4.1.6  Storage of Selected Returns

Manual Transmittal

February 11, 2014

Purpose

(1) This transmits revised IRM 4.1.6, Planning and Special Programs, Storage of Selected Returns.

Material Changes

(1) Minor editorial changes have been made throughout this IRM. Also, web site addresses and IRM references were reviewed and updated as necessary. Replaced "Midwest Automated Compliance System (MACS)" with "Compliance Data Environment (CDE)." Replaced "Centralized Files and Scheduling Unit (CFSU)" with "Centralized Files and Scheduling (CF&S)" throughout this IRM. Other significant changes to this IRM are as follows:

Reference Description
IRM 4.1.6.1 Added additional ways to monitor inventory.
IRM 4.1.6.2 Added employee group codes (EGCs) used to store selected examination returns.
IRM 4.1.6.4 Changed title from Planning and Special Programs Inventory to "The Planning and Special Programs (PSP) Inventory Held at the Campus." Updated this section to reflect correct terminology, activity codes, and reports available for PSP inventory held at the campus.
IRM 4.1.6.5 (5) Removed Priority 4, Individual Return Master File (IMRF) Blue Tab Returns, from order of priority.
IRM 4.1.6.5.3 (1) Updated the roll down order using the new activity codes.
IRM 4.1.6.6 Added Compliance Data Environment (CDE) orders as a reason returns may be deleted from the Centralized Scheduling Database (CSDB.)
IRM 4.1.6.6.1 Removed "Blue Tab Returns" from survey instructions.
IRM 4.1.6.7.1 Updated call sites and unstaffed offices to satellite or secondary zip POD groupings.
IRM 4.1.6.8 (3) Deleted NCFB C7-114. Mail stop information is available via Outlook address book.
IRM 4.1.6.9 (3) Added a reference to IRM 25.4.1, Potentially Dangerous Taxpayers.
IRM 4.1.6.11 Removed this section titled Quarterly Management Reports and renumbered the remaining sections.
IRM 4.1.6.12.1 Updated activity codes of returns maintained in Centralized Storage. This section was renumbered from IRM 4.1.6.13.1.
IRM 4.1.6.12.2 Added Employee Group Code (EGC) 2050. This section was renumbered from IRM 4.1.6.13.2.

Effect on Other Documents

IRM 4.1.6 dated 10/24/2006 is superseded.

Audience

Planning and Special Programs (PSP) employees.

Effective Date

(02-11-2014)

Alfredo Valdespino
Acting Director, Examination Planning and Delivery
Small Business/Self-Employed

4.1.6.1  (02-11-2014)
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. Providing returns for training.

    2. Campus workload redistributions.

    3. Major computer programming changes that may delay the filling of return orders. For example, implementation of major changes to Audit Information Management System (AIMS), Examination Records Control System (ERCS), etc.

  3. AIMS Centralized Information System (A-CIS), Table 37, Statistical Sampling Inventory Validation (SSIVL) and ERCS, can be used for monitoring inventory aging by month for Status 08 and Status 10 returns. A large volume of returns in Status 08 and Status 10 for over two to four months could indicate inefficient use of the return order and delivery system. If the Compliance Data Environment (CDE) system is being used, two months of inventory should be sufficient. If the Martinsburg Computing Center (MCC) system is used, four months of inventory should be sufficient.

  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 for paper returns produces certain cost savings and operating efficiencies. These include the following:

    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 are scheduled first.

    4. Clerical efficiencies.

    5. Reduction in shipping costs.

    6. Reduction in storage costs.

    7. Uniformity among the examination areas.

    8. Weekly information from AIMS. For example, address changes are automatically made when the Centralized Files and Scheduling (CF&S) database is matched weekly against the AIMS database. This reduces the no-show rate and undeliverable letters.

    Reminder:

    CDE returns are part of virtual inventory and no storage is required at the campus or area office.

4.1.6.2  (02-11-2014)
Storage at the Campus

  1. CF&S is a program to physically store selected examination returns and is capable of scheduling initial appointments for the areas. The program can generate initial contact letters using standard paragraphs based on issues identified during classification. Standard paragraphs have been written for each issue listed on Form 6754, Examination Checksheet. These paragraphs tell the taxpayer what records are needed for the examination.

  2. Centralized storage of unassigned examination returns replaces the need for large manual centralized filing systems in the areas.

  3. The returns are housed in CF&S at the campus under the direction of the classification department manager. Inventory will be from discriminant function (DIF) orders.

