4.7.4  Planning and Special Programs (PSP)

Manual Transmittal

April 18, 2014

Purpose

(1) This transmits a revised IRM 4.7.4, Examination Returns Control System (ERCS), Planning and Special Programs (PSP).

Material Changes

(1) Editorial changes have been made throughout this IRM. Also, website addresses and IRM references were reviewed and updated as necessary.

(2) This IRM has been revised throughout to provide clarifications and more in-depth discussions in several areas. Except for the changes and deletions in the original text reflected in the table below, this has been a total re-write:

IRM Description
IRM 4.7.4.1 (1) Revised and added Tax Examiners and Audit Accounting Aides.
IRM 4.7.4.1 (2) Moved to IRM 4.7.4.1 (5) and revised. IRM 4.7.4.1 (2) replaced with new information.
IRM 4.7.4.1 (3) Deleted. No longer needed. Area and Industry are spelled out when needed. IRM 4.7.4.1 (3) replaced with new information.
IRM 4.7.4.1 (4) and (5) New.
IRM 4.7.4.1.1 Moved to IRM 4.7.4.6 and renamed title. The paragraph was revised.
IRM 4.7.4.1.2 Moved to IRM 4.7.4.5 (6), revised and expanded.
IRM 4.7.4.2 (1) Moved to IRM 4.7.4.11 (2) and revised. IRM 4.7.4.2 (1) replaced with new information.
IRM 4.7.4.2 (2) Moved to IRM 4.7.4.7 (2) and revised.
IRM 4.7.4.2 (3) Deleted. Behind the scenes detail was unnecessary.
IRM 4.7.4.2 (4) Moved to IRM 4.7.4.2 (2) and revised.
IRM 4.7.4.2 (5) Moved up to IRM 4.7.4.2 (3) and IRM 4.7.4.2 (4). It was split up and revised. IRM 4.7.4.2 (5) replaced by new information.
IRM 4.7.4.2 (6) Deleted. Replaced with more detailed information in a new section IRM 4.7.4.9.
IRM 4.7.4.3 Moved under IRM 4.7.4.12. which except for the changes listed below is entirely new.
IRM 4.7.4.3 (1) Moved to IRM 4.7.4.12.1 (1) and revised
IRM 4.7.4.3 (2) and (3) Deleted. Comparison to group users is unnecessary. Also, telling users what they don't have and why is also unnecessary.
IRM 4.7.4.3 (4) Moved to IRM 4.7.4.7 (2) and revised.
IRM 4.7.4.3 (5) Moved to IRM 4.7.4.12.(2) and revised.
IRM 4.7.4.3 (6) Moved to IRM 4.7.4.12.2 and revised.
IRM 4.7.4.4 (1) Moved to IRM 4.7.4.8.2 (2) and revised.
IRM 4.7.4 4 (2) and (3) Moved to IRM 4.7.4.6.3 (2) and IRM 4.7.4.6.4 (1) and revised.
IRM 4.7.4.4 (4) Deleted. No longer true. AACs are in campus ranges and area ranges.
IRM 4.7.4.4 (5), (6), (7), and (8) Moved to Exhibit 4.7.4-1
IRM 4.7.4.4.1 Moved to IRM 4.7.4.6.1 and IRM 4.7.4.6.2, split, and rewritten.
IRM 4.7.4.4.2 Moved to IRM 4.7.4.6.3 and rewritten.
IRM 4.7.4.4.1.3 Moved to IRM 4.7.4.6.5 and rewritten.
IRM 4.7.4.5 Inventory moved under IRM 4.7.4.8 and Time moved under . IRM 4.7.4.10 which except for the changes listed below are entirely new sections.
IRM 4.7.4.5 (1) Included in IRM 4.7.4.6.3 (2).
IRM 4.7.4.5 (2) Included in IRM 4.7.4.8 (1).
IRM 4.7.4.5 (3) Included in IRM 4.7.4.6.3.
IRM 4.7.4.5 (4) Deleted. Duplication of ERCS Handbook.
IRM 4.7.4.5 (5) Included in IRM 4.7.4.6.4.
IRM 4.7.4.5 (6) Included in IRM 4.7.4.3.3 and revised.
IRM 4.7.4.5 (7) Deleted. Obsolete
IRM 4.7.4.5 (8) Included in IRM 4.7.4.6.2 (2).
IRM 4.7.4.7.6 (1) Moved to IRM 4.7.4.11 (2) and rewritten.
IRM 4.7.4.7.6 (2) Deleted. Obsolete.
IRM 4.7.4.7.6 (3) Moved to IRM 4.7.4.8.3 and rewritten.
IRM 4.7.4.7.6 (4) Included in IRM 4.7.4.2 (2) and IRM 4.7.4.2 (3).
IRM 4.7.4.7.6 (5) Included in IRM 4.7.4.11 (6).
Exhibit 4.7.4-1 Added.
Exhibit 4.7.4-2 Added.
Exhibit 4.7.4-3 Added.

Effect on Other Documents

IRM 4.7.4 dated October 1, 2003 is superseded.

Audience

Small Business/Self Employed (SB/SE), Large Business and International (LB&I), and Return Preparer Office (RPO) employees who use ERCS.

Effective Date

(04-18-2014)

Beth Haverly
Program Manager, Business Re-Engineering
Small Business/Self-Employed

4.7.4.1  (04-18-2014)
Overview

  1. For purposes of this document, PSP is defined as operations in PSP where employees use ERCS to control, monitor, and assign inventory to field groups. Primarily this includes employees in SB/SE and International Individual Compliance (which is part of LB&I). IRM 4.7.4.9, Employee Audit, also applies to PSP Analysts in LB&I. IRM 4.7.4.10, Applying Time, also applies to Compliance Management Operations (CMO) groups in LB&I.

  2. This IRM section contains ERCS information and procedures for the following PSP employees:

    • Territory Managers (TM)s

    • Section Chiefs

    • Program Coordinators

    • Employees reporting to a supervisor listed above including Tax Examiners (TE)s, Audit Accounting Aides (AAA)s, clerical personnel, etc.

  3. PSP plays a vital part in the examination process by:

    • Providing input in the development of the Work Plan for the area.

    • Ensuring each group maintains sufficient volume and type of inventory in order to meet the goals of the Work Plan.

    • Providing guidance to the groups concerning programs, projects, and procedures coordinated within PSP.

  4. The Audit Information Management System (AIMS)/ERCS Staff, although part of PSP, has separate duties which are discussed in IRM 4 .7.10, Examination Returns Control System (ERCS), AIMS/ERCS Staff.

  5. Within this section, "user" refers to an employee with ERCS access.

  6. PSP staff should be familiar with the current versions of the ERCS PSP Handbook and the AIMS and ERCS related IRMs. They should also be familiar with documents on the AIMS/ERCS website, the LB&I AIMS - ERCS - SETTS website, and locally developed job aids.

    Note:

    The instructions for PSP users for navigating the ERCS programs can be found in the ERCS PSP Handbook.

4.7.4.2  (04-18-2014)
Security

  1. In order to access ERCS a user must have an active login and password which is granted via the Online 5081, Automated Information System (AIS) User Registration / Change Request. Users are required to follow the login and password requirements on the Online 5081 system. ERCS passwords should never be shared.

