1.13.3  Document Management

Manual Transmittal

July 02, 2013

Purpose

(1) This transmits revised IRM 1.13.3, Statistics of Income, Document Management.

Material Changes

(1) This section of the Internal Revenue Manual (IRM) describes the Statistics of Income (SOI) workflow process in 2013 and later processing years. The SOI workflow process includes the controlling, shipping, scanning, rendering, editing, and monitoring of documents and electronic records that SOI samples for its studies. SOI collaborates with the new Data Management (DM) Division in the Research, Analysis, and Statistics Office on the scanning of paper returns and the rendering of electronically filed returns.

(2) The text "MITS" was changed to "IT" throughout this IRM section.

Effect on Other Documents

IRM 1.13.3, dated January 13, 2012, is superseded.

Audience

Submission Processing Centers across all Operating Divisions.

Effective Date

(07-02-2013)



M. Susan Boehmer
Director
Statistics of Income Division

1.13.3.1  (01-24-2012)
Statistic of Income Workflow Process

  1. This section of the Internal Revenue Manual (IRM) describes the Statistics of Income (SOI) workflow process.

1.13.3.1.1  (01-24-2012)
Controlling Documents Selected for Statistics of Income

  1. The workflow process deals with the controlling, shipping, scanning, rendering, and editing of documents (tax returns, forms, schedules, etc.) and the transmitting of electronic records, which SOI selects for its studies. Some of the phases of this process include:

    1. sampling both paper documents filed at the submission processing centers and electronic records at the Enterprise Computing Center - Martinsburg (ECC-MTB);

    2. storing paper documents in SOI support or edit units at the centers;

    3. ordering paper documents and electronic records for error correction and additional editing in SOI edit units;

    4. editing paper documents, scanned images of returns, or electronic records;

    5. photocopying some paper documents for special projects;

    6. scanning paper documents before and after SOI editing;

    7. releasing paper documents from the SOI edit units back to Files; and,

    8. re-filing paper documents in Files.

1.13.3.1.2  (01-13-2012)
Statistics of Income Automated Return Tracking System (STARTS)

  1. The Statistics of Income Automated Return Tracking System (STARTS) automates some phases of the SOI workflow process. Two SOI database applications, BMF STARTS and IMF STARTS, store information about the SOI samples, SOI program deadlines, status of scanning and rendering of paper documents and electronic records, and status of inventory at the SOI edit sites. These applications give the SOI units at the submission processing centers and National Office the capability to control documents (tax returns, forms, etc.) and electronic records (e.g., electronically filed returns or images of scanned documents) from the point of selection at ECC-MTB to the SOI edit sites. Both applications produce inventory management reports that provide SOI managers with tools for monitoring every phase in which documents and records change location (e.g., shipment to processing center, receipt at processing center, completion of editing, etc.) and processing status (edited, scanned, rendered, selected for quality review, etc.). With the applications accessible from terminals in the submission processing centers and the Statistics of Income (SOI) office in Washington, DC., SOI control (or support) units and edit units, and National Office analysts, can monitor different tasks within each phase of the workflow process in real time. For example:

    1. SOI support and edit units can count and monitor the number of selected paper documents and electronic records that are "missing" (i.e., not in SOI control and unavailable for scanning, rendering, editing, or refiling).

    2. SOI support and edit units can create and monitor workgroups of paper documents and workgroups of scanned and rendered images of documents and electronic records for assignment to individual editors.

    3. SOI analysts in National Office can review and monitor an SOI edit unit’s progress in meeting a project deadline.

1.13.3.1.3  (01-13-2012)
Workflow Process

  1. In defining the way selected documents and records move through the Statistics of Income (SOI) infrastructure, this section identifies:

    1. tasks in the SOI support and edit units;

    2. procedures for controlling documents and records as they move through the SOI workflow process; and,

    3. users' roles at the submission processing centers.

1.13.3.1.3.1  (07-02-2013)
Selecting Documents

  1. SOI sample selection occurs at the Enterprise Computing Center - Martinsburg (ECC-MTB) and the Ogden Submission Processing Center (OSPC). These centers create data files that are transmitted daily, weekly, and monthly, to one or more of the submission processing centers, National Office, ECC-MTB, and the Enterprise Computing Center - Memphis (ECC-MEM), which stores and transmits print files under the "Mainframe Consolidation" plan. All of the files contain data that SOI selected from, at least, either the Business Master File (BMF) or the Individual Master File (IMF).

  2. Beginning with Cycle 201303, the ECC-MTB produces, stores, and "pushes," data to the Ogden campus for storage in SOI databases. Ogden personnel should ensure this occurs regularly and without unnecessary delay. At approximately the same time the SOI Branch at the Ogden Submission Processing Center creates files for the Forms 706, 706-NA, 709, 990 series, 4720 and 5227 projects. See Exhibit 1.13.3-1 for a description of SOI files.

  3. Beginning with Cycle 201304, ECC-MTB transmits specific Individual Master File (IMF) files, such as charge-outs, to the centers in Austin, Fresno, and Kansas City, and produces and stores other IMF files, which it "pushes" to the Cincinnati campus for loading into SOI databases. See Exhibit 1.13.3-1 for a description of each file. In addition, supplemental samples for the Form 1040 Study are selected at ECC-MTB in cycle 19, with the tape label containing the cycle designation, "20XX19k."

  4. At times problems create a need to request replacement ECC-MTB files, or reprinting of files at the submission processing center. The center should resolve these problems based on the following guidelines:

    1. Files staffs can address questions concerning reruns to the SOI coordinator at the center, the SOI Edit Unit manager, or the National Office STARTS Team (202-874-0334). The Files staffs can also contact the center’s computer operations function, or the Network Operations Command Center (NOCC).

