4.19.12  Centralized Files and Scheduling

Manual Transmittal

December 02, 2011

Purpose

(1) This transmits revised IRM 4.19.12, procedures of the Examination Centralized Files and Scheduling Program.

Material Changes

(1) This section contains information on Examination Centralized Files and Scheduling procedures for administrative matters and provides a reference for common issues and related items that might be found on tax returns. Throughout this revision there are references to other IRMs which may contain related information needed when working cases.

(2) All reference to taxpayer contact letters have been removed. Referral to IRM 4.103, Compliance Data Environment (CDE) instructions has been added.

Effect on Other Documents

This IRM supersedes IRM 4.19.12 dates 11/01/2006.

Audience

This IRM is intended for the use of the SB/SE and W&I Campus Examination Operations.

Effective Date

(12-02-2011)

Cheryl Sherwood
Director, Campus Reporting
Compliance SB/SE

4.19.12.1  (12-02-2011)
Overview

  1. Purpose: This IRM is designed to provide information to Campus and Area Office personnel who use the Centralized Filing & Scheduling (CF&S) system. It is structured to follow the processes of the Centralized Files and Scheduling system from building the database and scheduling the work to using the computerized lists and reports. Returns ordered and classified through the Compliance Data Environment (CDE) system are covered in IRM 4.103, Compliance Data Environment (CDE).

  2. Scope: Centralized Scheduling is a program to physically store Office returns and to schedule initial appointments for the Area Offices as well as generate initial contact letters for Correspondence Exam by computer.

  3. Background: After selection for examination in the centralized classification function, returns are moved to the Centralized Files and Scheduling Unit (CFSU). Form 6256, S Corporation Classification Checksheet, Form 6754, Examination Classification Checksheet, Form 6250, Partnership Classification Checksheet and Form 10264, Revenue Agent - Classification Checksheet are sent to be stored with the case file until shipment is scheduled. Forms 6754, when perfected, are batched to Integrated Submission and Remittance Processing (ISRP) for transcription. As a result of transcription, selected issues and taxpayer information from each return are used to establish the return on the Centralized Scheduling Data Base (CSDB). Returns are filed on the shelves in ascending AIMS Serial Number sequence. Use of the AIMS Serial Number for filing minimizes the amount of storage space required.

  4. Each weekend, inventories are updated, returns are scheduled, reports are generated, and the CSDB is matched against AIMS to identify:

    1. Related returns

    2. Address changes

    3. Freeze conditions

    4. Discrepancies between CSDB

    5. AIMS data

  5. At least three weeks prior to a taxpayer’s appointment, the Planning and Special Programs (PSP) Territory Manager or designee, using command code CSORD, will place the weekly orders. Orders through CSORD can usually be placed Tuesday through Friday. Master appointment schedules are generated and sent to the CFSU for processing. The system will schedule the highest DIF (discriminant function) scored returns first, giving priority to the earliest tax year for the requested activity code. Master appointment schedules and returns are mailed by the CFSU to the Area Offices,

  6. IDRS allows Area Offices and CF&S units to more efficiently order returns, update information used for scheduling, and add and delete returns from the CSDB.

4.19.12.2  (12-02-2011)
Classification of Returns/Impact on CFSU

  1. The PSP Territory Manager submits return orders to the campuses in accordance with IRM 4.1.3, Source of Returns-Priority Programs-DIF and Ordering. The orders can be submitted to Martinsburg Computing Center (MCC) each cycle for processing. Returns are received approximately six to eight weeks later with Form 5546, Examination Return Charge-out Sheet, labels, and Individual Return Masterfile (IRMF) transcripts and forwarded to Examination for classifiers to screen.

  2. For planning purposes, it is imperative that the CF&S Team Manager be provided with the volume of returns ordered each cycle and approximate date classification will begin. This information will allow the manager to effectively allocate resources in order for newly-classified returns to be processed through the system in a timely fashion because:

    1. of returns ordered, approximately 5% to 10% will be missing (charged to SOI, Adjustments, etc. in the campus).

    2. missing returns percentages may vary significantly among campuses or at different times during the classification year.

    3. of returns delivered for screening, only a percentage will be selected for examination.

