1.15.7  Files Management

Manual Transmittal

October 30, 2013

Purpose

(1) This transmits revised IRM 1.15.7, Records and Information Management, Files Management.

Background

This IRM provides the purpose and instructions for creating and using files plans or filing systems.

Material Changes

(1) This IRM has been updated to include new references to the Internal Revenue Service (IRS) Records Control Schedules and the General Records Schedules that were previously published in the Internal Revenue Manual (IRM).

(2) The material in the IRM was updated to reflect current organizational titles, terminology, references and citations.

Effect on Other Documents

This IRM supersedes IRM 1.15.7, dated June 1, 2010.

Audience

All divisions and functions.

Effective Date

(10-30-2013)

J. Stuart Burns
Director, Real Estate and Facilities Management (REFM)
Agency-Wide Shared Services (AWSS)

1.15.7.1  (10-30-2013)
Overview

  1. Records kept by and for an office play a major part in Internal Revenue Service operations. Documents should be filed so that complete, accurate information is readily available when needed. Consistency in classifying, coding, and filing is the prime ingredient in managing files.

  2. This handbook provides:

    1. Standard practices and techniques for establishing an efficient filing system,

    2. General instructions for controlling and safeguarding records, and

    3. An appraisal guide for evaluating files operations.

1.15.7.1.1  (10-30-2013)
Purpose of a Filing System

  1. An efficient filing system simplifies identifying, retrieving, and retaining records. It assists in selecting historical records for permanent retention, retrieving them, and promptly disposing of non-current records.

1.15.7.1.2  (10-30-2013)
Definitions

  1. The following definitions apply to files and filing systems:

    1. Administrative Files or Records -budget, personnel, supply, and similar housekeeping or other files or records related to the agency's facilitative functions.

    2. Archival -see Permanent Records.

    3. Case Files -records kept as a unit or together, regardless of media, documenting a specific action, event, person, place, project, or other subject. Personnel, investigation files, contract and transaction files are types of case files; they present a complete history of a specific transaction.

    4. Centralized Files -files accumulated by several offices, organizational units, or team members and maintained and supervised in one location.

    5. Charge-out Cards -long colorful cards for documenting the removal of papers from a folder or the removal of a folder from the file. In larger organizations it is helpful to require signing out on charge cards for folders.

    6. Closed Files -a collection of related papers whose action is completed and to which it is unlikely that any additional documents will be added.

    7. Coding -symbols which represent how a record or file is to be arranged.

    8. Convenience File -non-record copies of correspondence, completed forms, and other documents kept solely foe ease of access, and reference, typically near the user's workspace.

    9. Current Records -documents necessary to conduct the current business of an office and therefore generally maintained in office space and equipment. "Current" refers to the degree of activity, not how recent the dates might be.

    10. Cut-off -breaking, or ending, files at regular intervals, usually at the close of a fiscal or calendar year, to permit their disposal or transfer in complete blocks or to permit new files to be established.

    11. Decentralized Files -files maintained at several locations within an office. Decentralized files may be required to conform to various centralized controls.

    12. Electronic Record -information recorded in a form that is machine-readable (e.g., information that only a computer can process, and which, without a computer, would not be understandable to people).

    13. File Copy -copy of a document which is marked or recognized as the official or record copy, complete with enclosures, clearances, and/or collateral papers.

    14. File Station -any location in an organization where records are maintained for current use.

    15. Files Management -a planned program for filing practices in order to organize and maintain documentary materials properly, ensure their completeness, retrieve them rapidly, and dispose of them more easily.

    16. Non-current Records -Records required so seldom to conduct agency business that they should be moved to a holding area or directly to a records center.

    17. Non-record Material -informational materials excluded from the legal definition of records or not meeting the requirements of that definition. Includes extra copies of documents kept only for convenience of reference, copies of material used only for informational purposes, stocks of publications and processed documents, and library or museum material intended solely for reference or exhibition.

    18. Reading Files -correspondence arranged chronologically and maintained or circulated for reference.

    19. Records -papers, maps, photographs, or other documentary material, regardless of physical form or characteristics, made or received by any agency of the United States Government under federal law or in connection with the transaction of public business and preserved, or appropriate for preservation, by the agency or its legitimate successor as evidence of the organization, functions, policies, decisions, procedures, operations, or other activities of the government or because of the information value of data contained.