  2. For security issues concerning Record of Tax Enforcement Results (ROTER) information, see Section 1204 on the SB/SE website or Section 1204 and Regulation 801 on the LB&I website. IRM 1.5 , Managing Statistics in a Balanced Measurement System Handbook, provides further guidelines for the appropriate use of statistics by managers and employees.

  3. Users must be aware of the potential for Unauthorized Access of Taxpayer Accounts (UNAX) violations from the use of ERCS. Data from ERCS should be accessed only for IRS business purposes. Users should promptly retrieve ERCS reports from printers or fax machines in order to prevent unauthorized disclosure. For more information about UNAX, see IRM 10.5, Privacy Information Protection and Data Security (PIPDS).

  4. Audit trails are created when ERCS records are researched, added, updated, or deleted. Research should be limited to a user's official business needs in order to prevent unnecessary disclosure. Audit trails are also created for potential UNAX violations. These audit trails include when a user:

    • Inputs his or her own social security number (SSN).

    • Inputs the SSN of a spouse.

    • Attempts to view or update an IRS employee's return without permission.

    • Attempts to update a return without permission.

  5. For security issues concerning ERCS, including pre-requisites for ERCS access, information on completing the Online 5081, password requirements and resets, requesting temporary permission, and employee audit security features see IRM 4.7.2, Examination Returns Control System (ERCS), Security.

4.7.4.2.1  (04-18-2014)
Requesting ERCS Access

  1. ERCS has multiple sub-applications on the Online 5081 system. Users should make sure the correct sub-application is selected to avoid delays in gaining ERCS access.

  2. When the Online 5081 is routed to the employee's manager for approval, the manager should verify the employee selected the appropriate ERCS sub-application before approving the request.

  3. ERCS permissions are granted based on the information input in the Special Instructions box on the Online 5081. Refer to IRM 4.7.2, Examination Returns Control System (ERCS), Security, for more information about the Online 5081 process and user permissions.

4.7.4.3  (04-18-2014)
ERCS Data

  1. PSP has the responsibility to work with Headquarters (HQ) Examination in the creation of the Exam Plan (aka Work Plan), to ensure the field has the correct amount and type of inventory to accomplish the plan, and to monitor the work in the field to ensure the Exam Plan will be met. In order to do this, PSP uses data from various sources including ERCS, AIMS, Summary Examination Time Transmission System (SETTS), AIMS Computer Information System (A-CIS), and Statistical Sampling Inventory Validation Listing (SSIVL). In determining which data source is the best option for a particular monitoring need it is important to understand each system, the differences between them, and where the data in the system originates.

  2. This section contains information about the ERCS data, where it comes from, what is available, and how it impacts or relates to data in the following systems:

    • AIMS

    • SSIVL

    • SETTS

    • Compliance Data Environment (CDE)

    • A-CIS

  3. ERCS is an inventory control and time tracking system. It contains selected data for SB/SE and LB&I returns in the Examination stream from Status 00 to 90. ERCS is used to maintain group and work unit inventories and as a vehicle to update AIMS. Examiner time is captured on ERCS by the daily activities performed. ERCS accepts and extracts data from a number of systems, but the two main interfaces are with AIMS and SETTS. ERCS sends information to AIMS on a daily basis; and information from AIMS is compared to ERCS on a weekly basis. Summary time information is extracted for SETTS roll-up each reporting cycle (every four to six weeks).

4.7.4.3.1  (04-18-2014)
AIMS

  1. AIMS is the system of records for SB/SE, LB&I, Appeals, Wage & Investment (W&I), and Tax Exempt/Government Entities (TE/GE). It contains accomplishment information for returns in the Examination stream. PSP utilizes AIMS to obtain information such as:

    • Location of case files.

    • Codes (i.e. source, project, tracking, aging reason, etc.)

    • Closing information (i.e. examination time, disposal code, results, etc.)

    • Historical information (such as prior primary business code (PBC), prior secondary business code (SBC), prior employee group code (EGC), status code and status date history, and opening source code).

  2. AIMS records are established by:

    • Campus (includes automatic openings, taxpayer requests/claims, non-filer, etc.)

    • PSP (includes projects, programs, CDE, etc.)

    • Groups (when picking up related returns)

  3. The main differences between AIMS data and ERCS data are:

    • ERCS only includes data for SB/SE and LB&I.

    • ERCS contains information for penalties.

    • ERCS allows for inventory control for activities that are not return related (such as offers in compromise, interest abatement, etc.)

    • ERCS contains a break down of daily time charges by employees.

    • ERCS provides inventory control for returns by associating returns with an examiner and providing current, on demand reports.

  4. For more information regarding AIMS see IRM 4.4, AIMS Processing.

4.7.4.3.2  (04-18-2014)
SSIVL

  1. SSIVL is a system which allows AIMS data to be downloaded by Business Operating Division, Area, function, etc. and used to generate inventory reports.

  2. The SSIVL data is AIMS data with the addition of the three employee ID fields from ERCS (Group (or PSP), Centralized Case Processing (CCP) and Review). Up-to-date AIMS data is sent to the ERCS server each weekend.

  3. AIMS Assignee Code (AAC) information recorded in ERCS is used to identify the support area responsible for returns listed on the area's SSIVL. The data is extracted by support area and sent to local servers in each area. The AIMS/ERCS Staff imports the SSIVL data into a Microsoft Access database.

  4. The AIMS/ERCS Staff generates the Inventory Validation Listings (IVL)s from the SSIVL data periodically (usually monthly) and distributes the IVLs to PSP and the Examination groups supported by the area. This also includes the 100% annual IVL.

    Note:

    Different procedures are used to pull the mandatory IVLs for Technical Services (TS). Currently the IVLs are pulled by the TS AIMS/ERCS Analyst.

4.7.4.3.3  (04-18-2014)
SETTS

  1. Time is input into ERCS for employees required to account for time spent on their daily activities. Refer to IRM 4.7.4.5 (5) for the PSP employees required to input time on ERCS.

  2. At the end of each reporting cycle the time is extracted from ERCS, validated, and transmitted to the SETTS server located in Martinsburg Computing Center (MCC). There the data is pulled for inclusion on Table 37, Examination Program Monitoring and sent to the AIMS Computer Information System (A-CIS). Refer to IRM 4.9.1.3, Summary Examination Technical Time Reporting System and Procedures, Table 37, for more information.

    Note:

    Reporting cycles are generally four or five week cycles, but occasionally can be six weeks. Refer to the "Reporting Cycles for AIMS and SETTS" section in Document 6036, Examination Division Reporting System Codes Booklet, for specific information about the dates for each cycle.

4.7.4.3.4  (04-18-2014)
CDE

  1. PSP uses CDE to classify SB/SE returns, establish the database, and deliver returns to the field. Once a return is selected, CDE sends a requisition to establish the return on AIMS in a PSP CDE EGC. Over the following weekend during AIMS to ERCS processing, the AIMS record is added to ERCS if it has not been previously added.

  2. When the AIMS record is fully established, a CDE user assigns the return to the Examination group on CDE which sends an SBC and EGC update to AIMS.

