4.10.15  Report Generation Software

Manual Transmittal

November 21, 2013

Purpose

(1) This transmits revised IRM 4.10.15, Examination of Returns, Report Generation Software (RGS).

Material Changes

(1) Minor editorial changes have been made throughout this IRM. Website addresses, IRM references, and form references were updated as necessary. Significant changes to this IRM are reflected in the table below:

Reference Description
IRM 4.10.15.1.3 (3) Added OL5081 information for Correspondence Examination Automation Support (CEAS) Universal Access.
IRM 4.10.15.1.3 (5) Expanded encryption information for Windows 7®.
IRM 4.10.15.1.4 Expanded section to identify types of documents that can be saved in RGS, and in particular in Office Documents.
IRM 4.10.15.2.3 Clarified the use of the Form 9984, Examining Officer's Activity Record and RGS Case History.
IRM 4.10.15.2.6 (2) Added requirement to save the final variance report.
IRM 4.10.15.2.6 (3) Added requirement to rename and save shareholder or partner report as the variance.
IRM 4.10.15.2.9.2 (2) Omitted the reference to a summary lead sheet.
IRM 4.10.15.2.9.4 Distinguished between National Research Project (NRP) and non-NRP case categorizations.
IRM 4.10.15.2.9.6 Clarified use of Reason Code 54 for NRP
IRM 4.10.15.2.9.9 (2) Added information for use of line 98 for NRP.
IRM 4.10.15.2.10 (1) Added several report forms.
IRM 4.10.15.2.11 (2) Added requirement to save Form 5344, Examination Closing Record.
IRM 4.10.15.2.14 Moved some content to IRM 4.10.15.1.4.
IRM 4.10.15.3 Added references to sources of group listings.
IRM 4.10.15.3.1.1 Added information on NRP case transfers and transfers from campus.
IRM 4.10.15.3.3.5 Removed paragraph (4) requiring print of RGS Closing Report.
IRM 4.10.15.4.1 (2) Expanded information on requesting data.
Exhibit 4.10.15-1 Updated list of training available.

Effect on Other Documents

This material supersedes IRM 4.10.15, dated January 20, 2012.

Audience

Small Business and Self-Employed (SB/SE) Field Examination employees and Large Business and International (LB&I), International Individual Compliance (IIC) employees using Report Generation Software (RGS) and Correspondence Examination Automation Support (CEAS).

Effective Date

(11-21-2013)

Barbara Fiebich
Director, Examination Operations Support

4.10.15.1  (11-21-2013)
Requirement to Use Report Generation Software (RGS)

  1. RGS is the software program utilized in the examination process to do the following:

    • Compute corrected tax, interest, penalties, and generate audit reports;

    • Create various forms and letters;

    • Allow examiners and reviewers to document their actions and findings; and

    • Process and archive examination results.

  2. RGS has different user position codes that are set by the user on the workstation. This selection is different from the Correspondence Examination Automation Support (CEAS) permission levels.

  3. CEAS has three permission levels: Manager, Examiner, and Clerk. These terms will be used throughout this IRM.

    CEAS Permission Levels Description
    Manager Users with Manager permissions include managers or acting managers.
    Clerk Users with Clerk permissions include secretaries, clerks, audit accounting aides (in some groups), tax examiners (in some groups), and examiners (in Technical Services brokering groups).
    Examiner Users with Examiner permissions include revenue agents, tax compliance officers, tax auditors, audit accounting aides (in some groups), and tax examiners (in some groups).

4.10.15.1.1  (11-21-2013)
Users of RGS

  1. Small Business/Self Employed (SB/SE) field examination employees (including office audit) and Large Business and International (LB&I), International Individual Compliance (IIC) employees are required to use the Correspondence Examination Automation Support (CEAS) database in a local area network (LAN) environment for the following income tax returns:

    • Form 1040, U.S. Individual Income Tax Return

    • Form 1065, U.S. Return of Partnership Income

    • Form 1120, U.S. Corporation Income Tax Return

    • Form 1120S, U.S. Income Tax Return for an S Corporation

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return, IIC examiners only

    Exception:

    Specialty Programs–examiners in excise, employment, estate and gift tax working income tax returns who may use RGS in a stand-alone mode (i.e., offline), are not required to forward the RGS data at case closure. See also IRM 4.10.9.4.6, Workpapers: Closing Cases Using Automated Workpapers and Reports.

  2. LB&I domestic examiners who may use RGS in a stand-alone mode (i.e., offline), are required to insert the RGS data file into the Issue Management System (IMS). For additional information visit http://lmsb.irs.gov/hq/pqa/Post-filing/BNA_RGS_Tax_Comp_Workpapers.asp.

  3. National Research Program (NRP) examiners are required to use CEAS for the NRP primary and related cases. See also IRM 4.22.6, Area Office–Examination of Individual Returns.

4.10.15.1.2  (11-21-2013)
RGS Inventory/Case Management

  1. Cases required to be on RGS (see IRM 4.10.15.3.2, Creating Cases):

    • All Form 1040, Form 1065, Form 1120, Form 1120S, and Form 1040NR (IIC only) returns must be on RGS. This includes employee audits.

    • Innocent spouse and grand jury cases are exceptions to this rule. The performance analysis program manager, in Operations Support function in Exam, may approve other exceptions.

  2. The examiner’s case inventory on the RGS server must agree with their Examination Returns Control System (ERCS) inventory list for cases required to be on RGS. The examiner must create cases on RGS within two weeks of updating the case to Status Code 12.

    Exception:

    Offshore Voluntary Disclosure Initiatives (OVDI) cases require at least one year on RGS when the OVDI case is updated to Status Code 12. When the case is updated to close with an examined disposal code, all years of the certification are required on RGS.

  3. The electronic RGS record must be closed at the same time the physical case file is closed.

    • For CEAS users, move the case to the file server. The case will remain assigned to the examiner on the file server until the case is closed or reassigned to another examiner. Cases may not remain on the examiner's Case Management screen after the case is closed.

      Note:

      A copy of the case is automatically saved in the user’s Sensitive but Unclassified (SBU) folder when the case is moved to the file server. See also IRM 4.10.15.1.3, Data Security, paragraph (6) regarding security.

    • For stand-alone (i.e. offline) RGS users, remove the case from Case Management when it is closed from the group. See also IRM 4.10.9.4.6, Workpapers: Closing Cases Using Automated Workpapers and Reports, for cases not required to be on CEAS.

  4. The RGS Generic Workcenter supports other types of returns such as the following:

    • Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

    • Form 941, Employer's Quarterly Federal Tax Return

    • Form 945, Annual Return of Withheld Federal Income Tax

    • Form 1040, U.S. Individual Income Tax Return (fiscal year only)

    • Form 1041, U. S. Income Tax Return for Estates and Trusts

    • Form 8278, Assessment and Abatement of Miscellaneous Civil Penalties

    Use of the generic workcenter in these instances is not required, but cases can be created and backed up to the file server. See also IRM 4.10.15.2.9.12 (1).

