25.15.14  Innocent Spouse Tracking System Inventory Validation Instructions (Cont. 1)

25.15.14.5 
Validating the Inventory Validation Listing (IVL) - Area Offices

25.15.14.5.2  (07-30-2014)
Stage 05

  1. Claims in the ISTS Stage 05 should have an Audit Information Management System (AIMS) status of 10 or 12.

  2. If the status is not 10 or 12, determine why and update ISTS if necessary.

  3. It is possible to have a case in AIMS Status 20 or 21 and the ISTS show Stage 05 until Technical Services updates ISTS to Stage 08 and the AIMS Status to 20.

  4. The clerk in review or the Technical Services innocent spouse reviewer should ensure ISTS is updated when cases are received. If the innocent spouse reviewer does not have the case, check with the clerk to see when it was received and update ISTS if necessary.

25.15.14.5.3  (07-30-2014)
Stage 06

  1. Claims in the ISTS Stage 06 could have an AIMS status of 24, 30, 31, 32, 36, 38 or 39. These are suspense statuses. See IRM 4.7.7-4, TS Suspense Types, for further information. Status 30 is Form 1254, Examination Suspense Report, Status 32 is General Fraud, Status 36 is Grand Jury and Status 38 is all others, including bankruptcy.

  2. These suspended cases could be with the innocent spouse coordinator or the program coordinator for that AIMS status, depending on office policy.

  3. If you have a case in ISTS Stage 06, determine the AIMS status and check with the coordinator of that program to see if the case has been resolved or it is still being suspended. If the case has been resolved, the ISTS will need to be updated to reflect the correct stage.

  4. Use the ERCS to validate. Based on the AIMS status, the appropriate coordinator should be contacted to verify the ERCS status and the ISTS stage agree.

25.15.14.5.4  (05-01-2005)
Stage 07

  1. Claims in the ISTS Stage 07 typically will have an AIMS status of 80. This stage is used to transfer the database to Appeals or another office that has requested the case.

  2. This stage is also a clearing stage similar to Stage 02. The claim is sent to Appeals in Stage 07 and they acknowledge receipt with another Stage 07, then update ISTS to Stage 15.

  3. If the case is in AIMS Status 81 or 90, contact Appeals and have them update ISTS to reflect the correct stage.

  4. This stage is an Appeals stage and Appeals is responsible for validating. See IRM 25.15.14.6, Validating the IVL - Appeals, for Appeals information.

25.15.14.5.5  (07-30-2014)
Stage 08

  1. Claims in the ISTS Stage 08 will have an AIMS status of 20, 21 or 25 and should be in Technical Services. Most Technical Services groups can provide a report of their AIMS Status 20 and 21 inventory.

  2. Cases should remain in ISTS Stage 08 until the review is complete. Once the review is complete, ISTS will be updated in Stage 08 to indicate the outcome of the review and then to Stage 11 or 12 if a determination letter is mailed.

  3. If the groups do not update ISTS to Stage 08 when they send the case to review, it is possible to have a case in AIMS Status 20, 21 or 25 and ISTS Stage 05 until review updates ISTS to Stage 08.

  4. If AIMS shows a higher status than 20, and ISTS stills shows Stage 08, determine where the case is located and update ISTS to reflect the status of the case.

  5. If the AIMS status is 22 or 23, used by some offices to identify their 30 day, a preliminary letter should have been sent and the case should be in 30 day suspense in review and ISTS should be updated to reflect Stage 11.

  6. If the AIMS status is higher than 51, it indicates a final determination letter was issued and the case was closed to Case Processing. In this instance, check with the Technical Services group clerk and/or Innocent Spouse reviewer to determine whether or not the case was closed prematurely. Check with the clerk for the Form 3210 to verify the case was sent to Case Processing. ERCS will have the date Case Processing received the case and identify the tax examiner (TE) assigned the case. ERCS will also have the notification date. These dates will allow you to update ISTS for Stage 12 then 27.

25.15.14.5.6  (05-01-2005)
Stage 09

  1. The Area Offices should not use this stage. Centralized Innocent Spouse Case Review (CISCR) is responsible for validating this stage. See IRM 25.15.14.7, Validating the IVL - CCISO, for CCISO information.