  3. Over the following weekend during AIMS to ERCS processing, the AIMS AAC for the Examination group overwrites the PSP CDE AAC on ERCS. It is critical the AAC on ERCS be established as a PSP CDE EGC so this process will work. Otherwise the return will appear on the ERCS AAC Difference Report. The following codes are defined on ERCS as PSP CDE EGCs:

    EGC Description
    1911 CDE: GRADE 11 Revenue Agent (RA)
    1912 CDE: GRADE 12 RA
    1913 CDE: GRADE 13 RA
    1924 CDE: TRAINING RA
    1979 CDE: ATTI (Abusive Transactions and Technical Issues) RA
    1989 CDE: CIP (Compliance Issue Program) RA
    1990 CDE: RPP (Return Preparer Penalty) RA
    2909 CDE: GRADE 9 Tax Compliance Officer (TCO)
    2911 CDE: GRADE 11 TCO
    2923 CDE: TRAINING TCO 1
    2924 CDE: TRAINING TCO 2
    2925 CDE: TRAINING TCO 3
    2979 CDE: ATTI TCO
    2989 CDE: CIP TCO
    2990 CDE: RPP TCO

4.7.4.3.5  (04-18-2014)
A-CIS

  1. At the end of each time reporting cycle (this corresponds with the SETTS four, five, or six week cycles), data from AIMS and SETTS is extracted and loaded into A-CIS.

  2. A-CIS has four database tables:

    • Open Case Database

    • Closed Case Database

    • Non-Examined Database

    • SETTS Database

  3. The time information from ERCS is by employee per day and per activity or return. The SETTS database contains a summary of time information extracted from ERCS. The summary information includes the employee's time per specific codes such as activity, source, project, etc. It does not include time per return. For more information about the SETTS data, refer to IRM 4.9.1, Examination Technical Time Reporting System, Outline of the System.

  4. While the data in ERCS is constantly changing, the data in A-CIS is unchanging. So if current information is needed or if time per return information is needed, ERCS is the system to use. If statistics from a prior month are needed or if the summary time information is needed, then A-CIS is the system to use.

  5. A-CIS data is available to HQ Analysts and upper level management for their specific area or industry to create reports and to monitor time data against the Exam Plan. In LB&I the data is also available to Territory Managers and above.

4.7.4.4  (04-18-2014)
Discoverer

  1. Discoverer is an ad-hoc, report writer included in the Oracle Database Suite, the database package used by ERCS. Discoverer allows users to create queries and reports from the data contained in the ERCS database.

  2. AIMS and ERCS data are both available to Discoverer users within the ERCS database making the report possibilities tremendous. Users should only run reports if there is a business need for the data in order to avoid potential 1204 violations.

  3. ERCS data includes information such as the following:

    • Employee records, work schedule profiles, and employee permissions.

    • Return information including related return information, closing data, pending approvals, pending updates, and records not controlled on AIMS.

    • Time charges per employee per day to the activities performed.

    Note:

    Refer to the Database chapter of the ERCS Technical Reference Manual (TRM) for a complete list of ERCS data items available to Discoverer users.

  4. AIMS data is available to Discoverer users in the "ams_7109" and the "aims_sbse_lbi_view" tables contained in the ERCS database. The "aims_sbse_lbi_view" contains every value on AIMS for open returns in SB/SE and LB&I Statuses 00-59. There are overlapping items between AIMS and ERCS, but some information in the AIMS tables are uniquely AIMS. Some examples of AIMS data not included in ERCS are:

    • Transaction Codes (TC): Provides all the transaction codes available on AIMS (TC 640, TC 97X, etc.).

    • Status Code History: Provides the status and status date changes for the previous 24 updates.

    • Electronic Return Code: Indicates whether return was filed and/or stored electronically.

    • Schedule C or F Indicator: Provides tracking information for Form 1040, U.S. Individual Income Tax Return, with Schedules C and F.

    Note:

    The AIMS Data Dictionary is available to Discoverer users by the AIMS/ERCS Staff.

  5. The AIMS data within the ERCS database is removed and repopulated each week-end.

  6. Audit trails are generated when Discoverer users create and run reports. Discoverer users are under the same security guidelines as ERCS users. Refer to IRM 4.7.4.2, for more information about ERCS security.

  7. Discoverer licences are restricted to members of PSP, the AIMS/ERCS Staff and HQ Analysts in SB/SE and LB&I. PSP is responsible for ensuring licenses are allocated judiciously within their area. To get a current list of the SB/SE users who hold a Discoverer license in your area or office, contact the HQ ERCS Discoverer Analyst. To get a current list of the LB&I users who hold a Discoverer license, contact the HQ LB&I Analyst in LB&I Planning & Special Programs. Refer to the AIMS, ERCS, SETTS, and Discoverer Listing for Headquarters for contact information.

  8. Discoverer access is granted via the Online 5081 sub-applications "ORACLE DISCOVERER PLUS-ERCS SB/SE (ORACLE DISCOVERER PLUS-ERCS)" for SB/SE users and "ORACLE DISCOVERER PLUS-ERCS LB&I (ORACLE DISCOVERER PLUS-ERCS)" for LB&I users. Program Coordinators or PSP Analysts who have a business need for Discoverer should contact their manager to see if a license is available in their area before requesting Discoverer by inputting an Online 5081.

  9. When Discoverer Online 5081s are processed, new Discoverer users are added to the Outlook group, "&SBSE ERCS Oracle Discoverer" . This mailbox is used to alert users of system downtime, Discoverer issues, and new releases.

  10. Locked Discoverer passwords are reset by submitting a "Reset Application Password" request via the user's Discoverer application on the Online 5081 system.

  11. Some of the uses for Discoverer are listed below:

    • Generating reports to monitor new initiatives or special projects or programs.

    • Generating reports that are not available through ERCS programs.

    • Generating reports comparing AIMS and ERCS data.

    • Generating area-wide reports or reports across multiple areas or industries.

    • Generating reports such as the Listing of Related Returns (LRR).

      Note:

      The LRR was created by one area and shared with all other areas. It lists returns in PSP where a related return is in a group status. This allows PSP to easily identify where to send cases.

  12. Experienced users in the area or office are expected to work with new users to familiarize them with the system. New users should refer to the SBSE Examination ERCS Discoverer (Student Guide) for information about creating and running Discoverer Reports. The Oracle Discoverer chapter of the ERCS TRM also contains some excellent reference material including initial setup, changing passwords, etc.

  13. The best resources for report issues are other Discoverer users. The ERCS Hotline Staff does support users having issues accessing the server or the Discoverer program; however, they do not support issues with creating or modifying reports. Discoverer users are encouraged to utilize the Discoverer SharePoint to share issues, resolutions, ideas, etc.

  14. PSP users should make sure their reports are shared with another user to ensure someone else can run critical reports.

4.7.4.5  (04-18-2014)
Employee Records

  1. All ERCS users must have an ERCS employee record. In addition an ERCS employee record is required for employees who have assigned inventory and who are required to input ERCS time.

  2. Employee records are usually added by the clerical staff. The user should enter all information accurately and completely when adding or updating employee records. Values from the ERCS employee records are used for time reporting, determining staffing needs, protecting an employee's tax return from unauthorized access, and in the creation of audit trails. It is essential to update the employee record as soon as changes are known including employee records transferred in from another group or function. In particular the following values must be keep current:

    • Employee name

    • AAC

    • Post of duty

    • Position code

    • Grade

    • Login name

    • Work schedule profile (WSP)

  3. Employees are added to ERCS in a PBC, SBC, and EGC. These three codes make up the AAC of the employee's permanent group assignment on ERCS.