  4. The following EGCs are used to store selected examination returns:

    Employee Group Code Description
    1066 Field Grade 11 and below
    1067 Field Grade 12
    1068 Field Grade 13
    2050 Office examination
    2066 Office examination

4.1.6.3  (02-11-2014)
Centralized Scheduling Overview (Office Examination)

  1. After selection for office examination in the centralized classification function, returns are moved to CF&S for perfection of the Form 6754 and storage until scheduled for examination by an area. The Form 6754 is perfected by a process known as hash totaling. When perfected, Forms 6754 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 the following:

    1. Related returns

    2. Address changes

    3. Freeze conditions

    4. Discrepancies between CSDB and AIMS data

  3. For office examination returns, at least three to four weeks prior to when a return is needed in the group, the PSP territory manager, using command code CSORD, will place the order. Usually, orders can be placed Wednesday through Friday via the Integrated Data Retrieval System (IDRS) real-time system.

  4. Generally, returns are categorized as "pre-contact." However, for returns categorized as "interview" on Form 6754, taxpayer contact letters and master appointment schedules may be generated and sent to CF&S for processing. CF&S 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 CF&S 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 an area, the appointment letter can be kept in the return file rather than mailed to the taxpayer.

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

4.1.6.3.1  (02-11-2014)
Returns Added to the Centralized Scheduling Database (CSDB)

  1. Returns added to the CSDB are automatically updated on AIMS to Status 08 EGC 2050. This is an exclusive employee group code (EGC) assigned to CF&S. Status 08 indicates the return has been selected but not yet assigned to a group.

  2. Related returns: For CF&S purposes, a related return is defined as another tax year of the taxpayer in Status 10 or Status 12 on AIMS. The objective of identifying related returns through CF&S processing is to eliminate simultaneous examinations. When a return is identified, the CF&S will update the return to Status 10, update the related return's EGC, and forward the related return to the group working the return assigned in Status 10 or 12. The PSP territory manager may issue instructions requesting CF&S not forward related returns to a designated 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 CF&S.

  3. Primary and multiple returns: The terms "primary" and "multiple" apply when more than one return year 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 the 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  (02-11-2014)
The PSP Inventory Held at the Campus

  1. The PSP inventory on the CSDB is available for research in the weekly Centralized Files and Scheduling PSP (CSPSP) Inventory Report, CSP 4440, by terminal display using command code CSPSP or by Control D Web Access. The CSP 4440 report reflects interview and pre-contact analysis returns available for ordering from CF&S by tax year. The CSP 4440 report is systemically produced weekly and 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 CSP 4440 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
    POD summary for each priority level
    Modifier S
    POD field entry
    Inventory totals for each POD level by POD


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

  4. With each command code input, a two-page display will appear. The first page will contain volumes for Activity Codes 270–281. The second page will contain volumes for Activity Codes 670 and 671. For CF&S purposes, all activity codes are maintained on the CSDB. Two additional activity codes have been created on the CSDB by changing the "2" to a "6" in Activity Codes 270 and 271 when Issue 50, Gross Receipts, has been checked on Form 6754. Therefore, returns containing business issues that are Activity Code 270 become Activity Code 670; returns containing business issues that are Activity Code 271 become Activity Code 671. These returns are carried separately throughout the system and may be scheduled as if they were business returns.

  5. Priority levels currently displayed using CC CSPSP with modifier P is Priority 2, for use at campus/PSP discretion. An entry of 2 in Block D of Form 6754 creates a 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.

  6. Zip POD is a database that aligns a zip code with an IRS POD by operating divisions. For inventory purposes, as well as scheduling, each call site zip POD and each special inventory within a zip POD is considered a separate POD. Thus, there may be 10 separate inventories for each AIMS zip POD (e.g., zip POD XXXO through XXXX). The zip POD for CF&S purposes is a four digit number. The first three digits of the zip POD normally coincide with the assigned AIMS POD. The fourth digit expands the AIMS POD by providing inventory levels for ordering purposes for call site satellite offices and special inventories. For example, POD 001 with a special inventory indicator of 5 becomes POD 0015 for CF&S. Returns without a satellite office call site or special inventory indicator would be in zip POD 0010.

    Fourth Digit POD Level Definition
    0 Regular returns zip POD grouping.
    1–4 Secondary zip POD groupings.

    Note:

    Can be used for unstaffed PODs (satellite offices) or swing (temporary) zip PODs.

    5–9 Special inventories (established via Block C on Form 6754).