25.15.14.5.7  (05-01-2005)
Stage 10

  1. Claims in ISTS Stage 10 will have an AIMS Status of 12. This stage is used when a case has been reviewed by local review and determined to need additional work.

  2. If AIMS shows Status 12 but ISTS shows Stage 08, check ERCS for the transfer date to the group and update ISTS accordingly.

  3. If AIMS shows Status 20 but ISTS shows Stage 10, check with the clerk to see if there is a Form 3210, Document Transmittal, returning the case back to the group. If this has happened, the clerk should update ERCS to the group and AIMS to Status 12.

25.15.14.5.8  (07-30-2014)
Stage 11

  1. Claims in the ISTS Stage 11 could have an AIMS status of 20 or 22 depending on how the area handles their 30 day cases. This stage is input when a preliminary letter has been issued requiring the case to be in suspense for 30 days. Non-qualifying cases will be suspense as well.

  2. If a case is in AIMS Status 20 or 22 but still in ISTS Stage 08, locate the case in review to determine the date of the letter and then update ISTS accordingly.

  3. If the case is in ISTS Stage 11 but in a status higher than 20, 22, or 23, check the ERCS for the notification date in order to update ISTS.

  4. If the case is in AIMS Status 30, 32, 36, or 38, check with that program coordinator to see if they have the case and if so, ISTS will need to be updated to Stage 06 as of the date the Form 3210, Document Transmittal, was issued. This should be the date ERCS was updated to that status.

  5. If the claim is an open examination case, ISTS Stage 11 should be input the same date the Revenue Agent Report (RAR) is issued which includes the determination in the other information section. The AIMS status should be 12 in this instance. If the case defaults with no response to a 30 day letter in the group, it should be sent to 90 day and ISTS will be updated to Stage 12 upon issuance of the statutory notice of deficiency (SNOD). If the taxpayers agree to the RAR, update ISTS to Stage 12 as of the date the RAR was signed. When the case is ready to be closed, the group will update AIMS to Status 21, and send the case to Technical Services. Technical Services will complete mandatory innocent spouse claim review and send the case to Case Processing with instructions ton update ISTS accordingly. See IRM 4.8.5.2.3.1, Pre-Assessment Claims for additional information.

25.15.14.5.9  (07-30-2014)
Stage 12

  1. Claims in the ISTS Stage 12 should be in 90 day suspense and AIMS Status 24. This stage is used when a final determination letter has been issued. If something is not matching, ERCS should be checked for the current AIMS status.

  2. If AIMS shows a status of 51 through 57, check ERCS; if the prior status was 24, the case has now defaulted. Update ISTS to Stage 27 as of the date it was assigned to a TE.

  3. If AIMS shows status 90, check ERCS for the date of the status change, call the tax examiner assigned to the case and get the dates to input 27 and 28, for partials and grants

  4. If AIMS shows a status of 82 and the ISTS still shows Stage 12, ISTS should be updated to Stage 19, Tax Court Petitioned.

  5. If the case is an open examination case, the ISTS Stage 12 should be input as of the date a signed agreement is received or the date the statutory notice and final determination letters are issued by Technical Services. All cases in open examination involving innocent spouse claims must be closed to Technical services for mandatory innocent spouse review per IRM 4.8.5.2, Innocent Spouse Cases. Therefore, the AIMS status corresponding to this stage could be status 21, 20 or 24.

25.15.14.5.10  (01-11-2010)
Stages 13 and 14

  1. These stages are no longer required for the area offices.

25.15.14.5.11  (01-11-2010)
Stages 15 and 16

  1. Claims in the ISTS Stage 15 and 16 should have an AIMS status of 80 or 81. These are Appeals statuses and they should update ISTS to the next stage. See IRM 25.15.14.6, Validating the IVL - Appeals, for Appeals information.

    Note:

    Stages 17 and 18 are no longer required.

25.15.14.5.12  (01-11-2010)
Stages 19 and 20

  1. Claims in the ISTS Stage 19 and 20 should have an AIMS Status of 82. This is a Counsel status and they are responsible for updating ISTS to the next appropriate stage. See IRM 25.15.14.6Validating the IVL - Appeals for Appeals information.

    Note:

    Stages 21 and 22 are no longer required.

25.15.14.5.13  (09-01-2003)
Stage 23

  1. Claims in the ISTS Stage 23 should have an AIMS Status of 90. This stage indicates the claim was shipped to CCISO for processing and they are responsible for validating this stage.