  4. The post of duty (POD) should be the POD where the employee is assigned. See the ZIP/POD Access Database for the POD associated with each zip code to find the employee's correct POD.

  5. The position code is used for a number of checks including:

    • Determining if the employee is required to charge time on ERCS.

    • Validating the employee's time charges.

    • Determining if the employee's tax return can be audited in the area.

    • Determining the recipient of system e-mail created when an IRS employee's tax return is accessed or selected for audit.

  6. PSP users generally utilize the position codes listed in the table below:

    Title Position Code Description ERCS Time Required
    Territory Manager (SB/SE) 122* Chief PSP No
    Analyst (LB&I) PSP Analyst
    Section Chief 131 Section Chief PSP Yes
    Program Coordinator, RA 125 PSP/RGS Coordinator; also referred to as Program Coordinator; RA Yes
    Program Coordinator, TCO 225 PSP/RGS Coordinator; also referred to as Program Coordinator; TCO Yes
    Audit Accounting Aide 301 Audit Accounting Aide, Job Series 0503 Yes
    Tax Examiner 327* Job Series 0592 No
    Clerical or Analyst 400 Secretary, Clerk, Management/Admin/Staff Support Assistant, AIMS/ERCS Staff, HQ Analyst, Program Analyst No

    Note:

    *ERCS will prompt for time to be input for employees with this position code. The AIMS/ERCS Staff can turn on an indicator which will skip the employee during time input.

  7. ERCS users must have a login name on their employee record. The login name is used to verify a user has permission to access ERCS and in the creation of the audit trails.

  8. The WSP contains the employee's tour of duty information and the number of hours the employee is scheduled to work each day. This information is used when time is input for the employee on ERCS. The WSP is also used to determine when an employee is required to charge holiday time on ERCS. When entering the WSP profile the user must enter the tour of duty (TOD). The following are the six choices for the TOD:

    • Regular: employee works 5 eight-hour days per week with no option for working credit hours. (This should be rare.)

    • Flexi Hrs (flexi-hours): employee works 5 eight-hour days per week with an option for working credit hours.

    • 5-4-9 (five-four-nine): employee works 8 nine-hour days, 1 eight-hour day, and 1 day off per pay period with no option for working credit hours.

    • 4-10 (four-ten): employee works 4 ten-hour days and 1 day off per week with no option for working credit hours.

    • Part-Time: employee works less than 80 hours per pay period.

    • Maxiflex: employee works a pre-determined number of hours each day, but the number of hours can vary from day to day during the pay period. The total hours per pay period must equal 80 hours. The employee may work credit hours.

  9. The WSP records are in two week cycles that correspond with Single Entry Time Reporting (SETR) cycles. The employee's scheduled work days and the number of hours the employee is scheduled to work each day in the WSP should match employee's information on the SETR system.

    Note:

    SETR allows partial hours to be scheduled on a work day. ERCS currently does not allow partial hours on a WSP record or in time input. If guidance is needed for updating the WSP or for inputting time on ERCS for employees who have been approved to work partial hours on a day, users should contact their AIMS/ERCS Staff.

  10. Since the WSP is used in validating time, changes to the WSP must be made at the beginning of the two week cycle (pay period) before time has been applied on ERCS.

  11. ERCS employee records should be inactivated when the employee leaves the Service or transfers within the Service to a non-ERCS position. If an employee inputs time on ERCS, the inactivation date should be entered as the last day the employee is required to charge time on ERCS. The login name should not be removed from the ERCS employee record when an employee record is inactivated.

  12. Problems correcting an ERCS employee record should be reported to the user's AIMS/ERCS Staff.

  13. Additional information on adding an employee record to ERCS can be found in the Employee Records chapter of the ERCS PSP Handbook.

  14. An employee's permission records on ERCS are removed when the employee record is inactivated.

  15. Employee records are not updated for acting assignments. An acting assignment is defined for this IRM as an employee who retains his or her work assignments, inventory, etc. while temporarily acting as manager of his or her own group.

  16. In general, an employee record needs to be updated to the new assignment when the employee:

    • Transfers or is detailed to a another PSP group.

    • Transfers or is detailed into PSP.

    • Transfers or is detailed out of PSP and remains an ERCS employee.

  17. When an employee transfers to a position outside of ERCS, the employee record should be inactivated. When an employee is detailed to a position outside of ERCS, the employee record should remain unchanged. The employee should apply time during the detail to the appropriate "Details out of Division or Area" activity code.

4.7.4.6  (04-18-2014)
Responsibilities of Employees in PSP

  1. Every PSP employee needs to know what ERCS can do to help them do their job. This includes using ERCS to establish and maintain inventory in order to have reliable data for reports in which to monitor programs and priorities.

4.7.4.6.1  (04-18-2014)
Responsibilities of Territory Managers

  1. The Territory Manager has the responsibility for input into the creation of the Work Plan and ensuring the goals are met.

  2. Responsibilities of the PSP Territory Manager regarding ERCS include, but are not limited to:

    • Ensuring security of the ERCS system.

    • Reinforcing the importance of statute awareness.

    • Supporting the development of PSP personnel in identifying the options on ERCS that relate to their duties.

    • Ensuring the features on ERCS protecting employee returns are utilized. See IRM 4.7.4.9 , Employee Audit, for more information.

    • Ensuring time information for PSP employees is entered into ERCS accurately and no later than the close of business on the last day of each reporting cycle.

4.7.4.6.2  (04-18-2014)
Responsibilities of Section Chiefs

  1. The Section Chief has responsibility for PSP operations which include ensuring appropriate internal controls are established and maintained; and the goals, policies, and directives of the HQ Office as well as the area or industry are followed.

  2. Responsibilities of the Section Chief regarding ERCS include, but are not limited to:

    • Ensuring security of the ERCS system.

    • Utilizing ERCS reports and data to ensure the Work Plan goals are met.

    • Ensuring statute controls, including Forms 895, are maintained for the different programs in PSP.

    • Supporting the development of PSP personnel in identifying the options on ERCS that relate to their duties.

    • Approving/disapproving all updates requiring first and second level approval timely. (Generally, timely is within two days of notification. Notification can be by an ERCS message when signing on or by notification from the ERCS user making the changes requiring approval.)

      Note:

      It is up to the Section Chief's discretion whether to delegate first level approval to the Program Coordinator.

    • Ensuring the features on ERCS protecting employee returns are utilized. See IRM 4.7.4.9 , Employee Audit, for more information.

    • Confirming PSP requirements are completed timely to ensure the accuracy of the AIMS and ERCS databases.

    • Ensuring time information is entered into ERCS accurately and timely for employees under the Section Chief's authority. (This includes the Section Chief's time.)

      Note:

      Time information is due in ERCS no later than the close of business on the last work day of each reporting cycle.

    • Coordinating with the AIMS/ERCS Staff and informing the campus when an additional AAC needs to be validated for a new program.

  3. When an employee completes an Online 5081 for ERCS access the Section Chief should verify the employee selected the appropriate ERCS sub-application before approving the request.

4.7.4.6.3  (04-18-2014)
Responsibilities of the Program Coordinators

  1. Program Coordinators should be familiar with the options and tools that ERCS provides so they can be fully utilized in PSP.

  2. Responsibilities of Program Coordinators regarding ERCS include, but are not limited to:

    • Ensuring security of the ERCS system.