  5. CEAS users must back up their inventory weekly to ensure the most recent data is available on the file server. It is highly recommended that examiners complete a backup to the file server every time RGS is accessed. An inventory backup is important to safeguard the contents of each case. When a case is backed up, all files ( Word®, Excel®, Adobe®, etc.) stored within RGS Office Documents (OD) and Case File Documents (CFD) are included in the backup. See also IRM 4.10.9.4.7, Workpapers: Use of Computer.

  6. Closed cases can be retrieved from CEAS Archives for claims, audit reconsiderations, prior audit information, etc. The case must be returned to Archives if the case is not controlled by the group.

    1. If the case is not controlled on ERCS, refer to the RGS quick reference guide, "Working Cases Not Controlled by Your Group on ERCS," available on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

      Note:

      Do not follow the above guidance for Appeals requests for assistance on docketed cases. Appeals should provide the RGS data, if needed, to the examiner for review of workpapers and lead sheets in a stand-alone mode (i.e., offline).

    2. If the case is an audit reconsideration, refer to the RGS quick reference guide, "Audit Reconsideration Cases," available on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

4.10.15.1.3  (11-21-2013)
Data Security

  1. An Online 5081 (OL5081) is required to use RGS and access the CEAS database to back up, assign, close, archive, and retrieve RGS cases. The CEAS database maintains all RGS cases for SB/SE field examination and IIC. On CEAS, managers and clerks have access to all cases within their groups and examiners have access to only the cases assigned to them. Users must be trained on RGS and CEAS prior to being granted access. "View RTF" allows users to view Corporate Files On Line (CFOL) data for cases under examination. In addition, "CEAS Universal Access" allows users to view cases on the server. Refer to (http://mysbse.web.irs.gov/exam/rgs/access/default.aspx) for OL5081 instructions.

    1. The permission level requested must ensure users are provided only the privileges necessary to accomplish their normal and recurring work assignments. IRM 4.10.15.1 (3) identifies the permission level allowed based on the user's primary duties. Contact the System Support Manager, Business Re-Engineering for exceptions to these permission levels.

    2. A user must login at least every 45 days or the account will be disabled. Once disabled, an OS GetServices ticket is required to enable the account.

    3. A user must login at least every 60 days or the account is deleted and a "modify" OL5081 is required.

  2. An OL5081 is required to access RGS in a stand-alone mode. Submit an OL5081 for "RGS_AD_Group." This application only grants access to RGS on your workstation, and it is not required for users that currently have access to CEAS.

  3. An OL5081 is required to access CEAS Universal Access for specific user groups that do not have CEAS access through RGS. Submit an OL5081 for "CEAS-View Case Read-Only Field NRP (CEAS)." This OL5081 will not be approved for users who already have access to CEAS through RGS.

  4. Access to taxpayer data is subject to the Unauthorized Access (UNAX) regulations. A Form 11377, Taxpayer Data Access, should be completed if inadvertent access has occurred. See also IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program.

  5. RGS data and all related workpapers are stored in a subfolder on the user’s workstation. Since this data is not stored in the SBU Data folder, the DATA folder for RGS must be manually encrypted.

    • Windows XP® operating system: Encrypt the DATA folder located at D:\RGSNT\Data.

    • Windows 7® operating system: Encrypt the DATA folder located at C:\Users\your SEID\My Documents\RGS\Data.

  6. If a file is deleted from the OD or CFD, it is copied to a folder in the SBU folder. Users must delete these files from the SBU folder six months after the case is closed or when the case reaches Status Code 90.

  7. Currently, when a case is closed to the file server, a copy of the case is saved in a folder in the user’s SBU folder. The copy must be deleted six months after the case is closed or when the case reaches Status Code 90.

  8. If the electronic RGS data is lost or becomes corrupt, the examiner is required to recreate the data as needed for the following:

    • Audit Information Management System (AIMS) closure

    • Examination Operational Automation Database (EOAD) capture

    • Technical Services

    • Case archive

4.10.15.1.4  (11-21-2013)
Documents Included in RGS

  1. Electronic lead sheets and workpapers are highly recommended for all cases worked in RGS. See also 4.10.9, Workpapers, and IRM 4.10.15.2.14, Lead Sheets, for guidance on workpapers and lead sheets. NRP has specific requirements for electronic lead sheets and workpapers.

    • Individual tax NRP cases, see IRM 4.22.4.4.1 (5), Scope and Depth of Examinations, Required Workpaper Documentation.

    • Employment tax NRP cases, see IRM 4.22.10.5, NRP Examination Lead Sheets.

    • Corporate tax NRP cases, see IRM 4.22.11.2, Electronic Case Files for the Key Case and Related Returns.

  2. Electronic workpapers that are critical to support the facts of the case should be stored in the RGS OD folder. This ensures that the information is backed up to CEAS and can be accessed by reviewers. The following are additional items that should be saved:

    1. Workpapers or files that establish whether an issue is properly reported [copies of taxpayer documents (contracts, invoices, etc.) as well as examiner-created files (pictures, web pages, etc.)].

    2. Summonsed information, if it supports workpaper references to adjustments, should be included in the case file.

    3. Anything available in an electronic format that supports an adjustment should be included in the final RGS case file.

      Reminder:

      Unnecessary information should not be included. Examiners should exercise good judgment when including information in their case files. All documents included in the electronic case file should add merit or value to the issue or the case. For example, source files, such as taxpayer original accounting software data, should not be saved in RGS. Data exported from the software and used in the examination should be saved. See IRM 4.10.15.1.4 (9) for storage of source files outside of RGS.

  3. Compatible file formats (Word, Excel, Access, and Adobe) will display in the OD folder. Other file types should be stored in a subfolder of OD to minimize compatibility issues. Some will display within the subfolder, but will not open within RGS and can only be accessed through Windows® Explorer. Others will not display in the subfolder but can still be accessed through Windows Explorer. See also Files in Office Documents on the website.

  4. Save any document (including correspondence and e-mails) provided to the taxpayer, representative, or third parties in OD or CFD. Include documents that were not created in RGS. For example, save a letter downloaded from the Publishing website in CFD.

    1. Adobe Acrobat forms generated by RGS may have established fillable fields that can be completed or changed.

    2. Do not change the non-fillable information on the forms generated by RGS with Adobe editing features. Instead, use forms from the Publishing website if editing is necessary.

    3. Do not save publications and informational notices.

  5. Rename lead sheets, workpapers, and other supporting documents in RGS OD and subfolders to match the reference number. Renaming the documents assists those reviewing the electronic case file.