    20. Records Control Schedule (RCS) -document providing mandatory instructions for what to do with records (and non-record material) no longer needed for current government business, with provision of authority for the final disposition of recurring or nonrecurring records. The comprehensive IRS RCS comes from two sources; NARA-approved records disposition authorities for IRS program-specific records (published in Document 12990 as RCS 8 through 37, formerly IRM 1.15.8 through IRM 1.15.37), and NARA's General Records Schedules (GRS) for administrative records series common to most federal agencies (published in Document 12829 as RCS 38 through 64, formerly IRM 1.15.38 through IRM 1.15.64).

    21. Records Management -to plan, control, direct, organize, train, promote, and take other action needed to manage an agency's record information in an efficient and economical way, in order to create, maintain, use, and dispose of records needed for the adequate and proper documentation of the policies and transactions of the agency.

    22. Records Management Program -a planned program designed to provide a coordinated set of policies, procedures and activities needed to manage an agency's recorded information, encompassing creation, maintenance, use and disposition of records, regardless of media. Essential elements include up-to-date directives, training, publicizing the program, and evaluation.

    23. Records Manager -a person responsible for carrying out a records management program in a headquarters or field office in cooperation with the IRS Records Officer.

    24. Records Officer -the person assigned responsibility by the agency head for directing an agency-wide records management program.

    25. Records Retirement -the process of moving records from office space to agency storage facilities or a (Federal) Records Center.

    26. Schedule/Scheduling -the process of developing mandatory instructions for what to do with records and non-record materials.

    27. Special Records -types of records maintained separately from textual or paper records because of their physical form or characteristics that require unusual care and/or because they are non-standard sizes.

    28. Suspense File -records or copies serving as reminders of unfinished transactions that require follow-up action and must be brought to the attention of officials. Also called "tickler files."

1.15.7.1.3  (10-30-2013)
Responsibilities

  1. IRS Records Officer is responsible for the various phases of the records management program specified in the Federal Records Act of 1950, as amended, and the Records Disposal Act of 1943. As such, the Records Officer is responsible for:

    1. All policies and instructions regulating records management,

    2. All IRS Official Records Schedules,

    3. Guidance and instruction to field records managers and information resource coordinators (IRCs),

    4. Compliance reviews,

    5. Transfer of all permanent records to National Archives and Records Administration (NARA),

    6. Records disposition evaluations and appraisals, and

    7. Liaison with NARA, General Accountability Office (GAO), General Services Administration (GSA), and the Treasury Department.

  2. Area Records Managers (ARM) -assist employees in developing, establishing and evaluating filing operations for assigned territory. They look to the IRS Records Officer for direction and guidance in policy matters.

  3. Information Resource Coordinators (IRC) -monitor local office records filing operations. They consult with files clerks and look to Area Records Managers for guidance.

1.15.7.2  (10-30-2013)
Creating and Using a Filing Plan or System

  1. This portion provides information on creating and using a files plan or filing system.

1.15.7.2.1  (10-30-2013)
Creating a Files Plan or Filing System

  1. To create an efficient files plan, it is necessary to:

    1. Identify records that are necessary to do the job,

    2. Establish a system for arranging the files, and

    3. Determine a location of the files for easy access.

1.15.7.2.2  (10-30-2013)
Defining a Files Group

  1. Listed below are some basic groups of records and examples of each:

    1. Subject or General Correspondence. Includes letters, memos, telegrams, reports, etc. Subject files are discussed in further detail in IRM 1.15.7.4 below.

    2. Transitory Correspondence. (Records routine in nature.) Examples include transmittal forms, correspondence, requests for information or publications, and announcements of savings bond campaigns, etc.

    3. Case Files. (Also known as Project Files.) They constitute the largest single group of records in an office, related to investigations, contracts, and projects. The material always pertains to a specific action, event, person, organization, product, or thing. They are filed by name or number. See IRM 1.15.7.3, Case Files.

    4. Working Papers. Background support material and working papers usually connected with case files. They are filed separately from case files but are retained in the files until the related case is closed.

    5. Technical Reference Material. These usually include copies of reports, periodicals, manuals, handbooks, and studies. Non-record material usually involves research, statistical reporting, and information gathering. Technical reference material is not stored or filed with official records.

    6. Convenience Files. Duplicate copies or non-record files that are used for quick reference. They are also known as chron files, reading files, or reference, files.

    7. Film, Tape, or Disks. Audio/visual records that constitute a basic file group because of their physical characteristics. They require separate storage and special care for preservation.