    • Monitoring the statutes and statuses of all inventory in their assigned program(s), taking necessary action when updates are required.

    • Notifying the Section Chief when their actions require approval.

    • Providing the proper coding (i.e. project code, tracking code, etc.) to the support staff when establishing cases.

    • Ensuring AIMS and ERCS controls are established prior to delivery to the groups. This includes CDE returns.

    • Submitting, in a timely manner, a time input document for input into ERCS.

    • Assisting when ERCS related issues arise requiring action by the Program Coordinator to resolve.

    • Providing guidance and fielding questions concerning coding on AIMS and ERCS for returns in his or her program(s).

    • Identifying cases for closure including inventory accepted as filed by classification as non-examined closures, and taking appropriate action.

    • Working with the AIMS/ERCS Staff to define and validate new local project and tracking codes.

  3. If first level approval is delegated by the Section Chief, then the Program Coordinator should approve, in a timely manner, actions requiring approval. (Generally, timely is within two days of notification on ERCS.)

  4. The Transfer In Coordinator is also responsible for determining what program a return should be assigned.

4.7.4.6.4  (04-18-2014)
Responsibilities of the Tax Examiners, Audit Accounting Aides, and Clerical Staff

  1. Assignment of the responsibilities of the tasks included in this section depend on the grade level and the position description of the employee. These responsibilities regarding ERCS include, but are not limited to:

    • Ensuring security of the ERCS system.

    • Ensuring the statute control procedures are followed in a timely manner. This includes: generating and working reports, generating Forms 895, updating ERCS for statute changes, and inputting the date the Form 895 was signed by the Section Chief.

    • Adding new and updating existing ERCS employee records.

      Note:

      ERCS employee records should be updated as soon as changes are known to ensure the data extracted for reports and roll-ups to other systems is current. Changes to the employee's work schedule profile must be made before time is applied for the pay period.

    • Submitting a time input document for ERCS time (AAAs only).

    • Inputting time into ERCS by close of business on the last work day of the reporting cycle unless local procedures require it to be input earlier.

    • Ensuring AIMS and ERCS controls are established.

    • Verifying returns are coded accurately on ERCS upon receipt, ensuring the AACs on AIMS and ERCS match, and updating ERCS timely for changes.

    • Comparing the IVL with the physical cases and resolving mis-matches. (The frequency of this depends on local procedures.)

    • Correcting all errors identified during the annual 100% IVL as required by IRM 4.4.16, AIMS Procedures and Processing Instructions, Inventory Control .

    • Notifying the Section Chief or Program Coordinator if there are pending updates that need immediate approval.

    • Working the Check AIMS Results (ERCS to AIMS updates) reject reports. Errors should be resolved as soon as possible.

    • Working the AIMS Error Reports (AIMS to ERCS processing) weekly. Errors should be resolved as soon as possible.

    • Monitoring the Transfer Claimed Returns report and resolving issues, as appropriate, on a weekly basis. For more information, see IRM 4.7.4.8.4.

    • Delivering returns to the groups, transferring returns to other areas or functions, and closing returns (utilizing paperless closing procedures, as appropriate).

    • Verifying returns are coded accurately on ERCS prior to delivery, transfer, and closure.

    • Following up on any unacknowledged Form 3210, Document Transmittal , after 21* days.

      Note:

      For returns sent to CCP, the number of days to follow up is 30.

    • Assisting with training needs in PSP, such as helping with new employee orientation.

    • Completing other duties as assigned when requested by the Program Coordinator or Section Chief.

  2. ERCS allows multiple returns to be established by automating Form 5347 , Examination Multiple Request Master File, for PSP users. See the Request Tax Return chapter of the ERCS PSP Handbook for more information.

4.7.4.7  (04-18-2014)
Permissions

  1. ERCS uses a combination of permission records and programming to restrict a user's access to taxpayer and employee data. Generally PSP users are given permission for all of PSP (the secondary business code of 87700) within the area, but users can be given permission for a single PSP program. (Returns in specific programs within PSP are identified by the PSP EGC on the return.)

  2. There are 4 permission options that can be granted to users.

    • Read permission is granted to all users to run reports and research data.

    • Write permission is granted to clerical staff, TEs, and AAAs to update returns and employee records and to input time.

    • First level approval permission is granted to the Section Chief (and/or the Program Coordinator depending on local procedures) to approve requisitions, statute updates, transfers across areas, and Status 90 closures resulting in an update to AIMS.

    • Second level approval permission is be granted to Section Chiefs and may also be granted to Territory Managers to approve work performed by Program Coordinators who have write permission. Updates requiring approval performed by a Program Coordinator require second level approval. The Program Coordinator should consult with his or her Section Chief before requesting write permission.

  3. Permission records should be deleted when the user changes duties and the permissions are no longer needed. If an employee is suspended, the employee's immediate supervisor should also input a delete Online 5081 to delete the user's ERCS access or a modify Online 5081 to delete the user's ERCS permissions. The manager should determine which of these actions to take based on the length of the suspension.

4.7.4.8  (04-18-2014)
Inventory Control

  1. Each program within PSP generally has its own AAC. The number and type of AACs in PSP and the use of these codes is at the discretion of the PSP Territory Manager and the Section Chief(s). Coordination with the AIMS/ERCS Staff is required if an additional AAC is needed.

  2. When returns move from one group or function to another, a Form 3210 is generated. Whether the form is acknowledged through ERCS or on a paper Form 3210 sent back to the sender, both are official documentation of receipt. The responsibilities for Forms 3210 include but are not limited to:

    • The sender is responsible for the returns, and in particular the statute, while the returns are in-transit. The sender must check ERCS to verify receipt of the returns. It is recommended the sender check ERCS weekly for acknowledged forms.

    • The receiver should acknowledge Forms 3210, whether on paper or on ERCS, within three days of receipt. Once the receiver acknowledges the Form 3210 (or updates the return out of the in-transit status, if applicable), the responsibility for the returns shifts to the receiver.

  3. Control of PSP Inventory includes responsibility for the following:

    • Statute Control

    • Accuracy of the AIMS and ERCS Databases

    • Special Programs

    • Claimed Returns

4.7.4.8.1  (04-18-2014)
Statute Control

  1. Monitoring the statute of limitations is essential to prevent possible loss of revenue to the Treasury. See IRM 4.7.3, Examination Returns Control System, Statute of Limitations, and IRM 25.6.3, Statute of Limitations, Examination Process-Assessment Statute of Limitations Controls for responsibilities and procedures in controlling statutes. Alpha statute descriptions and uses can be found in IRM 25.6.3 and Document 6209 , IRS Processing Codes and Information. PSP's responsibilities for statute controls include but are not limited to the following:

    • Making sure there is sufficient time left on the statute to complete the examination process prior to delivery.

    • Completing the necessary actions for returns with short statutes.

    • Following the statute procedures when transferring returns out of area.

    • Ensuring alpha statutes are used appropriately.

    • Ensuring Form 895 procedures are followed and ERCS is updated timely for issued and returned dates.

    • Ensuring penalty records are established in the correct MFTs and activity codes. (ERCS determines if the penalty record requires a statute or not by the MFT and activity code on the record.)

  2. The following forms and reports are used to monitor statutes. Refer to the ERCS PSP Handbook for more information about the ERCS reports.