  7. A satellite office is defined as an itinerant location where taxpayers are asked to report for the examination of their return. Tax compliance officers (TCOs) travel from their normal POD 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 reasonably be asked to travel. The range of numbers used as the fourth digit for satellite offices is 1–4; thus, there may be as many as four available inventories within a POD for a satellite office. 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 where more than one group uses the same inventory.

  8. 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 a 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 as follows:

    • 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)

  9. 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 670 and 671 to Activity Codes 270 and 271. If the PSP territory manager has business trained TCOs, the premise is to schedule the non-business with business issue returns before non-business returns when the DIF score is higher.

  10. 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 the primary return is ordered.

  11. Returns should not be ordered in excess of volumes indicated by activity code for the POD Also, the PSP territory manager should not include in his or her computation returns anticipated to add to the database.

  12. When primary returns are ordered, they may not be add to the database immediately for classification. Also, a delay may occur because the CF&S must submit the Form 6754 to Distributed Orders Input System (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.

  13. CF&S weekly top priorities are as follows:

    1. Mailing letters and appointment schedules for the prior week’s orders.

    2. Working the CSDB listings.

    3. Perfecting Form 6754 by hash totaling.

  14. Sometimes errors occur and orders go unfilled. Unfilled orders could be the result if orders are placed in volumes greater than what is shown on the Centralized Files and Scheduling PSP (CSPSP) Inventory Report, CSP 4440 report. Errors can be viewed on the following:

    1. Update—Error Items, CSP 3241 report

    2. Unfilled Examination Group Orders, CSP 3641 report (gives unfilled portions of group orders)

    3. Total Orders By POD Report, CSP 3541 report (gives totals ordered by POD and EGC)

    The reports listed above can be accessed from the Control D Web Access through Integrated Document Solutions Enterprise (IDSE).

  15. Any problems or questions noted by the PSP territory manager about inventory should be brought to the immediate attention of the CF&S manager.

  16. Each Monday the PSP Inventory report will reflect the volume of returns on the CSDB. This includes returns added during the weekend processing and excludes returns ordered during the prior week.

  17. Additionally, the CF&S Inventory by DIF Score Range, CSP 6040 report, is a monthly report that can be used by PSP territory managers to monitor inventory levels.

4.1.6.5  (02-11-2014)
Scheduling Appointments Through Centralized Scheduling

  1. One of the most important functions of the CF&S system is the ability to schedule taxpayer appointments and generate the initial contact letter. 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 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 2: Returns with entry of "2" in Block D of Form 6754.

    2. DIF returns in descending DIF score order.

  6. Form 6798, Worksheet for Centralized Scheduling Orders, 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 versus 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:

    Return needs should be communicated to the PSP territory manager via Form 13537, Office Exam Monthly Group Return Order. PSP will fill return orders based upon examination work plan needs. The orders may be filled with priority workload, project work, mandatory work, and 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 CF&S.

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

    Time Frame Action
    5 weeks before the appointment Group managers submit information to the PSP territory manager regarding number and type of appointments needing scheduling.
    4 weeks before the appointment PSP staff orders returns from the CSDB inventory.
    3 weeks before the appointment Campus mails returns and other scheduling items to the POD where the examination will be conducted.
    2 weeks before the appointment Campus mails the initial contact letter to the taxpayer, if requested.

    The time frames above give the taxpayers at least 14 days notice before their interviews. Areas may modify the scheduling procedures and time frames to meet their needs.

    Note:

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

4.1.6.5.1  (02-11-2014)
Optional Scheduling Order by Classified Issue

  1. The PSP Issue Report, CSP 4441 report, is an inventory report of the classified issues on the prior year returns within each activity code for each POD level on the CSDB. This report allows ordering by issue.

  2. 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.

    Note:

    This time frame was selected to ensure the PSP issue file contains sufficient data for the identification of productive office examination issues.

  3. The PSP issue inventory is not available for research by terminal display.

  4. The CSP 4441 report will be generated weekly from October 1 to January 31, and it will be available via Control D Web Access.

  5. The PSP territory manager should review the CSP 4441 report 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.

  6. To increase the likelihood that an order will be filled, 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  (02-11-2014)
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 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 IRM 2.4.55, Command Code CSORD.

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

    CSORD Modifiers 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 the CSORDA, or to add additional order information for order lines 02 through 19 that were not present on the original CSORDA.

    Note:

    If it becomes necessary to change any other information, e.g., 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 a CSORDA will have to be input with new information.