    8. Cartographic Materials and Drawings. This basic group includes blueprints, maps, charts, aerial photos, engineer's drawings, etc. Their physical characteristics and sizes vary.

    9. Cards. The variety of card files is almost as great as the variety of case files. Their physical sizes and formats make them a logical file group. Included are 3 x 5 cards, 5 x 8 cards, tab cards, etc.

1.15.7.2.3  (10-30-2013)
Sorting and Arranging Files

  1. Sort and arrange file groups into smaller feature segments for easier retrieval of documents. For example:

    • Subject

    • Title

    • Date

    • Number

    • Location

  2. Set up a cross reference if a document is likely to be requested by more than one filing arrangement.

1.15.7.2.4  (10-30-2013)
Preparing Records for Filing

  1. The steps outlined below assist in preparing records for filing prior to actually placing the records in the file.

  2. Records should be arranged, grouped and properly identified to facilitate disposal when they become eligible for destruction or other disposal, retirement to a (Federal) Records Center, or transfer to NARA.

  3. The originator or receiver should note the proper File Code in the top right corner of a document or on the reverse side. Cross reference codes are written below the main file code. A cross reference is a tool for finding a record by reference to a name or subject other than the one the document was filed under. Cross reference when:

    1. A document may be classified correctly under more than one subject or project,

    2. A request will probably be made by a second subject or project number, and/or

    3. The material cannot be found in the file by logical deduction alone.

  4. The simplest cross reference is the extra copy showing the code where the complete file is located.

  5. Below is a listing of general sorting and filing procedures:

    1. Check the file symbol on the document against the label on the folder.

    2. Remove clips, pins, rubber bands before filing papers. If fastening is required, staple papers in upper left corner or in both upper corners.

    3. Keep those attachments and enclosures not adaptable to standard file folders separate in suitable equipment. Be sure to annotate on the related document the location of the items.

    4. Arrange and label file drawers or shelves, guides and folders.

    5. Arrange papers in folders by date, the most recent on top.

    6. File correspondence with heading to the left for easier checking of dates. When using shelving, place the heading in the upper right corner if the right edge of the file is exposed

    7. Prepare new folders when capacity (about 3/4 ) has been reached.

    8. Repair torn sheets and replace worn or torn folders.

    9. File all administrative and program operating documents with related documents.

    10. Prepare a new set of guides and file folders for the current year files when the files are cut off at predetermined periods and maintained as part of the office files. However, new folders and guides should be prepared only for records that will be active in the current period; inactive folders should be marked "closed."

1.15.7.2.5  (10-30-2013)
Locating the Files Operation

  1. There are three types of file stations:

    1. Centralized - maintained at one location,

    2. Decentralized - maintained at several locations, and

    3. Partially Decentralized - maintained at various locations, with the originals or main set of files preferably nearest the prime user. This type of file station may be used in larger organizations.

  2. Space selected for the files should be given thorough consideration and study. Before choosing space for files, consider these factors.

    1. Office Reference Requirements. Consider the volume of records, frequency of references, and the amount of travel time necessary between operating offices and files.

    2. Space Requirements. Consider the floor space available, expansions capabilities, floor load limitations, light, power, ventilation, etc.

    3. Security Requirements. Choose a restricted or secured area depending upon the records housed. (See IRM 10.2.13, Physical Security Program - Information Protection). The Handbook lists types of records that require special protection and contains procedures for providing protection.

    4. Safety Requirements. Make sure that all file cabinets and rooms are fire-resistant, clean, and have proper environmental conditions such as temperature, humidity and air circulation. Trash should not be permitted to accumulate; eating in the files area should be prohibited; smoking and storing flammable liquids should be prohibited to minimize fire hazard. Electric lights should be enclosed and a safe distance from records. Records should not be stored close to heaters or radiators.

    5. Records Requirements. Consider the type of records being stored to make sure that office space, security, and safety requirements adequately cover the records' needs. Electronic records in large quantities require humidity and temperature controls; blueprints or large vellum drawings may require tube storage or flat drawer cabinets; and photographic or voice recordings require special environmental conditions. Considering these factors permits the records to be available throughout their useful lives.

1.15.7.2.6  (10-30-2013)
Establishing Suspense Files

  1. A suspense or tickler file calls attention to a pending action. Suspense files should be established only after study to determine their need and only with the approval of responsible authorities.

  2. The follow-up document, either a card or copy of the document, calls attention to specific actions and matters on predetermined dates. These dates should be established and controlled by the offices responsible for the action. On that date, the follow-up card or copy is pulled and used to call attention to the pending action.