      Note:

      In most cases computer operations at the center must require the rerun or reprinting.

    2. SOI coordinators can request the reprinting of files in the submission processing centers.

    3. At the Ogden Submission Processing Center, the SOI Development and Maintenance Section (801–620–7679) receives reports of problems with loading or processing the Sample Control File (File No. 080–72–14) which is loaded into BMF STARTS.

    4. For the Selected Returns Control File (File No. 080–54–16), an IMF STARTS file, the Expert Site Section in the Cincinnati Submission Processing Center (CSPC) (606–292–5300) receives reports of problems.

1.13.3.1.3.2  (07-02-2013)
Pulling Documents

  1. Beginning with ECC-MTB Cycle '03, ECC-MTB transmits each week a set of files, including a BMF STARTS sample control file (or in cycle '04 the daily IMF STARTS selected returns files), to IRS submission processing centers, National Office, and the Enterprise Computing Center - Memphis (ECC-MEM). The same week the SOI Branch at the Ogden Submission Processing Center (OSPC) creates a set of files, including SOI charge-outs for the on-site SOI BMF studies in Cincinnati and Ogden. All of the files contain information about documents (returns, forms, etc.) and records which SOI selected for one or more of its studies. In addition, the Cincinnati and Ogden programmers load sample information into IMF and BMF STARTS, respectively, during the week after notifying a Martinsburg unit to "push" the files to their center.

    Note:

    Beginning in 2012, with the implementation of CADE 2, the first day of an ECC-MTB cycle begins on a Friday and ends on the following Thursday. Daily processing related to the IMF programs occurs on Friday (Day 1), Monday (Day 2), Tuesday (Day 3), Wednesday (Day 4), and Thursday (Day 5). Weekly processing related to the BMF programs occurs each Thursday (Day 5) of an ECC-MTB cycle.

  2. The submission processing centers, or the local SOI units, print and deliver two or three sets of the SOI charge-outs to the centers' Files functions, other designated areas at the centers, or the Federal Records Centers (FRC). The SOI support units or edit units at the centers monitor the receipt of these SOI charge-outs. They also insure the timely pulling of the selected paper documents. If either the ECC-MTB or the centers' print rooms deliver the charge-outs late, or SOI units are producing their own sets of charge-outs, the centers can pull the samples by printing either STARTS Selected Returns Lists or STARTS charge-outs.

  3. Centers and SOI units print the SOI charge-outs in Document Locator Number (DLN) order, or another appropriate order, and batch them for pulling documents according to local procedures. They charge the pulling of the returns to Organization-Function-Program (OFP) code 28000–530–00000. Document 6209, IRS Processing Codes and Information, and IRM 3.5.61, Files Management and Services, state that the expeditious pulling of SOI returns first at the centers is a high priority.

  4. Pulling SOI returns in Files before the pulling of other weekly requests (such as Refund Review, Notice Review, Unpostables, AIMS, and internal notices), will reduce the number of missing SOI returns - i.e., reduce the number of returns SOI does not control and the SOI unit or Files must find. The criteria that Files uses to pull returns is found in IRM 3.5.61.1.2.3, Priority Pull Listing.

  5. For each return found, place an SOI charge-out in the Files (or Federal Records Center (FRC)) block that holds the document to indicate SOI holds the original return. The second copy of the charge-out is stapled to the front of the return.

  6. If a document is unavailable during this "First Pull" phase, the SOI support or edit unit notes and dates on the SOI charge-out and in STARTS the name of the IRS function controlling the return. This information is helpful in follow-up searches for returns missing from the SOI inventory at a center. A lead SOI control clerk should begin the search immediately for documents if Files annotated on the charge-out, "Block Not in File (BNIF)," or "Document Not in File (DNIF)" .

  7. Once Files pulls the returns for a cycle, the SOI control unit or edit unit sorts and shelves them in either cycle-page-line or DLN order. The order depends on the local center’s preference in meeting the needs of its SOI operations. During this process, the unit compares the taxpayer identification number (TIN) and DLN on the charge-out with those on the return to insure Files pulled the correct document. This review is done at this point because obtaining the correct return later is more difficult and costly.

  8. If the unit shelves the returns in cycle-page-line order, folders are prepared for each cycle and page combination. A page can contain between one and twenty returns. The folder should show the cycle and page number in a location that will display the information when the unit shelves the folders. Returns are placed in the appropriate folder in "line number" sequence.

  9. If the unit stores the returns in DLN order, the unit can shelve them by DLN within a SOI cycle or by the standards practiced in Files.

  10. A copy of the charge-out for a missing return is kept in a folder marked "Missing SOI Year 2012 (2013, etc.) BMF (or IMF) Returns." The unit uses the charge-outs in this folder in follow-up searches, and during the collection of "First Pull" and "One Week Follow-up" information.

1.13.3.1.3.2.1  (01-13-2012)
First Pull Statistics

  1. After the initial pulling of SOI documents, the center enters the "Missing Date" and "Doc Status" into STARTS for each missing return in the cycle. See Exhibit 1.13.3-2 for valid document status codes, which describe the submission processing center function holding the "missing" return, or the workflow situation associated with the "missing" return.

  2. After the center enters the missing return information, it updates the "First Pull" and "One Week Follow-up" dates in the STARTS Cycle Screen. It should follow the schedule of dates in Exhibit 1.13.3-3 when updating this cycle information. Entering as early as possible the "One Week Follow-up" date, even if all of the returns in the cycle are not controlled, will make returns available sooner for SOI units to edit.

