    Data
    201438 99.7% of
    Cross-Sectional
    Returns
    60 10-24-2014
    Complete
    Report
    201453 99.7% of all returns 30 02-06-2015
    TY 2012 Individual Program
    Advance
    Data
    201338 99.7% of
    Cross-Sectional
    Returns
    60 10-25-2013
    Complete
    Report
    201352 99.7% of all returns 30 02-07-2014
    Corporation Programs
    SOI Year 2012
    Corporations
    201426 All controlled returns 30 07-10-2014
    SOI Year 2013
    Corporations
    201526 07-09-2015
    Tax Year 2012
    Partnerships
    201352 All controlled returns 5 01-30-2014
    Tax Year 2013
    Partnerships
    201453 01-30-2015
    Tax Year 2014
    Partnerships
    201552 01-30-2016
    Special Studies Programs
    706
    2011 201152 All controlled returns 2 04-30-2012
    2012 201253 04-30-2013
    2013 201352 04-30-2014
    706–NA
    2011 201152 All controlled returns 2 02-28-2012
    2012 201253 02-28-2013
    2013 201352 02-28-2014
    709
    2013 201352 All controlled returns 2 06-30-2014
    2014 201453 06-30-2015
    2015 201552 06-30-2016
    990, 990-PF, 990-T
    2011 201352 All controlled returns 2 01-31-2014
    2012 201453 01-31-2015
    2013 201552 01-31-2016
    2014 201652 01-31-2017
    4720
    2013 201352 All controlled returns 30 01-31-2014
    2014 201453 01-31-2015
    2015 201552 01-31-2016
    5227
    2012 201253 All controlled returns 2 04-30-2013
    2015 201552 04-30-2016
    8038
    2013 201430     12-31-2014
    2014 201530 12-31-2015
    8038-G
    2013 201326 All controlled returns 5 06-30-2013
    2014 201430 06-30-2014
    2015 201530 06-30-2015
    8038-T
    2013 201352 All controlled returns 5 10-31-2014
    8038-CP
    2012 201310     02-28-2014
    2013 201410 02-28-2015
    2014 201510 02-28-2016
    8038-TC
    2014 201526     12-31-2014
    2015 201626 12-31-2015
    1 ECC-MTB is the acronym for Enterprise Computing Center - Martinsburg
    2 PCD is the acronym for Program Completion Date

1.13.2.2.5  (01-10-2012)
Edit Quality Procedures

  1. The centers measure edit quality in the SOI Individual, Corporation, Partnership, and Special Studies programs by sampling continuously from all of the edited returns; having the samples edited independently by a second SOI editor; systemically comparing each element entered by both the first and second SOI editors; and, finally having a quality reviewer (quality lead) review and compare both sets of records and resolve any mismatches.

    1. For product quality, "Edit Accuracy" means the percentage of editable elements completed correctly by the first editor. Errors by the second editor are not considered in measuring "Edit Accuracy " , but are part of the feedback discussion.

    2. "Systemic" errors (errors that SOI attributes to resources provided by National Office, such as instructions or systems) and "judgment" differences (differences that SOI attributes to different interpretations about how an editor edits an element) are not counted when computing the Edit Accuracy Rate. In a judgmental situation both answers are acceptable. SOI requires discussion of systemic errors with the SOI program analyst in National Office. Each SOI editing center must achieve the following cumulative Edit Accuracy Rates:

    Program(s) Minimum Required Edit
    Accuracy Percent
    Individual 99.7
    Sales of Capital Assets (SOCA) 99.3
    Corporation and Partnership 98.5
    Estate 98.5
    Gift Tax 98.5
    Tax-Exempt Organizations 99.5
    Tax-Exempt Bonds 98.5
    Split-Interest Trusts 98.5
    Nonresident Alien Estate Tax Returns N/A
  2. As suppliers of SOI data, each SOI unit at a submission processing center should develop customer service goals that will improve the communications between the centers and National Office SOI staff. The SOI units at the centers should develop the goals during meetings and conference calls they conduct with the different SOI project teams in National Office.

    Note:

    Form 706-NA is not a measured study. National Office analysts browse returns and apply other statistical methods to ensure edit quality.

  3. SOI managers at the submission processing centers are encouraged to use the on-line communication logs which are part of the edit applications in most studies. These electronic logs are a place to document significant problems in SOI processing, as well as suggestions and quality improvement opportunities, which National Office analysts survey when considering solutions and revising procedures and application capabilities.

1.13.2.3  (06-03-2014)
Basic Individual SOI Program

  1. The Individual SOI Program samples the Form 1040, Form 1040A, and Form 1040EZ, and collects data on the sources of income, exemptions, itemized deductions, and tax computations of individual tax filers. Exhibit 1.13.2-1 contains information about the processing schedule.

  2. In addition to the regular Individual SOI sample, there is a high-income cohort of approximately 17,500 returns, which SOI selected from the Tax Year 2007 returns that the taxpayers filed and then SOI selects the current year return for the same set of taxpayers. SOI estimates that about 6,000 of these returns will overlap with the regular Individual SOI sample. This statistical concept requires collection and processing of information for both the primary and secondary taxpayers reported on a return. It will also include processing of dependent returns as part of a "family" . This will require an end-of-year computer sample run (Cycle 20XX53, or 20XX54 some years) at the Enterprise Computing Center - Martinsburg (ECC-MTB), which secures additional "family" returns that neither SOI nor ECC-MTB identified during the regular sampling period. However, none of these dependent returns will require edit processing at the centers.

  3. Using the RAS Distributed Processing System (RAS-DPS) at the Cincinnati Submission Processing Center, on-line editing of the selected returns occurs at the following centers: Austin, Cincinnati, Fresno, and Kansas City. These SOI processing centers also find and control returns in the SOI samples. Upon completion of processing, the SOI edit units ship the paper returns back to the originating center's SOI control unit or Files for refiling.

  4. The total sample size SOI expects to edit for the TY 2012 program is approximately 410,000 returns. The expected total sample volumes at each of the two SOI IMF program closeout dates are shown below.

    Program Closeout Date Volume Cycles
    Advance
    Data
    October 24, 2014 346,000 201404 to 201438
    Complete
    Report
    February 6, 2015 440,000 201404 to 201453
  5. Training classes on the TY 2013 Prototype Individual SOI Modernization (PRISM) and Sales of Capital Assets (SOCA) edit systems are conducted for managers and tax examiners from the Austin, Cincinnati, Fresno, and Kansas City SOI processing centers. The training addresses processing, systems, and quality features of the database applications.

  6. The centers produce reports from the Individual Systematic Improvement System (ISI) to monitor program quality. They should inform National Office of any information that they believe the other centers would benefit from knowing about or using in their own PRISM operations.

  7. SOI processing centers should staff the program with at least three tax examiners who are trained and experienced in the on-line editing operations for Individual returns. They should try to keep the same people on the program for the entire processing period.

