4.7.6  Reports

Manual Transmittal

January 21, 2015

Purpose

(1) This transmits a revised IRM 4.7.6, Examination Returns Control System (ERCS), Reports.

Material Changes

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

(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 4.7.6.1 Title changed from Introduction to Overview. The contents were rewritten and the reports list updated.
IRM 4.7.6.2 Inventory Reports moved to IRM 4.7.6.3. The reports within Inventory Reports were re-ordered to be alphabetical. All reports were revised. This section now contains Employee Reports which is all new to this IRM.
IRM 4.7.6.2.13 The Cross Area Review Listing was deleted. The report is obsolete.
IRM 4.7.6.2.15 The Unassigned Inventory by POD report was deleted. The report is obsolete.
IRM 4.7.6.3.14 The Unassigned Inventory by TSC report was added.
IRM 4.7.6.3 Time Analysis moved to IRM 4.7.6.4 and the title changed to Time Analysis Reports. The reports within Time Reports were re-ordered to be alphabetical. All reports were revised.
IRM 4.7.6.4.3 Check Employees with Uncharged Time was added.
IRM 4.7.6.4 Monitoring Reports moved to IRM 4.7.6.5
IRM 4.7.6.4.7 The Business Plan Report was deleted. The report is obsolete.
IRM 4.7.6.4.9 The Market Segment Report was deleted. The report is obsolete.
IRM 4.7.6.5 Count Reports moved to IRM 4.7.6.6
IRM 4.7.6.5.2 The Activity Code Count by POD/MSS Report was deleted. The report is obsolete. The Partnership Report was added.
IRM 4.7.6.5.3 The Business Plan Count Report was deleted. The report is obsolete.
IRM 4.7.6.6.2 The Closed Case Report (for CCP) was added.
IRM 4.7.6.6.3 The Overage Program Number Report was added.
IRM 4.7.6.6.4 The Overage Status Report was added.
IRM 4.7.6.6 Statute Expiration Reports were moved to IRM 4.7.6.7. The reports were re-ordered to be alphabetical. All reports were revised.
IRM 4.7.6.6.3 Print 895 Forms Report was deleted. This is not a report.
IRM 4.7.6.6.4 Reprint Specific 895 Forms by TIN, MFT, and Tax Period Report was deleted. This is not a report.
IRM 4.7.6.6.5 Reprint 895 Forms by Issue Date Report was deleted. This is not a report.
IRM 4.7.6.7.2 The AIMS-ERCS Statute Report was added.
IRM 4.7.6.6.7 Tax Auditor Reports were moved to IRM 4.7.6.8. The reports were re-ordered to be alphabetical. All reports were revised.
IRM 4.7.6.7.1 Update Action Code and Purge Date was deleted. This is not a report.
IRM 4.7.6.7.6 The Appointment Density Report was deleted. It is obsolete.
IRM 4.7.6.8.5 The Monthly/Weekly Schedule was added.
IRM 4.7.6.8 Territory Reports moved to IRM 4.7.6.9. The reports were re-ordered to be alphabetical. All reports were revised.
4.7.6.9 AIMS Error Reports were moved to IRM 4.7.6.11. The reports were re-ordered to be alphabetical. All reports were revised.
4.7.6.10 The Locally Developed Reports section was deleted. The section was obsolete. It was replaced by Sample Review Reports which is new to this IRM.
4.7.6.11.3 The ERCS Closed AIMS Open Report was added.
4.7.6.12 The section for Check AIMS Results was added.
4.7.6.13 The section for Miscellaneous User Reports was added.
4.7.6.14 The section for Miscellaneous AIMS/ERCS Analysts Reports was added.
4.7.6-1 This exhibit was revised for the new reports.
4.7.6-2 This was the same as Exhibit 4.7.6-1 just resorted. It was replaced by a new exhibit, Recommended Daily Report Usage.
4.7.6-3 This was the same as Exhibit 4.7.6-1 just resorted. It was replaced by a new exhibit, Recommended Weekly Report Usage.
4.7.6-4 The exhibit for Recommended Monthly Report Usage was added.
4.7.6-5 The exhibit for Reports with Codes was added.
4.7.6-6 The exhibit for Reports with Dates was added.
4.7.6-7 The exhibit for Reports with Indicators was added.
4.7.6-8 The exhibit for Reports with Amounts was added.
4.7.6-9 The exhibit for Reports with Time was added.
4.7.6-10 The exhibit for Record Types was added.
4.7.6-11 The exhibit for Recommended Reports for Assistance Visits and Operational Reviews was added.
4.7.6-13 The exhibit for Recommended Reports to use with SSIVL Validation was added.

Effect on Other Documents

IRM 4.7.6 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

(01-21-2015)

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

4.7.6.1  (01-21-2015)
Overview

  1. This section is intended to be used as a guide for users to locate reports in the ERCS menu system, determine if a report exists to meet the current needs of the user, and as a reference to how often particular reports should be run. The ERCS user handbooks contain information on running reports and the values included on each report. The following ERCS user handbooks should be used to supplement the report information in this IRM:

    • ERCS Group Handbook

    • ERCS Territory Handbook

    • ERCS PSP Handbook

    • ERCS Review Handbook

    • ERCS Sample Review Handbook

    • ERCS CCP Handbook

    Exception:

    Rarely used or obsolete reports are not discussed in this IRM.

  2. In addition to the user handbooks, the ERCS Technical Reference Manual contains an overview of all user reports and the reports available to the AIMS/ERCS staff. (AIMS stands for Audit Information Management System.)

  3. Reports are only as reliable as the data that is input into the system. Every ERCS user plays a part to ensure the data on reports is up to date and accurate. If there is a question concerning how to answer an ERCS prompt when adding, updating, transferring, or closing ERCS records users should contact their manager or their AIMS/ERCS staff for guidance.

  4. ERCS contains a variety of reports designed to meet the needs of the group or function. This section discusses the following types of reports:

    • Employee Reports

    • Inventory Reports

    • Time Analysis Reports

    • Monitoring Reports

    • Count Reports

    • Statute Expiration Reports

    • Tax Auditor Reports

    • Territory Reports

    • Sample Review Reports

    • AIMS Error Reports

    • Check AIMS Results

    • Miscellaneous User Reports

    • Miscellaneous AIMS/ERCS Analysts Reports

  5. Reports are available to users based on the user's setup (user type) and permissions. Not all reports are available to all users. Exhibit 4.7.6-1, Reports, shows which reports are available to users based on the user type.

  6. The following are the ERCS user types:

    • Admin: AIMS/ERCS staff

    • Area or Area/Ind: area and industry directors and staff

    • CCP: Centralized Case Processing (CCP) users

    • DFO: directors of field operations and staff

    • Group: all group users

    • PSP: Planning and Special Programs (PSP) users

    • Review: Technical Services (TS) and Joint Committee Review (JCR) users. Both TS and JCR users are referred to as review users and the functions are referred to as TS and JCR in this section.

    • Sample: National Quality Review Staff (EQRS), Quality Measures and Analysis (QMA), and LB&I Quality Measurement System (LQMS) users

    • Territory: all territory managers over exam groups and staff

    Note:

    The user type is listed after the date on the top right hand corner on the ERCS menu screens.