  3. The center faxes "First Pull" statistics to National Office each week. The Special Projects Section, Corporation Statistics Branch in the Statistics of Income office sets the statistical reporting criteria each year.

1.13.3.1.3.2.2  (01-13-2012)
Special Individual Master File (IMF) Accounts

  1. Some 1040 returns are posted to the Non-Master File (NMF). Because these documents do not post to the Individual Master File (IMF), SOI does not automatically sample them. In the past, SOI has alerted submission processing center personnel to look for such returns. See IRM 3.17.46, Automated Non-Master File Accounting, for more information about the procedure.

  2. Since 2002, submission processing centers posted a NMF record to the IMF. But, because the TC 150 is equal to $0 (no other data is present), this process makes the record essentially the same as a Substitute For Return (SFR) record.

  3. The new IMF posting procedure does not always ensure the selection of the 1040 return, especially in the case of "no significant tax data" on the Master File. Therefore, the NMF unit at the Cincinnati Submission Processing Center forwards photocopies of NMF returns to the SOI Branch (see IRM 3.17.46.5.4, IMF Accounts Over $1 Billion). Upon receipt of the photocopy, SOI National Office is notified. The telephone number of the National Office contact is 202-874-0899.

  4. The SOI control unit in Cincinnati adds record information about the NMF returns to the IMF STARTS database. After insertion of the information, the NMF returns are available for placement in workgroup orders which the SOI edit units at the Cincinnati Submission Processing Center create.

1.13.3.1.3.2.3  (01-13-2012)
Special Processing of Returns in the Individual/Sole Proprietorship Program

  1. "The set of Cross-Sectional" 1040 returns comprises both Non-SOCA and SOCA 1040 returns.

  2. Reducing the number of missing "Cross-Sectional" 1040 returns is a high priority.

1.13.3.1.3.3  (07-02-2013)
Fulfilling Requests for Returns in SOI Control

  1. Certain SOI projects and requests from other IRS functions require the SOI units to photocopy documents, scan documents, or retrieve scanned images of documents that SOI controls. The SOI function (i.e., SOI control unit or edit unit), which is controlling the document or has access to the electronic record information and image, can photocopy, scan, or retrieve it for a special SOI project, or another IRS function. In addition, the SOI unit may give the original return or a printout of the scanned images to the IRS requester and either control the photocopy or rely on the scanned images for SOI processing. After editing, the SOI edit unit destroys the photocopy, if no other SOI processing is necessary (e.g., scanning). Another option is giving the IRS requester access to the Distributed Processing System (DPS) Image Network (DIN), which stores the scanned images of all or many of the returns in SOI samples.

  2. For each SOI project that requires photocopying of some documents, the unit generates a list in STARTS. The lists accompany the photocopies. The unit keeps copies of the lists for future reference. After photocopying the documents on the list, the unit:

    1. Stamps the message, "Photocopy for SOI," on the first page of each selected document.

    2. Sorts the photocopies based on the listings.

    3. Places the originals back on the shelves, or in the STARTS workgroups.

    4. Checks a sample of photocopies for completeness and legibility.

    5. Ships the photocopies to the processing site.

    6. Charges the time spent photocopying documents to the appropriate SOI Organization-Function-Program (OFP) code.

  3. If another IRS function requests the original document, and the SOI unit elects to make a photocopy for SOI processing, it:

    1. Photocopies the document.

    2. Stamps the message, "Photocopy for SOI," on the first page of each selected document.

    3. Notes in the "Remarks" field of the STARTS Primary Record Screen that the requesting function has the original.

    4. Sends the original to the requester.

    5. Places the photocopy back on the shelves, or in the STARTS workgroup.

    6. Charges the time to the appropriate non-SOI OFP code.

  4. If another IRS function requests the original document, and the SOI unit elects to provide it before SOI processing is completed, it:

    1. Locates the document.

    2. Scans the document through the DIN system.

    3. Notes in the "Remarks" field of the STARTS Primary Record Screen that the requesting function has the original.

    4. Re-charges the document to the requesting area.

    5. Sends the document to the requesting area.

    6. Charges the time to the appropriate non-SOI OFP code.

    Note:

    The SOI Operation Manager/Designee will obtain authorization for charging the time for this work prior to fulfilling these requests.

  5. If another IRS function requests an expedite image of a document, or a portion thereof, the SOI unit:

    1. Prints the image(s) from the DIN server.

    2. Stamps the image(s) "Copy" on the first page of each selected document.

    3. Sends the image(s) to the requesting area.

    4. Charges the time to the appropriate non-SOI OFP code after the SOI Operation Manager/Designee obtains authorization for charging the time for this work to the appropriate code.

    Note:

    Documents containing in excess of 25 pages, may require SOI Operation management approval prior to fulfilling a request. SOI may elect to provide large volume requesters access to the DIN server for viewing document images after applying for access through the on-line 5081 application process.

  6. An SOI unit can enter information about these requests in STARTS to maintain a record.

1.13.3.1.3.4  (01-13-2012)
Scanning Documents Before Editing

  1. SOI units at the Cincinnati and Ogden submission processing centers scan documents for a number of studies and programs before the commencement of SOI editing. For example, SOI units scan corporation and partnership forms, schedules, and attachments before SOI editing and for delivery to the Large Business and International (LB&I) division. In addition, SOI scans the Form 8038 series for the SOI Special Studies Branch and Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap, for the Tax-Exempt Governmental Entities (TEGE) operating division.