    • Form 895, Notice of Statute Expiration

    • Pending Statute Report (group level)

    • Pending Statute Report (territory to area level)

    • 895 Report

    • SDOV (Statute Override) Report

    • AIMS-ERCS Statute Report

    • 4.0 Table

  3. Form 895 is generated by PSP when a return has an alpha statute or when the numeric statute is within the area's set number of days (usually 210 for PSP) from expiration. Program Coordinators and their Section Chief must use Form 895 to document they have verified the statute on the return.

  4. The Pending Statute Report from the Manager's Reports menu allows PSP the flexibility to look at statutes based on a specific program (when run by AAC) or all programs within the area (when run by PBC and the SBC of 87700). The user has the option to include statuses outside of PSP, and statutes expiring within a number of days. There are a variety of sort options available as well as the option to include irregular statutes on the report. This report does not list expired or alpha statutes.

    Note:

    An irregular statute is earlier or later than a statute based on a timely filed return. An earlier statute may be due to a taxpayer request for a prompt assessment. A later statute may be due to a late filed return.

  5. The Pending Statute Report from the Territory Reports menu gives a snapshot of the number of returns expiring within 210 days with an optional inventory listing of returns with expired statutes and statutes expiring within 30 days. It may be pulled by the area or by a specific SBC.

  6. The 895 Report should be run with the Pending Statute Report. It lists returns with alpha statutes, expired statutes, and returns that have a Form 895. It can be used to check the Form 895 issued and returned dates have been updated on ERCS.

  7. The SDOV Report is generated from the AIMS Error Report menu. It lists returns where the AIMS statute has overwritten the ERCS statute.

  8. The AIMS-ERCS Statute Report from the Statute Expiration Reports menu lists returns where the AIMS and ERCS statutes are different. Returns with specific statute issues, such as ZZ alpha statutes, are also included on the report.

  9. The AIMS Table 4.0 is distributed monthly by the AIMS/ERCS Staff. It lists AIMS returns with statute dates that have expired or will expire within 180 days.

4.7.4.8.2  (04-18-2014)
Accuracy of the AIMS and ERCS Databases

  1. PSP must ensure there is sufficient inventory available to fill return orders for the groups according to set work plan criteria. Inventory no longer needed should be closed appropriately.

  2. Inventory comes into PSP from the campus and other areas in EGCs 1998 and 2998. The physical inventory should be compared with the ERCS Alpha IVL to identify cases that have been received and should be updated out of these EGCs. Any returns not received within 21 days should be researched.

  3. PSP is responsible for transferring returns to another area. ERCS should be used to initiate the transfer out of area. Once the transfer is approved, ERCS will update AIMS. When AIMS and ERCS are updated the case file can be mailed.

  4. Updates to returns should be input on ERCS as soon as changes are known. Since the group can claim a return from PSP and apply time to it before PSP transfers control of the return to the group, the codes on the return need to be accurate when time is applied. Once time is extracted for the national reports and tables it cannot be corrected. Corrections may be made on ERCS, but the corrections are not sent forward.

  5. Updates to the following codes can be made on multiple returns on ERCS. Each TIN must be entered and the tax period selected before the updates are made. Refer to the Correct or Display Records chapter of the ERCS PSP Handbook for more information:

    • Employee ID

    • Project Code

    • Purge Information (Action Code and Purge Date). See Exhibit 4.7.4-2.

    • Status Code

    • Suspense Type and Action Date. See Exhibit 4.7.4-3.

    • Tracking Code


4.7.4.8.3  (04-18-2014)
Special Programs

  1. Program Coordinators are generally responsible for one or more programs (Examples: Abusive Transactions Technical Issues (ATTI), Compliance Initiative Projects (CIP), and Identity Theft). More information about the specific programs can be found in IRM 4.1.1, Planning and Special Programs, Planning, Monitoring, and Coordination. For contact information on specific programs, refer to the Area Office/Campus Contacts list on the AIMS/ERCS website.

  2. The project and tracking codes enable PSP to categorize returns within a specific program or project and to aid in monitoring returns as they move through the examination stream. Both codes have local and national ranges. The national project and tracking codes can be located on the AIMS/ERCS website. See Project Code Listing-SB/SE and W&I , Project and Tracking Codes for LB&I, and Tracking Codes for lists of national codes.

  3. Local project codes are in the ranges of 0175-0200, 0500-0575 and 0700-0799. Local tracking codes are in the range of 0001 to 5999. These are defined by the Section Chief or the Program Coordinator. When a new local project or tracking code is needed it should be coordinated with the AIMS/ERCS Staff. PSP can validate new local tracking codes and print reports of available tracking codes from the Maintain Tracking Codes menu. The AIMS/ERCS Staff validates new local project codes. A list of the available local project codes can be obtained from the AIMS/ERCS Staff or by selecting to print the two local project code files from the ERCS Print Menu option on the Login Menu.

    Note:

    To print the two local project code files, the user first selects the ERCS Print Menu option and then inputs the full path name to the files. Next the Print Menu is displayed giving the user the option to select a printer. The full path name should be entered as follows with the area's PBC substituted for the ###:

    Path
    /ercs/ercs###/local/proj_local
    /ercs/ercs###/local/proj_uip

  4. PSP is responsible for updating or removing, if necessary, tracking codes on returns in all statuses less than 80. Group and Technical Services users can enter a tracking code, but they cannot update it or remove it.

  5. Refer to the Codes chapter of the ERCS PSP Handbook for more information about these codes.

  6. For contact information for Special Programs see the Area Office/Campus Contacts on the AIMS/ERCS website.

4.7.4.8.4  (04-18-2014)
Claimed Returns

  1. When a return is under examination, occasionally the examiner may initiate an examination on another tax period. If the related pick-up is in PSP, under certain conditions the return can be claimed (brought into the group's inventory) on ERCS. To claim a return from PSP into a group's inventory, the return must be unassigned and in Status 08 or below. A group user can claim a return from PSP by updating the SBC and EGC to group codes or by applying time to the return.

  2. Claimed returns from PSP will show ERCS in the new group but AIMS will remain in the PSP AAC. Returns that have been claimed from PSP are listed on two reports; the AAC Difference Report (for group users) and the report from the Transfer Claimed Returns option off of the Transfer, Close, Establish menu (for PSP users).

  3. Action is required from PSP to resolve the AIMS and ERCS AAC difference. The Transfer Claimed Returns option is used to monitor claimed returns and to transfer PSP control to the group. When control is transferred, the return drops from the AAC Difference Report and the Transfer Claimed Returns report. If the case file cannot be located or there is some other reason why control should not be released to the group, PSP must contact the group to update ERCS back to a PSP AAC.

  4. For more information about claiming returns from PSP and the menu option Transfer Claimed Returns, refer to the Transfer, Close, and Establish chapter of the ERCS PSP Handbook.

4.7.4.9  (04-18-2014)
Employee Audit

  1. An employee audit occurs when the tax return of an Internal Revenue Service employee is examined. ERCS provides special security features for employee returns under audit. When any of the following events occur an audit trail is created and an ERCS employee audit alert is generated:

    • A user enters his or her SSN or the SSN of a spouse (if a joint return was filed).

    • The source code on a return is changed to or from Source Code 46, "Employee Return" .

    • The "Employee Audit" indicator is toggled (turned on or off) on a return.

    • An unauthorized user attempts to access an employee's return.