4.7.6.1.1  (01-21-2015)
Data Retention

  1. Many ERCS reports can be run for prior cycles as long as the data is still on the system. Returns are stored on ERCS for a minimum of 400 days after the returns are closed. When returns are archived the main record is saved to a file and the related information (penalties, closing amounts, related return data, etc.) is deleted. Time charges to a return are deleted when the return is archived. Time charges that are not return related are deleted after 400 days. Employee information goes back to October 1, 2006 and is not systematically deleted or archived.

  2. Per Document 12990, Records Control Schedules, ERCS reports should be deleted or destroyed when no longer needed for administrative, legal, audit, or other operational purposes, whichever is later. Users should check with their area or industry office for local procedures or requirements regarding retention of particular ERCS reports.

  3. IRM 4.9.1.6.1, Examination Technical Time Reporting System, Outline of the System, Time Input Documents Generated by Examination Returns Control System (ERCS), has specific instructions for retaining the ERCS Agent Analysis document.

4.7.6.2  (01-21-2015)
Employee Reports

  1. Employee reports are used for a variety of reasons including:

    • Generating a current list of employees in the group.

    • Verifying the employee data is current.

    • Finding the current assignment (AIMS assignee code or AAC), employee identification (ID) number, or employee status (active or inactive) of an employee record.

  2. This section covers the following ERCS employee reports:

    • Employee Reports by Employee Group Code

    • Employee Reports by Area/Ind, DFO or Territory

    • View Employee History

4.7.6.2.1  (01-21-2015)
Employee Reports by Employee Group Code

  1. Employee Reports by Employee Group Code is available to all users and has a number of options that enable the user to find a particular employee record by name, ERCS employee ID number, or to generate a list of all employees (either active, inactive, or both) in the AAC.

  2. The report contains data extracted for the Summary Examination Time Transmission System (SETTS) roll-up so it should be run prior to the end of the cycle to ensure the employee data is current. The report can be used to identify employee records that need to be inactivated or transferred. The report also contains the employee's work schedule as it appears in the employee work schedule profile. Any issues with correcting data on this report should be reported to the AIMS/ERCS staff. In particular the following values should be verified each cycle:

    • Name

    • Position code

    • Grade

    • Post of duty

    • Work schedule

    • ERCS status (active or inactive)

    Note:

    The SETTS program extracts employee and time information from ERCS at the end of each reporting cycle. The data is validated and transferred to another server. This data is used to formulate the Examination Plan and is included on Table 37, Examination Program Monitoring. Refer to IRM 4.9.1, Examination Technical Time Reporting System, Outline of System, for more information.

  3. The report must be run before and after re-organizations to ensure all employee records have been moved to their new groups (incoming or outgoing).

  4. This report is also used by the AIMS/ERCS staff to verify employee records during assistance visits and operational reviews.

4.7.6.2.2  (01-21-2015)
Employee Report by Area/Ind, DFO or Territory

  1. The Employee Report by Area/Ind, DFO or Territory is available to all users except group and sample review. The user has the option to generate a list of all employees (either active, inactive or both) in the primary business code (PBC) and secondary business code (SBC) entered.

  2. This report can be used to verify current, active employees at the territory level or in the function and to ensure employees are in the correct group codes after re-organizations.

4.7.6.2.3  (01-21-2015)
View Employee History

  1. The View Employee History report may be run by employee ID, login name, or standard employee identifier (SEID) to find information for a single employee. The report shows the changes made to the employee record since October 1, 2006.

  2. This report is used to determine if issues during time input may be due to an error made updating an employee record. For example, if an employee is assigned to the wrong group on the time charge date, the correct group will not be able to input time for the employee. This report can also be used to see if the ignore SETTS indicator is on. Questions regarding data on this report should be directed to the AIMS/ERCS staff.

    Note:

    The ignore SETTS indicator is set on employee records if the employee is not required to charge time for SETTS.

4.7.6.3  (01-21-2015)
Inventory Reports

  1. The Inventory Reports are used to generate lists of complete or partial inventories. Many of these reports can be run for one employee, for the group, or a function (i.e. TS, CCP, etc.) and are located under the Manager's Report option which appears on the ERCS Main Menu. Some inventory reports may also be available at the territory level.

  2. These reports aid the group or function in determining if inventory is being maintained at a manageable level, returns are correctly coded and updated timely, and established procedures are being followed.

  3. This section covers the following inventory reports:

    • Agent Analysis (4502)

    • Alpha IVL

    • Cases Returned to Group

    • Closed Case Report

    • Inventory Listing

    • In Transit Status Report

    • Overage Report (IVL)

    • Overage Requisitions Report

    • Returns in Transit

    • Status Report

    • Suspense Report

    • Taxpayer Address Report

    • Tracking Code Report

    • Unassigned Inventory by TSC

    • Unassigned Inventory Report

4.7.6.3.1  (01-21-2015)
Agent Analysis (4502)

  1. The Agent Analysis is a historical document listing all of an employee's SETTS time for a prior reporting cycle. It also contains other data including:

    • Returns assigned to the examiner.

    • Returns where the examiner is assisting on an examination.

    • Daily time applied to each return.

    • Cumulative time applied to each return.

    • Days in process for each return.

  2. An Agent Analysis is printed at the end of each cycle for each employee required to input time for SETTS. It can be re-generated up to one year after the end of a cycle.

    Note:

    Below the line time (i.e. admin time, training, leave, etc.) is deleted from ERCS after 400 days. Time charged to returns may be retained longer depending on when the returns were closed and if they were part of a related group. If a user attempts to re-create an Agent Analysis for a cycle over 400 days in the past, the information on the report will not be complete.

  3. This document is used by the employee to reconcile and verify that time applied during the cycle was correctly entered in ERCS. This should be done as soon as possible after the cycle is complete.

  4. The Agent Analysis document must be signed by both the employee and the manager indicating the validity of the report. The signed document should be retained in the group for three years. Refer to IRM 4.9.1, Examination Technical Time Reporting System, Outline of System, for the special requirements regarding this document.

  5. The report can be used to alert management of issues such as:

    • Unusually large inventory of open cases.

    • Excessive time applied to a case.

    • Started cases with no current time applied.

4.7.6.3.2  (01-21-2015)
Alpha IVL (Inventory Validation Listing)

  1. The Alpha IVL includes all returns in a group or function. It can be used to compare ERCS data with the statistical sampling inventory validation (SSIVL) data to reconcile AIMS and ERCS differences. There are some values that must be validated that are not included on this report such as the tracking code and the Tax Equity and Fiscal Responsibility Act (TEFRA) indicator.

  2. Review and CCP users can run this report by one status or all TS (including JCR) or all CCP statuses, respectively. When run for Status 21 or 51 it can be used to determine if a return in transit is still pending managerial approval for the group closure.

4.7.6.3.3  (01-21-2015)
Cases Returned to Group

  1. The Cases Returned to Group report is available to review and CCP users. The report lists returns that have been returned to the group for additional correction or action. This report can be used to ensure cases are returned to TS, JCR, or CCP within appropriate time frames.