  2. SOI maintains scanning systems to produce, store, and supply the images of the documents: DIN (Distributed Processing System (DPS) Image Network), KIN (Schedule K-1 Image Network which stores images from the Service Center Recognition/Image Processing System (SCRIPS)), LIN (LB&I Image Network), and SEIN (SOI Exempt Organization Return Image Network). The complete list of current SOI scanning projects is found in Exhibit 1.13.3-4.

  3. Criteria for selecting returns to scan differ among the various SOI studies, including the LB&I and TEGE programs. STARTS controls the returns for the DIN, KIN and LIN operations, while BBTS controls the returns, selected before pipeline processing, for the SEIN system (See IRM 3.20.12, Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing). Either STARTS reports or a specific SOI study identify the returns the centers will scan during the year.

    1. The weekly BMF STARTS file load program identifies 1120 and 1065 returns for SOI and LB&I scanning based on the SOI and LB&I selection criteria. This program supplements the record information on the file that ECC-MTB generates each week and SOI loads into BMF STARTS. The centers generate a STARTS report, which identifies the SOI and LB&I selections. With implementation of KIN, which stores SCRIPS images of the paper filings of Schedule K-1, the centers can focus on scanning the "parent" 1120 and 1065 returns. Upon completion of scanning the parent document, these images are merged with those in KIN to produce a "complete" return for LB&I. The centers can use IDRS to request prints of electronically filed 1120 and 1065 returns, which the centers have to scan for LB&I and SOI, if SOI has not rendered images from the XML files.

    2. The Ogden submission processing center scans the population of Forms 8038, 8038-G, 8038-T, 8038-CP, 8038-TC, and 8328 before SOI editing. The center generates a STARTS report, which identifies the selections for both TEGE and SOI.

    3. Before editing the centers should scan all of the paper returns in the corporation and partnership samples.

      Note:

      If a center is preparing a return for pre-edit scanning, but an SOI edit unit needs to edit the same return, the return is placed immediately in a STARTS workgroup and shipped to the edit unit. In this case, scanning of the return will occur after the edit unit completes statistical abstracting.

    4. The Cincinnati submission processing center scans the samples of Forms 706 and 709, as well as the population of Forms 706-NA, before SOI editing.

    5. The Ogden submission processing center scans the population of Forms 990, 990-PF, 990-T, 4720, 5227, 8921, and 8922 (via SEIN) before pipeline processing and stores the images on the SOI DIN server.

  4. The SOI edit unit or control unit that scans returns before SOI editing should follow the procedures outlined in the Scanner User Guide for the Distributed Processing System (DPS) Image Network (DIN), or the LB&I Image Network (LIN), as well as this document. These procedures emphasize the following actions, that the SOI edit and control units share:

    1. Determining if all the documentation associated with a return is available for scanning.

      Note:

      A center does not scan a return until it controls all the documentation associated with the return, unless a program completion deadline is approaching. All Forms 1120S are scanned after the Schedules K-1 are located and associated with the parent return. If additional Schedules K-1 are found, the SOI unit re-scans the entire return and supplies both Donald Atkinson (Ogden) and Carl Wescott (National Office) information about the return, including the SCPL, which is used to replace the original set of images in DIN with the re-scanned set.

    2. Preparing an "Alert Page" , if applicable, that identifies all of the documentation obviously missing from the return (e.g., missing boxes, one or more pages in the first set of pages of a return). See Exhibit 1.13.3-5 for an example of this insert.

    3. Generating a bar-coded SOI Form 4251 (charge-out) in STARTS, if necessary.

    4. Confirming the employer identification number (EIN) and tax period on both the return and the Form 4251 charge-out are identical.

      Note:

      If there is a mismatch, or "miss pull" , the SOI unit puts the return aside for further research. In rare cases, a correction of record information occurs and subsequently a new Form 4251 is printed and attached to the return before scanning.

    5. Calibrating the scanners to ensure the images of the returns are not only legible but also complete - i.e., the images of periods and hyphens, or other minute characters and symbols, on the return are captured during the scanning process.

    6. Scanning the SOI Form 4251, which is placed at the beginning of the return, followed by the first set of pages of a return (for example, first four pages of an 1120 return), the Form 7004, Application for Automatic Extension of Time to File, if applicable, the Alert page, if applicable, and then the rest of the return.

    7. Scanning the entire return, including any indexes and tables of content, if applicable, in the same order in which the document was filed, without rearranging attachments.

      Note:

      The unit scans all the pages, other than the envelope, placing any adjustment paperwork at the end of the document.

    8. Scanning the return in the same order as the boxes which held all of the documentation, if the return was shipped in more than one box.

    9. Viewing the return on the computer monitor while scanning the return to make sure that any pages requiring re-scanning (e.g., two pages on top of each other, or a slanted page) are completed at that time.

    10. Reviewing the images of each scanned return by examining the entire scanned image of the return and all supporting schedules and attachments during the quality review phase of the DIN/LIN operations to ensure all the images are readable, including the pages oriented in landscape mode.

    11. Date stamping the SOI Form 4251 after completion of the scanning process to identify returns that are "pre-edits" .

      Note:

      Each center determines the utility of date stamping.

    12. Moving the adjustment paperwork back to the front of the document before re-filing.

  5. SOI National Office leads a monthly telephone conference call with the Cincinnati and Ogden SOI staffs. The monthly calls include discussions on workload priorities and changes in procedures for implementing goals associated with scanning. The calls also include discussions about the workflow of the various DIN projects. These calls do not preclude the employees at the centers from communicating with each other and analysts in National Office whenever it is necessary. National Office assumes, however, major issues are covered during the telephone conference calls.

