Part 4. Examining Process

Chapter 1. Planning and Special Programs

Section 6. Storage of Selected Returns

4.1.6  Storage of Selected Returns

4.1.6.1  (10-24-2006)
Overview

  1. This chapter addresses the storage of selected returns.

  2. The PSP Territory Manager, is responsible for monitoring return inventories. Lean inventories should be maintained to limit costly excess surveys and to allow for changing workload priorities. However, a high percentage of unstarted inventory may be warranted at specific times. For example:

    1. To provide returns for training

    2. Campus Workload Redistributions

    3. Implementation of major changes to AIMS, ERCS, etc.

    4. Major computer programming changes that may delay the filling of orders.

  3. AIMS Centralized Information System (A-CIS),Table 37 and Examination Return Control System (ERCS) can be used for monitoring of aging by month of status 08 and status 10 returns. A large number of returns in status 08/10 for over four months could indicate inefficient use of the return order and delivery system (ordering large numbers of returns before there is a need for them).

  4. The inventory of selected returns may be stored in the Area office or the Campus.

  5. Although the inventory of selected returns may be stored in the area office or the campus, storage at the campus produces certain cost savings and operating efficiencies. These include:

    1. More control over and information about inventories

    2. Reduction of simultaneous examinations

    3. Assurance that priority returns and returns with the highest DIF scores will be scheduled first

    4. Clerical and mail cost savings

    5. Reduced storage costs

    6. A uniform system for Areas

    7. Weekly information from AIMS. For example: address changes are automatically made when the CF&S database is matched weekly against the AIMS database. This reduces the no show rate and undeliverable letters

4.1.6.2  (10-24-2006)
Storage at the Campus

  1. Centralized Files and Scheduling is a program to physically store office examination returns and to schedule initial appointments for the Areas. The program generates initial contact letters using standard paragraphs based on issues identified during classification. Standard paragraphs have been written for each issue on the Form 6754, Examination Checksheet. These paragraphs tell the taxpayer what records are needed for the examination.

  2. Centralized Storage of unassigned field exam returns replaces the need for large manual central files systems in the Areas.

  3. The returns are housed in the Centralized Files and Scheduling Unit (CFSU) at the Campus, under the direction of the Department Manager, Classification. Most inventory will be from DIF orders. However, it is possible to place other returns into the system to take advantage of its benefits.

4.1.6.3  (10-24-2006)
Centralized Scheduling Overview (Office Examination)

  1. After selection for office examination in the centralized classification function, returns are moved to the CFSU for perfection of the Form 6754, and storage until scheduled for examination by the Area. The Form 6754 is perfected by a process known as hash totaling. Form 6754, when perfected, are batched to the Distributed Input System (DIS) for transcription. As a result of transcription, selected issues and taxpayer information from each return are used to establish the return on the Centralized Scheduling Database (CSDB). Returns are filed on the shelves in ascending AIMS serial number sequence.

  2. Each weekend, inventories are updated, returns are scheduled, reports are generated, and the CSDB is matched against AIMS to identify:

    1. Related returns

    2. Address changes

    3. Freeze conditions

    4. Discrepancies between CSDB and AIMS data.

  3. At least three to four weeks prior to a taxpayer’s appointment, the PSP Territory Manager, using command code CSORD will place the weekly orders. Orders can usually be placed Wednesday through Friday via the IDRS real-time system. For returns classified as "Interview" on Form 6754, taxpayer contact letters and master appointment schedules may be generated and sent to the CFSU for processing. The system will schedule the highest DIF scored returns first, giving priority to the earliest tax year for the requested activity code. Master appointment schedules and returns are mailed by the CFSU to the Areas.

    1. If generated, the appointment letter is mailed to the taxpayer at least 14 days prior to the first appointment of the week.

    2. At the request of the Area, the appointment letter can be kept in the return file rather than mailed to the taxpayer.

    3. At the request of the Area a taxpayer call back letter can be kept in the return file rather than mailed to the taxpayer

4.1.6.3.1  (10-24-2006)
Returns Added to the CSDB

  1. Returns added to the CSDB are automatically updated on AIMS to status 08, organization code 2050. This is an exclusive employee group code assigned to Centralized Files and Scheduling. Status 08 indicates that the return has been selected but not yet assigned to a group.

  2. Related returns: For Centralized Files and Scheduling purposes, a related return is defined as another tax year of the taxpayer in an open status of 10 or 12 on AIMS. The objective of identifying related returns through CF&S processing is to eliminate simultaneous examinations. When a return is identified, the CFSU will update it to status 10 and the employee group code of the related return, and forward it to the group working the return assigned in status 10 or 12. The PSP Territory Manager may issue instructions requesting that the CFSU not forward related returns to the Area. This may occur, for example, with training or specialized groups. In these situations, the related year(s) will be forced onto the CSDB by the CFSU.

  3. Primary and Multiple Returns: The terms "primary" and "multiple" apply when more than one year’s return for a taxpayer is located on the CSDB.

    1. If both returns of the taxpayer are regular DIF returns, the primary record will be the oldest tax year. The most current tax year becomes the multiple record. The primary return will be the one scheduled for appointment, but both returns will be sent to the group.