    • A user attempts to add an employee return to ERCS for an employee who should not be audited in the same area.

    • A employee's return is on AIMS and during AIMS to ERCS processing, the program attempts to add the return to ERCS in an area where the employee should not be audited.

    • The addition of a high profile employee return to ERCS (such as the Security Officer).

  2. If there is a designated Security Officer with an ERCS login in the area, the employee audit alert is sent to the Security Officer via system mail (UNIX). Otherwise the system mail is sent to the PSP TM. In special situations where the Security Officer's or the PSP TM's returns are involved, system mail may be sent to alternate users.

  3. In order to receive system mail containing the employee audit alerts, the PSP user must have:

    • A login and password to the ERCS server.

    • An active ERCS employee record with Position Code 122, Chief PSP (SB/SE) or PSP Analyst (LB&I), containing the user's login.

    • Permission to run the Check Mail option from the ERCS Login Menu.

      Note:

      Permission to run Check Mail is granted via the Online 5081 ERCS sub-application, "ERCS-TCC-AIMS-ERCS STAFF (ERCS)." When requesting this permission, the user should include in the Special Instructions Box that permission is needed for the ERCS mail utility. Only users with a business need for this access are granted this permission.

  4. Not all employee audit alerts are an indication the user is doing something inappropriate. For example, alerts may be generated when a user accesses an employee's return by taxpayer identification number (TIN), and the program finds one tax period assigned to the user's group and one tax period controlled in another group or function. An alert will be generated for the tax period that is not in the user's group. Some alerts are an indication of inappropriate access, for example, when a user enters his or her own SSN.

  5. Employee returns are not included on ERCS reports and screens if the user is not authorized to see the data. In general, this means the return must be assigned to the user's group or function and the user must have permission to make updates to the return before the user may see the return information. Users are not notified when an employee audit alert is generated for their access.

  6. For more information about employee audit security features refer to the Security chapter of the ERCS Technical Reference Manual.

4.7.4.10  (04-18-2014)
Applying Time

  1. ERCS captures time for PSP employees by the activities an employee performs each day. The position code on the ERCS employee record is used to determine who is required to charge time. At the end of each reporting cycle the time is rolled up to HQ where it is used for National reports. Refer to IRM 4.7.4.5 (6) for position codes used in PSP that require time input.

  2. The Agent Input Document is generated via ERCS. It is used by PSP employees to record their activities and then used for input into ERCS. Other forms may be used instead of the Agent Input Document if approved for use by the area.

  3. PSP employees utilize activity codes related to non-examination time (Activity Codes 6XX and above) and direct examination or direct compliance time that is not return related (Activity Codes 5XX). In other words, PSP may not charge time to returns.

  4. CMO groups in LB&I use the Issue Management System (IMS) to input time which is imported into ERCS.

  5. Employees must account for the daily number of hours matching the employee's WSP on ERCS. The WSP may be updated through the Employee Records program. For information on how to input time on holidays or for an employee who works over the number of hours scheduled for the day refer to IRM 4.7.5, Examination Returns Control System (ERCS) , Group and Territory.

  6. Time is due in ERCS by close of business on the last work day of the reporting cycle unless local procedures require it to be input earlier.

  7. The Section Chief, or someone designated by the Section Chief, will review the time reports for accuracy. The Agent Analysis, a report showing the time entered into ERCS, should be compared to the Agent Input document to ensure the agent's time was input accurately. For requirements and retention of the Agent Analysis refer to the Examination Technical Time Reporting System IRM 4.9.1, Examination Technical Time Reporting System, Outline of the System.

4.7.4.11  (04-18-2014)
Reports

  1. ERCS contains various reports and research options that provide management ways to monitor program inventory with the Work Plan in mind. Additionally, ERCS reports are used to monitor data issues such as short statutes, overage requisitions, ERCS to AIMS rejects, etc. ERCS reports contain real time data which means when a report is run, the information is as current as the last input.

  2. PSP reports are available on ERCS at various levels; group, territory, and area. The Manager Reports provide data at the EGC and territory level. The Territory Reports provide reports at the territory and area level with various reports providing summary information for all groups. Reports of statistical data for projects, impending statutes, and other priorities can be generated.

  3. Most reports are located on the Manager Reports, Territory Reports and Tax Auditor Menu options. The Maintain Tracking Codes option located on the Correct or Display Records menu contains the Display Tracking Codes report. Both local tracking codes (0001 to 5999) and national tracking codes (6000-9999) are listed on the report.

  4. The SSIVL is used by PSP to validate inventory. Each Program Coordinator should verify the returns are in the correct program and have the correct codes such as status , statute, source, project, tracking, aging, POD, etc. Returns with incorrect coding should be corrected. The SSIVL list should be compared to an ERCS inventory report.

    Note:

    Penalty records are not listed on an SSIVL. ERCS reports should be used to validate the codes on penalty records.

  5. For information on generating and printing ERCS reports and the data included on each report refer to the ERCS PSP Handbook.

  6. Refer to IRM 4.7.6, Examination Returns Control System (ERCS) , Reports, for detailed descriptions of ERCS reports, recommended uses for the reports, and the recommended frequency for running the reports.

4.7.4.12  (04-18-2014)
Managerial Approval

  1. ERCS provides a way for management to review and approve requisitions, closures and selected updates before they become permanent changes on ERCS and before the updates are sent to AIMS.

  2. It is recommended that each Section Chief (or Program Coordinator, if delegated) access ERCS at least every two days to check for updates pending managerial approval. When the user logs into ERCS, the Main Menu screen displays a message if there are requisitions or updates waiting to be approved.

  3. When an update is pending approval, many ERCS screens and reports display a "p" next to the item to denote the update is "pending" . When an update is approved or disapproved, the "p" is removed.

  4. For detailed information about the Managerial Approval program, options and screens, see the Managerial Approval chapter of the ERCS PSP Handbook.

4.7.4.12.1  (04-18-2014)
Actions Requiring Approval

  1. Only selected actions on ERCS require managerial approval. If the following actions are performed by the clerical staff, TEs, or AAAs the actions should be approved by a user with first level approval permissions. If these actions are performed by the Program Coordinator, a user with second level approval must approve the action. Actions that require approval are:

    • Updating the statute.

    • Requisitioning returns generating an update to AIMS.

    • Requesting penalty records.

    • Closing returns to Status 90 generating an update to AIMS.

    • Transferring returns to another area.

4.7.4.12.2  (04-18-2014)
Reversing Actions Prior to Managerial Approval

  1. If a statute is updated incorrectly and is still pending managerial approval, it can be changed back to the original statute which will remove the managerial approval record. The user can then update the return with the correct statute which will create a new managerial approval record.

    Note:

    Statutes should not be updated back to an expired statute on ERCS.

  2. Although a requisition cannot be reversed by the user, if data was input incorrectly on a requisition, the data can be corrected prior to the manager approving the requisition.

  3. Transfers to another area or industry (the PBC is changed) on returns controlled on AIMS cannot be reversed prior to manager approval. If input in error, the user should alert the manager to disapprove the transfer.

  4. Non-examined closures (Status Code 90 closures) generating an update to AIMS cannot be reversed by the user. If input in error, the user should alert the manager to disapprove the closure.