1.13.3.1.3.5  (01-13-2012)
Additional Activities Before Documents Are Ordered

  1. After completion of photocopying, or imaging, the SOI control unit or edit unit continues to maintain the returns on the shelves or carts.

  2. The SOI units search for missing returns. When a missing return is found, it updates the record information in STARTS.

  3. The units process expeditiously requests from other IRS functions. It updates the "Photocopy" field on the STARTS Primary Record screen with a "Y," if it releases the original return to the other function after making a photocopy. If another function requests a photocopy, the unit does not charge the photocopying to SOI.

  4. The units monitor the workflow process, especially checking whether an SOI processing center has ordered documents. Several reports in STARTS provide workflow management information, including the timely loading of the STARTS Control File, the volume of different types of returns selected in each cycle, the status of missing returns, and the number of days documents remain in the SOI control unit before shipment to an edit unit.

  5. Since STARTS pre-prints the submission processing center address on the Form 3210 facsimiles, the center must check the accuracy of the address in STARTS. The units use the STARTS Address Screen to make changes to their own shipping addresses.

  6. The control units, and edit units, enter information (dates, codes, etc.) into STARTS that is valid and indicative of an action at a particular point in the SOI workflow process. The goal is the reduction in the length of time SOI controls documents.

1.13.3.1.3.6  (01-13-2012)
Documents Ordered by Processing Center Edit Units

  1. A processing center SOI edit unit manager and that manager's staff use STARTS to create workgroups of documents or electronic records. Reports and screens in STARTS present information about when and what returns are ready for shipment from another selecting center, the manager's own center, or Files. See `Exhibit 1.13.3-6 for information about the movement of documents and electronic documents.

  2. STARTS automatically produces a Shipment Control Sheet, Editor Sign-Out Sheet, and a Document Transmittal and updates the database, inventory reports, and screens when the edit unit creates a workgroup.

  3. SOI units fulfill orders timely to ensure returns are available to edit.

1.13.3.1.3.6.1  (07-02-2013)
Special Processing of Returns in the Tax Year 2012 Individual/Sole Proprietorship Program

  1. The set of "Cross-Sectional" returns comprises both Non-SOCA and SOCA 1040 returns.

  2. The SOI units should edit available "Cross Sectional" returns first.

1.13.3.1.3.7  (01-13-2012)
Selecting Center Control Unit Activities After Shipping Begins

  1. After fulfilling workgroup requests, the SOI units should continue to search for missing returns. When a missing return is found, a unit updates the pertinent record information in STARTS. This action makes the document available for ordering.

  2. When another function needs a document, SOI personnel follow the procedures below:

    1. Request the original return, a photocopy, or a printout of the scanned images after checking STARTS to find its location in the SOI workflow.

    2. Make a complete and legible photocopy or printout, if the other function requests the original.

    3. Stamp on the copy, "PHOTOCOPY (OR PRINTOUT) FOR SOI," and write the other function’s name on the first page, so that the SOI processing center knows to destroy this document after completely editing it.

    4. Send the original return to the requester; or, to the selecting center Files function, if the center is a non-processing center.

    5. Update STARTS with information about whether the unit sent a photocopy, printout, or original to the requester, and the requester’s name.

    6. Place the photocopy or printout back in the document’s original SOI workgroup.

    7. Recharge the requested document to the other function when the unit sends the original to the requester.

  3. An alternative to photocopying, or printing copies of the scanned images, is the edit unit’s expeditious editing of the return, and, then, its release in the next STARTS release workgroup. However, SOI recommends photocopying or printing copies of the scanned images for one of the following requirements:

    1. An SOI edit unit needs the original return for several days beyond the norm.

    2. A return is selected for quality review.

    3. The document requires review by a lead editor.

1.13.3.1.3.8  (01-13-2012)
Managing Documents in the Processing Center

  1. When an SOI unit receives a returns from another center or Files, it uses the accompanying Form 3210, Document Transmittal, to verify that all of the returns are in the shipment. The unit retains copies of the Forms 3210.

  2. The unit promptly resolves any problems with a shipment, such as "Wrong Pulls" (also called "miss pulls" , or non-selected returns) or returns missing from the shipping boxes or carts. If the unit is unable to find a return, or has a non-selected return in its possession, it:

    1. Updates the return as missing in STARTS, which then automatically adds the return to the Missing Returns List.

    2. Enters a brief description of the problem (e.g., "Wrong Pull attached to charge-out; returned to the Fresno Submission Processing Center on 05/04/2013" ) in the "Remarks" field of the STARTS Return Information Screen.

    3. Ships a "Wrong Pull" back to the other center or Files under cover of a manually prepared Form 3210, Document Transmittal.

  3. Upon finding the correct return, the other center or Files sends it to the SOI edit unit, which updates STARTS. This action makes the return available for assignment to a new workgroup.

  4. If the processing center SOI control unit receives the returns, it returns an acknowledgment copy of a Form 3210 to Files or the other center. It should check for "Wrong Pulls" or missing returns before shipping it to the SOI edit unit.

  5. If the processing center SOI control unit is sending a STARTS workgroup to the SOI edit unit, it prints the Shipment Control Sheet, Editor Sign-Out Sheet and Form 3210. It also updates STARTS. The unit prints a Form 3210, Document Transmittal facsimile, whether it is sending its own documents, or those from a non-processing center.

  6. If the center does not move returns between two different locations, as in the Cincinnati Submission Processing Center, the Form 3210 is not necessary. However, the edit unit still needs the Shipment Control Sheets and the Editor Sign-Out Sheets.