    2. In the event the primary return is surveyed or deleted from the database, the multiple return will become the primary return.

4.1.6.4  (10-24-2006)
PSP Inventory

  1. The PSP Inventory on the CSDB is available for research weekly by terminal display using command code CSPSP and reflects interview and precontact analysis returns available for ordering from Centralized Files and Scheduling by tax year. The CSP 4440, Centralized Files and Scheduling PSP Inventory Report is systemically produced weekly. CSP 4440 contains returns available for scheduling by file year.

  2. At this time, all office examination returns are "pre-contact analysis" returns.

  3. The PSP Territory Manager can review the inventory using command code CSPSP, and receive a display in several different formats, according to the following:

    CC CSPSP variations: Inventory display:
    Modifier field blank
    POD field blank     		Area Inventory Summary
    Modifier field blank
    POD field entry     		Inventory totals for each POD level
    Modifier P
    POD field blank     		Area summary for priority levels
    Modifier P
    POD field entry     		Priority level totals for each priority code by POD
    Modifier S
    POD field entry     		Inventory totals for each POD level by POD

  4. With each command code input, a three-page display will appear. The first page will contain volumes for Activity Code 530–541. The second page will contain volumes for Activity Code 535–539. The third page will contain volumes for Activity Code 631–641, and totals for all Activity Codes.

  5. For Centralized Files and Scheduling purposes, all activity codes are maintained on the CSDB. Four additional activity codes have been created on the CSDB by changing the "5" to a "6" in Activity Codes 531–541 when issue 50 (Gross Receipts) has been checked on Form 6754. Therefore, 531 returns with business issues become 631s; 541s with business issues become 641s and so on. These returns are carried separately throughout the system and may be scheduled as if they were business returns.

  6. See IRM 2.4.54.3, Command Code CSPSP Overview, for information about inputting the command code CSPSP and error messages that may be encountered.

  7. Priority levels currently displayed using CC CSPSP with modifier P are priority 4, Blue Tab IRMF returns, and priority 2, for use at campus/PSP discretion.

    1. Priority 4, Blue Tab IRMF returns: Entry of 4 in Block D of Form 6754 creates the priority 4 situation. This indicator is placed in the block by the classifier when there is an income discrepancy between the return and the IRMF Transcript which requires an interview to resolve the issue, and the potential tax change related to the unreported income meets the criteria contained in the LEM.

    2. Priority 2: Entry of 2 in Block D of Form 6754creates the priority 2 situation. This indicator can be used to prioritize special inventories, with the definition to be established by the PSP Territory Manager or the campus.

  8. POD levels: For inventory purposes, as well as scheduling, each call site (unstaffed POD) and each special inventory within a POD is considered a separate POD. Thus, there may be 10 separate inventories for each AIMS POD (i.e., POD XXX0 through XXX9). The POD for Centralized Files and Scheduling purposes is a four digit number. The first three digits of the POD normally coincide with the assigned AIMS POD. The fourth digit expands the AIMS POD by providing inventory levels for ordering purposes for call sites and special inventories. For example, POD 001 with a special inventory indicator of 5 becomes POD 0015 for CF&S. Returns without a call site or special inventory indicator would be in POD 0010. Fourth digits are defined in the following:

    Fourth Digit Definition
    0 Regular returns (No call site or special inventory indicator)
    1–4 Call sites (Established via IDRS using CC CSZIP)
    5–9 Special Inventories (Established via Block C on Form 6754)

  9. A call site (unstaffed POD) is defined as an itinerant location where taxpayers are asked to report for the examination of their return. Tax compliance officers travel from their normal post-of-duty to the itinerant location to conduct the examination (circuit riding). These sites are normally small, remote areas farther from a staffed POD than where the taxpayer can be reasonably asked to travel. The range of numbers used as the fourth digit for call sites is 1–4; thus, there may be as many as four available inventories within a POD for call sites. Satellite offices are designated for CF&S purposes using command code CSZIP. The satellite POD logic may be applied in large metropolitan areas where there are satellite locations under one POD number, or to have more than one group use the same inventory.

  10. The special inventory levels designated as 5–9 for the fourth digit of the POD is established in Block C of Form 6754. This feature allows the Area to identify during the initial screening process special inventories, such as those requiring extended time slots and training returns. Each special inventory level will result in separate inventory for monitoring purposes. Areas can also use Block C, box #9 to schedule and monitor GS-11 TCO work or special projects. The 5–9 fourth digit special inventory POD breakdown is:

    • XXX5—Extended Time Slot

    • XXX6—Trainee Level 1

    • XXX7—Trainee Level 2

    • XXX8—Trainee Level 3

    • XXX9—GS-11 TCO/Local Option (for special projects)

  11. The PSP inventory of each POD is broken down as follows:

    1. Activity Code.

    2. Type of examination (Interview or Pre-contact).

    3. Number of current file year returns and prior file year returns — The literal "Primary—20XX and Subs. " and "Primary—20XX and Prior" will normally indicate volumes of current versus prior file year returns. The literal for the year will automatically change in October of each year based on the system date.