  6. Delete unnecessary files from the OD and CFD folders including multiple copies of variances, unissued reports, etc.

  7. Preserve original lead sheets, workpapers, and other related documents for purposes of an audit trail. Do not delete issues as this can delete the attached lead sheets. Do not modify or delete the originating examiner’s files before preserving them. To safeguard the original or final documents, move them to a separate folder in OD or CFD.

    1. Create subfolders under CFD or OD to save reports, workpapers, or correspondence.

    2. Save the original lead sheets and workpapers in a subfolder if changes are made to the issues. For additional guidance, see "Audit Reconsideration Cases" on the website under Special Procedures at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

  8. The CEAS server has limited storage capacity. The size of a case in RGS can become extremely large and therefore appropriate steps should be taken to reduce the size of individual files saved in RGS. Large RGS case files (defined as 17 megabytes (MB) or larger) take longer to merge, back up, and move to the file server. To reduce file size including scanned documents, refer to the RGS quick reference guide Reducing File Size of a Case on RGS on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

  9. Large documents over 5 MB should be stored on a compact disk (CD) or digital versatile disk (DVD) unless they are a critical part of the case and are needed to support the results of the examination. Guardian Edge Removable Storage (GERS) is used to encrypt the CD or DVD. If the file is critical, it should be zipped using a compatible version of SecureZIP®. Save the zipped file rather than the original source file. For additional information, see External Records–RGS Storage–Examination in the Technical Digest.

  10. Although documents with macros can be inserted into an issue, the macro will not function properly if the document is opened within the issue. The macro will function when the file is saved directly to OD. See the instructions posted for Special Applications (http://mysbse.web.irs.gov/exam/rgs/sa/default.aspx).

4.10.15.1.5  (11-21-2013)
RGS Support

  1. The Functional Automation Support Team (FAST) supports SB/SE and LB&I users and is contacted by reporting an issue on the OS GetServices page or contacting the Enterprise Service Desk at http://eues.web.irs.gov/ESD/ESD-MAIN.aspx. The RGS FAST specialist's primary role is to support users, including troubleshooting problems.

  2. The Functional Automation Support (FAS) staff provides RGS support in an SB/SE Area and IIC. Refer to the website to contact your local FAS Staff (http://mysbse.web.irs.gov/exam/rgs/contacts/default.aspx). Each SB/SE Area FAS staff supports the RGS users located within their specific geographical Area. IIC FAS staff supports the IIC users throughout the country. The Functional Automation Coordinator’s (FAC) primary role is to maintain user’s access to the RGS server through the OL5081 application. The FAC also maintains the area’s RGS user e-mail distribution list. The RGS coordinator's and the RGS specialist's primary roles are to support users in their respective SB/SE area. Their duties include the following:

    1. Troubleshooting problems;

    2. Providing education on the use of RGS processes and procedures in the classroom or other settings;

    3. Interacting with other functions including Centralized Case Processing (CCP), Technical Services, Appeals, and Information Technology (IT) Desktop Support; and preparing monitoring reports for the Area.

  3. CCP Functional Automation Coordinators support the users in CCP.

  4. The national RGS support group’s primary role is to support area FAS and FAST through a variety of programs and ensure all users have the RGS tools and training necessary to perform their duties. The program analyst's responsibilities include the following:

    1. Developing and delivering RGS training for users.

    2. Collaborating with the RGS project office in Business Systems Planning (BSP) to test RGS versions and identify programming changes to improve the functionality of the program.

    3. Coordinating with other teams to support RGS such as Operations Support, Exam Policy, NRP, EOAD, CCP, IT, and BSP.

4.10.15.1.6  (11-21-2013)
Training

  1. RGS training for examiners is available on the website. Newly hired examiners receive RGS training for Form 1040 returns during classroom training. Training for business returns (Form 1120, Form 1120S, and Form 1065) is normally delivered in workshops provided by the FAS staff or the on-the-job instructor.

    • Revenue agent (RA) training (http://mysbse.web.irs.gov/exam/rgs/training/14675.aspx).

    • Tax compliance officer (TCO) training (http://mysbse.web.irs.gov/exam/rgs/training/14676.aspx).

  2. RGS training for managers, clerks, and secretaries is available on the website in the form of a self-study e-learning module (http://mysbse.web.irs.gov/exam/rgs/training/14674.aspx).

  3. For RGS training that impacts more than one SB/SE area, contact the RGS Support Group at http://mysbse.web.irs.gov/exam/rgs/resources/14330.aspx.

  4. For other RGS training, workshop, and presentation needs:

    Users Contact Link to website
    SB/SE (impacting only one area's employees) Local FAS staff http://mysbse.web.irs.gov/exam/rgs/contacts/default.aspx
    IIC IIC FAS staff http://mysbse.web.irs.gov/exam/rgs/resources/25357.aspx
    SB/SE CCP Local CCP RGS Functional Coordinator http://mysbse.web.irs.gov/exam/rgs/resources/25267.aspx
    NRP examiners/managers NRP coordinators and NRP website (http://nrp.web.irs.gov/) http://mysbse.web.irs.gov/exam/tip/nrp/contacts/26164.aspx
    Appeals, LB&I, Wage and Investment (W&I), and Tax Exempt and Government Entities (TE/GE) Division's technical support http://rgs.web.irs.gov/users/support/support.htm

  5. IRM Exhibit 4.10.15-1 lists the training available on the MySB/SE website, Enterprise Learning Management System (ELMS), and Publishing Services.

4.10.15.1.7  (11-21-2013)
Website Resources

  1. Information available on the MySB/SE or IT RGS websites:

    Item Website Link Description
    RGS News http://mysbse.web.irs.gov/exam/rgs/News/default.aspx Recent news regarding the RGS program and other notifications are posted on the News page.
    Frequently Asked Questions (FAQs) http://mysbse.web.irs.gov/exam/rgs/faq/default.aspx FAQs provide tips and suggestions to commonly asked questions.
    RGS Tech Know Newsletters http://mysbse.web.irs.gov/exam/rgs/rgs/default.aspx Newsletters are posted monthly with news and tips.
    Special Applications Workbooks http://mysbse.web.irs.gov/exam/rgs/sa/default.aspx Workbooks are available to assist users in performing various complex computations including depreciation, net operating loss, passive activity limitations, alternative minimum tax, credit for alternative minimum tax, and charitable contribution limitations.
    Quick Reference Guides http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx Guides are available to assist users in completing various tasks.
    Readme and Release Notes Files http://rgs.web.irs.gov/users/downloads/downloads_readme.htm Readme and release notes files from RGS releases contain information about updates made in RGS due to tax law changes and other modifications to the program.

4.10.15.1.8  (11-21-2013)
Work Stoppage in RGS

  1. FAST or the local FAS staff should be contacted for assistance when an RGS issue cannot be timely resolved. The employee should document the problem including the incident number or contact with FAS in the case activity record.

  2. Most RGS issues do not cause a work stoppage for all cases. Examiners may still access other taxpayer’s data and complete workpapers for any taxpayer while an issue is being reviewed by FAS.