4.7.4.12.3  (04-18-2014)
Approving/Disapproving Actions

  1. When the Managerial Approval option is run and an AAC is selected, all the returns matching the AAC and pending approval are locked for approval. This prevents another user with approval permission for that AAC from accessing the same returns on the approval screen. The returns are unlocked when the user completes the actions and returns to the menu screen.

    Note:

    Contact your AIMS/ERCS Staff if there are problems with locked returns pending managerial approval.

  2. When approving a requisition, the user should ensure the information on the screen is correct. In particular, when approving a requisition the user is also approving the statute. If any of the information is incorrect on the approval screen, the user should skip the return and take the necessary steps to correct the information. Then the requisition can be approved.

    Note:

    Disapproving a requisition closes the record to Status 90 on ERCS. Requisitions should only be disapproved if AIMS and ERCS controls of the return are not required.

  3. When approving a Non-masterfile to Masterfile conversion, the user is approving two changes; a Masterfile requisition and a Non-masterfile closure. Refer to IRM 4.7.5, Examination Returns Control System (ERCS), Group and Territory for more information.

  4. When a requisition, statute change, transfer to another area, or Status 90 closure impacting AIMS is approved, AIMS is updated when the daily ERCS to AIMS uploads are run.

  5. When a statute change, a transfer to another area, or a Status 90 closure impacting AIMS is disapproved, the changes are reversed back to the original values.

4.7.4.12.4  (04-18-2014)
Delegating Permissions

  1. A user with approval authority may grant temporary permission to another employee through the option Grant Temporary Permission providing the following requirements are met:

    • The employee has an active ERCS login and password.

    • This is not the first time the employee has been granted ERCS permission.

    • The user has permanent permission for the permission being granted to the employee.

  2. The user should only grant an employee permission for the length of time the permission is needed.

Exhibit 4.7.4-1 
Campus and Area PSP AACs

The AAC is used to identify the location of returns. In PSP the AAC is used to further classify returns into specific programs. The AAC is comprised of three fields:

  • PBC (three digits) identifying the SB/SE Area or LB&I Industry.

  • SBC (five digits) identifying the Territory. In PSP this is always 87700.

  • EGC (four digits) identifying the group or program.

Generally EGCs used in PSP include the following:

EGC Location Description
1000-1099 Campus PSP** RA area work physically located in the campus; 1000 is used for RA returns awaiting classification; 1066 is used for RA returns in Centralized Files.
2000-2099 Campus PSP** TCO area work physically located in the campus; 2000 is used for TCO returns awaiting classification; 2050 is used for TCO returns in Centralized Files and Scheduling.
1997 In-transit LB&I transfers in from another area for RA returns.
1998 In-transit SB/SE and International Individual Compliance (IIC) (PBC 315) transfers in from another area for RA returns.
2998 In-transit SB/SE and IIC transfers in from another area for TCO returns.
1850-1999* Area PSP** Area office RA PSP.
2850-2999* Area PSP** Area office TCO PSP.

Note:

*These ranges include CDE EGCs. For a list of the specific CDE EGCs see IRM 4.7.4.3.4 (3).

Note:

**Some exceptions may apply for those EGCs already in use when these campus ranges were defined.

When there is a need to establish a new AAC in PSP, the AIMS/ERCS Staff adds the AAC using the area PSP range and identifies the code as either a PSP code or a CDE code. Returns in an AAC identified on ERCS as a campus AAC are treated differently when returns on AIMS and ERCS are compared.

When a return is on ERCS in a campus AAC and AIMS is updated to an area AAC (PSP, CDE, or group) AIMS will overwrite the ERCS AAC.

When a return is on ERCS in a PSP AAC and AIMS is updated to another PSP EGC or to a group AAC, AIMS will not overwrite the ERCS AAC. The return will be listed as an error on the AAC Difference Report. These changes should be made on ERCS and not AIMS.

When a return is on ERCS in a CDE PSP AAC and AIMS is updated to another PSP EGC or to a group AAC, AIMS will overwrite the ERCS AAC. CDE PSP AACs are area codes and PSP has full inventory control of these returns on ERCS.

For a list of contacts for the AACs see the Employee Group Code Listing for SB/SE and the LB&I Contact Listing for LB&I on the AIMS/ERCS website.

Exhibit 4.7.4-2 
Action Codes

Action codes are used on ERCS to add another level of inventory control for PSP. The action code is an ERCS only code that can be locally defined (by area or by LB&I). When an action code is input on a return, a purge date is either set by the ERCS program or input by the user. Changes in the local definitions of action codes should be coordinated with the AIMS/ERCS Staff.

Action codes may be added or updated on returns in the Tax Auditor menu or the Correct or Display Records menu. Reports in the Tax Auditor menu display records using these codes. The Daily Report and the Group Purge Report can be modified by the local AIMS/ERCS Staff to include (or exclude) returns with particular action codes. However, any changes to these reports impact PSP in the entire area. Refer to the Codes chapter of the ERCS PSP Handbook for more information about these codes.

Action Code Definition Purge Date
01-02 Local Definition Set by the user
03 Local Definition Today plus 10 days
04 Local Definition Today plus 15 days
05 Local Definition Today
06-10 Local Definition Set by the user
11 Local Definition Today
12 Local Definition Today plus 5 days
13–20 Local Definition Set by the user

Exhibit 4.7.4-3 
Suspense Types

Suspense types are used in conjunction with action dates in ERCS when follow-up is necessary, but the action may not take place for days, weeks or months. When a suspense type is added to a return, the return may be updated to a status code and the action date may be set based on the number of days as shown in the table below. If the program does not set the action date, the user must enter it. If a new suspense type is needed it should be coordinated with the AIMS/ERCS Staff. New suspense types are validated by the HQ ERCS Analyst. Refer to the Codes chapter of the ERCS PSP Handbook for more information about the suspense type. Refer to the Inventory Reports chapter of the ERCS PSP Handbook for information about the Suspense Report which is used to monitor returns in these codes.

Suspense Type Definition Status Code Number of Days
301 Interest Abatement --- 60
302 Employee Audit --- ---
303 Preparer Penalty Files --- ---
304 High Income Non-Filer --- ---
305 Informant Claims --- ---
306 Information Reports --- ---
307 Innocent Spouse --- ---
308 National Research Program --- ---
309 Offshore Credit Card --- ---
310 Offer in Compromise --- ---
311 Preparer Projects: Revenue Agent (RA) --- 60
312 Preparer Projects: Tax Compliance Officer (TCO) --- 60
313 Flow-Through Study --- ---
314 AIMS Suspense --- 21
315 Earned Income Tax Credit --- ---
316 Compliance Initiative Project --- ---
317 Abusive Tax Avoidance Transactions --- ---
318 RA Claims --- ---
319 TCO Claims --- ---
320 Capital Construction Fund --- ---
321 Classification --- ---
322 Audit Reconsideration --- ---
323 Promoter Investigations --- ---
324 Civil Assessments --- ---
325 Voluntary Disclosures --- ---
326 Compliance Data Environment Enhancement Cases --- ---
350 Form 10904 Received by AIMS/ERCS Assistant --- 15
351 Form 10904 Research AIMS/ERCS Analyst --- 30
352 Form 10904 to Territory Manager for Approval --- 21
353 Form 10904 Problem Cases --- 90
360 From main PSP to satellite PSP --- 15
361 Received in main PSP from satellite --- 15
365 From satellite PSP to main PSP --- 15
366 Received in satellite PSP from main --- 15


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