  7. Each processing center should decide whether to hold returns awaiting editing in either the SOI control unit area or the SOI edit unit area. This decision will likely depend upon available space; however, a center should hold returns in the SOI control unit area until needed by the SOI edit unit to meet requests for returns from other functions.

  8. The SOI control unit releases the workgroup to the SOI edit unit either in boxes or on batch carts according to local procedures.

1.13.3.1.3.9  (01-13-2012)
Managing Documents in the SOI Edit Unit

  1. When the SOI edit unit receives returns from another center, the processing center SOI control unit, or Files, it verifies that all of the returns in the workgroup are present for editing. If it identifies any problems during this check, it contacts the appropriate function. If the edit unit has a selected return that it is not supposed to edit, the unit uses STARTS to transfer the return to the appropriate SOI processing center.

  2. Upon completion of this verification, the edit unit acknowledges receipt of the workgroup by updating STARTS.

  3. The edit unit manager controls the unit’s inventory of returns with the assistance of STARTS management reports.

  4. Upon completion of edit processing, including quality review, scanning, photocopying, and special editing (such as editing for the SOCA Project), the manager releases returns from the unit.

    Note:

    Timely releases of returns at the completion of SOI processing ensures timely delivery of these documents to other IRS requesters. If an edit unit manager is unsure about the closing date of a particular SOI study, or the appropriate actions associated with that closing, the manager contacts both the STARTS Team, at 202-874-0334, and the National Office senior analyst of the study.

  5. If a released return is missing from the workgroup, the manager should check with the tax examiner who originally edited the return, the lead editor, and/or the quality reviewer. The editor sign-out sheets associated with returns shipped to the edit unit are useful for this research. If the return is still missing, the unit records this information in the right margin of the "Release Workgroup" Shipment Control Sheet and releases the workgroup to the processing center SOI control unit or Files.

  6. The edit unit updates STARTS after releasing the workgroup.

  7. The SOI units in the processing center destroy photocopied returns that are not part of a special study (HINT, SOCA, Form 5471, etc.).

1.13.3.1.3.10  (01-13-2012)
Activities After Editing Documents

  1. At the processing center, either the SOI control unit or Files function receives the release workgroups from the SOI edit unit. An SOI control unit updates STARTS and verifies the presence of each return in the release workgroup. If a return is not found, the unit first checks the area, including the edit unit area, before entering it as missing in STARTS. If a regular Files unit does not have access to STARTS, the SOI edit unit assumes the role of checking whether returns are missing and updating STARTS.

  2. The SOI unit keeps copies of the control sheets for the release workgroups when it ships returns back to Files. The Files function recharges those returns to the next requester or recharges those returns to Files after re-filing and shelving the documents. The SOI unit retains the shipment control sheets until the end of a program. See IRM 1.13.2, Processing Management, for the program completion deadlines of various SOI studies.

  3. Before shipping back documents to another center, the SOI unit ensures that any special processing (such as scanning or photocopying) has been completed.

    Note:

    Timely releases of returns at the completion of SOI processing ensures timely delivery of these documents to other IRS requesters.

  4. The Files function verifies that all of the returns listed on the release workgroup shipment control sheets are present. If problems occur with the shipment, such as missing returns, the unit contacts the processing center SOI control unit or edit unit for assistance. It is the responsibility of the processing center SOI unit to resolve expeditiously these problems. When the documents are found, the unit should ship these returns under cover of a manually prepared Form 3210, Document Transmittal.

  5. When the other center receives the shipment, it returns an acknowledgment copy of a Form 3210. The entry of this date on the Form 3210 serves as an acknowledgment of the receipt and the SOI unit updates STARTS.

  6. The other center releases its center’s original returns back to Files or to another function. It recharges those returns sent to the new requester. The Files function retains the STARTS shipment control sheets until the program completion date.

    Note:

    If a Files manager is unsure about the closing date of a particular SOI study, or the appropriate actions associated with that closing, the manager contacts both the STARTS Team, at 202-874-0334, and the National Office senior analyst of the study.

1.13.3.2  (07-02-2013)
Controlling Documents in the Corporation Programs

  1. This section of the Internal Revenue Manual (IRM) describes the controlling and shipping of documents selected for the Statistics of Income (SOI) Corporation Programs. Each year the selection of the sample for a specific corporation tax year begins in cycle '27 and ends two years later in cycle '26. For example, selection of the sample for the SOI Year 2012 Corporation program began in cycle 201227 and ends in cycle 201426.

1.13.3.2.1  (01-13-2012)
Controlling the Samples

  1. The selected documents in the Corporation Programs include the following:

    • Forms 1120, U.S. Corporation Income Tax Returns.

    • Forms 1120-F, U.S. Income Tax Returns of Foreign Corporations.

    • Forms 1120S, U.S. Income Tax Returns for an S Corporation.

    • Forms 1120-L, U.S. Life Insurance Company Income Tax Returns.

    • Forms 1120-PC, U.S. Property and Casualty Insurance Company.

    • Forms 1120-REIT, U.S. Income Tax Returns for Real Estate Investment Trusts.

    • Forms 1120-RIC, U.S. Income Tax Returns for Regulated Investment Company.

1.13.3.2.2  (07-02-2013)
Corporation Income Tax Returns

  1. During 2013, Statistics of Income (SOI) selects documents for the SOI Year 2011, 2012, and 2013 Corporation Studies. Exhibit 1.13.3-7 shows the assignment criteria. During the year the following processing occurs:

    1. Sampling for the SOI Year 2011 Corporation Study continues through mid-2013 (i.e., through cycle 201326). The final cutoff for editing the sample happens in July 2013, though returns critical to the sample are added during August, 2013. IRM 1.13.2, Processing Management, provides additional controlling and shipping instructions.