    Reminder:

    If your RGS account is locked, disabled, or deleted, you can access RGS not "mapped to the network" until it is restored. These situations do not constitute a work stoppage.

  3. Work stoppage may occur if the RGS program stops functioning on the workstation. If a problem results in a work stoppage, the employee should contact FAS or IT. If your OL5081 is deleted, you lose all access to RGS until a new OL5081 is approved.

4.10.15.2  (04-29-2011)
Entries by Application in RGS

  1. RGS is divided into multiple applications which require entries. This section expands on the requirements outlined in IRM 4.10.16, Examination Operational Automation Database (EOAD), for the collection of EOAD data. This IRM outlines what entries are required in RGS, but it also includes information on optional items.

4.10.15.2.1  (11-21-2013)
Case Information

  1. The Case Information application records the basic information about the taxpayer, including the address, phone numbers, and specific filing information. Add or modify the information as necessary or as indicated below:

    1. Taxpayer name: Update for separated taxpayers or taxpayers with multiple names. See also FAQs on the website (http://mysbse.web.irs.gov/exam/rgs/faq/default.aspx).

    2. Taxpayer address: Enter all known addresses. If joint taxpayers are separated or divorced, enter addresses for each person using the primary or secondary address options.

    3. Extended due date and received date.

    4. Filing state and filing zip code.

    5. North American Industry Classification Code System (NAICS) code per return: business returns (Form 1065, Form 1120, and Form 1120S) require entry and can be found on the tax return.

4.10.15.2.2  (11-21-2013)
Contacts

  1. Record return preparer, representative, case contact, and examination team member information.

  2. Enter return preparer information if disclosed on the return.

    1. To be completed (TBC) is not acceptable. Update the information with the preparer’s name and address.

      Note:

      The TBC contact may be deleted if the preparer is also the representative and the "Representative is also the preparer" check box is selected.

    2. "Illegible" is acceptable if the name on the return is illegible and neither electronic sources nor taxpayer data can determine the name.

    3. If only an employer identification number (EIN) is provided, enter 000-00-0000 as the preparer taxpayer identification number (PTIN).

  3. Enter representative information from Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization, or other document.

    1. Enter the name, address, and tax periods covered for each representative.

    2. Revoke a representative if a valid form was received and later revoked. Do not delete the entry.

    Note:

    Two contacts are not required on married filing joint returns when the information is the same on both Forms 2848.

4.10.15.2.3  (11-21-2013)
Case History (Optional)

  1. SB/SE field and IIC examiners should use Form 9984, Examining Officer's Activity Record, or comparable form to document case activity per IRM 4.10.9.3, Activity Record. If an electronic case activity record is maintained it is required to be saved in RGS OD for the taxpayer so it can be accessed by reviewers.

  2. The Case History application, which is optional, records case activities and time applied to the case. A Case History Report and Form 12175, Third Party Contact Report Form, are both available from the Reports menu.

    Reminder:

    Case History entries can be lost in the Case History application. Therefore to protect your case activity record, each time an entry is made in the Case History, create the Case History Report Adobe file and save in CFD. When the file is saved, it overwrites the previously saved document. Back up to the file server each time a new Case History Report is saved per IRM 4.10.15.1.2 (5), RGS Inventory/Case Management.

4.10.15.2.4  (11-21-2013)
Return Setup

  1. The Return Setup application (Form 1040, Form 1040A, U. S. Individual Income Tax Return, Form 1040-EZ, Income Tax Return for Single and Joint Filers With No Dependents) records return data entered manually or populated by Corporate Files On-Line (CFOL) which imports data from the individual Return Transaction File (RTF). The Return Setup application for all other return types (e.g. Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), Form 1065, Form 1120, and Form 1120S) records data entered manually. CFOL is not available for business returns.

    1. Enter the data as required or verify the fields to ensure all are complete and correct even if there is no variance with CFOL data. Three areas of critical importance are Taxable Income, Total Tax, and Schedule SE (Self-Employment Income/Loss) on Form 1040. Incomplete Return Setup may result in an incorrect report.

    2. All fields must include changes made to the taxpayer’s account by a subsequent return, amended return, claim, prior adjustments, or examinations.

    3. Adjusted gross income, taxable income, credits, and total tax must match the taxpayer’s account on Master File (use IMFOL or BMFOL T/R/A).

4.10.15.2.5  (01-20-2012)
Shareholder or Partner Setup

  1. The Shareholder or Partner Setup application records information for each partner or shareholder as reflected on Schedule K-1. Enter shareholder or partner information:

    • TIN

    • Name

    • Address

    • Ownership percentages

    Note:

    The information above is required even if the audit results in a no change.

4.10.15.2.6  (11-21-2013)
Variance

  1. Examiners must run a variance for Form 1040 and Form 1120 to verify the accuracy of the Return Setup data. Any differences to the computed amounts are shown in the variance column. All variances must be resolved or identified as a "true variance."

    • Most variances result from input errors or incomplete data in the different tabs in Return Setup. Additional information may be required from the taxpayer to complete certain fields.

      Note:

      A variance should be run every time the Return Setup is modified.

    • Contact FAS or FAST for assistance in resolving variances.

    • A "true variance" may exist when there is a mathematical error or omission that was not corrected when the return was filed. Example: The taxpayer is subject to alternative minimum tax but it was not included.

      Note:

      Document the reason for the variance in the workpapers or activity record.

  2. Examiners must print the variance report and include it in workpaper Section 650. Save the final variance report to CFD.

  3. Examiners must run the shareholder or partner distributive share computations prior to entering any adjustments and create the shareholder or partner report since there is no variance report for Form 1120S and Form 1065. Rename and save this shareholder or partner report to CFD as the variance report.

4.10.15.2.7  (11-21-2013)
Information Document Request (IDR)

  1. The optional IDR application provides a properly formatted IDR. Save any electronic Form 4564, Information Document Request, issued to the taxpayer in CFD.

4.10.15.2.8  (01-20-2012)
Administrative

  1. The Administrative application populates the header information of the Form 4318, Examination Workpapers Index, and Form 4318 OA, Examination Workpapers Index–Office Audit, once saved.

    • Enter the mutual commitment date if set (revenue agent only).

    • Select the method of accounting (revenue agent only).

4.10.15.2.9  (01-20-2012)
Issues

  1. The Issues application captures the majority of the data required for EOAD per IRM 4.10.16.

  2. Examiners must select the correct issue type. Issue types are used to evaluate classified issues identified through the classification process versus issues identified by examiners.

  3. No-change and claim cases without a classification checksheet still require at least one issue in RGS that must be completed.

4.10.15.2.9.1  (11-21-2013)
Issue Types

  1. Mandatory Issue: These issues are created by RGS.

  2. Classified Issue: Select this type ONLY if the issue is identified during classification and on the classification checksheet. The reason for inputting issues as classified is to track the effectiveness of issue identification during the classification process.