    CSORDD Used to delete orders on the PSP database. CSORDD will delete both SESSION-NUMBER 1 and SESSION-NUMBER 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. It consists of two screen lines.

  5. Screen line 1: This line will 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.

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

    2. 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.

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

  7. 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 which are referred to as order lines.

  8. See IRM 2.4.55, Command Code CSORD, for information about inputting the command code CSORD and error messages that may be encountered.

4.1.6.5.3  (02-11-2014)
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—Activity Codes 279, 273, 272, 270 (these activity codes do not roll down).

    2. Business returns—See table below.

      Activity Code Rolls down to the following in the order listed:
      281 280, 277, 276, 275, 274
      280 277, 276, 275, 274
      278 277, 276, 275, 274
      277 276, 275, 274
      276 275, 274
      275 274
      274 271
      271 270

    3. Non-business returns with business issues—The system will roll from Activity Code 671 to 670 returns. Activity Code 670 can not roll down further.

  2. The order will be filled to the extent possible using the roll-down technique within each category. Unfilled orders will be listed on the Unfilled Examination Group Orders Report, CSP 3640 report. CSP 3640 is a weekly report by area, POD, EGC, 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 CF&S manager must notify the PSP territory manager if a group’s order can not be completely filled. Listed below are reasons an order may not be completely filled:

    1. The order exceeds inventory volume.

    2. An unusual number of returns error out.

    3. An unusual number of returns have entity changes.

    4. The order contains several related returns.

    5. The order requests several late scheduled appointment slots.

4.1.6.5.4  (02-11-2014)
Pre-contact Analysis Returns

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

  2. Returns identified for pre-contact analysis can not be scheduled and appointment letters will not be generated. 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.

4.1.6.5.5  (02-11-2014)
Centralized Files and Scheduling (CF&S) Processing of Return Orders From CSDB

  1. After weekend processing of the area orders via IDRS the previous week, the CF&S 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. Included in the Form 4607 folder 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.

  3. The length of the letter will depend on the number and type of issues selected. It will always be at least four pages. Notice 782, Information on Tax Examinations, will be the last page of each letter.

  4. A copy of the CSP 4025 report, Master Appointment Schedule, and the returns will be mailed to the groups. Normally this is done by Friday of the week following the area order. 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 CSP 4025 will be mailed to the groups under separate cover.

4.1.6.5.6  (02-11-2014)
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 that appears on the taxpayer’s appointment letter. Appointment information (place of appointment, telephone number, and person to contact) on the initial contact letter is input 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. Specific TPI classes within specified PODs have been designated as qualifying for tax law clinic use. The CF&S program contains a table for student tax clinics to be used in conjunction with the scheduling of appointments. CF&S identifies geographic areas that contain law schools with a tax law clinics using command code CSPOD. 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/EGC 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/EGC for which the indicator is used.

  4. Command code CSPOD modifiers are used as follows:

    1. CSPODA—Inputs appointment information.

    2. CSPODC—Updates appointment information.

    3. CSPODD—Deletes appointment information.

    4. CSPODL—Displays 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 EGC, no orders can be processed for that POD or EGC until the invalid information is corrected.

  7. CSDB POD File Listing, CSP 4940 report, is a listing of current AO/POD/EGC. The PSP territory manager should check the CSP 4940 report to ensure changes have been made correctly.

  8. Command code CSPOD is used for establishing POD 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). For example, 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  (02-11-2014)
Deletions From the CSDB

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

    1. Transfers to other areas

    2. Special requests from areas or campus, such as training

    3. Errors appearing on CSP 3241 report, Update Error Items

    4. Manual orders

    5. CDE Orders

  2. CF&S is organized to use the CSDB, including computerized listings, taxpayer contact letters, and appointment schedules on a weekly operating cycle; consequently, requests for manual orders are discouraged. A manual order or pull requires special handling by the CF&S, 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  (02-11-2014)
Surveys From the CSDB

  1. The PSP territory manager has sole authority to approve the survey of previous file year returns from the CSDB. CF&S 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 classification department manager.

  2. Although surveys are normally done on an area-by-area basis using the tax file 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 31. Other returns prioritized via Block D of Form 6754 may or may not be surveyed depending on the instructions issued to CF&S by the PSP territory manager.