    Caution:

    Due to the length of time required to generate this report, it should be run at the employee group code (EGC) level and not at the territory level.

  2. When TS, JCR, or CCP sends a return back to the group on ERCS, a reject reason code (also known as re-established reason) is associated with the return. These codes are nationally defined. Refer to Exhibit 4.7.7-5, TS Reject Reasons, and Exhibit 4.7.8-2, CCP Reject Reasons, for a list of reject reason codes defined for TS (including JCR) and CCP, respectively.

4.7.6.3.4  (01-21-2015)
Closed Case Report

  1. There are two reports named Closed Case Report on ERCS. The report discussed here is available to group, upper management, and PSP users. Refer to IRM 4.7.6.6.2, Closed Case Report, on the Count Reports menu for the report available to CCP users.

  2. This report lists returns that were closed from a group within a specified time frame. It can be used to monitor the number of returns surveyed and to compare the types of returns closed against the examination plan.

4.7.6.3.5  (01-21-2015)
In Transit Status Report

  1. The In Transit Status Report lists returns in transit from the user's group or function to another function. It includes returns in Statuses 21 (TS and JCR), 41 (PSP), 51 (CCP), and 81 (Appeals). It is used to monitor returns in transit and to identify returns that need follow-up action by the sender.

  2. Returns in an in-transit status remain the responsibility of the sending group or function until the returns are acknowledged as received by the receiving function. This is done by the receiving function acknowledging the Form 3210, Document Transmittal, or by updating the status out of an in-transit status. Refer to IRM 4.4.16.3, Inventory Control, Inventory Validation Listing (IVL), for more information.

  3. Returns in transit to TS, JCR, PSP, or Appeals should be acknowledged within 21 days; and returns in transit to CCP should be acknowledged within 30 days. Any return in transit longer than the specified number of days requires follow-up by the sender.

    Caution:

    Returns should only be shipped after the manager has reviewed the closure and the returns have been updated and approved on ERCS. Refer to IRM 4.7.5.6.3, Group and Territory, Transfers and Closings, for the specific requirements.

4.7.6.3.6  (01-21-2015)
Inventory Listing

  1. There are two reports named Inventory Listing on ERCS. The report discussed here is available to review and CCP users. Refer to IRM 4.7.6.10.3, Inventory Listing, on the Sample Review Reports menu for the report available to sample review users.

  2. This report can be run for an EGC or for all returns in the function. The options give the user the ability to generate a complete inventory or an overage inventory report. When run for overage returns the program uses the date in function to determine if the returns meet the criteria for the report. Therefore, returns not checked into the function will not appear on the overage report.

  3. The report may be useful in locating unassigned returns within the function.

4.7.6.3.7  (01-21-2015)
Overage Report (IVL)

  1. The Overage Report (IVL) has a number of user options making it a versatile report. It can be run by group users to include all inventory in the group or by territory or PSP users to include all inventory in the territory. The options give the user the ability to generate a complete inventory, an overage inventory, or a report that lists a summary of time applied by examiner for each return.

  2. To generate a complete inventory, the user enters "0" at the "Days in Process" prompt. If a number other than zero is entered, the program uses the user's choice of either the ERCS start date or the AIMS start date to calculate overage.

    Note:

    The AIMS start date is set when the return is updated to Status 12 on AIMS. The ERCS start date is set when time is first applied to the return. The ERCS start date is set to the time charge date, not to the input date.

  3. The "Related Return and Days in Process" sort option groups related returns together. This sort can be used to get a quick snapshot of all the examiners working on a case and the total time applied by each examiner as well as the total time charged for all the returns within the related case.

    Note:

    If transferred in time is listed on the report, it is usually an indication of an error between the total time on a return and the individual time charges by examiners. The AIMS/ERCS staff should be notified if the transferred in time is negative or if the transferred in time is in error.

  4. Examples for use by groups and functions include, but are not limited to:

    • Determining the number and type of returns assigned.

    • Determining the number and type of overage returns in a group.

    • Validating against the SSIVL.

    • Monitoring statutes on cases after closure from the group.

4.7.6.3.8  (01-21-2015)
Overage Requisitions Report

  1. The Overage Requisitions Report generates a list of requisitions which have not been fully established on AIMS. This report depends on AIMS data which is updated on ERCS over the weekend. Changes to the AIMS record during the week are not reflected on the report until the following week. The report should be run the first work day of the week to get the latest data.

  2. The user enters the number days since the requisition. For filed returns and substitute for returns, it should take two weeks or less for an AIMS record to fully establish.

  3. The user is prompted if pending requests or matched skeletal returns should be included. The program defaults both prompts to "Y" . A pending request means the return was sent to AIMS, but the AIMS record has not had enough time to be processed against the ERCS record during AIMS to ERCS processing. A matched skeletal means the return on AIMS is still a skeletal record, and it has been processed against the ERCS return.

  4. Requisitions over 30 days old must be researched to ensure there is not an issue. If an issue is identified, appropriate action should be taken. Items that should be checked include, but are not limited to the following:

    • The manager has approved the requisition.

    • The update to AIMS did not reject.

    • If a push code (also called a special message code on ERCS) is required, it is correct.

    • The return has not dropped from AIMS.

  5. Group and PSP users should run this report weekly and input 30 days or less at the "Days Since Requisition" prompt. Once any necessary corrections are made to the ERCS record, the requisition may be resubmitted through the Resubmit Request option on the Request Tax Return menu.

    Caution:

    PSP users must make sure AIMS control has been fully established prior to transferring returns to the Group. Group and PSP users must make sure AIMS control has been fully established prior to closing the return to TS, JCR, or CCP.

  6. Review and CCP users can run this report for 0 days overage to identify returns that may have been closed from the group prior to establishing AIMS controls. These returns may need to be sent back to the group to resolve this issue.

  7. The AIMS/ERCS staff may run this report for 0 days to get a complete list of requisitions in preparation for assistance visits and SSIVL validations. The report can be used to reconcile the returns on AIMS and ERCS.

  8. Upper management may periodically run this report to ensure that returns under their jurisdiction have the proper AIMS controls.

4.7.6.3.9  (01-21-2015)
Returns in Transit

  1. The Returns in Transit report is used by review and CCP users to monitor incoming returns. The report lists returns that have been sent to TS or CCP but have not been acknowledged as received (the date in function has not been set) or the returns have not been updated out of an in transit status. (This report may not be useful for JCR since their returns may be incoming from all areas and will be mixed in with TS inventory.)

  2. The user must input a PBC to run the report. For review users the PBC on the return must match the PBC entered. For CCP users the PBC is converted to a corresponding processing campus code (PCC), and returns are selected if they match the PCC. The following chart shows the PBC to PCC mapping for CCP.

    PBC PCC
    201-207 49
    212-214, 315 17
    301-307, 316, 317 29
  3. This report should be run at least monthly to identify returns in transit that have not been received within a reasonable number of days (21 days for TS and 30 days for CCP). Overage returns in transit require follow-up. This report is also used to identify returns in the function, but no longer in Status 21 or 51 that need to have the date in function set.