    1. Although the minimum income probe is mandatory, issues resulting from this analysis must be added as either a "New Issue" or "Issue Resulting From Classified Issue."

    2. Classified issues can not be deleted. If a classified issue will not be examined, examiners must add it as a classified issue in RGS, complete the compliance information (Per Return/Per Exam, Reason Code, Categorization, etc.) and declassify it.

      Note:

      NRP classified issues cannot be declassified.

  3. Issue Resulting From Classified Issue: Select this type to identify issues which directly result from examining a classified issue.

  4. New Issue: Select this type for issues identified by the examiner during the course of the examination. Examiner-identified issues during preplan are not "Classified Issues."

4.10.15.2.9.2  (11-21-2013)
Combining Issues

  1. Issues cannot be combined per IRM 4.10.16.1.2, Capture of EOAD Data Using RGS. To ensure accurate data capture and analysis, enter each issue separately. This includes issues like not-for-profit activities (hobby losses), employee business expenses, fictitious Schedule C or F, rental expenses, etc. Examiners cannot use "net profit or loss" or "cost of goods sold" to combine all the issues and make only one entry/adjustment.

  2. Exception: Items not detailed on the return can be one line item such as cost of goods sold and other expenses on Schedule C, F or E. On business returns, if there is a specific Standard Audit Index Numbers (SAIN) code for an item in Other Deductions, it should be used.

4.10.15.2.9.3  (11-21-2013)
Specific Issue Entries

  1. Individual Master File (IMF) or SAIN issue codes identify the issue examined, and it provides the issue name, form or schedule, and line number. The examiner must ensure the selected IMF/SAIN accurately reflects the issue being examined. Refer to the RGS Issue Reference Guide (Form 1040) and RGS Issue Reference Guide (Form 1120) on the website for assistance (http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx). For NRP cases, refer to the NRP Issue Reference Guide on the NRP website (http://nrp.web.irs.gov/) under training.

    1. IMF codes for Schedules C or F are based on the order the schedule is attached to the return or as shown on a RTVUE, such as C1, C2, or F1.

    2. IMF issues codes of Schedule E1 and E2 represent the property NOT the schedule number. For example, Property B insurance expense would be IMF issue code 5E209. Properties beyond the second Schedule E must be included in Property C, Schedule E3. Edit the issue name field to reflect the property number designation. For example, for the 4th property: select IMF code Sch E3, but edit the issue name.

      Note:

      NRP uses Schedule E1 for all rental properties.

    3. The optional "Issue is completed" check box allows examiners to identify issues that are finished. This indicator also assists others performing in-process reviews.

    4. Change the form type in Case Information if an adjustment is made to a line item that is not available on the original return filed. For example, change a Form 1040EZ to a Form 1040 if you adjust Schedule C.

4.10.15.2.9.4  (11-21-2013)
Categorization

  1. The examiner must categorize adjustments for all issue types, including declassified issues. The categorization must closely reflect the IMF/SAIN code. For example, management fees on a Schedule E must be categorized as rental expenses and not as other expenses. Refer to the RGS Issue Reference Guide (Form 1040) and RGS Issue Reference Guide (Form 1120) available on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx for help with categorization. For NRP cases, refer to the NRP Issue Reference Guide on the NRP website (http://nrp.web.irs.gov/) under training.

    1. Memo categorization is available for business (non-Form 1040) returns only. Use memo categorization for adjustments without a line item on the return, de minimis amounts and balance sheet account items. Memo adjustments may be used on no-change cases.

    2. De minimis categorization is available for individual returns. Use this categorization for issues that will display on the Form 4318 and Form 4318 OA but not the Form 4549, Income Tax Examination Changes. De minimis categorization may not be used on NRP returns except in specific situations. Refer to the NRP Issue Reference Guide on the NRP website (http://nrp.web.irs.gov/) under training.

    3. The categorization of "net adjustment" should be used only on NRP specific issues. Contact FAST or your local FAS staff for assistance.

4.10.15.2.9.5  (04-29-2011)
Adjustment Screen Amounts

  1. Per return amount must match the actual amount reflected on the return or as adjusted for the line number on the form or schedule. When warranted, adjust the original return amount by a processed amended return or claim or prior assessment.

  2. Per exam amount is the amount determined in the examination for the specific line number on the form or schedule.

  3. Agreed amount is the amount of the adjustment the taxpayer agrees with. When warranted, adjust or remove the agreed amount only if a partial report is prepared where the taxpayer does not agree to all or part of the adjustments. See also IRM 4.10.8.5, Partially Agreed Cases.

4.10.15.2.9.6  (11-21-2013)
Reason Codes

  1. Reason codes are required on all adjustments. See also IRM Exhibit 4.10.16-4, Reason Codes.

    1. Use Reason Code 52 for de minimis categorization and penalty issues.

    2. Use Reason Code 54 ONLY if the adjustment is a result of an NRP 1120S Study case.

    3. Use "Issue penalty asserted" reason codes only when an issue-related penalty is asserted on that issue in RGS.

    4. Use "No issue penalty asserted" reason codes when a return-related penalty is asserted OR when NO penalty is asserted.

    5. Use special reason codes for examinations of flow-through entities, NRP cases, issues declassified/no-change, and earned income credit

4.10.15.2.9.7  (11-21-2013)
Rental Type Codes

  1. Rental type codes are only required for Schedule E properties, income, and expense issues. See also IRM Exhibit 4.10.16-5, Rental Type Codes.

4.10.15.2.9.8  (11-21-2013)
Universal Issue List (UIL) code

  1. Universal issue list (UIL) code is not required for SB/SE Exam and should not be completed. UIL code is required for IIC. Refer to the at LB&I International website (http://lmsb.irs.gov/INTLHome.asp) for a listing of UIL codes.

4.10.15.2.9.9  (11-21-2013)
Form or Schedule and Line

  1. Form/Schedule must reflect the form or schedule for the amount reported on the return.

    1. Edit the information if the wrong form/schedule populates or is incorrect. For example, a fourth Schedule C would require editing the entry to "Sch C4."

    2. Use an X when there is not a form, schedule or line item on the return and the issue is categorized as memo or de minimis.

    3. Use an X for all penalty issues.

  2. Line number must match the line number on the form or schedule.

    1. Use 99 for all penalty issues and when there is not a line item on the return and the issue is categorized as Memo or de minimis.

    2. Use 98 for specific NRP adjustments. Refer to the NRP Issue Reference Guide on the NRP website (http://nrp.web.irs.gov/) under training.

4.10.15.2.9.10  (11-21-2013)
Principal Business Activity (PBA) or North American Industry Classification System (NAICS) Codes

  1. PBA or NAICS code is required for all issues categorized as Schedule C or F. This code is also required on Form 1120, Form 1120S, and Form 1065 issues.