  2. If the AIMS Status is not 90, contact Case Processing to see if the input of the TC 300 went unpostable and correct it.

25.15.14.5.14  (07-30-2014)
Stage 24

  1. Between July 2006 through February 16, 2009, this was a reserved stage. Effective February 17, 2009, the activity RECON will systemically generate to identify the case as a reconsideration claim. Claims in ISTS Stage 24 should have an AIMS Status of 10 or 12.

25.15.14.5.15  (07-30-2014)
Stage 25

  1. Claims in the ISTS Stage 25 should have an AIMS Status of 20 and be located in Technical Services. This stage should be used only when it is necessary to re-issue a preliminary or final determination letter.

25.15.14.5.16  (07-30-2014)
Stage 26

  1. Claims in the ISTS Stage 26 should have an AIMS status of 90. This stage should be used when situations occur that prevent the processing of an account from MFT 30 to MFT 31. It should also be used for claims when either taxpayer is overseas preventing the claim from being completed (Combat Zone) or if either taxpayer is being investigated by Criminal Investigation.

  2. Case Processing or Technical Services will monitor these claims until the situation changes to allow the continuation of the claim.

  3. If AIMS is closed the TC 971 AC 065 should remain on the account to ensure no collection activity is taken against the RS.

25.15.14.5.17  (07-17-2009)
Stage 27

  1. Claims in the ISTS Stage 27 should have an AIMS status of 51 through 57. This stage is used while the case is in the closing unit, during the time period they are determining the amounts to assess MFT 30 and/or MFT 31.

  2. If the status is 90, check the ERCS for the date the status changed, then call the tax examiner (TE) assigned the case to determine if the transfer process to MFT 31 has been completed. If this has been completed, update ISTS to Stage 28 as of the date the paperwork was sent. For an open examination, use the date the TC 300 was posted.

  3. If the status is 51 through 57 and it has been in Stage 27 for over 30 days, check ERCS for the TE assigned the case. Call the TE to check the status of the case.

25.15.14.5.18  (07-17-2009)
Stage 28

  1. Claims in the ISTS Stage 28 should have an AIMS Status of 90. Stage 28 indicates the MFT 31 transfer process has been initiated for a partial or full grant. This should only be done on a closed case. You should not have any other AIMS statuses for this stage. If you do, you should check with Case Processing because it would mean their TC 290 or TC 300 went unpostable thus leaving AIMS in open status.

  2. If a claim has been in this stage for more than 6 months, check the IDRS command code (CC) TXMOD to see if the account has been transferred. The tax examiner (TE) should be contacted to determine if there is a problem. If the IDRS CC TXMOD has a TC 400 and 402, ISTS should be updated to Stage 30.

25.15.14.5.19  (09-01-2006)
Stage 29

  1. Claims in the ISTS Stage 29 could have an AIMS status of 51 through 57 until the case is closed through Case Processing on AIMS. ISTS should be updated to Stage 30 once the AIMS controls are closed.

  2. If you have several years on a claim and only one year is non-qualifying, you could have an AIMS status other than 51 through 57. ERCS will indicate the location of the case and whether there are other years involved that would prevent the case from closing.

  3. If one year is a partial or denial, the case will be kept together for 30 days and be in Status 20, 22 or 23 until the final determination letter is issued. At this point, ISTS should be updated to Stage 12 for the other year and the case will reflect Status 24 for both years.

  4. It will stay in Status 24 until default. Upon default, the case should be updated to Stage 27 and the Stage 29 will reflect the correct AIMS status of 51 or higher.

  5. Claims should not be in this stage for more than 30 days unless other years are preventing closure of the claim. ERCS should be used to identify the TE and contact made to determine as to the reason for the delay.

25.15.14.5.20  (07-17-2009)
Stage 30

  1. The ISTS Stage 30 should always have an AIMS status of 90. This stage is input upon completion of the case.

  2. If the claim was denied, it is input when the AIMS controls are closed in CASE PROCESSING.

  3. If the claim was a partial or a full grant, it is input after the MFT 31 transfer process is complete or after the appropriate tax has been assessed to the MFT 30 and/or MFT 31 accounts.

  4. This stage does not require validation.

25.15.14.5.21  (09-01-2006)
Stage 31

  1. Claims in the ISTS Stage 31 should always have an AIMS Status of 90. This stage is used when letters are sent to the RS on closed claims.