  8. At the beginning of each processing year, both Publishing Services and SPDER store in their electronic repositories a copy of IRM 1.13.3, Document Management. This section of the IRM contains the most current instructions for handling SOI samples. In addition, if controlling or shipping procedures change during the processing year, the SOI Individual Statistics Branch sends updated information to each SOI 1040 Edit Unit at the submission processing centers.

  9. A feature in the PRISM edit application enables submission processing center personnel to report editing problems and issues on-line and to receive on-line responses from the National Office PRISM team. Use of this feature provides immediate sharing of information among all processing centers.

  10. The Individual Systematic Improvement (ISI) system is applicable to all 1040 return types as a quality measurement tool for the centers.

    1. ISI is a "double-edit" system in which SOI compares in a nightly match program a sample of edited returns to the second edit (QR) of those same returns.

    2. A Quality Reviewer examines any differences between the two sets through a reconciliation process.

    3. National Office SOI and the centers can generate reports that show ISI data tabulations by discrepancy codes, tax examiner ID, and program accuracy rates, along with errors per element broken down by form or schedule.

  11. As indicated earlier, all on-line review systems generate reports for the centers. Each center's interpretation and response to these output reports are a key means for identifying improvement opportunities.

1.13.2.3.1  (06-03-2014)
Sales of Capital Assets Study

  1. The Tax Year 2013 Sales of Capital Assets (SOCA) Panel Study will consist of returns chosen for the high-income cohort and returns in the Tax Year 2007 Individual SOI sample which have a primary or secondary SSN that matches one of the initial set of ten Continuous Work History Study (CWHS) ending digits (See IRM 1.13.2.3 for more information about the Tax Year 2013 Individual SOI Study; and also Exhibit 1.13.2-2 for the processing schedule). SOI expects to select a total of 225,000 returns for this 2007-Based SOCA Panel study with approximately 55,000 of the returns containing transaction data.

  2. SOCA data consists of information that the filer reports on Form 1040, Schedule D, Form 8949, Sales and Other Dispositions of Capital Assets, and other supplementary schedules that provide transaction information about:

    • Sales of personal and depreciable property (Form 4797).

    • Computation of installment sales income (Form 6252 ).

    • Like kind exchanges (Form 8824).

    • Gains and losses from section 1256 contracts and straddles (Form 6781).

  3. The PRISM system also identifies returns for SOCA. The edit unit may edit these SOCA returns after PRISM editing. Photocopying of each return is not necessary if the unit edits from the original.

  4. Before going into production, National Office will conduct asset coding and tax examiner training classes using manuals and on-line instruction.

  5. The centers employ two methods to review the asset coding and editing.

    1. The first entails the lead tax examiners and SOI managers conducting a 100 percent review of returns. For experienced editors the reviews are the lesser of twenty returns or sixteen hours of editing, while for inexperienced editors it is the lesser of forty returns or thirty-two hours of editing.

    2. The second is a computer-generated random selection method that quality reviewers use to review continuously tax examiners' work throughout the life cycle of the project.

  6. The SOI units edit SOCA returns and test the data in one phase. This allows for the detection of balancing inconsistencies in the data during data entry.

  7. National Office analysts and the processing center management teams (including lead tax examiners) can use daily SOCA reports to keep track of the progress in editing and the number of errors.

    1. Using reports will regularly help track areas that need improvement, consequently increasing the quality of the program.

    2. A communication log which links the SOI editing sites, National Office, and the Files units will enhance communication between the submission processing centers and National Office.

  8. If possible, each tax examiner should have access to the following books:

    Name Order From:
    Stock Guide (year-end edition) Standard and Poors Corporation
    25 Broadway, 17th Floor
    New York, NY 10004
    (800) 221-5277
    Dictionary of Finance and Investment Terms
    Barron's Financial Guides (ISBN:0-8120-9035-7)
    Barron's Educational Services, Inc.
    250 Wireless Blvd.
    Hauppauge, N.Y. 11788
    Dictionary of Business Terms
    Barron's Business Guides (ISBN:0-8120-3775-8)
    Barron's Educational Services, Inc.
    250 Wireless Blvd.
    Hauppauge, N.Y. 11788

1.13.2.4  (06-03-2014)
Corporation Programs

  1. The following information covers processing of the documents selected for the Corporation SOI programs for SOI Years 2012, 2013, 2014, and 2015. See Exhibit 1.13.2-3 through Exhibit 1.13.2-8 for information about the processing schedules.

1.13.2.4.1  (06-03-2014)
Basic Corporation Program

  1. During Processing Years (PY) 2014 and 2015, the submission processing centers will collect samples of Form 1120, Form 1120-L, Form 1120-PC, Form 1120S, Form 1120-F, Form 1120-REIT, and Form 1120-RIC for the SOI Years 2012, 2013, 2014, and 2015 Corporation Programs. The table below shows the estimated sample sizes for each of the SOI corporation program studies.

    SOI Year Study Estimate
    2012 113,329
    2013 112,817
    2014 112,418
    2015 Too early to estimate
  2. Using the RAS Distributed Processing System (RAS-DPS) at the Ogden Submission Processing Center, on-line editing occurs at the Cincinnati and Ogden campuses.

    1. Cincinnati and Ogden submission processing centers will secure and control the SOI sampled returns. Ogden edits Forms 1120-L and 1120-PC. Cincinnati edits Forms 1120-F.

    2. In consultation with the centers, National Office may transfer work from one center to the other center. Transfers are much easier now that SOI scans all of the paper returns and renders into images all the MeF XML filings.

  3. Quality reviewers should have SOI experience in editing 1120 returns and should attend editing/test resolution training classes.

  4. Centers should plan to assign dedicated SOI editors to the SOI Corporation Program - i.e., individuals who develop expertise working on only one program.

  5. Because SOI must find and edit all of the "critical case" returns in its samples and include the information on these returns in the files transmitted to both the Office of Tax Analysis (OTA) and the Joint Committee on Taxation (JCT), the primary customers of SOI data, submission processing centers must use the appropriate staffing to ensure that missing critical case returns are found, controlled, and edited before the respective close-outs of the SOI Corporation Program Studies.

  6. Each center that scans paper returns for the SOI Corporation Program should set up a procedure to ensure that it completely scans these documents and that the images are readable. Data Management (DM) Division also renders images from the MeF XML files.

    1. The centers scan as many paper returns as possible before the start of editing. The centers generate reports in the BMF STARTS application.

    2. National Office must receive by a certain date 100 percent of the rendered images of all the SOI Year 2012 and SOI Year 2013 corporation returns the Corporation studies selected for the edit cutoff dates and cycles identified below.

    Edit Cutoff National Office
    SOI Year 2012
    September 13, 2013 Rendered images received within 30 days of Data Management (DM) Division receipt of XML files.

    Exception: For the edit cutoff dates and cycles 5, 6, 7, 24, 25, and 26, rendered images received within two weeks of DM receipt of XML files.
    December 13, 2013
    March 12, 2014
    July 10, 2014
    SOI Year 2013
    September 12, 2014 Rendered images received within 30 days of Data Management (DM) Division receipt of XML files.