  2. Per Return

    1. It must match the code entered on the Schedule C or F and populates from the Case Information application on Form 1120, Form 1120S and Form 1065 returns.

    2. If the taxpayer did not enter a code, leave blank.

  3. Per Exam

    1. If the per return code does not accurately reflect the type of business the taxpayer has, select a more descriptive code.

    2. Use D to remove a NAICS code when the ENTIRE Schedule C or F is being disallowed, including hobby loss cases. Reminder: All line items on the Schedule C or F must be set up as issues.

    3. Partnership income or guaranteed payments categorized as self-employment income (Schedule C/F) require a NAICS code. Enter 000000 - Nonbusiness - Sch E / 2106.

4.10.15.2.9.11  (04-29-2011)
Form 5701, Notice of Proposed Adjustments (Optional)

  1. Form 5701 is optional for SB/SE Exam and IIC RGS users. The following fields are optional since they apply to the Form 5701 only.

    • 5701 No.

    • Date issued

    • Date due

    • Date received

    • Issued to

    • Proposed by

4.10.15.2.9.12  (11-21-2013)
Generic Workcenter (Optional)

  1. A case is created in the Generic Workcenter if a form type is entered other than Form 1120, Form 1120S, Form 1065 or a calendar year Form 1040, Form 1040A, Form 1040EZ, Form 1040-SS. For example, Form 941 (employment tax return) and Form 1041 (estates and trusts) use the Generic Workcenter.

    Note:

    Form 1040NR must be created using the Form 1040 form type. For additional guidance, see"How to use RGS for 1040NR" under Special Procedures on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx

  2. Files can be stored in OD. See also IRM 4.10.15.1.4, Documents Included in RGS.

  3. A manual tax computation is required.

  4. Form 5344 can be completed in RGS and validated by the examiner.

  5. Disposal of cases worked using the Generic Workcenter.

    1. Send the electronic case file to Technical Services with the physical case file. Technical Services will archive the case when closed. Indicate on the Form 3198, Special Handling Notice for Examination Case Processing, that the case is a "LAN RGS" case.

    2. Cases sent to CCP should be archived at the group level. Indicate on the Form 3198 that the case is a "Non-LAN RGS" case.

      Exception:

      NRP Employment Tax Study case. See also IRM 4.22.10, Employment Tax Study–NRP Examination Guidelines.

4.10.15.2.9.13  (11-21-2013)
Miscellaneous Situations

  1. Working a delinquent return after a substitute for return (SFR) requires specific entries in RGS and differs based on whether or not a partial assessment was made and the final disposition of the case. Refer to RGS Procedures for Delinquent & Substitute for Returns, (http://mysbse.web.irs.gov/exam/rgs/resources/27867.aspx) for the appropriate procedures.

  2. Special Applications (optional) are available in RGS for General Income and Bank Deposit analysis.

  3. Unique situations for which special procedures are required are posted on the website (http://mysbse.web.irs.gov/exam/rgs/default.aspx) and include:

    1. Special applications workbooks for computations for issues outside RGS.

    2. Quick reference guides and newsletters address other issues including audit reconsiderations, hobby losses, passive activity losses, SFRs, identify theft cases, and working cases without AIMS controls.

4.10.15.2.9.14  (04-29-2011)
Penalties

  1. Penalties are assessed either on specific issues or the entire return. Refer to IRM 20.1.2, Failure to File/Failure to Pay Penalties, IRM 20.1.3, Estimated Tax Penalties, and IRM 20.1.5, Return Related Penalties, for when to assert the appropriate penalties.

    1. Issue-related penalties include accuracy-related and fraud penalties and apply only on the tax related to that particular issue.

    2. Return-related penalties include failure to file, failure to pay, fraudulent failure to file, estimated tax and accuracy-related penalties.

      Note:

      Manually computed penalties should only be used for settlement agreements and audit reconsiderations. Contact FAST or FAS staff if a manual penalty is needed for another reason.

4.10.15.2.10  (11-21-2013)
Reports

  1. Create the appropriate report for the taxpayer: Form 4549, Income Tax Examination Changes; or Form 4549-A, Income Tax Discrepancy Adjustments; and Form 4605, Examination Changes-Partnerships, Fiduciaries, S-Corporations. and Interest Charge Domestic International Sales Corporations; or Form 4605-A, Examination Changes-Partnerships, Fiduciaries, S Corporations, and Interest Charge Domestic International Sales Corporations (Unagreed and Excepted Agreed); for nontaxable returns. Tax from Schedule H, Household Employment Taxes, and Form 4137, Social Security and Medicare Tax on Unreported Tip Income, display on Form 2504, Agreement to Assessment and Collection of Additional Tax and Acceptance of Overassessment, and corresponding schedules.

    1. Taxable income per return or as previously adjusted and tax shown on the return or as previously adjusted must match master file. Verify these amounts using TXMODA, IMFOL(T/R/A) or BMFOL(T/R/A).

    2. Save all reports issued to the taxpayer or representative to CFD. For example, save both the original and any corrected report.

    3. Select the no-change report for Form 1040 and Form 1120 returns, if applicable.

    4. Manually enter the specific language required on a Form 1065 and Form 1120S return if a no-change report is not available. Refer to the Frequently Asked Question at http://mysbse.web.irs.gov/exam/rgs/faq/compsreports/17353.aspx on the website.

    5. It is the examiner’s responsibility to ensure the report is accurate before issuing it to the taxpayer. Incorrect categorization or inaccurate per return and per exam amounts can result in an inaccurate report.

    6. Refer to IRM 4.10.15.1.4, Documents Included in RGS, for documents generated by RGS.

4.10.15.2.11  (11-21-2013)
Forms

  1. Form 3198 partially populates based on information entered in the RGS case. Not all required information will populate, therefore, complete or modify any fillable field in the Adobe file as necessary.

  2. Form 5344 must be accurate and validated for all examined cases. Review Items 12 and 15 to ensure the correct tax, penalties, and credits are assessed or abated. Refer to Document 6209, IRS Processing Codes and Information, for identification of appropriate transaction, reference, penalty reference, and credit reference codes. Refer to the Form 5344 Help Sheet at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx on the website.

    1. Preview and save Form 5344 in CFD after validation.

    2. The electronic Form 5344 must agree to the printed Form 5344 and the report.

      Note:

      If the tax computation is run after the Form 5344 is validated, it removes the validation. Therefore the form must be revalidated.

    3. Technical Services and other groups, which access the RGS data, must review and revalidate the Form 5344 to ensure the accuracy before closing.

    4. RGS only prepares a Form 5344 for the agreed portion of a partial agreement. Additional attention is required in preparing the Form 5344 for the remaining unagreed portion. See also IRM 4.4.12.2, Partial Assessments, and IRM 4.4.12.4, Examined Closings/Surveyed Claims.