  3. The team manager may approximate the number of returns to be added to the CSDB by applying an estimated rate to returns ordered in a given cycle. Classifiers screening returns will complete the appropriate classification form based on the return type for each selected return. IRM 4.1.5, Classification and Case Building, provides instructions for the completion of the checksheet by the classifier. After screening, returns are forwarded to CFSU for processing.

4.19.12.3  (12-02-2011)
Perfection of Form 6754, Examination Return Charge-out Sheet

  1. Form 6754, Examination Return Charge-out Sheet is the key document used to build the CSDB. Data on the checksheet will be transcribed using the ISRP. Transcribed data is used to establish the record on the CSDB and produce management reports.

  2. To build the CSDB, the classified items and other completed blocks will be transcribed. Because the classified items will appear on the taxpayer appointment letter, legibility and accuracy are important, and perfection of the checksheet is required.

  3. Prior to input, CFSU will:

    1. Compare name per labels, charge-out and return to ensure that all match. Any discrepancies will be brought to the team manager’s attention and resolved.

    2. If the Post of Duty per the Examination Return Charge-out is 999, correct using the Zip/POD listings and input AIMS correction.

    3. Screen checksheet and make necessary corrections to ensure program acceptance. Corrections should be made by circling erroneous information. If classifier’s intention cannot be determined, return should be brought to the manager’s attention. The clerk is responsible for perfection of the checksheet only, not for technical decisions which should be made by the classifier or the PSP Territory Manager or their delegate.

    4. Ensure the Service Center Code field in Block A indicates the two digit Service Center.

  4. Upon receipt of the newly-classified returns, CFSU will attach an AIMS status label in Block A of both copies of the Form 6754. This label provides the Social Security Number (SSN), MFT Code, Name Control, and Tax Period for ISRP input. The checksheet will be reviewed for obvious errors, and the ADP Hash Total in Block G will be completed. The ADP Hash Total is a validity check in the computer program and is the sum of:

    1. Tax Year (YYYYMM)

    2. Issue numbers checked, including write-in issues

    3. Special Inventory (Block C) in the range of 5-9

    4. POD Override (Block E)

  5. "Pre-contact Analysis" in Block B must be checked if:

    1. More than 13 issues are checked.

      Note:

      CSDB will not accept more than 13 issues.

    2. The case was selected but no issues are checked - Hash Total will be tax year only.

    3. Taxpayer is designated as an ‘‘Employee’’ or ‘‘CAU’’ (Caution Upon Contact) or Potentially Dangerous Taxpayer (PDT) audit.

    4. Power of Attorney (POA) designation has been filed.

  6. Issues 33–35 are designated for write-in issues by the screeners as follows:

    1. The outer block for each issue must be checked if an issue has been written in.

    2. The write-in issue must be printed one letter per block and cannot exceed 45 characters.

    3. Any write-in issues exceeding 45 blocks or written illegibly will be referred to the CFSU manager.

    4. Information appearing as write-in issues will show on the initial contact letter exactly as written.

  7. Once perfection of the checksheet is complete:

    1. Pull and batch the white checksheet. A batch may consist of 1 to 100 checksheets.

    2. The clerk doing hashing will number each Form 6754 beginning with ‘‘00’’ for each batch.

    3. Send checksheets to Data Conversion Branch for input through the ISRP.

  8. Each batch of returns forwarded to ISRP will have a transmittal attached as follows:

    1. Prepare Form 1332, Block and Selection Record for each subbatch of Forms 6754.

    2. Write ISRP program number and document number count of each block on transmittal.

    3. Initial and date transmittal and place in designated area.

    4. Retain yellow copy of the checksheet and the tax return in CFSU while the white checksheet is being processed.

      Note:

      In no instance will the yellow checksheet and original return be forwarded to ISRP.

  9. The return is assigned to Examination, and it is the responsibility of CFSU to:

    1. Maintain control of the original return.

    2. Place returns in folders and verify that folders match counts of Forms 6754 pulled for processing - counts must agree!

    3. Pull a file (POD) label and place on high side of folder in upper right hand corner.

    4. Place folders in AIMS Serial Number sequence and file in a holding area. Note that interfiling of AIMS Serial Numbers will be required.