    Exception: For the edit cutoff dates and cycles 5, 6, 7, 24, 25, and 26, rendered images received within two weeks of DM receipt of XML files.
    December 12, 2014
    March 11, 2015
    July 9, 2015
  7. Each processing center will generate periodic reports from the on-line quality review system. It uses these reports to measure the quality, individually and collectively, of the statistical edit process.

  8. A center reviews 100 percent of the input work and test correction work of editors based on the following guidelines: an average of two (2) working days or thirty (30) returns for experienced SOI editors and an average of three (3) working days or forty (40) returns for new SOI editors (essentially if the error rate warrants it) after the first week of production. SOI has not intended for these guidelines to conflict with TEPS Learning Curve requirements.

  9. Data produced from the on-line quality review system will form a basis for systemic improvements to the program. Sharing and analyzing the data is the key to identifying improvement opportunities. These results are very useful in identifying problems early and periodically in the program.

1.13.2.4.2  (06-03-2014)
Partnership Program

  1. In 2014 the submission processing centers will sample and process returns for the SOI Form 1065 and Form 1065-B Partnership Programs for Tax Years 2012 and 2013. The projected sample size for each tax year study is approximately 40,000 returns. The SOI edit units in Cincinnati and Ogden complete the Tax Year 2012 sample in January 2014, and begin the Tax Year 2013 sample in July 2014 after editor training at the Ogden submission processing center.

  2. The SOI samples include electronically filed partnership returns. SOI renders these MeF returns into images which the editors view on a split-screen monitor while editing. SOI also extracts and loads MeF data into the partnership application database.

  3. Editing of partnership SOI returns will occur at both the Cincinnati and Ogden Submission Processing Centers. The Partnership Advance Data cut-off occurs in November each year with an objective of editing all the returns SOI selected through at least cycle 40 and producing the Partnership Preliminary File in December.

  4. SOI sends processing instructions to Cincinnati and Ogden for review and comment before edit/error resolution training. This will provide a quality check on the instructions and allow for review/comment by the editors before training.

  5. The Cincinnati and Ogden Submission Processing Centers should staff the SOI Unit with tax examiners who are trained and experienced in the SOI edit/error resolution operations for partnership returns.

  6. Cincinnati and Ogden will generate periodic reports from the on-line quality review system. The centers use these reports to measure the quality, individually and collectively, of the tax examiners and the SOI statistical edit process. They also send copies to National Office.

  7. Cincinnati and Ogden should establish an acceptance sampling process to review photocopies and images of returns.

  8. Data produced from the on-line quality review system conducted in Cincinnati and Ogden will form a basis for systemic improvements to the program. Sharing and analyzing the data is the key to identifying improvement opportunities. These results are very useful in identifying problems early and periodically in the program.

1.13.2.4.3  (06-20-2013)
Minimum Effectively Connected Net Investment Income (MECNII) Study

  1. Statistics of Income (SOI) conducts this annual study of Minimum Effectively Connected Net Investment Income (MECNII) for the Office of the Secretary of the Treasury in accordance with IRC Section 842. Data are collected from all of the filed U.S. Life Insurance Company Income Tax Returns (Forms 1120-L) and U.S. Property and Casualty Insurance Company Income Tax Returns (Forms 1120-PC).

  2. Because the MECNII Study identifies a different set of 1120-L or 1120-PC returns from the basic SOI Corporation Study, the SOI edit units at the Cincinnati and Ogden Submission Processing Centers order these returns separately in BMF STARTS. Exhibit 1.13.2-8 lists the processing schedules for SOI Years 2011 and 2012.

  3. SOI provides instructions for controlling, scanning, rendering, and ordering MECNII returns in IRM 1.13.3, Document Management.

  4. Submission processing center quality improvement efforts for this study should concentrate on obtaining and controlling all MECNII returns. Particular emphasis is placed on improving methods for researching and obtaining large case returns shown on follow-up lists provided in STARTS.

1.13.2.5  (06-20-2013)
Foreign and Domestic Special Studies

  1. The following information pertains to special foreign and domestic tax studies conducted for the Statistics of Income program. Exhibit 1.13.2-9 through Exhibit 1.13.2-26 contain information about the processing schedules.

1.13.2.5.1  (06-03-2014)
Exempt Organizations

  1. Exempt Organization Programs that SOI manages during Processing Years (PY) 2014 and 2015 are the Tax Years (TY) 2011, 2012, 2013, and 2014 Private Foundations Studies (Form 990-PF); the TY 2011, 2012, 2013, and 2014 Exempt Organization Studies (Form 990 and Form 990-EZ); the TY 2011, 2012, 2013, and 2014 Exempt Organization Unrelated Business Income Returns Studies (Form 990-T); the FY 2013, 2014, and 2015 Exempt Organization Excise Tax Study (Form 4720); and, the FY 2015 Split Interest Trust Study (Form 5227). Ogden Submission Processing Center (OSPC) is the only center that controls and processes all of the documents in these SOI studies.

  2. The expected sample sizes and workloads associated with the SOI processing of the "Exempt" returns in Ogden during PY 2014 and 2015 are shown below.


    Study Year
    Expected
    Sample
    Workload*
    PY 2014 PY 2015
    Forms 990-PF
    2011 17,500 875 Done
    2012 17,500 16,625 875
    2013 17,500 16,625
    2014 17,500
    Forms 990
    2011 22,000 1,000 Done
    2012 22,000 21,000 1,000
    2013 22,000 21,000
    2014 22,000
    Forms 990-T
    2011 7,000 700 Done
    2012 7,000 6,300 700
    2013 7,000 6,300
    2014 7,000
    Forms 4720
    2013 2,400 240 Done
    2014 2,400 2,160 240
    2015 2,400 2,160
    Forms 5227
    2015 12,000 7,500
    *The workload figures do not include returns selected for quality review double edit.
  3. Editing, transcription and error resolution are consolidated into one "data capture and cleaning" operation. The editing systems test certain data fields as editors enter information in them; it tests others as editors enter information in related fields.

  4. Ogden should develop quality standards for data capture and cleaning (i.e., editing, transcription, and error resolution) and review them with National Office personnel. A plan to measure whether the center is meeting these standards should be developed during the first month of processing and steps for conducting a joint periodic review should be agreed upon.

  5. Ogden should staff the SOI Unit with tax examiners who are trained and experienced in the edit/error resolution operations for exempt organization returns. These examiners should be pre-trained by OSPC personnel in the operation of the Oracle terminal keyboard and special function keys used for the exempt studies before receiving program training from the National Office analysts.

  6. Ogden should establish an acceptance sampling process to detect whether a center has to re-photocopy, re-scan, or re-render batches of returns.