  4. CF&S 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 at this time.

4.1.6.7  (02-11-2014)
POD Assignment Using ZIP Codes

  1. The examination POD is assigned based on the taxpayer's zip code. Zip codes and their designated PODs are contained in the zip POD lookup table at http://mysbse.web.irs.gov/AboutSBSE/Exam/epd/wa/default.aspx. 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, or on the CDE Taxpayer Information Sheet.

  2. In most cases, the AIMS POD is the POD used for centralized scheduling. A different POD may be assigned during classification, by CF&S, or during the 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. Block E may be used as a means of scheduling work from another POD. It is often used 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 high assault risk areas (HARA) in inactive PODs. The CF&S POD conversion table 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. SBSE Examination Planning and Delivery HQ staff will make requests for changes to the zip POD lookup table.

4.1.6.7.1  (02-11-2014)
Satellite or Secondary Zip POD Groupings and Late Scheduled Indicators

  1. The PSP territory manager will use IDRS command code CSTO to establish a satellite office or a secondary zip POD grouping and/or geographic area 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 will be used to establish, update, delete, or list zip records on the database. Use command code CSZIPH (CSZIP with the H modifier) to display the help screen when needed.

  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. First part: This 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. Second part: This 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 assigned within a satellite or secondary zip POD grouping.

  7. When establishing zip codes for satellite or secondary zip POD grouping 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 a satellite office or secondary zip grouping 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 satellite or secondary zip POD grouping 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 satellite or secondary zip POD grouping designation. It will appear in satellite or secondary zip POD grouping 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 report, for each record assigned to a late zip code.

  10. The indicator for a late schedule, satellite office, or secondary zip POD groupings are assigned to a return as the return adds to the CSDB.

    1. Satellite offices or secondary zip POD groupings and late schedule indicators will affect only returns added to the CSDB after the change is made. Returns on CSDB with or without an indicator will not be changed if the satellite office or secondary zip POD groupings 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 satellite offices, secondary zip POD groupings, or special inventory.

  12. CSP 4840, CF&S Zip Code File Listing, reflects zip codes with indicators. The listing will include only those zip codes designated as one of the follows:

    1. Late schedule with satellite offices or secondary zip POD groupings indicator.

    2. Late schedule with no satellite offices or secondary zip POD groupings indicator.

    3. Satellite offices or secondary zip POD groupings indicator only.

  13. Zip codes which may be scheduled any time during the day and are not designated as satellite offices or secondary zip POD groupings should not appear on the zip code file listing.

  14. It is recommended during the next zip POD lookup table update that a unique POD be assigned in lieu of the satellite offices or secondary zip POD groupings. This will establish return filings and deliveries for these PODs, so DIF return ordering can be more accurately planned.

4.1.6.8  (02-11-2014)
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 non-managerial employees will be shipped to the PSP territory manager.

    2. Returns of area level personnel or above will be shipped to the Director, Examination Planning and Delivery for transfer to an area office outside the employee's assigned area.

    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 his or her designee will prepare a list of the employee returns shipped to an area PSP territory manager. The list will be sent in a security envelope to the Director, Examination Planning and Delivery.

4.1.6.9  (02-11-2014)
Returns of Potentially Dangerous Taxpayers

  1. When the return of a potentially dangerous taxpayer (PDT) 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 PDT. The return will then be scheduled by the group for examination.

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

  3. For further information on the PDT program see IRM 25.4.1, Potentially Dangerous Taxpayers.

4.1.6.10  (02-11-2014)
Special Requests for Returns Assigned to CF&S

  1. Periodically, there will be requests for returns assigned to an area office in Status 08 EGC 2050, which indicates 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 a PSP territory manager if they need a return which is currently assigned to CF&S. In addition, area personnel should be instructed never to update a record from Status 08 EGC 2050 even if they are working from a copy.

  3. Specific returns requested by an area examination function must be deleted from the CSDB. The return will be updated on AIMS to the requesting status and EGC by CF&S 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 an 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  (02-11-2014)
Coordination With Centralized Files and Scheduling

  1. Special requests involving manual tasks, such as manual pulls, preparation of special reports, etc., should be kept to a minimum. The CF&S 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 with returns or schedules received from CF&S should be brought to the immediate attention of the CF&S manager by either the PSP territory manager or the group manager.

  3. It is important for the area PSP territory manager to have frequent discussions with CF&S management to keep abreast of the return orders and other issues.

4.1.6.12  (02-11-2014)
Centralized Storage Overview (Field Examination)

  1. Centralized Storage is an unassigned inventory unit housed in CF&S at the campus. This unit is part of an examination classification department in Campus Compliance Services.