  10. Weekly cutoff times for checksheet submission should be established with the Batching Function (or ISRP if the Batching Function is not used) at each campus. In most cases, checksheets submitted prior to the cut-off time will be input by Friday of the same week and thus appear on one of the CF&S listings (Returns Added, Related Returns, or CSDB Update Error Items) the following Monday.

  11. Each CFSU manager should notify ISRP if the anticipated weekly volume of checksheets is unusually large.

4.19.12.4  (11-01-2006)
AIMS Serial Number

  1. The AIMS Serial Number is a vital part of CF&S. All returns on the CSDB are filed in AIMS Serial Number sequence. The AIMS Serial Number is a 12-digit number. The first 3-digits represent the Area Office Primary Business Code (PBC), the next 3 digits indicate cycle, and the remaining 6-digits are sequentially assigned when the return is established on AIMS.

  2. If an AIMS Serial Number is not on the AIMS Data Base, CFSU should:

    1. Use AMAXU to place serial numbers on return.

    2. Verify new AIMS Serial Number via AMDISA.

  3. If duplicate AIMS Serial Numbers are present (for example, when a return is transferred from one area office to another), a new AIMS Serial Number may be assigned using IDRS Command Code AMAXU.

4.19.12.5  (11-01-2006)
CSDB - Centralized Scheduling Data Base

  1. The CSDB generates CSP reports that are utilized by CF&S weekly. The reports are utilized by CF&S to service PSPs.

4.19.12.5.1  (12-02-2011)
Adding Returns to the CSDB

  1. Returns may be added to the CSDB manually via IDRS (Field) or systemically utilizing Form 6754 via ISRP (Office).

  2. Returns adding to the CSDB are automatically updated on AIMS to Status 08, Employee Group Code (EGC) 2050 for Office Examination and Employee Group Code 5000 for Correspondence Exam the following weekend. These are assigned exclusively to CF&S to denote exact location of a return. Status 08 indicates that the return has been selected but not yet assigned to a group.

  3. Manual IDRS Process - See 3.30.123.19.6 Centralized Files and Scheduling for information on adding returns manually via IDRS.

  4. Systemic ISRP Process - Each week returns for which checksheets have been submitted to ISRP will be suspended in AIMS Serial Number sequence. All returns processed by ISRP the previous week will appear on one of the following lists:

    1. CSDB Update Error Items (CSP 3241)

    2. Returns Added List (CSP 4340)

    3. Related Returns Listing (CSP 4341)

  5. The computer first validates the checksheets for clerical and/or transcription errors. Any checksheets with errors found in this initial process will be reflected on the CSDB Update - Error Items list.

  6. Checksheets which pass the initial validity checks are then matched against the AIMS Data Base for the following information:

    1. Taxpayer’s name and address

    2. AIMS Serial Number

    3. Activity Code

    4. DIF Score

    5. Post-of-Duty (POD)

    6. Inconsistencies between AIMS and the CSDB

4.19.12.6  (11-01-2006)
CSP Reports

  1. CSP reports are an output record of all listings as a result of the input to the CSDB.

  2. See Exhibit 4.19.12-1, CSP Reports, for listing of all CSP Reports.

4.19.12.6.1  (11-01-2006)
CSP 4340 Returns Added to CSDB

  1. CSP 4340, Returns Added to CSDB, reflects returns meeting all validity checks and adding to the CSDB. This listing is generated in AIMS Serial Number sequence within each Area Office. Cases not appearing on the Returns Added List will be given to employees assigned the Related Returns List and/or CSDB Update Error Items.

  2. The Returns Added list should be worked in its entirety prior to working other lists (with the exception of CSDB Update - Error Items and Related Returns Listing). This is important because a return can be scheduled for an appointment the same week it adds to the database and must be accounted for on both the Returns Added list and Master Appointment Schedule.

    Note:

    A Returns Added list for an area can be worked in its entirety; then the Master Appointment Schedule for that area can be worked at the same time as the Returns Added List for other areas.