    2. For the SOI Year 2012 Corporation Study, the selection of returns began in Cycle 201227 and will continue through Cycle 201426. Editing of Forms 1120, 1120-F, 1120S, 1120-RIC, and 1120-REIT, begins in June 2013. An SOI edit unit starts processing Forms 1120-L and 1120-PC in September 2013.

    3. Beginning with Cycle 201327, the sampling program selects documents for the SOI Year 2013 Corporation Study. Editing of the various forms in this study begins in the middle of 2014.

  2. SOI units at the Cincinnati and Ogden Submission Processing Centers edit corporation returns. The distribution of selected documents among the sites for each study is presented in Exhibit 1.13.3-8.

  3. The on-line edit processing in the edit units combines editing, consistency testing, and error resolution of data into one function. The edit units key data from the documents that are subject to various consistency tests. They must resolve any error conditions detected before more processing (editing, photocopying, scanning, etc.) can continue.

  4. At the completion of the SOI study, analysts in National Office run a series of post-consistency programs against extracts from the database files. This process produces Source Book-related tables, listings, and other outputs, SOI prepares for its customers.

1.13.3.2.2.1  (07-02-2013)
Classifying "Giant" Corporation Returns

  1. SOI classifies corporation returns by asset size (or another money amount) and sample code during the execution of the sampling program at ECC-MTB. The criteria for "Giant" corporation returns are assets greater than or equal to $250 million, and a sample code that is either 22, 32, 38, 39, 44, 53, 58, 72, 73, 74, 75, 76, 79, 92, 93, 94, 95, 96, 97 or 98.

  2. The Special Projects Section, Corporation Statistics Branch, embedded this classification scheme in the BMF STARTS Order Screen logic. This enhances the SOI edit units’ management of the documents during the ordering and editing phases. The criteria for creating workgroups in BMF STARTS does not rely solely on the "Giant" indicator, which is based on the total assets field on the first page of the Form 1120, because SOI cannot guarantee that the total assets value is 100 percent accurate until editing commences (See IRM 1.13.3.2.2.3.1 for the BMF STARTS priority codes).

1.13.3.2.2.2  (01-13-2012)
Special Instructions for Controlling "Early Fiscal" Returns

  1. Some SOI units make the "Early Fiscal" returns available to LB&I or SB/SE for classification. Early classification of these documents increases the likelihood that the returns are available to SOI for its processing of them. If the control unit must photocopy a document, because LB&I or SB/SE needs the original, the unit follows the procedures below:

    1. Make a complete photocopy.

    2. Update STARTS with information about the LB&I or SB/SE request.

    3. Stamp the first page of the original return, "UNIT MADE PHOTOCOPY FOR SOI."

    4. Release the original return to LB&I or SB/SE.

    5. Stamp the photocopy of the return, "THIS PHOTOCOPY FOR SOI."

    6. Control the photocopied return for SOI.

      Note:

      Ideally, SOI should scan a return before giving the original paper copy to a requester.

1.13.3.2.2.3  (07-02-2013)
Editing Priorities

  1. SOI creates a priority list each year that the SOI edit units follow when creating workgroups of returns. The edit unit manager can make exceptions to this list in consultation with National Office.

  2. The editing priorities are identified in the table below.

    Editing Priority Type of 1120 Return
    First Returns requested by either LB&I, SB/SE, or another IRS function
    Second Returns in which the sample code is 22, 32, 38, 39, 44, 53, 58, 72, 73, 74, 75, 76, 79, 92, 93, 94, 95, 96, 97 or 98
    Third All remaining returns


1.13.3.2.2.3.1  (07-02-2013)
BMF STARTS Priority Codes

  1. Editing priorities are embedded in the BMF STARTS application as two priority categories (i.e., priority codes "1" and "3" ) to assist the SOI edit unit managers in meeting program completion deadlines.

  2. The BMF STARTS Order Screen includes a field that gives the user the capability to select 1120 returns from these two categories.

  3. The table below identifies the sample codes, total assets ranges, and critical codes assigned to each BMF STARTS priority category code. Each set is subject to change each year.

    BMF STARTS Order Screen
    New Orders Section
    Priority Code Assignment
    Sample Code Set Total Assets Critical Code Set Priority Code
    22, 32, 38, 39, 44, 53, 58, 72, 79, 92, 93, 94 N/A N/A 1
    73, 74, 75, 76, 95, 96, 97, 98 Greater than or equal to $250 million N/A 1
    Less than $250 million 1, 3 1
    All other critical codes 3
    All other sample codes N/A 1, 3 1
    All other critical codes 3

1.13.3.2.2.4  (01-13-2012)
Scanning Documents After Edit and Test Resolution

  1. Scanning of all the 1120 returns in the sample occurs before editing. If an SOI edit unit needs to edit returns before scanning, scanning will occur after the completion of editing.

  2. Scanning creates an historical file for SOI customers to use if they have questions about the data. Each processing center is responsible for determining whether the SOI control unit, or edit unit, scans the selected returns. Only IRS personnel can scan returns. See IRM 1.13.3.1.3.4 and IRM 1.13.3.2.2.4 (4) below for information about the scanning procedures.

  3. The BMF STARTS application places returns selected for scanning, but not yet scanned, in "release" workgroups (or, shipments), which are separate and distinct from other types of release workgroups. The unit updates the workgroup information in STARTS after completing the scanning.