  3. Following are variations of suspense or tickler systems (hard copy or electronic):

    1. Card-Tickler - set of month guides (labeled January-December) and a set of day guides 1–31, placed in a card tray. Cards or papers are prepared for the file showing subject, identification, location of the document and pending action.

    2. Sheet Follow-Up - set each of month and day guides in a file drawer. A follow-up form or copy of correspondence is placed behind the appropriate date to indicate when action is required. If the action is not taken, the suspense document is filed for the succeeding day, until the action is completed or a new follow-up date is assigned.

    3. Alphabetic and Date Pending File - file containing alphabetic guides A - Z in addition to month and day guides. This system is helpful with a name file when follow-up is required and volume is large.

    4. Date Folder - set of straight-cut press board folders, legal or letter size, with the month and days printed across the extended edge. A movable indicator or signal is a basic part of the system. The suspense date can be changed without refiling contents in the folder.

    5. Color Follow-Up - Various colors, each color representing a specific follow-up period. Metal and celluloid colored tab signals, colored paper strips, or colored file labels may be used.

    6. Task Minders (MS Outlook) - electronic ticklers such as task reminders or alarms, such as those provided by Microsoft Outlook application.

1.15.7.2.7  (10-30-2013)
Establishing Cutoff Periods

  1. Establishing cutoff periods provides a means of segregating inactive records from those records which are required in daily operations. These factors should be considered when establishing cutoff periods:

    1. Description of records,

    2. Type of records,

    3. Volume on hand and estimated growth,

    4. Continuity requirements,

    5. Rate of reference, and

    6. Retention and disposal periods authorized by the applicable RCS found in Document 12990 or Document 12829.

1.15.7.2.7.1  (10-30-2013)
Cutting Off Subject Files

  1. Subject files may be cut off annually or biannually by calendar or fiscal year. Depending on reference requirements, cutoff files should be in less accessible file drawers, in separate file cabinets, or retired to a Federal Records Center (FRC). A new file should be established after the cutoff date.

  2. File guides should not be included in records retired to an FRC. However, a copy of the subject file outline or guide must be furnished with the retired subject files.

1.15.7.2.7.2  (10-30-2013)
Cutting Off Case Files

  1. Establish an annual cutoff schedule, on a calendar or fiscal year basis, for complete or closed case files.

1.15.7.2.7.3  (10-30-2013)
Cutting Off "Special Event" Files

  1. Record groups associated with a special event do not lend themselves to a definite cutoff period. The "special event" may pertain to separation of an employee, transfer of equipment, delivery of equipment, or final payment under a contract. These records are treated as separate cases. They are retained as an active case file within the record group until the case becomes inactive or the "special event" occurs.

1.15.7.2.8  (10-30-2013)
Controlling Charge Out

  1. In large files operations, requests for records should be written, preferably on a prescribed charge-out form.

  2. Charge out cards/forms are used to replace papers or folders being removed. They identify the borrowers of a file and note the location where the file can be found when it is charged out. The charge-out card should be placed in the removed records' locations.

  3. An effective charge-out control system eliminates the need for individuals to maintain personal copies of documents and reduces the need for file searches. Charge-out cards also help eliminate misfiles.

1.15.7.2.8.1  (10-30-2013)
Charge Out Forms

  1. There are several optional forms that may be used to charge out files. Charge out cards/forms must contain the following information:

    1. File designation code,

    2. Subject of document, addressee and date,

    3. Date charged out,

    4. Name of person who, or office that has the file, and

    5. Any transfers to other persons or offices.

  2. When the document or folder is returned, it should be checked for completeness before refiling. The charge card is removed from the file, the entry lined out, and the document/folder is placed in the file.

  3. Periodic follow-ups should be made on any item that has been charged out for an unreasonably long time. See Exhibit 1.15.7-1 .

1.15.7.3  (10-30-2013)
Case Files

  1. Case (project) files, are records that document the technical and professional work of the Service. Case files may include income tax returns, audits, investigations, claims, contracts, or purchase orders.

1.15.7.3.1  (10-30-2013)
Standardizing Case Files

  1. Standardizing case files helps avoid gaps in records and simplifies record keeping.

  2. Each office should develop a standard to determine which records are essential to a case file and how the file should be constituted.

1.15.7.3.1.1  (10-30-2013)
Separating Essential and Supporting Documentation

  1. Separate essential from supporting documentation, i.e. those with short-term value. This separation improves ease of reference and conformance with records disposition schedules.