  3. Each week the CSDB and AIMS databases are matched to identify related returns, address changes, and freeze code 914 conditions. Returns will not add to the CSDB when related returns are present, thereby preventing duplicate taxpayer scheduling and eliminating the possibility of a simultaneous examination. If the taxpayer's address changes, a temporary freeze condition is instituted and an entity change report (CSP 4342) is generated. The correct post of duty (POD) is determined by the unit clerks, and the case is then updated to the proper Area Office. Returns for out-of-area taxpayers are transferred manually to the appropriate campus.

4.19.12.6.2  (11-01-2006)
CSP 4341 - Related Returns

  1. For CF&S purposes, a related return is defined as another tax year of the taxpayer in an open Status of 10 or 12 on AIMS. The objective of identifying related returns through CF&S processing is to eliminate simultaneous audits. The identification of related returns results from the weekly AIMS match to the CSDB while returns are attempting to add to the system. The system will seek AIMS records in Status 10/12 that match SSN’s and MFT’s of returns on the CSDB or attempting to add to the CSDB.

  2. If a related return in Status 10/12 is found, all open AIMS records for that SSN and MFT will be generated on the Related Returns Listing. If no match in Status 10/12 is found, the computer will bypass all open AIMS records in other statuses.

  3. Each week, the Related Returns listing will be generated in SSN sequence to identify those returns meeting the CFS related return criteria. New Items are returns attempting to add. The new items will not add if there is a related return condition. They will be in the suspense or holding area in Status 06 or 08. Existing Items are those returns already on the CSDB. When identified as a record related to one in Status 10 or 12, the existing item will delete automatically from the CSDB.

  4. The CFSU should forward the CSDB return or the new item to the group working the return assigned in Status 10 or 12.

  5. For all returns being sent out, the unit will:

    1. Update to Status 10 and Employee Group Code of the related return.

    2. Prepare Form 3210, Document Transmittal — Show taxpayer’s SSN and tax period and year of related return. Group receiving return should acknowledge receipt of return.

    3. Document all actions taken on the Related Returns List.

4.19.12.6.3  (11-01-2006)
CSP 3241 Update - Error Items

  1. The CSDB Update - Error Items is a listing in TIN sequence of records with errors, freeze conditions, or inconsistencies. This listing will reflect both returns trying to add to the CSDB (Classification Items) and returns on the CSDB (Existing Items). Information on the report includes:

    1. Classification Items as a result of hash total errors, ISRP input errors, or the match against the AIMS Data Base

    2. Classification Items with either hash total errors or ISRP input errors will contain no AIMS Serial Number since the items go to the error register before the AIMS match is made

    3. Items when errors and information codes are identified as a result of new information on the AIMS Data Base.

    4. Items with errors will not add to the CSDB

    5. Items with errors will not drop from the CSDB, with the exception of Error Codes U, AMNDO, and TC9140

  2. After the Returns Added List and the Related Returns Listing are worked, the remaining returns are those returns that should have been processed through ISRP but did not add to the database. These returns should be checked against the CSDB Update - Error Items. Once this process is complete, no checksheets should remain. To resolve errors, each return should be physically located.

  3. Checksheets that did not add or that were dropped from the CSDB must have errors resolved prior to reinput. Reinputs must be batched and numbered for ISRP and input in a manner identical to original submission of Forms 6754.

  4. It is critical that the CSP 3241 be worked on a weekly basis. Classification items containing errors cannot be added to the database and, therefore, all errors must be resolved to avoid reducing the volume of returns available to the area offices. Error data includes:

    1. With the exception of Error Code C, errors do not cumulate and will appear for only one week.

    2. Unusual volumes of specific error codes should be brought to the manager’s attention immediately. Unusual volumes of errors may indicate ISRP or systemic programming problems and require immediate resolution.

    3. Large volumes of errors regarding hash totals may indicate either a clerical problem or a new ISRP operator who is unfamiliar with Form 6754.

    4. Large volumes of C errors may indicate that AIMS was not updated timely.

    5. Large volumes of J errors may indicate a misunderstanding of instructions for processing write-in issues.

  5. The last page of CSP 3241 contains the CSDB Update Control Report. This report will be provided to the CFSU manager and should be reconciled each week.