  2. This stage does not require validation.

25.15.14.6  (07-17-2009)
Validating the Inventory Validation Listing (IVL) - Appeals

  1. Appeals uses a system called Appeals Centralized Database System (ACDS) to control their cases. ACDS is all that is needed to enable the person charged with the responsibility of ensuring the accuracy of the ISTS.

    Note:

    Appeals is responsible for completing any Form 12810, Account Transfer Request Checklist, or making any necessary assessments and closing the AIMS controls.

25.15.14.6.1  (05-01-2005)
Stage 07

  1. This stage indicates a transfer of the ISTS control to Appeals or another office that requested the claim.

  2. This stage is also a clearing stage similar to Stage 02. The claim is sent to APPEALS or other office and they acknowledge receipt by inputting another Stage 07 and update to Stage 15.

  3. If a claim is in this stage and the Appeals Centralized Database (ACDS) shows the claim assigned to an appeals officer, then ISTS should be updated to Stage 15.

25.15.14.6.2  (05-01-2005)
Stage 15

  1. Claims in this stage indicate the claim is open in Appeals and assigned to an appeals officer.

  2. The ACDS should not have anything in the field for SNTYPE.

25.15.14.6.3  (03-12-2013)
Stage 16

  1. Claims in this stage indicate Appeals has issued an Appeals Transmittal Memorandum to the taxpayer.

  2. The ACDS should indicate 090A in the SNTYPE filed and E/TSN in the status field.

25.15.14.6.4  (02-25-2011)
Stages 17, 18, 21, and 22

  1. These stages are no longer required.

25.15.14.6.5  (05-01-2005)
Stage 19

  1. Claims in this stage indicate a petition has been filed.

  2. The ACDS should have a "3" in the PART field and E/T in the Status field.

25.15.14.6.6  (05-01-2005)
Stage 20

  1. Claims in this stage indicate Tax Court has the claim and a decision has been made.

  2. The Appeals ACDS should indicate a date in the DATECLSD field and a closing code of 21 or less in the CLOSINGCD field.

  3. The ISTS Stages 21 or 22 will be input at this time.

25.15.14.7  (07-30-2014)
Validating the Inventory Validation Listing (IVL) - Cincinnati Centralized Innocent Spouse Operation (CCISO)

  1. In general, every case on the IVL will need a comment as to the reason for the delay. Annotate any corrections on the ISTS listing. Claims not found should indicate on the IVL the steps taken to locate the claim. Watch for claims closed but ISTS not updated and the TC 971 AC 065 not reversed. CCISO will not be responsible for validating any case in Stage 15 thru 22.

  2. The IDRS command codes used for inventory validation are:

    1. ISTSRA — identifies where a case is located. If the record was not transferred correctly, the record could be on the wrong Team IVL. IDRS CC ISTSE should be used to correct the record if this is the case.
      A freeze code of -L on the account indicates that the case is in the field. Verify the case was transferred using the Form 3210, Document Transmittal, database. The AIMS can be used to locate cases. The Project Code 0014 is the correct project code for innocent spouse cases, but may not be present if other, higher priority, project codes apply.

    2. TXMOD history and control items contain a wealth of information to help locate a case. Transaction codes (TC) can provide information about when and how a claim was closed. A TC 290 is used with reason code (RC) 097 for disallowed claims and RC 098 for allowed claims.
      Cases in Stage 05 should have a control on IDRS within 5 working days of the 05 update.

    3. INOLES should be used to verify the RS’s TIN. The TIN input with the TC 971 AC 065 should match the INOLE record. The name control should also match. Records that do not match are input errors and should be deleted. The ISTS database can be searched to obtain or ensure the correct record was input.

    4. ENMOD identifies when and what letters were sent to the RS.

    5. SUMRY identifies if there are additional years controlled and where the record is located.

    6. ISTSRT also identifies other years opened.

      Note:

      Many times cases are moved without all records being updated. IDRS CCs ISTSRT and SUMRY are important for determining this. AIMS can verify the Area a case was transferred to.