  2. File essential papers with the case file. Non-essential documentation should be filed separately.

  3. Make sure each folder is properly labeled. Indicate if the case file consists of more than one folder because of size.

1.15.7.3.2  (10-30-2013)
Case Filing and Coding

  1. Case filing is the simplest and easiest of all types of filing. Adopt the simplest arrangement of files that is effective for the office.

  2. Publicize uniform rules for filing. Uniform rules must be followed to avoid filing inconsistencies, errors, and confusion.

  3. Case files are usually filed by name or number, distinguishing them from general correspondence or administrative files, which are usually filed by subject.

  4. Use a standard alphabetic arrangement for filing case files by name. Exhibit 1.15.7-2 shows basic rules for alphabetic filing.

  5. The numeric system is used to arrange records identified and referred to by number. Contracts, purchase orders, etc. are usually filed numerically.

1.15.7.4  (10-30-2013)
Subject Files

  1. Subject files typically are correspondence files, administrative files, or general office files.

  2. Subject files include, but are not limited to, records pertaining to:

    1. Administration, management and operations,

    2. Development and administration of programs,

    3. Administration and enforcement of laws, regulations, and statutes affecting IRS' functions and responsibilities, and

    4. Administrative functions such as personnel, fiscal , accounting, procurement, transportation, publications control and distribution, forms, records management, etc.

  3. Use subject filing when the document will be requested by content and subject correlation is required or desirable.

1.15.7.4.1  (10-30-2013)
Organizing Subject Files

  1. Organize records into separate file groups for rapid filing and retrieval. The groups should be based on characteristics that assist in identification. Records in each of these groups might be further classified into subgroups.

    Example:

    Personnel records might well be divided into sub-groups by office, organization, and last name.

  2. To be effective, classification of files must be:

    1. Complete - every record should be in an appropriate category,

    2. Responsive - categories should properly describe the records so that users can easily retrieve documents they want,

    3. Logical - groupings should be in the most predictable order,

    4. Comprehensive - titles should completely cover their subjects so that similar titles are not required, and

    5. Exact -descriptions should readily identify records within their groups.

1.15.7.4.2  (10-30-2013)
Subject Filing Codes

  1. Locating records efficiently depends on the care used to determine the proper subject file, the logical arrangement of the file folders, and the file codes assigned to them. Filing codes save time.

  2. Subject filing codes can be alphabetic, numeric, or a combination alpha-numeric.

  3. Filing codes are important, but subject category selections that accurately represent file contents are the most important considerations.

1.15.7.4.2.1  (10-30-2013)
Design of Subject Filing Codes

  1. Filing codes should never be prepared in anticipation of records that might accumulate. They are prepared only after enough records have accumulated to justify the need for a separate classification—usually about one inch of records.

  2. If the volume of records is small, the files should be established using only primary subjects.

  3. Numerals are always added consecutively.

  4. Codes should be brief, meaningful, segmented (Pers-1 rather than 4127.5), and flexible.

  5. A list of codes and their subject matter should be developed as a table of contents after a subject filing code has been adopted. All users should be aware of its existence. Prepare a reverse index (an alphabetic list of subjects with their appropriate codes) if the filing system is complex.

  6. Each office should have an individual file code outline, and each user should have a copy of that outline.

  7. Place a master copy of the outline in a prominent position or close to the files for all persons to use. The front of the first file drawer is a convenient location.

  8. Size and complexity of the file outline determine whether or not an index should be developed. The index would be an alphabetical list of subject breakdowns with reference to the appropriate file codes.

1.15.7.5  (10-30-2013)
Composite Subject Filing and Coding System

  1. A uniform method for classifying, coding and filing administrative records promotes the integrity and continuity of records and aids in auditing and researching files. Procedures can be effective regardless of how large or small a filing system may be.

  2. Offices should develop and use a composite filing and coding system for administrative (subject) files as described in IRM 1.15.7.5.1. Files that already use or have an assigned files code, e.g. procurement contract and grant numbers, or personnel records, should use that system.

1.15.7.5.1  (10-30-2013)
Basics of Composite Filing and Coding Systems

  1. Major Topics -broad headings that encompass major subject areas.

  2. Primary Subjects -the first numbered breakdown under a major topic is called a primary subject.

  3. Secondary Subjects -the first breakdown under a primary subject is called a secondary subject.

    • Secondary subjects are related to each other and to the primary subject from which they originate.