  6. Exhibit 4.19.12-2, CSP Error List contains all error codes appearing on the CSP 3241. The exhibit also provides suggested causes of the errors and recommended actions for resolution.

4.19.12.6.4  (11-01-2006)
CSP 4241 Multiple Inventory Listing

  1. CSP 4241 identifies accounts with more than one year on the CSDB. The terms "primary" and "multiple" apply when more than one year of returns for a taxpayer are located on the CSDB. The primary and multiple records are identified during the matching process between AIMS, the CSDB, and the Classification Items. The terms primary and multiple are not interchangeable with "related returns." Returns in Status 10 or 12 are related to a return on the database, whereas two or more years on the CSDB are primary and multiple records.

  2. If both returns of the taxpayer are regular DIF returns, the primary record will be the oldest tax year. The most current tax year becomes the multiple record. The primary return will be the one scheduled for appointment.

  3. The CSDB Update Error Items (CSP 3241) identifies which record will be the primary and which will be the multiple. This information may be used to cross-reference the case files by placing a POD label in the bottom right of the folder in the block marked "Related Taxpayer." Cross-referencing the files will serve as a reminder that there is another return as part of the database for this taxpayer.

  4. The primary and multiple records are used throughout CF&S programs; however, they are maintained on separate files for processing. Primary records are part of the regular CSDB. Multiple records are stored on a multiple returns file. For the matching process and scheduling, the detailed CSDB and the multiple records are merged.

  5. MITS runs CSP 42A weekly. CSP 42A creates the CSDB Inventory Report and the Multiple Return Report. CSP 42A may be used to verify multiple records on the database and in the files.

  6. Both primary and multiples will be sent to the group. The group can survey the multiple return if it is warranted. In the event the primary returns are surveyed or deleted from the database, the multiple return will become the primary return.

4.19.12.6.5  (11-01-2006)
CSP 4342 Processing the Entity Change Listing and Returns Transferred Out

  1. Each week, the match of the CSDB to the AIMS Database identifies returns for which the taxpayer’s address has changed. The Entity Change Listing (CSP 4342) is generated for returns on the CSDB for which a change of address, keyed on ZIP Code, has posted. An entity change will cause a freeze indicator to post on the CSDB. These returns cannot be scheduled for two weeks to allow the CFSU time to correct the CSDB to agree with the AIMS address or to transfer the return to another service center.

  2. This listing is generated in AIMS Serial Number sequence by Area Office.

  3. POD Changes within the same area office should be worked as follows:

    1. Determine the correct POD using the zip code shown on CSP 4342.

    2. Compare the correct POD to the current POD. If no POD change is required, document the Entity Change Listing accordingly.

    3. Command Code AMAXU will be used to transfer the return to the correct POD on AIMS. This will automatically shift the return on the CSDB to the new POD during weekend processing.

      Note:

      There is no need to delete the return from the CSDB when the return remains in the same Area Office.

  4. Transfers to area offices within the same campus:

    1. If the Entity Change Listing reflects an area office change, the case must be pulled from the shelves. Use CC CSSAD for all transfers to other area offices.

    2. Pull a status label for the transferring return and place it on Form 5351, Examination Non-Examined Closings, indicating the Area Office to which the return will be transferred. Disposal Code 30 and the Area Office PBC of the transferee Area Office must be used.

    3. Verify using AMDISA that the transfer action is completed.

  5. Returns requiring transfer must be deleted before the two-week freeze is lifted or the return will be available for scheduling in the wrong area office.

  6. Transfers to area offices outside the campus area:

    1. Delete from the CSDB using Command Code CSSAD.

    2. Secure AMDIS print reflecting the most current address before return is transferred on AIMS.

    3. Pull a status label for the transferring return and place on Form 5351, Examination Non-Examined Closing and indicate the area office to which the return will be transferred to. The AIMS Unit will use Disposal Code 30 and the Area Office Primary Business Code (PBC) of the transferee area office.

    4. After the AIMS transfer action is input, an AMDISA print will be secured to show that the database was transferred on AIMS. The AMDISA print will be sent with the return to the gaining campus. The AMDISA print should be secured the same week as the transfer action.