4.7.6.3.10  (01-21-2015)
Status Report

  1. The Status Report lists returns in a status code input by the user. A count of returns is included at the end of the report. The report can be used for a number of applications including:

    • Determining if returns need to be ordered (insufficient inventory in Status 10).

    • Monitoring unstarted priority cases in Status 10.

    • Monitoring the length of time returns are in a Status 13.

    • Monitoring returns in a suspense status in PSP, TS, JCR, or CCP.

  2. When the Status Report is run for Status 10, it can be used to check the number of unstarted cases in the group. A high percentage of unstarted cases or a high number of assigned, priority cases in Status 10 may need action on the part of the manager to get the inventory moving.

  3. When the Status Report is run for Status 13, 30-Day, it can be used to identify returns where follow-up action may be required. Also, any returns no longer in the manager's possession, may need to be updated out of Status 13. For more information see IRM 4.10.8.12, Unagreed Case Procedures (SB/SE Field and Office Examiners only) or IRM 4.10.8.13, Unagreed Case Procedures: Preliminary (30-Day) Letters (LB&I Examiners only).

  4. This report may be used by review users to ensure returns in suspense statuses have been checked into the function, are still on AIMS, and have the appropriate review type assigned.

  5. This report may be used by CCP users to ensure returns in suspense statuses have been checked into the function, are still on AIMS, and have the appropriate program number assigned.

  6. The freeze code is listed on the report when run by a review or CCP user.

4.7.6.3.11  (01-21-2015)
Suspense Report

  1. The Suspense Report is used to monitor returns in suspense within the group or function. Users can run the report for one suspense type or for all suspense types. The user may input a number of days (until the action date) to use the report to pull returns for follow-up action. The report includes counts of returns in each suspense type.

    Note:

    The suspense type is an ERCS only code used in conjunction with an action date to control inventory that needs follow-up action. Suspense types are nationally defined and available for group, PSP, review, and CCP users.

  2. The suspense types available to users are listed in:

    • Exhibit 4.7.8-1, CCP Program Numbers and Suspense Types, for CCP users.

    • Exhibit 4.7.7-4, TS Suspense Types, for review users.

    • Exhibit 4.7.4-3, Suspense Types, for PSP users.

    • Exhibit 4.7.5-2, Suspense Types, for group users.

  3. In some functions the use of suspense types are for the most part optional; however, in others they are not. For example: in CCP suspense types are used in conjunction with program numbers and status codes. Virtually all returns in CCP are assigned a suspense type. This aids CCP in dealing with huge inventories of returns. In the group the use of most of the defined suspense types is optional; however, there are exceptions. For example, Suspense Type 203, Civil Penalty In-Transit to Appeals, is monitored nationally and must be used when the criteria is met. Refer to Promoter Penalty Claims – Disallowed and IRM 4.32.4.6.2, Abusive Transactions, IRC 6707A Penalty for Failure to Include Reportable Transaction Information With Return, Sending the Case to Appeals—Pre- Assessment Consideration, for more information.

  4. Suspense types can only be used while the return is in the current function as ERCS removes the code and the action date when the return is closed from the group or moved to another function.

4.7.6.3.12  (01-21-2015)
Taxpayer Address Report

  1. The Taxpayer Address Report lists taxpayer names and addresses of returns and collateral records in inventory. It can be used to determine if ERCS has the taxpayer's current address.

  2. If an address is incorrect on ERCS, using the Correct and Display Records menu, change the Bad Address indicator from N to Y. This will enable the AIMS address to overwrite the ERCS address during AIMS to ERCS processing over the next weekend. Using the option Correct Multiple Tax Returns to update the indicator will cause the indicator to change on all returns with a matching taxpayer identification number (TIN).

    Note:

    Updating a taxpayer address on ERCS does not update the address on AIMS.

4.7.6.3.13  (01-21-2015)
Tracking Code Report

  1. There are two reports by the name Tracking Code Report in ERCS. This section discusses the Tracking Code Report on the Inventory Reports menu. Refer to IRM 4.7.6.9.10, Tracking Code Reports, for the report available from the Territory Reports menu.

  2. This report is used to generate a list of returns with a specified tracking code or to create a report for all returns with tracking codes. PSP can use this report to monitor and track returns that are part of approved projects. The report can also be used to obtain a list of returns in specific priorities.

  3. Local tracking codes range from 0001-5999 and are added to ERCS by PSP users. National tracking codes range from 6000-9999 and are the same for SB/SE and LB&I. Refer to IRM 4.7.6.13.3, Display Tracking Codes, for an explanation of tracking code statuses and for information on how to obtain a list of tracking codes and their descriptions.

4.7.6.3.14  (01-21-2015)
Unassigned Inventory by TSC

  1. The Unassigned Inventory by TSC (technical services code) report is only available to review users. The report has two sections. The first section lists unassigned returns matching the TSC and the number of days overage input by the user. The report is used to identify unassigned returns in a TS or JCR location. The second section lists unassigned returns nationwide without a TSC. If returns are listed in this section, a review user in the area where the returns were examined (as noted by the PBC on the report) should research the records and update them with a TSC.

4.7.6.3.15  (01-21-2015)
Unassigned Inventory Report

  1. The Unassigned Inventory Report generates a list of open unassigned records in the group or in PSP. This report can be used to monitor unassigned inventory and to select the highest priority unassigned returns to be assigned. Territory managers may find this report useful in monitoring the volume of unassigned inventory in the territory. The report contains the following data that can be used to determine the priority returns in unassigned inventory:

    • Activity code

    • Discriminant index function (DIF) score

    • Project code

    • Source code

    • Statute info

    • Tracking code

4.7.6.4  (01-21-2015)
Time Analysis Reports

  1. The Time Analysis Reports provide users the ability to track information related to time charges by employees and to returns. The following time reports are discussed in this section:

    • Agent Input Document

    • Case Time Analysis

    • Check Employees with Uncharged Time

    • Daily Time Report

    • DET and Non-DET Analysis

    • High Time Report

    • Inactive Case Report

    • Status 12 with No Time Applied

4.7.6.4.1  (01-21-2015)
Agent Input Document

  1. The Agent Input Document contains information about the examiner's inventory. This form is used primarily by revenue agents, PSP, TS, and JCR groups to record their daily time charges. Locally developed forms may be substituted for this form if approved by the area. The Issue Management System (IMS) allows LB&I and specialty employees to input their own time which must be synchronized to the IMS server. This time is imported from the IMS server into ERCS.

  2. The Agent Input Document lists cumulative hours at the beginning of the cycle for each return assigned to the examiner. The document also includes the returns in which the examiner is assisting. There is a space to enter the time applied to returns or activities for each work day during the cycle. Holiday time must also be entered on the form since it is a required entry in ERCS.

  3. Time is required to be entered in ERCS by close of business (COB) on the last work day of the reporting cycle unless local procedures require it to be input earlier. Each employee required to complete a time input document must give it to the group secretary or clerk in sufficient time to meet this deadline. It is recommended that time be input on a weekly basis for field groups to ensure time is completed by the end of the cycle. Keeping the time current on ERCS will also make it easier to validate the total time on returns against Form 5344, Examination Closing Record, when returns are closed. Refer to IRM 4.9.1, Examination Technical Time Reporting System, Outline of System, for the special requirements regarding this document.