    • Secondary subject codes are constructed by adding a dash (-) and a numeral to the code.

  4. Tertiary Subjects -when further breakdowns are required, secondary subjects are divided into tertiary subjects by adding another dash (-) and another numeral to the secondary subject. Numbers and alphabetic letters are assigned consecutively.

  5. Additional Expansion -within the framework of a subject title, there may be other file arrangements which simplify retrieving information, e.g. 1-1750 Records Training; Contractor - External, Internal; Government - Internal, Other Agency.

1.15.7.5.2  (10-30-2013)
Basic Procedures

  1. Subdivide subjects to meet volume requirements and user needs to achieve flexibility and efficiency.

  2. After the composite subject filing system is developed, prepare a file outline and distribute it to users.

  3. Before placing a document in the files, the originator (or receiver) should note the appropriate file code on the upper right hand corner or on the reverse side. With this procedure, at least two people know where the document is filed—the file clerk and the originator.

1.15.7.6  (10-30-2013)
Alphabetical Filing

  1. Follow basic rules of alphabetizing. Names or words are always arranged by filing unit, according to the sequence of letters in the alphabet.

  2. "Nothing before something" is a fundamental filing rule. When first units are the same, consider second units. If first and second units are identical, consider third units. Exhibit 1.15.7- 2 contains an alphabetic file arrangement of individual names and illustrates the "nothing before something" rule.

1.15.7.6.1  (10-30-2013)
Individual Names

  1. Names are filed by surname (last name) in strict alphabetical order, letter by letter, to the end of a complete name. When the surname is prefixed or hyphenated, it is still filed as one unit.

    Example:

    The surname "De Young" is filed with DEYOUNG considered as one unit. "Joseph St. John" is filed SAINT JOHN (first unit), JOSEPH (second unit). "David Lloyd-George" is filed LLOYD-GEORGE (first unit), DAVID (second unit).

  2. The first name or initial, then the middle name or initial follow the surname in alphabetic sequence.

    Example:

    Joseph A. Jones: is filed JONES (first unit), JOSEPH (second unit), A (third unit). "J. Alan Jones" is filed JONES (first unit), J (second unit), ALAN (third unit).

  3. Abbreviations of first or middle names are filed in alphabetic sequence as though spelled out.

    Example:

    "Geo. Jones" is filed JONES (first unit), GEORGE (second unit).

1.15.7.6.1.1  (10-30-2013)
Titles

  1. When a title is an integral part of a name, the name is filed as written; the title is the first unit of consideration for filing.

    Example:

    QUEEN (first unit), VICTORIA (second unit); SISTER (first unit), MARY (second unit), MARGARET (third unit).

  2. When a title is added to a full name, it is considered as a last unit.

    Example:

    "Doctor John Smith" is filed SMITH (first unit), JOHN (second unit), DOCTOR (third unit). "Captain Joseph Jones" is filed JONES (first unit), JOSEPH (second unit), CAPTAIN (third unit).

  3. Designations like Sr., Jr., 2d, 3d, are shown in parentheses at the end of the name.

    Example:

    "John Smith, Jr." is filed SMITH (first unit), JOHN (Jr.) (second unit).

1.15.7.6.1.2  (10-30-2013)
Foreign Names

  1. If you cannot distinguish the first or last name in a foreign name, file the name as it is written.

    Example:

    " Sun Yat Sen" is filed SUN (first unit), YAT (second unit), SEN (third unit).

1.15.7.6.2  (10-30-2013)
Business Names

  1. Business names take several forms to be considered for filing. Below are the most common variations and how they are to be filed.

1.15.7.6.2.1  (10-30-2013)
Firms with Individuals, Names

  1. When a business does not contain the full name of an individual, it is filed as written.

  2. When a business name contains an individual's full name, the name is filed by surname, first name or initial, middle name or initial.

    Example:

    "James A. Jones Fruit Company" is filed JONES (first unit), JAMES (second unit), A (third unit) FRUIT (fourth unit), COMPANY (fifth unit).

  3. When the firm name of an individual is very well-known, and transposing it would cause confusion, it is filed as written.

    Example:

    "Marshall Field Department Store" is filed MARSHALL (first unit) FIELD (second unit), DEPARTMENT (third unit), STORE (fourth unit).

  4. Firm names with a title are filed as written.

    Example:

    "Dr. Scholl's Shoes" is filed DOCTOR (first unit), SCHOLL'S (second unit), SHOES (third unit).