    4. Number available for late scheduling (Scheduled after 9:00 a.m.).

    5. Number of Non-Business returns having Business issues with higher DIF scores — The line for "Nonbusiness with Business Issues—Higher DIF" is a comparison of Activity Codes 631–641 to Activity Codes 531–541. If the PSP Territory Manager has business trained Tax Compliance Officers, the premise is to schedule the nonbusiness with business issue returns before nonbusiness returns, if the DIF score is higher.

  12. The PSP inventory includes only the number of primary returns available. Because multiple returns are not scheduled for appointments, the volume of these returns is not included on the PSP inventory. Returns identified as multiples will be forwarded with the primary return if and when they are ordered.

  13. Returns should not be ordered in excess of volumes indicated by activity code for the POD. The PSP Territory Manager should not include in his/her computation returns anticipated to add to the database because classification has been completed. CFSU weekly top priorities are mailing letters and appointment schedules for the prior week’s orders. Second in priority is working the CSDB listings, and finally, perfecting the Form 6754 by hash totaling. This can mean that returns do not add to the database immediately upon classification. In addition, the CFSU must submit the Form 6754 to DIS for processing, and the system must match them against AIMS during weekend processing. Newly classified returns may error out, have freeze conditions, or appear as related returns and therefore not be available for scheduling. Unfilled orders could be the result if orders are placed in volumes greater than what is showing on the inventory report CSP 4440. Errors can be viewed on the CSP 3241 Report.

  14. Any problems or questions noted by the PSP Territory Manager about inventory should be brought to the immediate attention of the CFSU manager.

  15. Each Monday the PSP Inventory reflects the volume of returns on the CSDB. This includes returns added during the weekend processing and excludes those that were ordered during the prior week.

  16. Two additional reports are available for PSPs to monitor inventory levels. CSP 6040, CF&S Inventory by DIF Score Range is produced monthly; and CSP 6340, CF&S Returns Surveyed by DIF Score Range is produced quarterly.

4.1.6.5  (10-24-2006)
Scheduling Appointments Through Centralized Scheduling

  1. One of the most important functions of the Centralized Files and Scheduling system is the ability to schedule taxpayer appointments and generate the initial contact letter for the taxpayer. The system can schedule taxpayer appointments and generate an appointment letter, or it can generate a call-back letter. The letter can be mailed to the taxpayer, or retained in the file to be mailed by the Area.

  2. When planning group orders, the PSP Territory Manager must determine the type of letter to be generated:

    1. Scheduled: Taxpayer is given a specific date and time for the appointment.

    2. Call-back: Taxpayer is requested to call within 10 days for an appointment.

  3. Generation of the call-back letter requires use of the appropriate indicator in the correct field of the POD display screen, using command code CSPOD. See the text on CC CSPOD, later in this section, or IRM 2.4.54.2, Command Code CSPOD Overview for more information.

  4. Generally three to four weeks before the appointment, the PSP Territory Manager submits an order via IDRS (this can be done Wednesday through Friday) using command code CSORD. As a result, taxpayer contact letters and master appointment schedules are computer generated. Monday and Tuesday are not available for placing orders, but the inventory screen is available for viewing the entire week.

  5. Using command code CSORD from the requested POD, return orders are filled in the following order of priority, oldest tax year first:

    1. Priority 4: IRMF blue tab returns — regardless of DIF Score

    2. Priority 2: Returns with entry of " 2" in Block D of Form 6754

    3. DIF returns in descending DIF score order.

  6. Form 6798 can be used to help schedule returns from the CSDB. This form reflects five orders, one for each day of the week. If appointments are not needed for a certain day, terminal input for that day is not necessary. The PSP Territory Manager will determine appointment times, Activity Codes and the volume to be ordered for each time slot.

  7. The system will allow appointments to be scheduled any time between 7:00 a.m. and 6:00 p.m. The time allotted for appointments may be determined by considering the following:

    1. Type of return—business vs. non-business

    2. Activity Code

    3. Grade and experience of TCOs

    4. No-show and reschedule rates

  8. The PSP Territory Manager will need to coordinate with the Field Territory Manager to set the standard number of hours to be allotted for Office Examination time slots, business and non-business.

    Note:

    The PSP Territory Manager will need to set up a system so groups can communicate return needs to the PSP. Non-DIF/high result/priority/etc. returns will be delivered to the groups in most cases before going to the DIF.

  9. Line 2 of the order screen has been designated for use by the PSP Territory Manager to send special messages regarding the order to the CF&S Unit.

  10. Most Areas operate from a timetable similar to the following:

    1. 5 weeks before the taxpayer appointment, group managers submit information to the PSP Territory Manager regarding number/type of appointments needing scheduling.

    2. 4 weeks before the appointment, returns are ordered from the CSDB inventory.

    3. 3 weeks before the appointment, returns and other scheduling items are mailed to the POD where the examination will be conducted.

    4. 2 weeks before the appointment, the Campus mails the initial contact letter to the taxpayer, if requested.

  11. This timetable gives taxpayers at least 14 days notice before their interviews. Areas may modify the scheduling procedure to meet their needs.

    Note:

    All returns scheduled will be automatically updated to status 10 and the assigned organization code of the organization requesting the returns.

4.1.6.5.1  (10-24-2006)
Optional Scheduling Order by Classified Issue

  1. CSP 4441 is a program that allows return orders by issue within a given activity code. The "window" for ordering by issue is October 1 through January 31 of each year. Only prior year returns can be scheduled using this optional method. This time frame was selected to ensure that the PSP Issue File contains sufficient data for the identification of productive office examination issues.

