The purpose of this section is to provide policy guidelines and procedures for territory managers, managers, reviewers (revenue agents, tax auditors, and tax compliance officers without inventory), tax examiners, clerical staff, and users designated as actors in the use of Examination Returns Control System (ERCS) for the following functions:

For the purposes of this section "employee" refers to an employee in a function listed in IRM 4.7.7.1 (1) with an ERCS employee record. All ERCS employees have an assigned ERCS employee identification (ID) number. The ERCS employee ID is used to associate inventory and time charges with the employee.

For the purposes of this section "user" refers to an employee in a function listed in IRM 4.7.7.1 (1) with ERCS access. Depending on a user's permissions, a user may update records, generate reports, approve updates, etc. in the ERCS system.

The employees and users in TS and JCR are referred to in the ERCS Handbooks as review employees and review users, respectively.

The employees and users in EQMS, QMA, and LQMS are referred to in the ERCS Handbooks as sample review employees and sample review users, respectively.

The instructions for TS and JCR users for navigating the ERCS programs can be found in the ERCS Review Handbook. The instructions for EQMS, QMA, and LQMS users for navigating the ERCS programs can be found in the ERCS Sample Review Handbook.

TS and JCR users can:

EQMS, QMA, and LQMS users can:

A user is granted access to the ERCS server via the Online 5081, Automated Information System (AIS) User Registration / Change Request. Refer to IRM 4.7.2, Security, for details.

In order to run ERCS programs, a user must have:

ERCS operates on the principle that users should only change data on returns under the user's control. Consequently, a TS and JCR user may only change information on returns in Status Codes 20 - 39 within the AACs in which the user has permission. Users in EQMS, QMA, and LQMS may only change information on returns selected for sample review in Status 90 within AACs reviewed by the EQMS, QMA, and LQMS site (SB/SE, Specialty Tax, or LB&I). Throughout ERCS, error messages appear when a user attempts to update returns in which the user does not have permission.

Because of the potential for 1204 violations, reports generated by users that contain any Record of Tax Enforcement Results (ROTER) information are to be shared only at the first line manager level or higher and/or with designated reviewers on a need to know basis. For more information about ROTER, see the Section 1204 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.

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. No attempt should be made to access the user's own SSN or that of the user's spouse. If the user's personal SSN or that of the user's spouse is entered, an employee audit access message is created of a possible breach of security. An employee audit access message is also created if a user attempts to view or update an employee audit return that the user does not have permission to update. Breaches in security are considered UNAX violations and are subject to disciplinary action. For more information about UNAX, see IRM 10.5, Privacy Information Protection and Data Security (PIPDS).

Updates to returns in TS and JCR by the clerical staff requiring managerial approval are approved by the first line manager. Updates to returns in TS and JCR by a manager or acting manager requiring managerial approval must be approved by the territory manager. Types of updates made by TS and JCR users requiring approval are:

Changes to returns on ERCS requiring approval do not roll up to AIMS until they are approved.

Disapproval of updates cause the items to revert to their prior value. Returns with pending approval cannot be transferred or closed on ERCS. ERCS does not create a "reject" list or otherwise mark disapproved updates. ERCS only lists those transactions that are pending approval and what the updated value will be when approved.

ERCS cannot prevent returns from being physically transferred to TS and JCR that are still pending managerial approval in the group for the transfer. Returns in transit to TS and JCR can be monitored using the "In Transit Report" on the Inventory Reports menu.

Updates pending managerial approval, show a "p" next to the value on the screens in the Correct or Display Records program.

TS and JCR managers should log onto ERCS at least weekly to check for updates that require managerial approval.

Users in EQMS, QMA, and LQMS do not update any values on ERCS returns that require managerial approval.

Responsibilities of managers include but are not limited to:

In addition to the items in IRM 4.7.7.6 (1), TS and JCR managers are also responsible for the following:

Responsibilities of the reviewers include but are not limited to:

In addition to the items listed in IRM 4.7.7.7, reviewers and tax examiners in TS and JCR are also responsible for the following:

Responsibilities of the clerical staff include but are not limited to:

In addition to the items listed in IRM 4.7.7.8, the clerical staff in TS and JCR is also responsible for the following:

Ownership of a return in TS, JCR, EQMS, QMA, or LQMS is determined by the reviewer assigned to the return on ERCS. For this reason, returns should be assigned as soon as possible after they are received in the function.

Once assigned, ERCS users may update the returns or generate reports listing the returns, if the user has been granted permission for the reviewer's AAC.

Unassigned returns are not associated with a TS, JCR, EQMS, QMA, or LQMS AAC. In order to update or assign these returns, users must have permission for the PBC on the return and SBC of the TS, JCR, EQMS, QMA, or LQMS function (88700, 88705 or 88710).