1.13.2.5.2  (06-03-2014)
Tax-Exempt Bonds

  1. The Tax-Exempt Bonds Studies for PY 2014 and 2015 involve locating, controlling, and editing 2013, 2014, and 2015 Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations; 2013 and 2014 Forms 8038, Information Return for Tax-Exempt Private Activity Bond Issues; Forms 8038-T, Arbitrage Rebate or Penalty, received during PY 2013 at the Ogden Submission Processing Center; 2012, 2013, and 2014 Forms 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds; and, 2014 and 2015 Forms 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds.

  2. The workload goals for Ogden are presented below.


    Filing Year
    Expected
    Population
    Workload*
    PY 2014 PY 2015
    Forms 8038
    2013 3,500 3,500
    2014 3,500 3,500
    Forms 8038-G
    2013 26,000 13,000
    2014 26,000 13,000 13,000
    2015 26,000 13,000
    Forms 8038-T
    2013
    (Received during PY 2013)
    1,500 1,500
    Forms 8038-CP
    2012 500 250
    2013 500 250 250
    2014 500 250
    Forms 8038-TC
    2014 250 250
    2015 250 250

1.13.2.5.3  (06-03-2014)
Estate and Gift Tax Programs

  1. The pulling, controlling, and editing of returns in the Estate Tax Study occur at the Cincinnati Submission Processing Center.

    1. The expected sample size of the 2012 study is 13,200 returns. Selection of the returns began in January 2012, and editing in March 2012.

    2. The expected sample size of the 2013 study is 8,500 returns. Selection of these returns begins in January 2013, with editing starting in March 2013.

    3. The expected sample size of the 2014 study is 8,500 returns. Selection of the returns begins in January 2014, and editing in March 2014.

  2. The pulling, controlling, scanning, and editing of returns in the Form 706-NA Study occur at the Cincinnati Submission Processing Center.

    1. In the 2011 Study, SOI expects about 800 forms.

    2. In the 2012 Study, SOI expects about 800 forms.

    3. In the 2013 Study, SOI expects about 800 forms.

  3. The pulling and controlling of returns for the Gift Tax Study occur at the Cincinnati Submission Processing Center. The SOI unit at the Ogden Submission Processing Center currently edits these returns.

    1. The expected sample size of the 2013 Gift Tax Study is 14,000 returns. The sample consists of returns filed in 2013 for gifts given in 2012. Sample selection of the Forms 709 began at the Cincinnati Submission Processing Center in 2013. SOI began editing these documents in Ogden in November 2013.

    2. The expected sample size of the 2014 Gift Tax Study is 14,000 returns. The sample consists of returns filed in 2014 for gifts given in 2013. Sample selection of the Forms 709 begins at the Cincinnati Submission Processing Center in 2014. SOI expects to begin editing these documents in Ogden in June 2014.

    3. The expected sample size of the 2015 Gift Tax Study is 14,000 returns. The sample consists of returns filed in 2015 for gifts given in 2014. Sample selection of the Forms 709 begins at the Cincinnati Submission Processing Center in 2015. SOI expects to begin editing these documents in Ogden in June 2015.

  4. The following table shows the expected workload at the Cincinnati and Ogden Centers for the three Estate and Gift Tax studies.


    Study Year

    Center

    Expected Sample

    Workload
    PY 2013 PY 2014 PY 2015 PY 2016
    Forms 706 and 706-NA
    2013 Cincinnati 6,000 4,000 2,000
    2014 Cincinnati 6,000 5,000 1,000
    2015 Cincinnati 6,000 5,000 1,000
    Forms 709
    2013 Ogden 14,000 2,000 12,000
    2014 Ogden 14,000 7,000 7,000
    2015 Ogden 14,000 7,000 7,000
  5. Cincinnati should develop quality standards for data capture and cleaning (i.e., editing, transcription, and error resolution) and review them with National Office personnel. The center should complete the development of a plan to measure whether the center has met these standards during the first month of processing, as well as discuss with National Office the steps for conducting joint periodic reviews.

  6. The Cincinnati Center should ensure that all original Forms 706, which are processed for the Estate study, are returned to Files within six weeks of receipt in its SOI edit unit.

  7. Cincinnati should staff the SOI Units with tax examiners who are trained and experienced in the edit/error resolution operations for estate tax returns.

1.13.2.5.4  (06-20-2013)
Foreign Person's U.S. Source Income Subject to Withholding (Forms 1042-S)

  1. For Tax Year 2012, ECC-MEM sends an e-mail to Adrianne Bell at adrianne.l.bell@irs.gov within 10 business days of completion of the final file or by December 1.

  2. After the computing center notifies Adrianne that processing of the returns is complete, she downloads the records into an SOI database in Ogden.

1.13.2.5.5  (06-03-2014)
International Boycott Reports Study

  1. For the 2012 International Boycott Reports Study, the Ogden Submission Processing Center (OSPC) SOI unit will edit those reports that filers did not send electronically. Edits begin in May 2014 and end in August 2014 (Exhibit 1.13.2-22). SOI expects approximately 2,700 Forms 5713 for Tax Year 2012.

  2. For the 2013 International Boycott Reports Study, the Ogden Submission Processing Center (OSPC) SOI unit will edit those reports that filers did not send electronically. Edits begin in May 2015 and end in August 2015 (Exhibit 1.13.2-22). SOI expects approximately 2,700 Forms 5713 for Tax Year 2013.

  3. The SOI edit unit holds all Forms 5713 for one year after the completion of the study before destroying the documents.

1.13.2.5.6  (06-03-2014)
Forms 8805 Study

  1. The Ogden Submission Processing Center will process Forms 8805 which partnerships are now required to file, under provisions of the Tax Reform Act of 1986, when they make payments to foreign partners.

  2. The center will send a file of Form 8805 data to National Office in August 2014. The file includes data for calendar year filers for Tax Year 2012 (January 1, 2012 to December 31, 2012).

  3. The center will send another file of Form 8805 data to National Office in August 2015. The file includes data for calendar year filers for Tax Year 2013 (January 1, 2013 to December 31, 2013).

  4. The expected population count is 225,000 Forms 8805.

1.13.2.5.7  (06-03-2014)
Form 8288-A Study

  1. The Ogden Submission Processing Center will control and process Form 8288-A for inclusion in the final tables that it ships to National Office by the month of August in both 2014 and 2015.

  2. The center will send a file of Form 8288-A data to National Office in August 2014. The file includes data for calendar year filers for Tax Year 2012 (January 1, 2012 to December 31, 2012).

  3. The center will send a file of Form 8288-A data to National Office in August 2015. The file includes data for calendar year filers for Tax Year 2013 (January 1, 2013 to December 31, 2013).

  4. The expected population is 10,000 Forms 8288-A. The tables delivered in August 2014 should include data only for Forms 8288-A filed for the period 2012. The tables delivered in August 2015 should include data only for Forms 8288-A filed for the period 2012.