  4. Scanning procedures include:

    1. Removing the notes, tabs, snapshots and other mark-up that SOI editors add to the return during the editing process.

    2. Viewing the return on the computer monitor while scanning the return to make sure that any pages requiring re-scanning (e.g., two pages on top of each other, or a slanted page) are completed at that time.

    3. Examining the entire scanned image of the return and all supporting schedules and attachments during the quality review phase to ensure all the images are readable, including the pages oriented in landscape mode.

    4. Notifying SOI National Office of any Form 5471, 8858, or 8865 that the center plans to scan at a later date after it scanned the parent 1120.

    5. Reviewing STARTS reports that identify returns available for releasing.

  5. The center will review the quality of each scanned image of a return which is selected for the SOI study.

  6. Advance Data review of returns in the spring each year may require the scanning of some critical case returns earlier. National Office will send a list of these returns to the centers starting the second week of January.

1.13.3.2.2.5  (01-13-2012)
Critical Case Returns

  1. Critical case returns are certain large corporation returns, that SOI samples at the 100 percent rate, in which their absence from the Corporation Study would affect the final statistics. Therefore, it is important to the outcome of the study that the centers control and account for these returns during SOI processing. The use of a tickler file, which contains information about prior year critical case returns and which SOI refreshes twice a year for the sampling program at ECC-MTB, has reduced the number of missing critical case returns. Nevertheless, for those missing from the sample, this section contains instructions for identifying, researching, and initiating follow-up procedures for controlling these documents.

1.13.3.2.2.5.1  (01-13-2012)
Critical Case List

  1. The SOI Critical Case List identifies both selected and non-selected returns that are critical to the Corporation Study. The selected returns are those documents sampled at ECC-MTB. Each cycle the submission processing centers pull and control them. A major concern associated with this group is the number of missing documents - i.e., the number of these returns in another IRS function’s possession. SOI units focus their attention on finding these returns and obtaining the original or a photocopy.

  2. The non-selected returns are returns that the SOI sampling program at the Enterprise Computing Center - Martinsburg (ECC-MTB) has not selected. Reasons for this occurrence include:

    1. corporate mergers, dissolution, or changes in consolidated filing status;

    2. a return is not filed by the Advance Data cut-off; and

    3. a return had problems posting to the Business Master File.

  3. Centers generate the Critical Case List on the STARTS system. The SOI Corporate edit system continually updates the list throughout the processing year with corporations the sampling program has not yet selected at ECC-MTB, yet were in prior-year SOI files.

1.13.3.2.2.5.2  (01-13-2012)
Researching Corporations on the Critical Case List

  1. It is the responsibility of the submission processing centers to research corporations on the Critical Case List. Before each research period, National Office provides the centers with an overview of common critical case questions, instructions on carrying out the research and advice on using STARTS. The centers report their findings to National Office via entries in the STARTS Critical Case Screens.

  2. The primary research tool in the centers is the Integrated Data Retrieval System (IDRS). Performing IDRS research can resolve most of the outstanding critical case returns. The Business Master File (BMF) should contain entries within nine months after the end of the corporation’s accounting period. Transactions can include the date associated with the filing of the return or actions taken in non-filing situations. The SOI unit should try to find or determine the reason a Critical Case return has not posted to the BMF.

  3. IRM procedures associated with the Microfilm Replacement System (MRS), and the physical search for returns in Files, are helpful in the search process.

1.13.3.2.2.5.2.1  (07-02-2013)
Initiating the Appropriate ECC-MTB Transcript Request

  1. With the proper name, employer identification number (EIN), and tax period, the SOI unit uses command code TXMOD, which will then display a document locator number (DLN) and summary information. If no data are available or more information is needed, the unit requests an ACTRA (Screen display) or a "Specific" MFTRA transcript. A "Specific" MFTRA transcript is a record of a specific type of tax return (i.e., Form 1120) for a specified tax period (e.g., the ending "accounting period" is "200912" or "201012" ).

  2. If no information is found, it is possible the EIN or tax period for the corporation is incorrect or different (due to a change). Requesting a "Tax Class" (Type M for 1120 filers) or "Complete" transcript may provide a clue in finding the correct EIN or Fiscal Year-Month (FYM).

    1. The term "No Entity" shows that the EIN for which the transcript was requested does not exist on the BMF. First, verify the EIN to identify if the EIN listed on the transcript is the same as that requested. If it is incorrect, submit a new "Specific" transcript request using the correct EIN. Otherwise the probable explanation is that someone has recorded incorrectly the EIN or the corporation’s entity status has changed. Then the unit can use the EINAD command to discover the new EIN. If available, micro-alpha tapes are also helpful.

    2. If the "Specific" transcript shows "No Record," this shows that the EIN that the unit requested appears on the BMF; however, transactions were not applicable to the specific tax class and tax period requested. Examining the "Fiscal Month" in which the accounting period ends is useful. If the accounting period, as listed on the transcript, differs from that listed on the Critical Case List, the accounting period on the report may be incorrect. Request a "Complete" or "Tax Class" transcript. It shows the proper accounting period. A corporation may have requested an accounting period change or may be filing a final, part-year return.

  3. If they have entered the correct FYM and EIN, and while waiting for a MFTRA, the unit can check STARTS, Unpostables, Rejects, AIMS or any other control database. This can help determine the physical location of a return.

  4. Most of the transcripts will show that tax transactions have taken place rather than showing "No Entity" or "No Record." All first time requests for transcripts should be for "Specific" transcripts. The unit should follow all "Specific" transcripts that do not yield a DLN with a request for a "Complete" transcript (except an extension to file).


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