If a return needs to be assigned to a reviewer in another area, the current group should update the Technical Services Code (TSC) and then update the employee ID to a reviewer in the new area (PBC). Once re-assigned, only users with permissions for the new reviewer's AAC will be able to update the return. Users should follow local procedures for brokering work in TS.

In addition to the AAC permission checks, ERCS also checks the status code on returns to determine if a return can be updated or listed on reports run by TS and JCR users.

In addition to the AAC permission checks, ERCS also checks to see if returns have been selected for sample review to determine if a return can be updated or listed on reports run by EQMS, QMA, or LQMS users.

In general, all cases subject to mandatory review are to be completed within 30 days of receipt.

For a complete list of reports available for TS and JCR users, refer to the ERCS Review Handbook.

For a complete list of reports available for EQMS, QMA, and LQMS users, refer to the ERCS Sample Review Handbook.

IRM 4.7.6, Reports, contains detailed descriptions of ERCS reports, recommended uses for the reports, and the recommended frequency for running the reports.

ERCS uses a combination of AIMS and ERCS codes for inventory control. The following codes are only defined on ERCS with the exception of the AAC, employee ID, and position code which are also used for the Summary Exam Time Transmittal System (SETTS):

More information about these codes may be found in the Codes chapter of the ERCS Review Handbook, the Codes chapter of the ERCS Sample Review Handbook or in the Exhibits at the end of this IRM.

Returns are checked for sample review eligibility at the time the returns are checked into TS or Centralized Case Processing (CCP) (i.e. the status on the return is changed from Status Code 21, "In-transit to TS" , or from Status 51," In-transit to CCP" , to another status). In order to be eligible for selection, the return must meet the selection criteria and be the Nth eligible return. The "Nth" number is determined by the analysts for each EQMS, QMA, and LQMS site.

When returns are selected for sample review, the user is prompted to print a sample selection sheet. This sheet should be attached to the front of the case file as a reminder that the case should be shipped to the address on the sample review sheet when the case is closed to Status Code 90. Refer to IRM 4.8.3, Technical Services - Examination Quality Measurement Staff (EQMS), for the sample selection criteria and the procedures for the sample selection process. Refer to The Correct and Display Records chapter of the ERCS Technical Reference Manual for the sample selection criteria for EQMS, QMA and LQMS functions.

A return that has been selected for sample review may be deselected by the program if either of the following occurs:

If a return is deselected for sample review, the sample selection sheet should be removed from the case file.

See IRM 4.8.3, Technical Services Staff, Examination Quality Measurement Staff (EQMS), for more information about the sample selection process.

ERCS validates all examination technical time for SB/SE and LB&I employees whether it is input into ERCS or into another system such as Issue Management System (IMS) and transferred to ERCS for validation.

ERCS determines which employees are required to input examination technical time by the employee's position code on the ERCS employee record. If there is an exception for an employee, the AIMS/ERCS analyst can set an indicator, called "Ignore SETTS," on the employee record that causes ERCS to skip the employee when time is input for the group.

The following position codes used in TS, JCR, EQMS, QMA, and LQMS require technical time to be entered on ERCS: 105, 106, 118, 206, 218, and 327. However, TS and JCR employees in Position Code 327, tax examiner, are currently not required to input time in ERCS. The employee's AIMS/ERCS analyst should turn the "Ignore SETTS" indicator on for these employees so the correct position code can be used without requiring the employee to charge technical time on ERCS.

There are four types of time charges that can be entered on ERCS:

DET is time charged to a return using the P of RB codes of "N" (no protection), "R" (related, non-protection time spent on a claim for refund), "P" (protection), or "S" (shelter). This time is included on Form 5344, Examination Closing Record. Although ERCS allows input of these codes for reviewers, an employee in TS and JCR would rarely input DET on a return. See IRM 4.4.12.4.39.1, What to include in Time, for details when a reviewer should charge DET.

DRT is time charged to a return using the P of RB code of "Q" (review). This time is not included in the examiner's time on Form 5344. Time charges to DRT is associated on ERCS to a return and the activity code on the return, but the second segment code (SSC) is user entered and used to further break down the time charge into the review activity performed.

, "R" , and "N" . Users enter "S" and "Q" time codes on ERCS during time input under the header "P of RB" so they are often referred to as P of RB codes.

No-return DET is time applied to activity codes in the range 500 - 599. Some of these activity codes can be set up as inventory control records on ERCS, but there is no associated AIMS record.

Non-DET, also referred to as "Below the line time" , is time applied to administrative activities, training, leave, etc. The activity codes associated with non-DET charges are in the range 600 - 899.

Refer to Document 6036 for a complete list of activity codes and DRT second segment codes.