1.13.2.5.8  (06-03-2014)
Form 5471 Study, SOI Year 2012

  1. This study examines all Forms 5471 attached to all Forms 1120 in the SOI Year 2012 Corporation Study.

  2. Form 5471 editing is done at the Ogden Submission Processing Center (OSPC).

  3. For Forms 5471 filed on paper or in portable data format (PDF), the data is keyed directly from scanned images of the forms and tested on-line by Ogden personnel. For Forms 5471 filed in extensible markup language (XML) format, Ogden personnel will match each Form 5471 to a prior year record and then load the data into the database. A "full-edit" is performed on all "active" Forms 5471, while a "short-edit" is performed on all "inactive" Forms 5471.

  4. The goal in Ogden is the timely editing of all Forms 5471. See Exhibit 1.13.2-23.

1.13.2.5.9  (06-03-2014)
Form 1118 Study, SOI Year 2013

  1. In this study SOI examines Forms 1118 that it finds attached to Forms 1120 in the SOI Year 2013 Corporation Study.

  2. The SOI edit unit in Ogden will complete all of the on-line data editing in 2015.

    1. SOI expects to find about 4,200 Forms 1118 among approximately 115,200 corporation returns. The anticipated volume of paper-filed Forms 1118 is 700.

    2. Editing is scheduled to begin in February 2015. See Exhibit 1.13.2-24.

  3. A goal for the Ogden Center is the timely editing of all returns in the order it receives them. See Exhibit 1.13.2-24.

1.13.2.5.10  (06-20-2013)
Form 1118 Study, SOI Year 2012

  1. In this study SOI examines Forms 1118 that it finds attached to Forms 1120 in the SOI Year 2012 Corporation Study.

  2. The SOI edit unit in Ogden will complete all of the on-line data editing in 2014.

    1. SOI expects to find about 4,200 Forms 1118 among approximately 115,200 corporation returns. The anticipated volume of paper-filed Forms 1118 is 700.

    2. Editing is scheduled to begin in February 2014. See Exhibit 1.13.2-24.

  3. A goal for the Ogden Center is the timely editing of all returns in the order it receives them. See Exhibit 1.13.2-24.

1.13.2.5.11  (06-03-2014)
Form 1120-IC-DISC Study, Tax Years 2012 and 2014

  1. This SOI study examines Tax Years 2012 and 2014 Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, documents filed at the Cincinnati submission processing center, and Form 8404, Interest Charge on DISC-Related Deferred Tax Liability.

  2. Cincinnati will control and scan all of the Tax Years 2012 and 2014 Form 1120-IC-DISC and Form 8404 returns for SOI. Filing of the TY 2012 Forms 1120-IC-DISC and Forms 8404 begin in PY 2013, especially around September 15, 2013.

  3. The Ogden submission processing center edits the Forms 1120-IC-DISC, and Forms 8404.

1.13.2.5.12  (06-03-2014)
Forms 3520 and 3520-A, Tax Year 2014

  1. Relying on the Business Master File (BMF) the SOI Branch at the Ogden submission processing center will collect, store, and scan Tax Year 2014 Forms 3520, Annual Return to Report Transactions with Foreign Trusts and Receipts of Certain Foreign Gifts, and Forms 3520-A, Annual Information Return of Foreign Trust with a U.S. Owner (Under section 6048(b)). The study includes all the TY 2014 forms with ending accounting periods between January 1, 2014 and December 31, 2014.

  2. The Ogden submission processing center edits Forms 3520 and Forms 3520-A.

1.13.2.5.13  (06-20-2013)
Form 8832 Study

  1. This annual study examines all Forms 8832 filed at the Ogden and Cincinnati Submission Processing Centers, the IRS-designated central filing locations. SOI expects both centers to receive approximately 55,000 forms total each year in 2012 and 2013.

  2. The Ogden center charges out the original Form 8832 documents for SOI editing from the Ogden entity area after validation of the Forms 8832 on the Business Master File (BMF). The Form 8832 documents are sent back to Files after the completion of editing.

  3. The Cincinnati Center photocopies all Form 8832 documents and attachments after validating the presence of a taxpayer identification number (TIN) on each of these forms.

    1. If a Form 8832 does not have a TIN, the center does not photocopy until it assigns a TIN to the corporation.

    2. The center must check the legibility of all the photocopies.

  4. Cincinnati ships the photocopies to the SOI Branch in Ogden on the last day of each month.

    1. The section that is responsible for this project should design a process that guarantees the photocopying and shipping of Form 8832 within a month of its receipt in the center.

  5. The Forms 8832 are controlled in the SOI Branch at the Ogden Submission Processing Center.

  6. Ogden personnel directly key the "edit ready" information from the Forms 8832, as well as test it on-line.

    Note:

    See IRM 3.13.2.26 for instructions on processing the Form 8832, Entity Classification Election.

1.13.2.5.14  (06-20-2013)
Form 8858 Study, SOI Year 2012

  1. This study examines the Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, attached to all the Forms 1120 in the SOI Corporation Study.

  2. All Form 8858 editing occurs at the Ogden Submission Processing Center (OSPC).

  3. For Forms 8858 filed on paper or in PDF format, the data from Forms 8858 is keyed directly from images of the forms and tested on-line by Ogden personnel. For Forms 8858 filed in XML format, data are loaded into the database.

  4. The goal in Ogden is the timely editing of all Forms 8858 (see Exhibit 1.13.2-25).

1.13.2.5.15  (06-20-2013)
Form 8865 Study, SOI Year 2012

  1. This study examines the Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to all the Form 1120 types in the SOI Year 2012 Corporation Study, and to all the Forms 1065 and 1065-B selected for the SOI Tax Year 2012 Partnership Study.

  2. Form 8865 editing is done at the Ogden Submission Processing Center (OSPC).

  3. SOI expects to complete all of the data entry for the SOI Year 2012 Form 8865 study during Fiscal Years (FY) 2014 and 2015. For Forms 8865 filed on paper, OSPC personnel key the data directly from the scanned images and test the data on-line. SOI personnel will load electronically-filed Forms 8865 into the database. OSPC personnel will resolve any errors.

  4. The goal of the Ogden personnel is the timely editing of all Forms 8865. See Exhibit 1.13.2-26.

Exhibit 1.13.2-1 
Basic Individual/Sole Proprietorship Studies, Tax Years 2012 and 2013


Function
Advance Complete
Report
Tax Year 2012
Final submission processing center edited file transmittal 10-25-2013 02-07-2014
ECC-MTB Cycle processed 201338 201352
Tax Year 2013
Final submission processing center edited file transmittal 10-24-2014 02-06-2015
ECC-MTB Cycle processed 201438 201453

Exhibit 1.13.2-2 
Sales of Capital Assets (SOCA), Tax Years 2012 and 2013

  Processing Dates
Function Begin End
Tax Year 2012
2007-Based Panel Returns 06-03-2013 05-23-2014
Tax Year 2013
2007-Based Panel Returns 06-04-2014 06-19-2015

Exhibit 1.13.2-3 
Corporation Program, SOI Year 2012

Function Processing Dates
Begin End
Sample selection 07-2012 06-2014
Completion Dates for All Corporation Returns - Including Forms 1120S
Editing/test resolution (including "Giants" ): 06-2013 07-2014
  First Quarter (more than 25 percent of estimated sample edited) 09-13-2013
  Second Quarter (more than 50 percent edited) 12-13-2013
  Advance Data (more than 75 percent edited) 03-12-2014
  Final Data (100 percent edited) 07-10-2014
  Advance Data file closeout 03-31-2014
Final Data file closeout 08-22-20141
1SOI continues to add "missing" critical case and significant giant returns to the file as they are found until Final Data closeout.