    Note:

    All employees are required to submit a completed time input document to the clerical staff, regardless of whether the document is generated through ERCS, the time is entered into IMS, or another approved form is used. Refer to IRM 4.9.1.6.2.2, Examination Technical Time Reporting System, Outline of System, Inputting Time into IMS for the requirements for Issue Management System (IMS) users.

  4. Agent Input Documents are generated at the beginning of each reporting cycle.

4.7.6.4.2  (01-21-2015)
Case Time Analysis

  1. The Case Time Analysis lists individual time charges for a return. It can be run for one return or for multiple tax periods for the same TIN and master file tax code (MFT) or for multiple returns. The user may also enter a specific date range or opt to list all time charges.

  2. This report has a variety of uses which include, but are not limited to:

    • Verifying if all time has been input into ERCS prior to case closing from the group. This is especially useful if there is a discrepancy between the time in ERCS and the time on the Form 5344.

    • Verifying time was applied to the correct protection of revenue base (P of RB) codes.

    • Verifying the time in ERCS against the entries on the case activity record.

    • Determining who has applied time to the return in addition to the current area or owner. This can be helpful in working the High Time Report.

    • Determining the amount of time spent reviewing the return.

  3. Review and sample review users have an option to include time spent by TS employees reviewing the return. (This time is identified by time applied to P of RB code Q.)

  4. The report lists individual time charges to the returns by examiner and date as well as the following total time groups:

    • Totals for each individual examiner, grouped by RBP (also known as P of RB) and non-RBP hours

    • Total Audit Aide Hours

    • Total Co-op (co-operative education student trainee) Hours

    • Total TE (tax examiner) Hours

    • Examiner's Time (Form 5344 Item 28)

    • RBP Hours (Form 5344 Item 23)

    • Total Other (not included on Form 5344)

      Caution:

      Hours in Examiner's Time does not include RBP hours. If all the time for the return has been input into ERCS, the time on Form 5344, Item 28 must match the Examiner's Time on this report; and the time on Form 5344, Item 23 must match the RBP time on this report.

  5. The Case Time Analysis should be run prior to closing the case from the group and as needed to verify the time on the return.

4.7.6.4.3  (01-21-2015)
Check Employees with Uncharged Time

  1. The Check Employees with Uncharged Time report is used to ensure all time charged within the cycle is input timely in ERCS and to alert managers of any unapproved requisitions with time applied. The report lists employees with uncharged time through the end of the cycle or through the date input by the user. Each employee's last time charge date is included on the report.

  2. The report should be run periodically through the cycle, but it must be run on the last work day of the reporting cycle to ensure all time is accounted for as required by IRM 4.9.1, Examination Technical Time Reporting System, Outline of System.

    Reminder:

    Time is due in ERCS by the COB on the last work day of the cycle. Managers are responsible for ensuring that time has been completed by this date.

  3. The report is used by territory and DFO users to ensure all groups reporting to them are inputting time and approving requisitions by the cutoff at the end of the cycle.

    Note:

    If a requisition is disapproved after the time has been sent to SETTS, the time on ERCS must be moved to another activity. This time cannot be corrected on Table 37, Examination Program Monitoring, and could result in an incorrect classification of the time.

4.7.6.4.4  (01-21-2015)
Daily Time Report

  1. The Daily Time Report is a summary of an employee's time charges for a specific period. It can be run for one or more employees or for a group. When run for a cycle, it contains the same daily time information as it appears on the Agent Analysis.

4.7.6.4.5  (01-21-2015)
DET and Non-DET Analysis

  1. The DET (direct examination time) and Non-DET Analysis lists all time charges by activity code for an examiner during a specified time period. This report displays how much of an examiner's time is spent working returns versus administrative tasks, such as training and preparing reports. It can be run by the group or for a single employee. It includes totals by DET and non-DET. The report is used by managers to monitor examiners' time in the group to ensure the majority of time is spent on priority work.

  2. The report can also be used by territory managers to ensure DET is maximized to the extent possible and to look for trends such as large amounts of non-DET per examiner or per group.

  3. This report should be run monthly to ensure the ratio of DET to non-DET is acceptable.

    Note:

    The terms DET and non-DET are used in LB&I to differentiate Activity Codes 001-599 (DET) and 600-830 (non-DET). SB/SE uses the terms compliance and non-compliance instead of DET and non-DET. See IRM 4.9.1, Examination Technical Time Reporting System, Outline of System, for the activity codes associated with these terms. For SB/SE this report does not match Table 37, Examination Program Monitoring.

4.7.6.4.6  (01-21-2015)
High Time Report

  1. The High Time Report lists returns with time exceeding a pre-determined number of hours based on the activity code and the type of group (revenue agent or tax compliance officer). Related returns are included on the report if any of the returns in the case meet the high time criteria. When the report is run, the default number of hours per activity code is displayed on the screen. The user has the option of changing the default number of hours prior to running the report. There are different defaults for revenue agent (RA) and tax compliance officer (TCO) groups. If the report is run at the territory level, the defaults are based on the RA defaults. This report does not include review time or time applied by TEs.

    Note:

    Review time is time applied by TS employees when reviewing the return. Review time and time applied by TEs are not included on the Form 5344.

  2. The report is used to monitor excessive time applied to returns which can be a symptom of a number of issues such as an agent applying all the time working a related case to a single return.

  3. The High Time Report should be run monthly to address issues early in order to meet the examination plan.

  4. The defaults used in the creation of the report are included in the table below. The user may change them at run time:

    Activity Codes Hours RA/TCO
    270-272, 274 30 RA
    275-281, 273 50 RA
    495-498 31 RA
    203-213 20 RA
    215-217 40 RA
    219 90 RA
    221 150 RA
    414-429 100 RA
    435-439 100 RA
    462-470, 266 5 RA
    501-506, 593-595 5 RA
    549 5 RA
    All other 0 RA
    270-272, 274 11 TCO
    275-281, 273 14 TCO
    462-470, 266 5 TCO
    501-506, 593-595 5 TCO
    549 5 TCO
    All other 9 TCO

4.7.6.4.7  (01-21-2015)
Inactive Case Report

  1. The Inactive Case Report is used to show cases where no time has been charged within a specific number of days. Related returns are listed together. To be included on the report all the returns in a related group must meet the criteria for the report. In other words, if time has been applied recently to at least one return in the related group, none of the returns in the related group will be listed on the report.

  2. This report may be helpful to the examiner in prioritizing work.

  3. Managers should check this report monthly and during employee inventory reviews to ensure the assigned cases are progressing.

  4. Territory managers can use this report to ensure managers are addressing issues within the group.

4.7.6.4.8  (01-21-2015)
Status 12 with No Time Applied

  1. The Status 12 with No Time Applied report is used by the group manager to monitor cases in the group where the return has been updated to Status 12 (AIMS shows the examination has been started), but time is not being applied on ERCS.

    Note:

    Tax examiner time is not added to the return time; therefore, this report cannot be used to monitor returns owned and worked by TEs. The user is given the option to exclude returns from the report if the only time charges are by a TE.