  2. The PSP Issue inventory is not available for research by terminal display. An inventory report, CSP 4441, PSP Issue Report, will show the PSP issue inventory. The CSP 4441 report is a listing of the classified issues on the prior year returns within each activity code for each POD level on the CSDB.

  3. The PSP Issue Report will be generated weekly from October 1 to January 31, and will be available to the CFSU and the PSP Territory Manager.

  4. The PSP Territory Manager should review the CSP 4441 to determine the activity codes and issues available for scheduling. Returns should not be ordered in excess of the volumes indicated by activity code for the POD. Using command code CSORD, the system will allow the placing of orders by activity code and up to three classified issues.

  5. To lessen the possibility of not being able to fill orders, the computer has been programmed to fill the request with the next lower activity code when there are insufficient prior year returns with the requested issue for the activity code ordered.

4.1.6.5.2  (10-24-2006)
Command Code CSORD

  1. Command Code CSORD can be used to place weekly orders Wednesday through Friday via the IDRS real-time system. Input spacing is very important when using this command code. Please also refer to the IDRS Command Code Job Aid at http://serp.enterprise.irs.gov/databases/irm-sup.dr/job_aid.dr/command-code.dr/idrs_command_codes_job_aid.htm or LEM 2.4.55, Centralized Files and Scheduling Terminal Usage.

  2. Command Code CSORD can be used with various modifiers, entered immediately after the CSORD command code. Definitions are as follows:

    CSORD Modifers   Definitions
    CSORDA — Used to input orders on the PSP database.
    CSORDC — Used to update (change or correct) orders on the PSP database. CSORDC can only be used to update Number of Returns Ordered on existing order lines 02 through 19 that were entered on CSORDA, or to add additional order information for order lines 02 through 19 that were not present on original CSORDA. Note: If it becomes necessary to change any other information, i.e., AO, POD, EGC–CD, INTERVIEW–DT, ACTIVITY–CD, ISSUE–CD, INTERVIEW–TIME on an existing order, a CSORDD will have to be input to delete the entire original order and CSORDA will have to be input with new information.
    CSORDD — Used to delete orders on the PSP database. CSORDD will delete both SESSION 1 and SESSION 2 inputs.
    CSORDH — Used to display information to assist in the entry of the scheduling order (help screen).
    CSORDL — Used to display or verify orders input on the PSP database using CSORDA.
    CSORDS — Used to display an Area Office summary of the weekly orders on the PSP database.

  3. The information to be entered by command code CSORD is to be taken from Form 6798, which consists of two parts. The use of this form is optional and can be used to input pre-scheduled appointments.

  4. The first part of the command code CSORD input is fixed data about the interview day, interview date, and POD information, which consists of the Area office code, post of duty, and employee group code. This part consists of two screen lines:

    1. Screen line 1 should include the SESSION-NUMBER (position 39), which is a field used to tell the system if the input is the first or second session for that AO, POD, EGC-CD, INTERVIEW-DT, and INTERVIEW DAY. The processing must be done in two screens.

    2. The first screen would be for session 1 for the first five ACTIVITY-CDS with corresponding ISSUES and the second screen would be for session 2 for the last 5 ACTIVITY-CDS with corresponding ISSUES.

    3. CSORDC with SESSION-NUMBER 1 will only change CSORDA SESSION-NUMBER 1 information. Likewise, CSORDC with SESSION-NUMBER 2 will only change CSORDA SESSION-NUMBER 2 information.

    4. Screen line 2 is available for an 80 character message which can be added, changed, or deleted.

  5. The second part of the command code CSORD input is the order information. These items are entered using a variable format and may be entered anywhere on screen lines 3 through 23 and are referred to as order lines.

  6. See LEM 2.4.55.1 Command Code CSORD Overview, for information about inputting the command code CSORD and error messages that may be encountered.

4.1.6.5.3  (10-24-2006)
Roll-Down Technique and Unfilled Orders

  1. To lessen the possibility of being unable to fill orders, the computer has been programmed to fill the request with the next lower activity code when there are insufficient returns for the requested activity code. Filling the request with the next lower activity code is known as the " roll-down" technique. It is applied as follows:

    1. Non-business Returns—If Activity Code 541 returns are requested but not available for the POD, the order will be filled with Activity Code 540 returns, then 534, 533, 532, 531 and 530 returns in an effort to complete the order.

    2. Business Returns—The system can roll down from 543 to 542, 537, 536 and 535 in an effort to fill orders for business returns.

    3. Non-business Returns with Business Issues—The system will roll from 641 to 631 returns.

  2. The order will be filled to the extent possible using the roll-down technique within each category. Unfilled orders will be listed on CSP 3640, Unfilled Examination Group Orders. CSP 3640 is a weekly report by Area, POD, employee group code, activity code, date and time of appointments not filled from the CSDB. If all orders are filled, this report will have a notation "No Report Data."

  3. The CFSU manager must notify the PSP Territory Manager if a group’s order cannot be filled completely. This could happen if the order exceeds the inventory volume, or an unusual number of returns either error out, have entity changes, appear as related returns, or are to be late scheduled.