Exhibit 1.13.2-4 
Corporation Program, SOI Year 2013

Function Processing Dates
Begin End
Sample selection 07-2013 06-2015
Completion Dates for All Corporation Returns - Including Forms 1120S
Editing/test resolution (including "Giants" ): 06-2014 07-2015
  First Quarter (more than 25 percent of estimated sample edited) 09-12-2014
  Second Quarter (more than 50 percent edited) 12-12-2014
  Advance Data (more than 75 percent edited) 03-11-2015
  Final Data (100 percent edited) 07-19-2015
  Advance Data file closeout 03-31-2015
Final Data file closeout 08-21-20151
1SOI continues to add "missing" critical case and significant giant returns to the file as they are found until Final Data closeout.

Exhibit 1.13.2-5 
Partnership Program, Tax Year 2012

  Processing Dates
Function Begin End
Sample selection 01-2013 12-2013
Edit/error resolution training 07-2013 07-2013
Editing/error resolution: 07-2013 01-31-2014
  25 percent edited 09-13-2013
  50 percent edited 10-11-2013
  Advance Data cutoff* 11-08-2013
 100 percent edited 01-31-2014
File closeout 01-31-2014 02-28-2014
*All available returns that are selected through cycle "40" are imaged/rendered at the submission processing centers; placed in workgroups; and, edited at the Cincinnati and Ogden submission processing centers by the designated date.

Exhibit 1.13.2-6 
Partnership Program, Tax Year 2013

  Processing Dates
Function Begin End
Sample selection 01-2014 12-2014
Edit/error resolution training 07-2014 07-2014
Editing/error resolution: 07-2014 01-31-2015
  25 percent edited 09-12-2014
  50 percent edited 10-10-2014
  Advance Data cutoff* 11-07-2014
 100 percent edited 01-31-2015
File closeout 01-31-2015 02-28-2015
*All available returns that are selected through cycle "40" are imaged/rendered at the submission processing centers; placed in workgroups; and, edited at the Cincinnati and Ogden submission processing centers by the designated date.

Exhibit 1.13.2-7 
Partnership Program, Tax Year 2014

  Processing Dates
Function Begin End
Sample selection 01-2015 12-2015
Edit/error resolution training 07-2015 07-2015
Editing/error resolution: 07-2015 01-31-2016
  25 percent edited 09-11-2015
  50 percent edited 10-09-2015
  Advance Data cutoff* 11-06-2015
 100 percent edited 01-31-2016
File closeout 01-31-2016 02-28-2016
*All available returns that are selected through cycle "40" are imaged/rendered at the submission processing centers; placed in workgroups; and, edited at the Cincinnati and Ogden submission processing centers by the designated date.

Exhibit 1.13.2-8 
Minimum Effectively Connected Net Investment Income (MECNII) Studies, SOI Years 2011 and 2012

2011
Shipment Selection 07-2011 06-2013
Shipment of returns 03-2012 06-2013
Editing/test resolution (including "Giants" ): 08-2012 07-2013
  First Quarter (more than 25 percent edited) 12-20-2012
  Second Quarter (more than 50 percent edited) 02- 22-2013
  Advance Data (more than 75 percent edited) 05-03-2013
  Final Data (100 percent edited) 07-11-2013
Final Data file closeout 07-11-2013
2012
Shipment Selection 07-2012 06-2014
Shipment of returns 03-2013 06-2014
Editing/test resolution (including "Giants" ): 08-2013 07-2014
  First Quarter (more than 25 percent edited) 12-20-2013
  Second Quarter (more than 50 percent edited) 02-21-2014
  Advance Data (more than 75 percent edited) 05-02-2014
  Final Data (100 percent edited) 07-11-2014
Final Data file closeout 07-11-2014

Exhibit 1.13.2-9 
Form 990 Studies, Tax Years 2011, 2012, 2013, and 2014

  Processing Dates
Function Begin End
TY 2011
Sample selection at Ogden Submission Processing Center (22,000 returns) 01-2012 12-2013
Ogden Processing Production:
   5 percent completed 02-2013 05-2013
  30 percent completed 07-2013
  60 percent completed 10-2013
  90 percent completed 12-2013
  100 percent completed 01-2014
  File closeout 02-2014
  Processing Dates
Function Begin End
TY 2012
Sample selection at Ogden Submission Processing Center (22,000 returns) 01-2013 12-2014
Ogden Processing Production:
   5 percent completed 02-2014 03-2014
  30 percent completed 05-2014
  60 percent completed 08-2014
  90 percent completed 11-2014
  100 percent completed 01-2015
  File closeout 02-2015
  Processing Dates
Function Begin End
TY 2013
Sample selection at Ogden Submission Processing Center (22,000 returns) 01-2014 12-2015
Ogden Processing Production:
   5 percent completed 02-2015 03-2015
  30 percent completed 05-2015
  60 percent completed 08-2015
  90 percent completed 11-2015
  100 percent completed 01-2016
File closeout 02-2016
  Processing Dates
Function Begin End
TY 2014
Sample selection at Ogden Submission Processing Center (22,000 returns) 01-2015 12-2016
Ogden Processing Production:
   5 percent completed 02-2016 03-2016
  30 percent completed 05-2016
  60 percent completed 08-2016
  90 percent completed 11-2016
  100 percent completed 01-2017
  File closeout 02-2017

Exhibit 1.13.2-10 
Form 990-PF Studies, Tax Years 2011, 2012, 2013, and 2014

  Processing Dates
Function Begin End
TY 2011
Sample selection at Ogden Submission Processing Center (17,500 returns) 01-2012 12-2013
Ogden Processing Production:
   5 percent completed 02-2013 03-2013
  20 percent completed 05-2013
  50 percent completed 08-2013
  75 percent completed 10-2013
  95 percent completed 12-2013
  100 percent completed 01-2014
File closeout 02-2014
  Processing Dates
Function Begin End
TY 2012
Sample selection at Ogden Submission Processing Center (17,500 returns) 01-2013 12-2014
Ogden Processing Production:
   5 percent completed 02- 2014 03-2014
  20 percent completed 05-2014
  50 percent completed 08-2014
  75 percent completed 10-2014
  95 percent completed 12-2014
  100 percent completed 01-2015
File closeout 02-2015
  Processing Dates
Function Begin End
TY 2013
Sample selection at Ogden Submission Processing Center (17,500 returns) 01-2014 12-2015
Ogden Processing Production:
   5 percent completed 02-2015 03-2015
  20 percent completed 05-2015
  50 percent completed 08-2015
  75 percent completed 10-2015
  95 percent completed 12-2015
  100 percent completed 01-2016
File closeout 02-2016
  Processing Dates
Function Begin End
TY 2014
Sample selection at Ogden Submission Processing Center (17,500 returns) 01-2015 12-2016
Ogden Processing Production:
5 percent completed 02-2016 03-2016
  20 percent completed 05-2016
  50 percent completed 08-2016
  75 percent completed 10-2016
  95 percent completed 12-2016
  100 percent completed 01-2017
File closeout 02-2017