  3. Save waivers, whether or not created in RGS, to CFD since they are documents issued to the taxpayer.

  4. Form 4318 and Form 4318 OA are populated based on information entered in the RGS case. Review the form and if any item needs to be modified, return it to the appropriate application within RGS.

    1. A validated Form 5344 populates the total time.

    2. Mutual commitment date (revenue agent only) and representative contact information populates from the Administrative screen.

    3. Issues should be created using the issues application. Do not add issues directly to the Form 4318 or Form 4318 OA.

      Subject Website References
      A 600 series issue is created using the IMF/SAIN code of Miscellaneous. Creating Form 4318-600 Items http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx
      Penalty issues are created using the penalty IMF/SAIN codes. See also IRM 4.10.9, Workpapers. Documenting Penalties http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx

  5. Form 433-D, Installment Agreement, is available in RGS and is populated based on information entered in the RGS case as well as financial and employment information that is added manually. Use of this form in RGS is optional.

  6. Refer to IRM 4.10.15.1.4, Documents Included in RGS, for documents generated by RGS.

4.10.15.2.12  (11-21-2013)
Compliance Evaluation

  1. Compliance Evaluation is required on all examined cases including no-change returns. Validate, save and print the final compliance evaluation. See IRM 4.10.16 and IRM 4.10.9.

    Reminder:

    Issues with incomplete compliance information can be identified with the "By Adjustment" view. This view displays a red exclamation mark by the issue.

4.10.15.2.13  (11-21-2013)
Correspondence

  1. Save communications, including e-mails, with the taxpayer, representative, or a third party in CFD, whether or not documents were created in RGS. Documents prepared outside of RGS by someone other than the examiner are not required to be saved electronically. For example, the secretary prepares and sends a letter to the taxpayer without using RGS.

    1. The most current version of the letter must be issued to the taxpayer. When using a letter within RGS, confirm it is the most current version from the Publishing website.

    2. Save any letter to the taxpayer that will be issued by CCP to CFD.

    3. E-mails should be saved using Adobe.

  2. Refer to IRM 4.10.15.1.4, Documents Included in RGS, for documents generated by RGS.

4.10.15.2.14  (11-21-2013)
Lead Sheets

  1. Lead sheets for mandatory and specific issues are automatically inserted by RGS based on the IMF/SAIN codes. If an issue does not have a specific lead sheet, a generic lead sheet is automatically inserted.

  2. Issue lead sheets must follow the RGS format. See also IRM 4.10.9.2.2, Issue Lead Sheet.
    When lead sheets and workbooks are inserted into an issue, RGS will populate certain fields.

    Document Type Items Populated
    Word Header, adjustment grid, and footer.
    Excel Taxpayer name, taxpayer identification number, and tax form number on first sheet.

  3. Follow these guidelines when renaming lead sheets:

    • Add the reference number to the beginning of file name

    • Rename Generic lead sheets to a specific issue name

    • Ensure the new name populates the footer of the lead sheet after the issue is saved

4.10.15.3  (11-21-2013)
Movement of Cases

  1. This section details the activities by users with manager, clerk, or examiner permissions.

  2. To identify groups in CEAS refer to the following:

    • Employee Group Code Contact List

    • Centralized Case Processing Groups

    • Technical Services Codes (TSC) Listing

    • NRP website (http://nrp.web.irs.gov/)

4.10.15.3.1  (01-20-2012)
Assigning and Reassigning Cases

  1. Normally examiners create their own cases in RGS. However, if the case was previously created, managers or clerks must assign or reassign the case to the examiner. See also IRM 4.10.15.1.6, Training.

  2. To reassign a case, the current examiner must suspend the case to the file server BEFORE the case is reassigned, to ensure the new examiner receives the most current copy of the case.

4.10.15.3.1.1  (11-21-2013)
Transfers

  1. Transfers within Area–Once the current examiner moves the case to file server (suspend), the manager or clerk must reassign the case to another group within the area or to a Planning and Special Programs (PSP) group following local procedures.

  2. Transfers out of Area–Once the current examiner moves the case to the file server (suspend), the manager or secretary must then archive the case or forward it to PSP, depending on local procedures. The receiving area will retrieve the case from Archives and assign it when appropriate.

    Note:

    NRP cases must be transferred to the NRP Coordinator RGS group and not archived. The receiving area NRP coordinator will secure the case.

  3. Transfers from Campus–Contact your local FAS Staff (http://mysbse.web.irs.gov/exam/rgs/contacts/default.aspx).

4.10.15.3.2  (11-21-2013)
Creating Cases

  1. Examiners should make every effort to create Form 1040 cases mapped to the network for population of Return Setup, Case Information and Contacts. Creating business returns while mapped to the network does create the case on CEAS, but you do not receive the benefit of any data population.

    Reminder:

    RTF data is used to populate the information.

  2. Examiners create Form 1040NR using the Form 1040 form type. For additional guidance, see"How to use RGS for 1040NR" under Special Procedures on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx

  3. Examiners must not create cases offline when the case already exists on the file server.

    Note:

    NRP key cases must never be created by the examiner.

    1. If the case was previously created in the group, it must be assigned to an examiner. The examiner merges the case through either Messages or Query. Examiners must not restore the case from any other location unless directed by FAS.

    2. If the case was created in another group, the manager or support staff must request the RGS case from the group where it is currently assigned on RGS. Follow IRM 4.10.15.3.1.1 for transfers.

    3. If the case was archived, it must be retrieved and assigned to an examiner. For additional guidance, see "Audit Reconsideration Cases" under Special Procedures on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

  4. Link multiple year cases together so all years are contained within the same folder. Multiple year reports can be created and one lead sheet can be used for multiple years.

  5. Cases returned to the examiner from the manager or clerk are merged through either Messages or Query. Do not restore the case by any other method unless directed by FAS.

4.10.15.3.3  (04-29-2011)
Disposition of Cases

  1. It is critical that all RGS cases be closed on the file server correctly by examiners, reviewers, managers, and clerks. If cases are not closed properly at each of these levels, incorrect assessments or delays in processing may occur.

4.10.15.3.3.1  (11-21-2013)
Examined Closures (Form 1040, Form 1120, Form 1120S, Form 1065, and Form 1040NR)

  1. Before closing the case to the file server, unnecessary files saved in the OD or CFD folders should be deleted. See IRM 4.10.15.1.3, Data Security.

  2. Examiners must back up their inventory to the file server before closing the case to the manager.

  3. When closing cases, examiners must ensure the most recent case data is moved to the file server successfully. If the case does not leave the Case Management screen, the electronic case data did not move to the file server and a hold code M will be placed on the case. Move the case to the server again.

    Caution:

    An incorrect assessment may post to a taxpayer account if the most current electronic case data is not on the file server.

  4. The manager or clerk must forward the case on RGS to CCP or Technical Services. Once the case is forwarded on RGS, close the case on ERCS and ship the case all on the same day.