  5. When a business name is formed of two surnames, it is filed as written.

    Example:

    "Sears Roebuck Stores" is filed SEARS (first unit) ROEBUCK (second unit), STORES (third unit).

  6. When it is not clear whether or not a firm contains a surname and given name of one individual or two surnames, file as though they were two surnames and cross-reference under the second name.

  7. A hyphenated word is filed as one name.

    Example:

    "McGraw-Hill Publishing Company" is filed MCGRAW-HILL (first unit), PUBLISHING (second unit), COMPANY (third unit).

1.15.7.6.2.2  (10-30-2013)
Firm Names with Apostrophes

  1. When they show possession, the apostrophe and "s" that follow are disregarded in filing.

    Example:

    " John's Body Shop" is filed JOHN (first unit), BODY (second unit), SHOP (third unit).

  2. In plural forms, only the apostrophe is disregarded.

    Example:

    "Boys' Club" is filed BOYS (first unit), CLUB (second unit).

  3. The apostrophe in an elision (standing for dropped letters) is not used in filing.

    Example:

    "Where It's At Malt Shop" is filed WHERE (first unit), ITS (second unit), AT (third unit), MALT (fourth unit), SHOP (fifth unit).

1.15.7.6.2.3  (10-30-2013)
Firm Names Containing Letters and Numbers

  1. When letters are used as a name, each letter is considered a separate unit for filing. For radio or television stations, the call letters are the first unit of consideration.

    Note:

    Radio Station WMAL is filed and indexed under the letters WMAL rather than R for Radio.

  2. Organizations or agencies containing two or more words, but known by their letter abbreviations are filed as though spelled out.

    Example:

    AAA is filed AMERICAN (first unit) AUTOMOBILE (second unit), ASSOCIATION (third unit).

  3. Numeric names are filed as though spelled out.

    Example:

    "7 Seas Restaurant" is filed SEVEN (first unit), SEAS (second unit), RESTAURANT (third unit).

1.15.7.6.2.4  (10-30-2013)
Firm Names with Conjunctions, Propositions, Articles

  1. Conjunctions, articles, and prepositions that are part of a name are disregarded.

    Example:

    "Avenue of the Americas Hotel" is filed AVENUE (first unit), AMERICAS (second unit), HOTEL (third unit). "Cole and Sons Pharmacy" is filed COLE (first unit), SONS (second unit), PHARMACY (third unit).

  2. In most cases, articles that begin a commercial name are not considered in filing and are placed in parentheses at the end of the name

    Example:

    "The Burger Chef" is filed BURGER (first unit) CHEF(the) (second unit).

    Note:

    When an article is an intrinsic part of a geographic name, it IS considered for filing; THE HOLLOW, VIRGINIA.

  3. Prepositions that begin a name are considered.

    Note:

    "Over Twenty Club" is filed OVER (first unit), TWENTY (second unit), CLUB (third unit).

1.15.7.6.2.5  (10-30-2013)
Geographic Names and Compass Terms

  1. In geographic names of more than one word, each word is a separate unit of consideration.

    Example:

    "Baton Rouge Shipping Company" is filed BATON (first unit), ROUGE (second unit), SHIPPING (third unit), COMPANY (fourth unit).

  2. Geographic names with prefixes are considered single units.

    Example:

    "Des Moines Appliance Store" is filed DES MOINES (first unit), APPLIANCE (second unit), STORE (third unit).

  3. When compass terms are used in titles, they are filed as written.

    Example:

    "Northwest Airlines" and "South West National Bank" are filed NORTHWEST (first unit) AIRLINES (second unit); SOUTH (first unit), WEST (second unit), NATIONAL (third unit), BANK (fourth unit).

1.15.7.6.2.6  (10-30-2013)
Abbreviations in Business Names

  1. Abbreviations in company names are filed as though spelled out.

    Example:

    "Ft. Worth MFG Co." is filed FORT (first unit), WORTH (second unit), MANUFACTURING (third unit), COMPANY (fourth unit).

1.15.7.6.2.7  (10-30-2013)
Institutions and Organizations

  1. Institutions and organizations are filed under the significant word or location.

    Example:

    "University of Denver" is filed DENVER (first unit), UNIVERSITY (second unit); "First National Bank of Washington" is filed WASHINGTON (first unit), FIRST (second unit), NATIONAL (third unit), BANK (fourth unit).

  2. When phrases like "association of," union of, "organization of," etc. are beginnings of names or titles, they are considered in filing.