4.1.6.5.4  (10-24-2006)
Precontact Analysis Returns

  1. Presently, all office examination cases are classified as pre-contact analysis.

  2. Returns identified for pre-contact analysis cannot be scheduled and appointment letters will not be generated. Thus, group orders are filled only by returns designated for interview examination.

  3. When an order is placed from CSDB, all pre-contact analysis returns in the same activity codes with DIF scores equal to or greater than the scheduled returns will be forwarded to the group, along with the interview returns.

  4. Pre-contact analysis cases will automatically be updated to Status 10 before they are forwarded to the Areas.

  5. It will be the responsibility of the group to place pre-contact analysis cases in process immediately upon receipt.

  6. As a result of pre-contact analysis returns, a group may receive more returns than it ordered.

4.1.6.5.5  (10-24-2006)
CFSU Processing of Return Orders from CSDB

  1. After weekend processing of the Area orders via IDRS the previous week, the CFSU will pull returns from the CSDB. They will be in Form 4607, Examination Action and Time Record folders, with the yellow copy of the Form 6754 attached.

  2. There is a letter for each taxpayer for whom there is a scheduled appointment or a call-back letter. For pre-contact analysis and multiple returns, no letter is generated. The length of the letter will depend on the number and type of issues selected, but will always be at least four pages. Notice 782, Information on Tax Examinations, will be the last page of each letter.

  3. A copy of the Master Appointment Schedule (CSP 4025) in appointment sequence and the returns will be mailed to the groups. Normally this is done by Friday of the week following the Area order using IDRS. The appointment letter, if mailed, will be mailed to the taxpayer on the following Monday, giving them at least 14 calendar days advance notice of the examination. Another copy of the Master Appointment Schedule will be mailed to the groups under separate cover.

4.1.6.5.6  (10-24-2006)
Appointment Information on the Initial Contact Letter

  1. Prior to placing a return order for a group, the PSP Territory Manager should verify the accuracy of data which will appear on the taxpayer’s appointment letter. Appointment information (place of appointment, telephone number, and person to contact) on the initial contact letter is established on IDRS using command code CSPOD. Form 6877, Worksheet for Changing Taxpayer Contact Letter Information in Centralized Scheduling, may be used to document the change.

  2. Centralized Files and Scheduling identifies geographic areas in some Areas which contain a law school qualifying as a Tax Law Clinic using command code CSPOD. Specific TPI classes within specified POD’s have been designated for Tax Law Clinic use. The Centralized Files and Scheduling program contains a table for student tax clinics to be used in conjunction with the scheduling of appointments. For locations having Tax Law Clinics, the Areas will provide a stuffer to be mailed with the taxpayer’s appointment letter. The stuffer will alert taxpayers to the availability of clinic assistance.

  3. Command code CSPOD will be used to establish, change, and delete AO/POD/Employee Group code information for scheduling purposes. Call-back letters can be generated by using the appropriate indicator on the POD display screen. This designation may be changed as necessary and will apply only to the specific AO/POD/Employee Group code for which the indicator is used.

  4. Command code CSPOD modifiers are:

    1. CSPODA — used to establish appointment information.

    2. CSPODC — used to update appointment information.

    3. CSPODD — used to delete appointment information.

    4. CSPODL — used to display appointment information.

  5. Changes to the appointment letter information can be made at any time during the week using command code CSPOD. During weekend processing the system will be updated.

  6. If an Area has an invalid POD or Employee Group code, until it is corrected, no orders can be processed for that POD.

  7. CSP 4940, CSDB POD File Listing, is a list of current AO/POD/EG code information. The PSP Territory Manager should check the CSP 4940 report to ensure that any changes have been made correctly.

  8. Command code CSPOD is used for establishing Post of Duty information on the PSP database. The data is entered from Form 6877. Although letters will only be generated on office examination (Centralized Files Inventory) cases, field examination (Centralized Storage Inventory) cases will need to have POD information established on the database. When establishing POD information for field examination PODs, the POD number to be entered must be 4 digits, the AIMS POD followed by a zero. An example would be, if the AIMS POD is 003, then the POD entered on the CSPOD screen would be 0030.

  9. See IRM 2.4.54.2 Command Code CSPOD Overview for further information about inputting command code CSPOD and error messages that may be encountered.

4.1.6.6  (10-24-2006)
Deletions From the CSDB

  1. Returns may be deleted from the CSDB for a number of reasons, including:

    1. Transfers to other Areas;

    2. Special requests from Areas or Campus, such as training;

    3. Errors appearing on CSDB Update Error Items; or

    4. Manual orders.

  2. Centralized Files and Scheduling is organized to use the CSDB, including computerized listings, taxpayer contact letters, and appointment schedules on a weekly operating cycle. Therefore, requests for manual orders are discouraged. A manual order or pull requires special handling by the CFSU, such as manual identification of the returns, deletion from the database, and preparation of manual letters if required. Manual pulls can create problems with the accuracy of the CSDB, as well.