Exhibit 1.13.2-11 
Form 990-T Studies, Tax Years 2011, 2012, 2013, and 2014

  Processing Dates
Function Begin End
TY 2011
Sample selection at Ogden Submission Processing Center (7,000 returns) 01-2012 12-2013
Ogden Processing Production:
   5 percent completed 04-2013 05-2013
  30 percent completed 06-2013
  50 percent completed 07-2013
  75 percent completed 10-2013
  90 percent completed 12-2013
  100 percent completed 01-2014
File closeout 03-2014
  Processing Dates
Function Begin End
TY 2012
Sample selection at Ogden Submission Processing Center (7,000 returns) 01-2013 12-2014
Ogden Processing Production:
   5 percent completed 04-2014 05-2014
  30 percent completed 06-2014
  50 percent completed 07-2014
  75 percent completed 10-2014
  90 percent completed 12-2014
  100 percent completed 01-2015
File closeout 03-2015
  Processing Dates
Function Begin End
TY 2013
Sample selection at Ogden Submission Processing Center (7,000 returns) 01-2014 12-2015
Ogden Processing Production:
   5 percent completed 04-2015 05-2015
  30 percent completed 06-2015
  50 percent completed 07-2015
  75 percent completed 10-2015
  90 percent completed 12- 2015
  100 percent completed 01-2016
File closeout 03-2016
  Processing Dates
Function Begin End
TY 2014
Sample selection at Ogden Submission Processing Center (7,000 returns) 01-2015 12-2016
Ogden Processing Production:
   5 percent completed 04-2016 05-2016
  30 percent completed 06-2016
  50 percent completed 07-2016
  75 percent completed 10-2016
  90 percent completed 12-2016
  100 percent completed 01-2017
File closeout 03-2017

Exhibit 1.13.2-12 
Form 4720 Studies, Processing Years 2013, 2014, and 2015

  Processing Dates
Function Begin End
PY 2013
Sample selection at Ogden Submission Processing Center (2,400 returns) 01-2013 12-2013
Ogden Processing Production:
  50 percent completed 02-2013 06-2013
  75 percent completed 10-2013
  90 percent completed 12-2013
  100 percent completed 02-2014
File closeout 04-2014
  Processing Dates
Function Begin End
PY 2014
Sample selection at Ogden Submission Processing Center (2,400 returns) 01-2014 12-2014
Ogden Processing Production:
  50 percent completed 02-2014 06-2014
  75 percent completed 10-2014
  90 percent completed 12-2014
  100 percent completed 02-2015
File closeout 04-2015
  Processing Dates
Function Begin End
PY 2015
Sample selection at Ogden Submission Processing Center (2,400 returns) 01-2015 12-2015
Ogden Processing Production:
  50 percent completed 02-2015 06-2015
  75 percent completed 10-2015
  90 percent completed 12-2015
  100 percent completed 02-2016
File closeout 04-2016

Exhibit 1.13.2-13 
Split-Interest Trust Studies (Form 5227), Processing Year 2015

  Processing Dates
Function Begin End
PY 2015
Sample selection at Ogden Submission Processing Center (12,000 returns) 01-2015 12-2015
Ogden Processing Production:
   5 percent completed 05-2015 06-2015
  25 percent completed 08-2015
  50 percent completed 11-2015
  75 percent completed 02-2016
  90 percent completed 03-2016
  100 percent completed 04-2016
File closeout 06-2016

Exhibit 1.13.2-14 
Tax-Exempt Bonds Studies (Forms 8038), Tax Years 2013 and 2014

  Processing Dates
Function Begin End
TY 2013
Sample selection at Ogden Submission Processing Center (3,500 returns) 01-2013 12-2014
Ogden Processing Production:
  30 percent completed 04-2014 05-2014
  60 percent completed 06-2014
  90 percent completed 07-2014
  100 percent completed 08-2014
  Processing Dates
Function Begin End
TY 2014
Sample selection at Ogden Submission Processing Center (3,500 returns) 01-2014 08-2015
Ogden Processing Production:
  30 percent completed 04-2015 05-2015
  60 percent completed 06-2015
  90 percent completed 07-2015
  100 percent completed 08-2015

Exhibit 1.13.2-15 
Tax-Exempt Bonds Studies (Forms 8038-G), Tax Years 2013, 2014, and 2015

  Processing Dates
Function Begin End
TY 2013
Sample selection at Ogden Submission Processing Center (26,000 returns) 01-2013 06-2014
Ogden Processing Production:
  30 percent completed 10-2013 12-2013
  60 percent completed 02-2014
  90 percent completed 05-2014
  100 percent completed 07-2014
  Processing Dates
Function Begin End
TY 2014
Sample selection at Ogden Submission Processing Center (25,000 returns) 01-2014 06-2015
Ogden Processing Production:
  30 percent completed 10-2014 12-2014
  60 percent completed 03-2015
  90 percent completed 06-2015
  100 percent completed 07-2015
  Processing Dates
Function Begin End
TY 2015
Sample selection at Ogden Submission Processing Center (26,000 returns) 01-2015 07-2016
Ogden Processing Production:
  30 percent completed 10-2015 12-2015
  60 percent completed 03-2016
  90 percent completed 06-2016
  100 percent completed 07-2016

Exhibit 1.13.2-16 
Tax-Exempt Bonds Studies (Forms 8038-T), Processing Year 2013

  Processing Dates
Function Begin End
PY 2013
Sample selection at Ogden Submission Processing Center (approximately 1,500 returns) 01-2013 01-2014
Ogden Processing Production:
  30 percent completed 07-2014 08-2014
  60 percent completed 09-2014
  100 percent completed 10-2014

Exhibit 1.13.2-17 
Tax-Exempt Bond Studies (Forms 8038-CP), Tax Years 2012, 2013, and 2014