4.7.6.5  (01-21-2015)
Monitoring Reports

  1. The Monitoring Reports discussed in this section are designed to monitor specific issues such as overage returns. This section covers the following ERCS monitoring reports:

    • Fraud Report

    • Partnership Reports

    • Previously Closed Returns

    • Prior Year Report

    • Returns by Activity Code

    • Returns by Project Code

    • Returns by Source Code

    • Returns Related to Specific Return

    • User Criteria Listing

    • Work Awaiting Approval

4.7.6.5.1  (01-21-2015)
Fraud Report

  1. The Fraud Report lists returns with fraud features. This report is used to identify, prioritize, and monitor fraud returns in the group. Returns are selected for the report if the returns are in the group and any of the following are true:

    • The source code is 88, 89, or 90.

    • The status code is 17 or 18.

    • The project code is 0095, 0096, 0135, 0146, or 0691.

4.7.6.5.2  (01-21-2015)
Partnership Report

  1. The Partnership Report can be run for a complete inventory of partnership returns or for a list of returns with potential issues that may need monitoring, verification, or follow-up. If a complete inventory is desired, the user enters 0 days at the start date prompt and all returns in the group with MFT 06 or MFT 35 are included. Returns with potential issues are marked. These include the following:

    • The status code is between 12 and 19, the TEFRA indicator is not set, and the return has been in process 60 days or more.

    • The status code is between 10 and 19, the partnership investor control file (PICF) indicator is not 1, and the notice of beginning of administrative procedures (NBAP) letter date or the start date is greater than the user entered PCS linkage time frame.

    • The status code is between 10 and 19, the NBAP letter date is set, and the TEFRA indicator is blank or N.

    • The status code is between 12 and 19, the NBAP letter date is not set, and the TEFRA indicator is not N or S.

  2. For a partial list of returns with potential issues the user enters the number of days since the start date and the number of days since the NBAP letter date. The same criteria is used to find returns as in the full inventory report, except only returns with potential errors are included and the user entered dates are used instead of the 60 day criteria.

  3. This report should be run monthly in groups with partnership returns.

4.7.6.5.3  (01-21-2015)
Previously Closed Returns

  1. The Previously Closed Returns report shows a list of returns that have been re-opened by the group or returned to the group by TS, JCR, or CCP. This report is used to ensure that these returns are worked promptly.

4.7.6.5.4  (01-21-2015)
Prior Year Report

  1. The Prior Year Report is used by the group to identify the oldest returns in inventory and to identify examinations not associated with the current audit cycle. It can also be used to identify old returns that have not been started that may need to be surveyed. The report contains the source code which identifies the reason the return was selected (DIF, NRP, claims, etc.) for audit. The Form 895, Notice of Statute Expiration, issued and returned dates are included on the report, so the user can see at a glance if statute controls are in place.

  2. The user selects the statuses to include on the report. A tax period must be entered. All returns with a tax period prior to and including the tax period entered are included on the report.

  3. The report may be run at the group or the territory level. The territory manager may use the report to ensure the oldest inventory is moving.

4.7.6.5.5  (01-21-2015)
Returns by Activity Code

  1. The Returns by Activity Code report lists all returns with the activity codes and status codes selected by the user. This report can be used by the group to locate returns with North American Industry Classification System (NAICS) code errors.

    Note:

    This is the only report that displays the market segment specialization plan or MSSP code.

  2. The user may choose all activity codes, a selected group of activity codes from a menu, or individual activity codes may be entered. The following table shows the activity codes associated with each activity code category:

    Category Activity Codes
    Individual (Form 1040) 270-281
    Corporate (All Forms 1120) 202-203, 209, 213, 215, 217, 219, 221, 223-224, 226-231, 234, 241, 260-263, 265, 267, 288-290, 490-493
    Partnership (All Forms 1065) 473, 480-483, 489
    Fiduciary (Form 1041) 495-498
    Employment 266, 462-470, 488, 499
    Excise 016, 034, 099, 196-198, 507-510, 521, 547, 588, 592, 596-599
    Estate and Gift 414-417, 420-429, 434-439
    Preparer Penalties 501-506, 509, 549, 552-555, 585-586, 593-595
  3. The report displays "BAD" in the MSSP field if the NAICS code cannot be mapped to a valid MSSP code. This includes returns with MFT 30 without a NAICS code. (A NAICS code is optional for MFT 30 returns; however, if the return has a Schedule C or F it should have a NAICS code.) The following table shows the corrective action for returns with MSSP errors:

    MFT Action
    01, 02, 04, 06, 10, 11, 14, and 16 The NAICS code must be updated prior to closure if the return is closed with an examined disposal code. These returns can be closed as non-examined without updating the code.
    30 The NAICS code should be updated prior to closure if the return is closed with an examined disposal code and the return has a Schedule C or F. The NAICS code can be updated to 0. These returns may be closed without updating the code.
    All other MFTs The NAICS code can be updated to 0, but there are no checks preventing these records from closing on AIMS or ERCS.

4.7.6.5.6  (01-21-2015)
Returns by Project Code

  1. The Returns by Project Code report lists all returns with project codes and status codes selected by the user. This report can be used to check the tracking codes on returns within a specific project code.

  2. The user is prompted for a category of project codes to include on the report. The user may select all project codes, all local project codes, a category of project codes, or input individual project codes to include on the report. The following table shows the project codes associated with each category:

    Category Project Codes
    Tax Shelters none defined
    Frivolous Filer
    • 0310: Valid, Frivolous Return

    • 0311: Frivolous Non-filer

    • 0312: Frivolous Correspondence

    National Projects
    • 0262: Dependent SSN Matching

    • 0637: Form 637, Registrations

    Narcotics
    • 0001: Drug Enforcement Task Force Case, Termination

    • 0002: Drug Enforcement Task Force Case, Jeopardy

    • 0003: Drug Enforcement Task Force Case, Other

    • 0004: Regular Narcotics Case, Termination

    • 0005: Regular Narcotics Case, Jeopardy

    • 0006: Regular Narcotics Case, Other

    Windfall Profits none defined
    Fraud
    • 0095: Request for Cooperating Officer based on Examination Referral

    • 0096: Request for Cooperating Officer not based on Examination Referral

    • 0146: Form 8300, Fraud

    • 0147: Title 31, Fraud

    • 0691: Earned Income Credit (EIC) Fraud

    UIP (Unreported Income Project ) These are locally defined in each area.

4.7.6.5.7  (01-21-2015)
Returns by Source Code

  1. The Returns by Source Code report lists all returns with source codes and status codes selected by the user. This report is used by the group to locate possible source code errors and for information gathering on specific projects. The user may select from the following source code groups or input individual source codes for the report:

    • TCMP (80 and 91), (Taxpayer Compliance Measurement Program is now National Research Program)

    • Tax shelters (17 and 39)

    • Claims (30, 31, and 35)

    • DIF related and multi-year pickups (05 and 10)

    • Non-DIF related and multi-year pickups (40 and 50)

4.7.6.5.8  (01-21-2015)
Returns Related to a Specific Return Report

  1. This report allows users to generate a list of all returns related to a return in the user's inventory. This report can be used to verify all related returns are accounted for when a case is closed.