  3. An AIMS update of the status and employee group code alone will not delete a return from the CSDB.

4.1.6.6.1  (10-24-2006)
Surveys from the CSDB

  1. The PSP Territory Manager has sole authority to approve the survey of previous file year returns from the CSDB. CFSU managers must have written authorization from the PSP Territory Manager before surveying returns from the Areas CSDB. The survey letter should be sent to the Department Manager, Classification.

  2. Although surveys are normally done on an Area-by-Area basis using the tax year as the main criterion, surveys may be requested for a specific activity code, specific POD, specific year or a combination thereof. A survey may be done any time the PSP Territory Manager and the Field Territory Manager determine the returns are not needed.

  3. Prior year returns should be surveyed as soon as there are sufficient current year returns in the inventory, normally by December 31st.

  4. As the first step in the survey process, the CFSU will request an extract of Blue Tab returns. Blue Tab returns cannot be surveyed.

    1. Blue Tab returns (priority code 4) will be immediately assigned to Area offices.

    2. Other returns prioritized via Block D of Form 6754 may or may not be surveyed depending on the instructions issued to CFSU by the PSP Territory Manager.

  5. The CFSU will pull the surveyed returns, stamp them with a survey stamp, and package them for closing. Disposal Code 35 will be used to close the returns off AIMS. Late Filed Returns (those with statute dates in the calendar year following those being surveyed) will remain on the CSDB. They will not be surveyed.

4.1.6.7  (10-24-2006)
POD Assignment Using ZIP Codes

  1. The Examination Post of Duty is assigned on the basis of taxpayer ZIP codes. ZIP codes and their designated PODs are contained in the ZIP/POD Lookup Table. The POD will be assigned from the ZIP/POD Lookup Table when a return is initially created on AIMS and will be shown on Form 5546, Examination Charge-Out.

  2. In most cases, the AIMS POD is the POD used for Centralized Scheduling. A different POD may be assigned during classification, CF&S, or examination process:

    1. Use of command code AMAXU will change the AIMS POD. Returns on the CSDB will automatically shift to the new POD when AMAXU is used.

    2. Use of POD Override (Block E of Form 6754) will assign a different POD for Centralized Scheduling purposes only. AIMS POD will remain the same. This block may be used as a means of scheduling work from another POD, often for training purposes.

    3. Use of the CF&S POD Conversion Table changes the AIMS POD for scheduling purposes only. This conversion table is normally used for HARA and inactive PODs and may be changed on an annual basis.

  3. Each year, the PSP Territory Manager may make corrections, deletions or additions to the ZIP/POD Lookup Table. These corrections, deletions, or additions may be used to realign the Area, add, delete or expand a POD, or correct ZIP codes designated as POD 999. The National Headquarters will make requests for changes to the ZIP/POD Lookup Table.

4.1.6.7.1  (10-24-2006)
Call Sites and Late Scheduled Indicators

  1. The PSP Territory Manager will use IDRS command code CSZIP to establish satellite or unstaffed offices (also referred to as call sites), and/or geographic Areas for which an appointment should not be scheduled before 9:00 a.m.

  2. The PSP Territory Manager will use Form 6876 , Worksheet for Centralized Scheduling ZIP Code Update Information, to identify ZIP codes within a POD to be assigned to the satellite or unstaffed offices or to be scheduled after 9:00 a.m.

  3. Command code CSZIP with the blank modifier is used to establish, update, delete, or list ZIP records on the database. Command code CSZIPH (CSZIP with the H modifier) will display a help screen.

  4. See IRM 2.4.54.5, Command Code CSZIP Overview for information about inputting the command code CSZIP and error messages that may be encountered.

  5. The information to be entered by command code CSZIP, taken from Form 6876, consists of two parts:

    1. The first part is the command code modifier and POD information (primary business code group and post of duty). This information is entered in fixed positions on screen line 1.

    2. The second part is the ZIP items. These items are entered using a variable format and may be entered anywhere on screen lines 2 through 23.

  6. More than one ZIP code may be established within a call site.

  7. When establishing ZIP codes for call sites and late scheduling, the ZIP code must match the ZIP code for the POD as shown in the annual ZIP/POD Lookup Table

  8. The designation of call sites or satellite offices will expand the POD of the CSDB. A fourth digit, with a range of 1–4, will add to the POD and establish returns assigned to that ZIP code in a unique inventory for ordering purposes. The call site designation takes priority over the special inventory. For example, a return which has been identified for Training Level 2 (Block C, box #7 of Form 6754) will lose the training identity if it qualifies, based on ZIP code, as a call site designation. It will appear in call site inventory rather than training inventory.

  9. ZIP codes designated for late scheduling will not be scheduled before 9:00 a.m. If an entire POD’s work is to be scheduled after 9:00 a.m., no ZIP codes will be established using command code CSZIP. This situation will be handled locally by not requesting appointments before 9:00 a.m. ZIP codes with late schedule indicators will be posted on the CSDB and the literal "late" will print on the CSDB Inventory Listing, CSP 4240, for each record assigned to a late ZIP code.

  10. The indicator for a late schedule and/or call site is assigned to a return as the return adds to the CSDB.

    1. Call site and late schedule indicators will affect only returns adding to the CSDB after the change is made. Returns on CSDB with or without an indicator will not be changed if the call site or late schedule indicator is later added or removed.

    2. Returns which should no longer have the indicator assigned to them should be deleted from the CSDB and readied as a new return.