  Processing Dates
Function Begin End
TY 2012
Sample Selected at Ogden Submission Processing Center (500 returns) 01-2012 02-2014
Ogden Processing Production:    
  50 percent completed 11-2013 12-2013
  100 percent completed   02-2014
  Processing Dates
Function Begin End
TY 2013
Sample Selected at Ogden Submission Processing Center (500 returns) 01-2013 02-2015
Ogden Processing Production:    
  50 percent completed 10-2014 12-2014
  100 percent completed   02-2015
  Processing Dates
Function Begin End
TY 2014
Sample Selected at Ogden Submission Processing Center (500 returns) 01-2014 02-2016
Ogden Processing Production:    
  50 percent completed 10-2015 12-2015
  100 percent completed   02-2016

Exhibit 1.13.2-18 
Tax-Exempt Bond Studies (Form 8038-TC), Tax Years 2014 and 2015

  Processing Dates
Function Begin End
TY 2014
Sample Selected at Ogden Submission Processing Center (250 returns) 01-2014 06-2014
Ogden Processing Production:    
  100 percent completed 06-2014 06-2014
  Processing Dates
Function Begin End
TY 20145
Sample Selected at Ogden Submission Processing Center (250 returns) 01-2015 06-2015
Ogden Processing Production:    
  100 percent completed 06-2015 06-2015

Exhibit 1.13.2-19 
Estate Tax Studies, Tax Years 2013, 2014, and 2015

  Processing Dates
Function Begin End
Estate Tax (Forms 706) Study, TY 2013
Sample selection at the Cincinnati Submission Processing Center (5,500 returns) 01-2013 12-2013
Cincinnati Processing Production:
  40 percent completed 03-2013 09-2013
  60 percent completed 11-2013
  90 percent completed 01-2014
  100 percent completed 02-2014
File closeout *
* On notification by National Office.
  Processing Dates
Function Begin End
Estate Tax (Forms 706) Study, TY 2014
Sample selection at the Cincinnati Submission Processing Center (5,500 returns) 01-2014 12-2014
Cincinnati Processing Production:
  25 percent completed 02-2014 06-2014
  30 percent completed 07-2014
  60 percent completed 10-2014
  70 percent completed   11-2014
  80 percent completed 12-2014
  100 percent completed 02-2015
File closeout *
* On notification by National Office.
  Processing Dates
Function Begin End
Estate Tax (Forms 706) Study, TY 2015
Sample selection at the Cincinnati Submission Processing Center (5,500 returns) 01-2015 12-2015
Cincinnati Processing Production:
  40 percent completed 03-2015 06-2015
  60 percent completed 09-2015
  90 percent completed 01-2016
  100 percent completed 02-2016
File closeout *
* On notification by National Office.

Exhibit 1.13.2-20 
Non-Resident Alien Estate Tax (Form 706-NA) Study

  Processing Dates
Function Begin End
TY 2013
Sample selection at the Cincinnati Submission Processing Center (850 returns) 01-2013 12-2013
Cincinnati Processing Production:
  10 percent completed 06-2013 06-2013
  50 percent completed 10-2013
  90 percent completed 12-2013
  100 percent completed 02-2014
  Processing Dates
Function Begin End
TY 2014
Sample selection at the Cincinnati Submission Processing Center (800 returns) 01-2014 12-2014
Cincinnati Processing Production:
  10 percent completed 06-2014 06-2014
  20 percent completed 07-2014
   50 percent completed 10-2014
  70 percent completed 11-2014
  90 percent completed 12-2014
  100 percent completed 02-2015
  Processing Dates
Function Begin End
TY 20145
Sample selection at the Cincinnati Submission Processing Center (800 returns) 01-2015 12-2015
Cincinnati Processing Production:
  10 percent completed 06-2015 06-2015
  50 percent completed 10-2015
  90 percent completed 12-2015
  100 percent completed 02-2016

Exhibit 1.13.2-21 
Gift Tax Study, Filing Years 2013, 2014, and 2015

  Processing Dates
Function Begin End
2013 Gift Tax (Form 709) Study
Sample selection at the Cincinnati Submission Processing Center (14,000 returns) 01-2013 12-2013
Ogden Processing Production:
  15 percent completed 12-2013 07-2012
  50 percent completed 10-2012
  65 percent completed 04-2013
  100 percent completed 06-2014
  Processing Dates
Function Begin End
2014 Gift Tax (Form 709) Study
Sample selection at the Cincinnati Submission Processing Center (14,000 returns) 01-2014 12-2014
Ogden Processing Production:
  10 percent completed 06-2014 07-2014
  25 percent completed 09-2014
  55 percent completed 01-2015
  100 percent completed 06-2015
  Processing Dates
Function Begin End
2015 Gift Tax (Form 709) Study
Sample selection at the Cincinnati Submission Processing Center (14,000 returns) 01-2015 12-2015
Ogden Processing Production:
  10 percent completed 06-2015 07-2015
  50 percent completed 12-2015
  80 percent completed 03-2016
  100 percent completed 06-2016

Exhibit 1.13.2-22 
International Boycott Reports (Form 5713) Study, Tax Years 2012 and 2013

  TY 2012 Processing Dates
Function Begin End
Editing/Error Resolution - Ogden
  25 percent of total 05-26-2014 05-30-2014
  100 percent of total 08-15-2014
  TY 2013 Processing Dates
Function Begin End
Editing/Error Resolution - Ogden
  25 percent of total 05-24-2015 05-29-2015
  100 percent of total 08-16-2015

Exhibit 1.13.2-23 
Information Return of U.S. Persons with Respect to Certain Foreign Corporations (Form 5471) Study, SOI Year 2012

  SOI Year 2012 Processing Dates
Function Begin End
Ogden Editing/Error Resolution March 2014  
  25 percent of total 05-31-2014
  50 percent of total 07-31-2014
  75 percent of total 09-30-2014
  100 percent of total 11-30-2014

Exhibit 1.13.2-24 
Corporation Foreign Tax Credit (Form 1118) Studies, SOI Years 2011 and 2012

  Processing Dates
Function Begin End
2011
Editing/Error Resolution of Forms 1118:
  50 percent of total 03-31-2013
  75 percent of total 04-30-2013
  95 percent of total 06-28-2013
  100 percent of total 07-15-2013
2012
Editing/Error Resolution of Forms 1118:
  50 percent of total 03-31-2014
  75 percent of total 04-30-2014
  95 percent of total 06-30-2014
  100 percent of total 07-15-2014

Exhibit 1.13.2-25 
Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (Form 8858) Study, SOI Year 2012

  Processing Dates
Function Begin End
2012
Ogden Submission Processing Center Editing/Error Resolution of Forms 8865 July 2014  
   25 percent of total 09-30-2014
   50 percent of total 11-30-2014
   75 percent of total 01-31-2015
  100 percent of total 03-15-2015

Exhibit 1.13.2-26 
Return of U.S. Persons With Respect to Certain Foreign Partnerships (Form 8865) Study, SOI Year 2012

  Processing Dates
Function Begin End
2012
Ogden Submission Processing Center Editing/Error Resolution of Forms 8865 May 2014  
   25 percent of total 06-27-2014
   60 percent of total 10-31-2014
   95 percent of total 01-16-2015
  100 percent of total 01-30-2015

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