    Note:

    Returns may not be related to a return in a different area.

4.7.6.5.9  (01-21-2015)
User Criteria Listing

  1. The User Criteria Listing is the only report in ERCS where users choose the data to include or exclude when generating an inventory list. All users must choose the statuses to include on the report, but additional choices are based on the type of user as shown in the table below:

    Code User
    Action Code Group, PSP, Review, Territory, DFO, Area/Ind
    Activity Code Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Aging Reason Code Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Date in CCP CCP
    Disposal Code PSP, Review, CCP, Territory, DFO, Area/Ind
    Project Code Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Program Number CCP
    Review Type Review
    Source Code Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Suspense Type CCP
    Statute Info Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Status Date CCP
    Time on Return Group, PSP, Review, CCP, Territory, DFO, Area/Ind
    Tracking Code Group, PSP, Review, CCP, Territory, DFO, Area/Ind
  2. For each data choice (Activity, Source, etc.) users may choose from available groups of codes (All Activity Codes, Corporate Activity Codes, etc.) or input a custom list of codes. If the user chooses Statute Info, a date is entered and returns are selected if the statute is prior to the date entered. If the user chooses Time on Return, the number of hours is entered and returns are selected if the time exceeds the number entered.

  3. The user must also choose whether the code should be exclusive or inclusive. If the code is marked as exclusive, returns must match all the criteria to be included on the report. If the code is marked as inclusive, returns must match at least one of the criteria to be included on the report.

    Example:

    The user chooses aging reason code and inputs 53, then chooses source code and inputs 73, marking both codes as exclusive. Only returns with both codes set will be included on the report. If run again for the same codes and both are marked as inclusive, returns with either code set will be found. (The program requires at least one data choice to be marked inclusive.)

    Example:

    The report is run again with both aging reason code and source code marked as inclusive, and project code and tracking code are added and marked as exclusive. Returns must have the selected project code and selected tracking code and either the aging reason code or the source code to be included on the report.

  4. The report can be modified by the user for a variety of uses, include running inventory lists of priority returns. Some examples are listed below:

    • National Research Project: (specific project, source, and tracking codes)

    • Promoters & Return Preparer Strategies: (specific activity, aging reason, project, source, and tracking codes)

    • Audit Reconsiderations: (aging reason code)

    Note:

    Although there is no limit to the number of specific codes that can be entered, if a priority has a large number of codes associated with it, the practicality of inputting a long list of codes in order to generate the report may not be an efficient use of the report.

4.7.6.5.10  (01-21-2015)
Work Awaiting Approval

  1. The Work Awaiting Approval report lists updates to returns pending managerial approval. It can also be run as an overage report by entering a number of days returns have been pending approval.

    Caution:

    When an update to a return is pending managerial approval, the manager receives a message on the ERCS Main Menu screen. It is recommended that managers access ERCS at least two to three times a week so updates may be approved timely. This also applies to the territory manager if managers within the territory have write permission to update returns. Even though ERCS shows the new values, no updates are sent to AIMS until approved by the manager.

  2. This report should be run weekly by group, PSP, review, and CCP users to ensure any changes requiring approval are receiving timely attention. The report should be used to monitor returns in transit to PSP, review, or CCP so they do not become overage.

    Caution:

    Returns must not be closed from the group until the manager has reviewed the case for closure. Once the case has been reviewed, it should be updated, approved, and shipped within five business days. Returns must not be shipped until the closure has been approved on ERCS by the manager.

  3. This report should be run weekly by territory users to ensure all updates requiring the territory manager's (second level) approval are approved within two days of notification. The report is also used by territory managers to ensure managers within the territory are approving work timely.

  4. The following updates require approval by the manager:

    Update Type Notes
    Requisition Requisitions generating an update to AIMS require approval by the user's manager. If the user is a manager, the requisition must be approved by the territory manager or the second level manager.
    Statute Info Changes to the statute of limitations generating an update to AIMS require approval by the user's manager. If the user is a manager, the update must be approved by the territory manager or the second level manager.
    Transfers to another area or industry Transfers to another area or industry generating an update to AIMS require approval by the user's manager. If the user is a manager, the transfer must be approved by the territory manager or the second level manager.
    Non-examined closures Non-examined closures to Status Code 90 generating an update to AIMS require approval by the user's manager. If the user is a manager, the closure must be approved by the territory manager or the second level manager.
    Status Code Changes to the status code on a return in the group by a non-manager requires approval by the user's manager. If the user is a manager, no approval is required. No approval is required for updates from Status 10 to 12.
    SBC or EGC Changes to the SBC or EGC on a return in the group by a non-manager requires approval by the user's manager. If the user is a manager, no approval is required.
    Employee ID Changes to the employee ID on a return in the group by a non-manager requires approval by the user's manager. If the user is a manager, no approval is required.

4.7.6.6  (01-21-2015)
Count Reports

  1. The Count Reports provide group users a way to check the number of returns in specific activity codes and provide CCP users monitoring tools for overage inventory and closed returns. The reports in this section include:

    • Activity Code Count Report

    • Closed Case Report

    • Overage Program Number Report

    • Overage Status Report

4.7.6.6.1  (01-21-2015)
Activity Code Count Report

  1. The Activity Code Count Report provides a count of returns with activity codes selected by the user. The counts are grouped by unstarted and started returns. This report is used to monitor the workload available and in process at the group level. It can be used to monitor case assignment as it relates to the grade levels of the employees.

  2. The user may choose a selected group of activity codes from a menu or individual activity code may be entered. The user has the following choices:

    • All Possible Activity Codes

    • Individual (Form 1040)

    • Fiduciary (Form 1041)

    • Partnership (All Forms 1065)

    • Corporate (All Forms 1120)

    • Estate and Gift

    • Employment and Excise

    • Return Preparers

    • Specific Activity Codes

4.7.6.6.2  (01-21-2015)
Closed Case Report

  1. There are two reports named Closed Case Report on ERCS. The report discussed here is available to CCP users. Refer to IRM 4.7.6.3.4, Closed Case Report, on the Monitoring Reports menu for the report available to group and PSP users.

  2. When the report is run a closed case count report and a closed case inventory report are created. The inventory report lists returns closed from CCP within a user entered date range. If the date range is over 60 days the inventory report is not created. Employee audit returns are not included on either the inventory or the count report.

4.7.6.6.3  (01-21-2015)
Overage Program Number Report

  1. The Overage Program Number Report is available only to CCP users. When the report is run a count report and an inventory report are created. A return is considered overage if it has been in CCP more days than are considered appropriate for the program number. Employee audit returns are not included on either the inventory or the count report. See Exhibit 4.7.8-1, Centralized Case Processing, CCP Program Numbers and Suspense Types, for the program numbers and their associated number of days used for this report.

4.7.6.6.4  (01-21-2015)
Overage Status Report

  1. The Overage Status Report is available only to CCP users. When the report is run a count report and an inventory report are created. Employee audit returns are not included on either the inventory or the count report. See Exhibit 4.7.8-1, Centralized Case Processing, CCP Program Numbers and Suspense Types, for the status codes and their associated number of days used for this report.