  11. Returns with a ZIP code for late scheduling may also be designated for a call site or special inventory.

  12. CSP 4840, Centralized Files and Scheduling ZIP Code File Listing, reflects all ZIP codes with indicators. The listing will include only those ZIP codes designated as follows:

    1. Late Schedule with Call Site indicator;

    2. Late Schedule with no Call Site indicator; or

    3. Call Site indicator only.

  13. ZIP codes which may be scheduled any time during the day and are not designated as a call site should not appear on the ZIP Code File Listing.

  14. It is recommended that during the next ZIP/POD Lookup Table Update a unique POD be assigned in lieu of the call site. This will establish return filings and deliveries for these PODs so that DIF return ordering can be more accurately planned.

4.1.6.8  (10-24-2006)
Employee Returns

  1. When an employee return generated through the DIF system is classified and selected for examination, it will be shipped in a security envelope as follows:

    1. Returns of nonmanagerial employees will be shipped to the PSP Territory Manager.

    2. Returns of Area level personnel or above will be shipped to the Director, Exam Planning and Delivery.

    3. Returns of all other managers or Territory level personnel will be shipped to the PSP Territory Manager.

  2. Employee returns selected for examination will not be stored at the campus.

  3. The Classification Department Manager, or designee, will make a list of the employee returns shipped to the PSP Territory Manager. The list will be sent in a security envelope to the Director, Examination Planning and Delivery, NCFB C7-114..

4.1.6.9  (10-24-2006)
Returns of Potentially Dangerous Taxpayers

  1. When the return of a potentially dangerous taxpayer appears on the Master Appointment Schedule as a Pre-contact Analysis case, the return will be mailed to the group under a separate transmittal with a routing slip showing the return as a potentially dangerous taxpayer. The return will then be scheduled by the group.

  2. At survey time, these returns will be surveyed like any other return.

4.1.6.10  (10-24-2006)
Special Requests for Returns Assigned to CF&S

  1. Periodically, there will be requests for returns assigned to your Area office in Status 08/Employee Group code 2050, indicating that the return is part of the CSDB. These requests may come from Examination personnel in the Area or from functions other than Examination, such as Criminal Investigation.

  2. Area personnel should be instructed to contact the PSP Territory Manager if they need a return which is currently assigned to CFSU. In addition, Area personnel should be instructed never to update records from Status 08/Employee Group code 2050, even if they are working from a copy.

  3. Specific returns requested by the Area Examination function must be deleted from the CSDB. The return will be updated on AIMS to the requesting status and organization code by the CFSU and forwarded to the Area.

  4. Requests for returns from Area functions other than Examination are handled differently. The returns are assigned on AIMS to a specific Area. The returns will be deleted from the CSDB and forwarded to Examination in the Area office for coordination with the requesting function. A copy will be provided to the requester until the original return is received in the Area office.

4.1.6.11  (10-24-2006)
Quarterly Management Reports

  1. At the end of each quarter, CFSU can generate Quarterly Management Reports (CSP 6540). These reports are normally scheduled when the monthly AIMS extracts are done.

  2. The Territory Report reflects volumes of returns scheduled by Activity Code within each group. Volume is shown for the current quarter as well as cumulative for the fiscal year.

  3. The Area Report accumulates volumes by TPI for each territory for the current quarter as well as cumulative to date. In addition, this report identifies the types of issues (using issues per Form 6754) by Activity Code for returns scheduled. The last data provided by this report reflects the average number of issues classified per class of return.

4.1.6.12  (10-24-2006)
Coordination with Centralized Files and Scheduling

  1. Special requests involving manual tasks, such as manual pulls, special reports to be prepared, etc. should be kept to a minimum. The CFSU operates with limited staffing, is structured around using existing computer applications, a one-week operating cycle for its functions, and serves more than one Area’s needs.

  2. Problems identified by either the PSP Territory Manager or the groups with returns or schedules received from the CFSU should be brought to the immediate attention of the CFSU manager.

  3. It is important for the Area PSP to have frequent discussions with the campus Manager of Centralized Files and Scheduling to keep abreast of the return orders and issues dealing with the Area inventory.

4.1.6.13  (10-24-2006)
Centralized Storage Overview (Field Examination)

  1. Centralized Storage is an unassigned inventory housed in the Centralized Files and Scheduling Unit at the campus. This unit is part of Examination, Classification Department in Compliance.

  2. The concept for Centralized Storage differs from the centralized scheduling of office examination returns in that this phase includes only the storage of selected unassigned field individual returns, corporate returns through activity code 217, partnership returns, Form 1120S returns and fiduciary returns. Applications have been developed to distinguish between examination potential and grade level of cases to be maintained in Centralized Storage.

  3. Once the inventory information for returns held in Centralized Storage is obtained, the computer sorts the inventory in the following sequence:

    1. Area Office (AO)

    2. Post of Duty (POD)

    3. Employee Group Code

    4. Activity Code

    5. Priority Code

    6. Statute Year

    7. Discriminant Function (DIF) Score

    8. Statute Date

    9. Tax Year

  4. The sort sequence is the computer process that decides the placement in the file for each return. The objective of the sorting is to provide the Areas with the returns most in need of examination.