  2. The concept for centralized storage of field returns differs from the centralized scheduling of office examination returns. Centralized Storage maintains selected unassigned field individual returns, corporate returns through Activity Code 217, partnership returns, s-corporation 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

    2. Post of duty

    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.

4.1.6.12.1  (02-11-2014)
Returns Maintained in Centralized Storage

  1. In general, only automatic selection 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. Form 941, Employer's Quarterly Federal Tax Return

  3. The maintenance of fiduciary returns, Form 1041, U.S. Income Tax Return for Estates and Trusts, in Centralized Storage is optional. Automatic returns placed into the CSDB will show up in the inventory as Priority Code 3 returns.

  4. Centralized Storage uses EGCs: 1020, 1066, 1067, 1068, 1076, 1077, 1078, 2020, 2050, and 2066.

  5. Centralized Storage uses the following activity codes:

    Return Type Activity Code
    Individual 270 through 281
    Corporate (1120) 203 through 217
    S-Corporation (1120-S) 288 and 289
    Partnership 481 and 482
    Fiduciary return 496 through 498

  6. The area PSP staff will determine which EGC will be used for returns selected for the area. CF&S will be responsible for updating the returns to the correct EGC to be added to the Centralized Storage inventory.

4.1.6.12.2  (02-11-2014)
AIMS Update Process for Centralized Storage

  1. As selected field returns are received by CF&S from Centralized Classification, the AIMS status will be updated to Status 08 with one of the following EGCs: 1020, 1066, 1067, 1068, 1076, 1077, 1078, or 2020.

  2. The Centralized Storage System only recognizes EGCs 1066, 1067, 1068, 2050, and 2066; these are the only EGCs appearing on the CSP 4440—Table 1, Centralized Files and Scheduling PSP Inventory Report, and the CSP 5540—Table 2, PSP Centralized Storage 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 EGCs. CSP 5740—Table A, Returns Added Listing, is computer generated once the returns are updated on AIMS by CF&S to the established EGCs in Centralized Storage.

4.1.6.12.3  (02-11-2014)
Ordering Returns From Centralized Storage

  1. The ordering of returns from Centralized Storage will be accomplished by using CSP 5541—Table 2, PSP Centralized Storage Inventory Report, 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 similar locally devised form. The order form can be faxed to the campus. Returns are manually pulled from Centralized Storage, updated to Status 10, and mailed to the group.

  3. CSP 5541—Table 2 is sorted by the area office; AIMS POD; and EGCs 1066, 1067, 1068, 2050, 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—Table 2. CSPOD requires that a 4 digit POD be entered. CSP 5541—Table 2 lists a 3 digit AIMS POD. When entering the CSP 5541—Table 2 information using CSPOD, enter the AIMS POD followed by a zero. For example, when the CSP 5541 AIMS POD is 003, the POD entered on the CSPOD would be 0030.

  4. CSP 5541—Table 1 and CSP 5541—Table 2 generate weekly.

  5. Problems encountered with the Centralized Storage System should be brought to the attention of the manager of CF&S by the area PSP territory manager. Group managers and others outside the PSP office should engage their PSP office in order to minimize contact with the campus. Also, if significant or recurring problems occur, they should be brought to the attention of the area PSP territory manager.

4.1.6.12.4  (02-11-2014)
Miscellaneous Items for Centralized Storage

  1. Centralized storage related return(s) are two or more returns for the same taxpayer where one or more of the taxpayer's returns are being maintained in Centralized Storage (Status 08), while another return is open in an examination Status 10 or 12.

  2. For returns located in the area office, the CF&S will pull the centralized stored return, update AIMS to Status 10 for the same EGC as the other return(s) located in the area, and mail the return to that group for association.

  3. For returns located in the campus, the disposition of related returns is as follows:

    1. Related returns located in correspondence examination (EGC 5XXX): no action will be taken.

    2. Related returns in Status 08 EGC 2050 (Centralized Scheduling): CF&S will delete the related return from the CSDB and update the EGC to that of the return being maintained in Centralized Storage (EGC 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). CF&S will match the primary return to the multiple return, cross reference the folders, and file both returns in the file by the respective AIMS serial number.

  5. Survey of returns from Centralized Storage: It is the responsibility of the area PSP staff to inform the campus when it is time to survey returns from Centralized Storage. See IRM 4.1.6.6.1, Surveys From the CSDB, for more information. Normally, returns from the CSDB should be surveyed by December 31.

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


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