25.15.14.7.1  (02-25-2011)
Stage 01, 02, 03, 07, and 29

  1. Because the ISTS Stage 01, 02, 03, 07, and 29 are pass-through stages, input the IDRS CCs ISTSRT and SUMRY to determine if there are other years to be considered. Generally claims left in stages 01 and 03 over 15 days are often input errors. Verify the accuracy of the input by using IDRS CC INOLES to verify the TIN and name control. Use the ISTS database to determine the correct record. A search of the database can be done by the name control or the TIN. Incorrect records should be indicated on the IVL and deleted or corrected.

    Note:

    Single years left in these stages are often due to failure to update all years. Corrections should be made and the appropriate information should be recorded on the IVL.

  2. Claims in ISTS Stage 02 and 07 should be acknowledged within 3 business days of the receipt of the claim. Claims in Stage 02 are sometimes "hung" while the documents are being secured. Check with management before validating so work is not duplicated. The Stage 02 listing is printed weekly and is worked in the First Read area.

25.15.14.7.2  (09-01-2003)
Stage 04 and 06

  1. Claims in the ISTS Stage 04 and 06 inventory are filed by TIN. The listing should be validated against inventory in 04/06 file. Any claim not located should be researched using the IDRS. The overage listing for these stages is printed weekly and worked in the First Read area. Check with management to prevent duplication of efforts.

25.15.14.7.3  (07-30-2014)
Stage 05 and 10

  1. Claims in the ISTS Stage 05 and 10 are assigned to individual employees or teams. Claims in Stage 05 for more than 45 days and Stage 10 for more than 30 days should be documented on the IVL as to the reason of the delay. Incorrect records should be updated to the correct stage.

25.15.14.7.4  (07-30-2014)
Stage 08 and 09

  1. Stage 08 should only be used by the area Offices. CCISO should use Stage 09 for their quality review. Claims in the ISTS Stage 09 should not remain in this stage for more than 2 weeks.

    • If IDRS reflects a Full Scope unit control, the case was returned to that unit to be reconsidered. Correct ISTS to Stage 10.

    • If IDRS controls are closed but ISTS still shows Stage 09, check with the clerk to determine if the case was returned to Files.

25.15.14.7.5  (03-21-2008)
Stage 11

  1. Claims in the ISTS Stage 11 should not remain more than seven calendar days past the 45 days. Management should be consulted if claims remain over this time frame and annotated on the IVL as to the reason for the delay.

25.15.14.7.6  (01-08-2010)
Stage 12

  1. Claims in the ISTS Stage 12 should not remain for more than seven calendar days past the 106 days. Management should be consulted if claims remain over this time frame and annotated on the IVL as to the reason for the delay. The IDRS CC TXMOD should be researched for a TC 290 with RC 097 or RC 098 and closed controls. If this is the case, update ISTS history.

25.15.14.7.7  (07-30-2014)
Stage 24

  1. Claims in the ISTS Stage 24 should not remain in this stage for more than 60 days. Management should be consulted if claims remain in this stage over this time frame and annotated on the IVL as the reason for the delay.

25.15.14.7.8  (03-21-2008)
Stage 25

  1. Claims in the ISTS Stage 25 should not remain in this stage for more than seven calendar days. Management should be consulted if claims remain in this stage over this time frame and annotated on the IVL as the reason for the delay.

25.15.14.7.9  (03-21-2008)
Stage 26

  1. Claims in the ISTS Stage 26 should not remain in this stage more than 180 days. Management should be consulted if claims remain in this stage over this time frame. Annotate the IVL as to the reason for the delay.

25.15.14.7.10  (03-21-2008)
Stage 27

  1. Claims in the ISTS Stage 27 should not remain in this stage for more than 60 days. Management should be consulted if claims remain over this time frame. Annotate the IVL as to the reason for the delay.

25.15.14.7.11  (03-21-2008)
Stage 28

  1. Claims in the ISTS Stage 28 should not remain for more than 120 days. Check the IDRS CC TXMOD for TC 400 and TC 402. If both are present, then update ISTS to Stage 30. Management should be consulted if claims remain over this time frame. Annotate the IVL as to the reason for the delay.

25.15.14.7.12  (03-21-2008)
Stage 29

  1. Claims in the ISTS Stage 29 should not remain for more than 7 days. Management should be consulted if claims remain over this time frame. Annotate the IVL as to the reason for the delay.

25.15.14.7.13  (03-21-2008)
Stage 30, 31, 32 and 99

  1. There is no validation required.


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