    1. The manager is responsible to ensure the examiner successfully moved the case to the file server.

    2. The examiner certifies, and the manager initials, that the case has moved successfully by indicating on the Form 3198 the "Case forwarded to the file server/date."

    3. CCP or Technical Services may return cases to the group if the RGS data is incomplete, inaccurate or corrupt. This includes not receiving the RGS data with the physical case. See also IRM 4.10.15.1.3, Data Security.

  5. Some cases require the tax years to be split. For example:

    1. Cases that include an unagreed year with a no-change or agreed year.

    2. Cases with a short statute year that requires the short statute to be separated from the other years.

    See also IRM 4.10.8.6, Multi-year Examination Cases with at Least One Agreed/No-Change Year and One Unagreed Year.

  6. Surveyed claims, Disposal Code 34, can be created in RGS. Complete and validate the Form 5344 and close the RGS case to CCP. When the physical case ships, the case must be forwarded on RGS.

4.10.15.3.3.2  (01-20-2012)
Examined Closures (Generic Workcenter)

  1. The Generic Workcenter is used for other types of tax returns such as Form 940, Form 941, Form 945, Form 1041, Form 8278, etc. The tax computation, if required, must be computed manually.

  2. The manager or clerk must archive the case on RGS. CCP does not use the electronic case for automated closure. When the physical case ships, the case must be archived on RGS.

    Exception:

    NRP Employment Tax Study cases are closed automated and not archived. See also IRM 4.22.10, Employment Tax Study–NRP Examination Guidelines.

4.10.15.3.3.3  (11-21-2013)
Non-Examined Closures

  1. The group manager or clerk must archive non-examined closures. Cases that do not require a Form 5344 must be archived at group level.

4.10.15.3.3.4  (04-29-2011)
Acting Managers

  1. An individual cannot have both examiner and manager permissions concurrently in RGS. Therefore, an acting manager can not close a case on RGS unless the person has manager permissions for the group. The acting manager should be familiar with the manager's responsibilities for reviewing and closing cases on RGS.

  2. For long-term (more than 2 weeks) acting assignments, the acting manager may obtain access to the RGS group as a manager in order to review and move the electronic case.

    1. A Modify Application Profile OL5081 should be submitted to change the user type to manager if the person has examiner permission in the same group.

    2. A Modify Application Profile OL5081 should be submitted to add the user to the group as a manager if the person does not have access to the same group, but does have access to the CEAS database.

    3. A Request Access to an Application OL5081 should be submitted to add the user to the group as a manager if the person does not have access to any group on the CEAS database. Please contact FAS for assistance.

  3. For short-term acting assignments, the manager or acting manager should contact the FAS staff for assistance with RGS case movement. The FAS staff can forward the case to the secretary/clerk’s Close/Review screen on behalf of the manager or close the case if necessary.

4.10.15.3.3.5  (11-21-2013)
Manager Review and Closing

  1. Managers may review the entire electronic case by merging the case from the Close/Review screen. Through "CEAS Universal Access," files saved in OD and CFD can be viewed without downloading the case.

  2. On the Close/Review screen, the manager must, at a minimum take the following actions:

    1. Verify the appropriate disposal code is present. If no disposal code is present, the Form 5344 was not validated.

    2. Verify the AMCLS indicator is "Y" . Cases with an "N" indicator must be returned to the examiner since the tax computation was re-run but the Form 5344 was not re-validated.

      Exception:

      An "N" indicator is acceptable if the message is received that a manual closure is required.

  3. To ensure the correct examination results post to the taxpayer's account, the electronic Form 5344 must agree with the final printed Form 5344 and the report. CCP reviews cases where special handling is required.

4.10.15.3.3.6  (11-21-2013)
Technical Services Closing

  1. Reviewers must follow the same procedures as outlined in IRM 4.10.15.3.3, Disposition of Cases, with the following exceptions:

    • Update the disposal code for the final closure.

    • Timely archive unagreed cases closed to Appeals.

4.10.15.4  (01-20-2012)
Users of RGS Data

  1. The electronic RGS case data is used by various stakeholders in the administration of the tax laws and for various studies and reference. These stakeholders include but are not limited to the following:

    • Government Accountability Office (GAO)

    • Treasury Inspector General for Tax Administration (TIGTA)

    • Taxpayer Advocate Service (TAS)

    • Department of Justice (DOJ)

    • Appeals

  2. EOAD data is shared with various state and local taxing authorities. See IRM 4.10.16 for additional information regarding EOAD.

4.10.15.4.1  (11-21-2013)
Requests for Data

  1. Any request must have appropriate authority to obtain the data, including contacting Disclosure if necessary. Agencies outside the IRS must go through Disclosure, with the exception of DOJ. DOJ will usually request the data through Criminal Investigation and or Counsel.

  2. Single case requests: For additional guidance, see "Procedures to Request RGS Cases/Files" under Special Procedures on the website at http://mysbse.web.irs.gov/exam/rgs/qrg/default.aspx.

    1. If only the final report is needed, an ESTAB request is not required. Contact the local area FAS staff (group mailbox).

    2. If the full case is required, the user must request the physical case file using ESTAB at least two times. See also IRM 4.13.3.5, Transfer to Area PSP Office. The physical case often contains more information than the electronic case. If all attempts are unsuccessful, contact the local area FAS staff (group mailbox).

  3. For multiple case requests (for example, a project), the customer should contact the System Support Manager, Business Re-Engineering to establish a procedure.

  4. Requests for only EOAD data are made through the EOAD analyst (http://mysbse.web.irs.gov/exam/tip/eoad/contacts/28336.aspx).

Exhibit 4.10.15-1 
Available Courses and Course Books for Examination Report Generation System (RGS)

TRAINING PUBLICATION COURSE NUMBER TITLES
20119-101 RGS Revenue Agent New Hire Classroom Instructor Guide
20119-102 RGS Revenue Agent New Hire Classroom Student Guide
20263-101 RGS Tax Compliance Officer New Hire Instructor Guide
20263-102 RGS Tax Compliance Officer New Hire Student Guide
22801-101 RGS Form 1120 Workshop Instructor Guide
22801-102 RGS Form 1120 Workshop Student Guide
22801-103 RGS Form 1065 Workshop Instructor Guide
22801-104 RGS Form 1065 Workshop Student Guide
22801-105 RGS Form 1120S Workshop Instructor Guide
22801-106 RGS Form 1120S Workshop Student Guide
46314* RGS for Managers and Secretaries
46315* RGS Manager Case Review
49416* The Journey of RGS Data to CCP CPE FY12
No course number** Administrative Professional RGS CPE FY11–Course 1–Overview
No course number** Administrative Professional RGS CPE FY11–Course 2–No Show Reports


*Denotes course reference is to ELMS
**Denotes courses only available on the MySB/SE website


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