    Example:

    "Society for the Blind" is filed SOCIETY (first unit), BLIND (second unit); "Association of Electrical Engineers" is filed ASSOCIATION (first unit), ELECTRICAL (second unit), ENGINEERS (third unit).

1.15.7.6.3  (10-30-2013)
Alphabetic Distribution of Names

  1. A normal alphabetic arrangement of names will have about half the names filed under six letters of the alphabet: S, B, M, H, C, and W. Consider this typical distribution when setting up filing space.

  2. Various breakdowns of the alphabet have been developed for easy filing and rapid retrieval.

1.15.7.7  (10-30-2013)
Evaluating Files Operations or Systems

  1. Review filing operations periodically to make sure that the most efficient practices are being followed. Measure the success of the operation by how quickly complete, pertinent information is retrieved.

1.15.7.7.1  (10-30-2013)
Files Organization

  1. Organize files operations in the way best suited to serve the offices using them. The operation should be centralized, decentralized, or partially decentralized - whichever arrangement will provide the most efficient service.

  2. Staffing should be adequate to provide prompt, efficient service to file users. A "can't find" rate over 3% is unreasonable. Any rate over 1% is excessive; take corrective steps to improve the situation.

1.15.7.7.2  (10-30-2013)
Files Management Administration

  1. Publicize regulations that:

    1. Prohibit filing envelopes (unless the stationery does not contain address information, or it is necessary to meet legal requirements), routine routing slips, carbon copies, or superseded drafts,

    2. Require using charge-out cards and cross-references,

    3. Discourage using personal duplicate files, and

    4. Provide an outline of subject files and corresponding codes.

  2. Use file space to the best advantage. Keep the space neat, clean, uncluttered, and hazard-free.

  3. Light, space, and ventilation should be adequate.

  4. Inactive records should routinely be removed from current files and be retired, destroyed, or moved to storage space.

1.15.7.7.3  (10-30-2013)
Files Audit

  1. A files audit provides a check on the condition of the files and prevents neglect by the files operation. Following is a list of what to look for when conducting an audit:

    1. Misfiled Material - even 99% accurate filing in a five-drawer cabinet means that 150 documents are misfiled.

    2. Soiled Labels - soiled labels are hard to read and increase the chance of misfiles.

    3. Torn or Overloaded Folders - make it harder to file and retrieve papers. Papers can be damaged in such folders.

    4. No Inclusive Dates On Closed Out Folders - inclusive (beginning and ending) dates aid in disposing of folders when using approved records disposition schedules.

    5. File 1 of 3, With No Indication On The 3 Files That They Are Connected As One File - but because of file quantity are split.

  2. Management should make sure that corrective measures are taken immediately if any of the above conditions is found during an audit. Information Resource Coordinators (IRC) are appointed in each organization for this purpose. See IRM 1.15.1.7.5, Responsibilities of the IRC.

1.15.7.7.4  (10-30-2013)
Files Surveys/Inventories

  1. Files surveys/inventories are conducted to develop records disposition schedules and efficiently manage filing systems.

  2. Exhibit 1.15.7- 3 shows IRS forms for this purpose.

  3. Submit completed forms to your ARM.

Exhibit 1.15.7-1 
Records Charge-Out Card

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Exhibit 1.15.7-2 
Alphabetic Filing Sequences of Individual Names

Name as Written Unit 1 Unit 2 Unit 3 Unit 4
Richard Johnson Johnson Richard    
Jones Jones      
J. Jones Jones J.    
J. A. Jones Jones J. A.  
J. Alan Jones Jones J.    
James Jones Jones James    
James Abbott Jones Jones James Abbott  
James Alan K. Jones Jones James Alan K.
Ernest C. Jordan Jordan Ernest C.  
Henry Jordan Jordan Henry    
Kevin MacDonald MacDonald Kevin    
Douglas MacIntyre. Jr. MacIntyre Douglas (Jr.)  
Angus MacKay MacKay Angus    
James McDonald McDonald James    
Bruce McTavish McTavish Bruce    
Filing Unit Sequence of Names and Titles
Name as Written Unit 1 Unit 2 Unit 3 Unit 4
         
Capt. Jack Armstrong Armstrong Jack (Captain)  
Mrs. Mary Jo Barnes Barnes Mary Jo (Mrs.)
Princess Diana Princess Diana    
Sister Mary Alice Sister Mary Alice  
Geo. Smith, Jr. Smith George (Jr.)  

Exhibit 1.15.7-3 
IRS Inventory Forms

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