4.7.6.7  (01-21-2015)
Statute Expiration Reports

  1. The Statute Expiration Reports are designed to ensure users have the reports needed to monitor statutes and to ensure Form 895 procedures are followed timely. This section covers the following ERCS statute reports:

    • 895 Report

    • AIMS-ERCS Statute Report

    • Pending Statute Report

4.7.6.7.1  (01-21-2015)
895 Report

  1. Returns are included on the 895 Report if the statute has expired, is expiring within a defined number of days, has an alpha or an 872 statute, or a Form 895 has previously been generated through ERCS. For PSP and exam groups the number of days is defined by the area or by LB&I. For TS and JCR the number of days is nationally defined at 180. For CCP the number of days is nationally defined at 120 days.

    Caution:

    This report does not include returns where a prompt assessment or a statute extension has been secured unless the calculated statute based on a timely filed return will expire within the defined number of days. These returns require a Form 895, and the forms must be manually generated on ERCS.

  2. The 895 Report contains the Form 895 issued and returned dates. If the report is printed for the entire group, a summary listing the totals of each type of statute per examiner is included. This report is used to monitor returns requiring a Form 895, and to ensure that each return in inventory has satisfied the statute control requirements in IRM 4.7.3, Examination Returns Control System (ERCS) - Statute of Limitations, and IRM 25.6.23, Statute of Limitations - Examination Process - Assessment Statute of Limitations Controls.

4.7.6.7.2  (01-21-2015)
AIMS-ERCS Statute Report

  1. The AIMS-ERCS Statute Report lists returns where the AIMS and ERCS statutes do not match or the returns have other statute issues. The report should only be generated after a successful run of AIMS to ERCS processing since the data is primarily AIMS data. (The report displays a message if AIMS to ERCS processing was not successful.)

  2. The report lists returns with the following issues. Some issues can be corrected, some should be monitored, and some need the statute to be verified:

    • *The ERCS statute has been changed and is pending the manager's approval.

    • *ERCS has the prior examination record and AIMS has the current examination record. These records have "No ERCS" in the comment section. (An ERCS record does exist but it does not match the AIMS second examination record.)

    • *The AIMS and ERCS statutes do not match and the ERCS record and the AIMS record are in different locations.

    • *Either AIMS or ERCS has an expired statute.

    • *AIMS has a ZZ alpha statute.

    • *AIMS has an FF alpha statute, but the source code is not 45.

    • **The statute on ERCS has been updated, but the update has not been sent to AIMS.

    • ***The AIMS statute is over 4 years in the future.

    • ***AIMS has a masterfile (MF) and a non-masterfile (NMF) record. The MF record is on ERCS. The AIMS NMF record is listed on the report.

    • *None of the previous conditions apply, but AIMS and ERCS statutes do not match.

    Note:

    *These issues must be resolved or corrected.

    Note:

    **This issue should be monitored to make sure the update goes to AIMS.

    Note:

    ***The statute on these returns should be verified.

  3. It is recommended this report be run and worked weekly to ensure any incorrect statutes are corrected timely.

4.7.6.7.3  (01-21-2015)
Pending Statute Report

  1. There are two reports by the name Pending Statute Report in ERCS. This section discusses the Pending Statute Report on the Statute Expiration Reports menu. Refer to IRM 4.7.6.9.4, Pending Statute, for the report available from the Territory Reports menu for upper management and PSP.

  2. The Pending Statute Report lists returns with a numeric statute expiring within the number of days input by the user. It includes ERCS only records such as penalty controls that are not on the AIMS Tables 4.0 and 4.1. Returns with expired statutes are not included.

    Caution:

    Since some alpha statutes represent an underlying statute that can expire (for example, BB, DD, HH, MM), this report must be run in conjunction with the 895 Report to identify all statutes (including alpha statutes) expiring within the time parameters of the report.

    Note:

    AIMS Tables 4.0 and 4.1 are created monthly listing AIMS returns with statutes that have expired or will expire within 180 days. Returns with alpha statutes are included if the month and year will expire within 180 days.

  3. The user has the option of including returns with irregular statutes. Including irregular statutes can aid the user in identifying returns that have statutes that appear normal but may be an irregular statute due to a user input error.

    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.

  4. This report is used to identify returns with short statutes so corrective action can be taken to ensure the statute is protected.

  5. When running the report for monthly monitoring, users should run it for 210 days or more to ensure all returns expiring within 180 days in the coming month will appear on the report.

  6. When running the report to compare with the AIMS Tables 4.0 or 4.1, users should run it for 180 days to match the data on the tables.

4.7.6.8  (01-21-2015)
Tax Auditor Reports

  1. The Tax Auditor reports assist group, territory, and PSP users in monitoring large volumes of inventory. Most of the reports in this section can be run at the group or territory level. In order for these reports to be viable, the action code or the appointment information (depending on the report) must be current.

    Note:

    The action code is an ERCS only field that is primarily used in TCO groups to indicate the next action due on a return, with two exceptions (Action Code 05, Overnight, and Action Code 11, Manager Reviewing). These action codes indicate the current status of the return. Action codes can also be used in RA groups and in PSP. RA groups must use the same definitions as defined for TCO groups. PSP groups have their own definitions. Action Codes 01-12 are nationally defined for exam groups. Action Codes 13-20 are locally defined (by each area or by LB&I) for exam groups, and Action Codes 01-20 are locally defined for PSP groups. Refer to Exhibit 4.7.5-1, Examination Returns Control System (ERCS), Group and Territory, Action Codes, for the definitions of the nationally defined action codes.

  2. The following reports are discussed in this section:

    • Action Code Report

    • Appointment Scheduled Report

    • Group Purge Report

    • Inventory Analysis

    • Monthly/Weekly Schedule

    • Overage Purge Report

    • Overnight Inventory Report

    • Tax Auditor Daily Report

    • Tax Auditor Scheduler

4.7.6.8.1  (01-21-2015)
Action Code Report

  1. The Action Code Report lists returns for a user entered action code. It can be used to monitor returns in a specific action code such as obtaining a list of returns in the manager's possession.

4.7.6.8.2  (01-21-2015)
Appointment Scheduled Report

  1. The Appointment Scheduled Report lists returns with Action Codes 01, 02, or 09 with a purge date entered by the user. It is used by the group to identify expected taxpayers on a given day. It can be used by management to ensure TCOs are employing effective scheduling practices.

4.7.6.8.3  (01-21-2015)
Group Purge Report

  1. The Group Purge Report lists returns requiring action of the clerical staff for the user entered purge date. The report should be generated and subsequent inputs into ERCS should be completed daily.

  2. This report can be used by management to ensure the clerical staff is taking timely steps to move cases towards completion.

  3. The codes which may require action of the clerical staff are:

    • Action Code 03: 30-day letter follow-up. Ready to close after the 30 day period.

    • Action Code 04: 15-day letter follow-up. If information is received, return to TCO; otherwise, ready to close after the 15 day period.

    • Action Code 07: 10/15-day letter follow-up. If information is received, return to TCO; otherwise, ready to close after the 10 or 15 day period.

    • Action Code 09: Conference with the group manager is scheduled. Give case to group manager.

    • Action Code 12: TCO has completed action. Case ready to close.


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