4.1.6.13.1  (10-24-2006)
Returns Maintained in Centralized Storage

  1. In general, only automatic returns (Source Code 01), computer identified returns (Source Code 02), and regular classification returns (Source Code 20) will be maintained in Centralized Storage. These returns are obtained from Centralized Classification at the Campus subsequent to the screening process in which the returns are selected for examination.

  2. Returns in the following categories will not be maintained in Centralized Storage:

    1. International Returns

    2. All Non-Master File Returns

    3. 941 Returns

  3. The maintenance of Fiduciary Returns, Form 1041 , in Centralized Storage is optional. Automatic returns placed into the CSDB will show up in the inventory as Priority Code 3 returns.

  4. The following is a list of organization codes and activity codes used for Centralized Storage:

    1. Employee Group Codes 1066, 1067, 1068, and 2066.

    2. Activity Codes:
      Individual Returns: 530 through 543
      Corporate Returns (1120): 203 through 217
      Form 1120S Returns: 288 and 289
      Partnership Returns: 481 and 482
      Fiduciary Returns: 496

  5. The Area PSPs will determine which organization code will be used for their selected returns. The CF&S unit will be responsible for updating the returns to the correct employee group code to be added to the Centralized Storage inventory.

4.1.6.13.2  (10-24-2006)
AIMS Update Process for Centralized Storage

  1. As selected field returns are received by CFSU from Centralized Classification, the AIMS status will be updated to Status 08 with one of the following employee group codes: 1066, 1067, 1068, or 2066.

  2. The Centralized Storage system only recognizes employee group codes 1066, 1067, 1068 and 2066; these are the only employee group codes appearing on the Table 1 and Table 2 Inventory Reports.

  3. Selected returns received from classification will be placed inside a file folder and filed in AIMS serial number sequence. The returns are updated to status 08 and one of the appropriate organization codes. Table A — Returns Added Listing (CSP 5740), is computer generated once the returns are updated on AIMS by CFSU to the established employee group codes for Centralized Storage.

4.1.6.13.3  (10-24-2006)
Ordering Returns from Centralized Storage

  1. The ordering of returns from Centralized Storage will be accomplished by using Table 2, PSP Centralized Storage Inventory Report (CSP 5541) to determine what returns are available.

  2. Returns may be ordered from Centralized Storage by using Form 6834, Centralized Storage Requisition for Selected Returns, or a locally devised form similar to this. The order form can be faxed to the Campus. Returns are manually pulled from Centralized Storage, updated to status 10, and mailed to the groups.

  3. CSP 5541 Table 2 — PSP Centralized Storage Inventory Report is sorted by the Area Office, AIMS Post of Duty and Employee Group Codes 1066, 1067, 1068 and 2066. POD information will have to be established on the PSP database using command code CSPOD for those POD(s) listed on the CSP 5541. CSPOD requires that a 4 digit POD be entered. CSP 5541 lists a 3 digit AIMS POD. When entering the CSP 5541 information using CSPOD, enter the AIMS POD followed by a zero. An example of this is: The CSP 5541 AIMS POD is 003. The POD entered on the CSPOD would be 0030.

  4. Table 1 — Centralized Storage Inventory Report (CSP 5540) and Table 2 — PSP Centralized Storage Inventory (CSP 5541) generates weekly.

  5. Problems encountered with the Centralized Storage system should be brought to the attention of the manager of the Centralized Files and Scheduling Unit by the Area PSP. Group managers and others outside the PSP office should deal with their PSP in order to minimize contact with the campus. Significant or recurring problems will be brought to the attention of the PSP Territory Manager.

4.1.6.13.4  (10-24-2006)
Miscellaneous Items for Centralized Storage

  1. Related Returns: For purposes of Centralized Storage, related returns are considered to be two or more returns for the same taxpayer where one or more of the taxpayers’ returns are being maintained in Centralized Storage (Status 08), while another return is open in Examination in Status 10 or 12.

  2. For returns that are located in the Area office, the CFSU will pull the Centralized Storage return, update AIMS to status 10 for the same organization code as the other return(s) located in the Area, and mail the return to that group for association.

  3. For returns that are located in the Campus the disposition of related returns is as follows:

    1. Related returns that are located in Correspondence Exam (Employee Group Code 5XXX): no action will be taken.

    2. Related returns in status 08/Employee Group Code 2050 (Centralized Scheduling): CFSU will delete the related return from the CSDB and update the organization code to that of the return being maintained in Centralized Storage (1066, 1067, etc.) to be stored as a " multiple" return.

  4. Multiple Returns: Multiple returns occur when two or more returns for the same taxpayer are concurrently maintained in Centralized Storage (Status 08). CFSU will match the primary return to the multiple return, cross reference the folders, and file both returns in the file by their respective AIMS serial number.

  5. Survey of returns from Centralized Storage: It is the responsibility of the Area office to inform the campus when it is time to survey returns from Centralized Storage. See prior text in this handbook regarding survey procedures. Returns in Centralized Storage should normally be surveyed by December 31.

  6. EGC 2066 will also be used to store certain office examination returns with errors that the CFSU is unable to add to the CSDB. Area PSP should review the 2066 inventory to ensure these returns are ordered out. There should be a minimum number of these returns.


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