    5. Enclose the following documents when mailing the return to the gaining campus: either Form 3185, Transfer of Return or Form , Document Transmittal; AMDISA print showing new address; and AMDISA print showing completed transfer action.

    6. The gaining campus will process the return and add it to its database. It will be the responsibility of the gaining campus to correct the POD.

  7. Prior file year returns (other than blue tab) should not be transferred after October 1st. It is not necessary to transfer prior year returns before survey action. They should be retained at the losing campus and surveyed there.

  8. The Entity Change Listing will show both the old and new POD’s by including the prior week’s AMAXU actions for POD or area office changes. To assist the CFSU in determining the correct POD for the area offices it services, the CF&S Zip Code Listing (CSP 4840) will be generated weekly.

4.19.12.6.6  (11-01-2006)
CSP 4025/4026 Master Appointment Schedule

  1. After weekend processing, CFSU should receive the following computer output on Monday morning:

    • Master Appointment Schedules (CSP 4025 and CSP 4026)

  2. The Master Appointment Schedule (MAS) is generated in both AIMS Serial Number sequence (CSP 4026) and in Appointment Sequence (CSP 4025) and is the result of the prior week’s order. The MAS is in appointment sequence by date and time. If call-back letters are used, the MAS (CSP ) will be sorted in SSN sequence. This listing is for use by the group.

  3. The MAS in AIMS sequence is for CFSU to use in filling orders. This MAS is broken down by Area Office; POD, and EGC and should be worked as follows:

    1. Pull all returns listed on the AIMS Sequence MAS and check returns off the list as they are pulled.

    2. Account for all returns.

    3. After returns are pulled, arrange them in appointment sequence, and check against the MAS.

  4. Returns on the MAS will automatically update to Status 12 and the EGC of the requestor during the weekend processing following the issuance of the MAS.

    Note:

    Pre-contact analysis returns will update to Status 10.

4.19.12.6.7  (11-01-2006)
CSP 4940 CSDB POD

  1. CSP 4940, CSDB POD File Listing, is a list of current AAC/POD information. The Area Office PSP should review it to ensure that any changes have been made correctly.

  2. The listing is utilized by CFSU to ensure proper mailing of orders to PSP.

4.19.12.7  (12-02-2011)
Manual Orders

  1. Manual Orders are received in CFSU from the area PSP via fax or E-mail. These orders are received from the PSPs requesting cases be pulled from various POD's and activity codes. The order may be requested by either receipt of Form 6834, Centralized Storage Requisition for Selected Returns or receipt of a PSP E-mail order of IVL information. The PSP will request the status, organization code, secondary business code, post of duty, activity code (TPI class), and number of cases needed.

  2. Form 6834, Centralized Storage Requisition for Selected Returns, is worked as follows:

    1. Pull case from inventory using POD and Activity Codes from inventory list CSP 5744 for EGC 2066, 1066, 1067, or 1068, and CSP 4240 for EGC 2050.

    2. Using cc AMSTU, update SBC, EGC, and status.

      Note:

      Status will always be 10 and are pre-contact.

  3. E-mail orders of IVL information are worked as follows:

    1. Pull case from inventory.

    2. Using cc AMSTU, update SBC, EGC, and status.

      Note:

      Status will always be 10 and are pre-contact.

4.19.12.8  (11-01-2006)
Deletions from the CSDB

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

    1. Transfers to other area offices

    2. Special requests from area offices or campuses

    3. Errors appearing on CSDB Update Error Items

    4. Manual orders

  2. Returns that were on the CSDB as Existing Items will automatically delete or drop from the CSDB when identified on CSP 4341, Related Returns.

  3. Returns that are scheduled via the Master Appointment Schedule will be automatically deleted by the computer from the CSDB Inventory, CSP 4240, during subsequent weekend processing. These returns do not automatically delete from the printed CSDB Inventory in the same weekend processing in the event problems develop with the print file of the appointment letters.

    Note:

    Although the orders remain on the CSDB Inventory, the returns ordered have been deleted from the PSP Inventory in the week scheduled.

  4. For manual deletes using command code CSSAD, include reason for delete.

  5. Two lists will be generated in SSN sequence:

    • CSP 2940, Survey/Delete Card Listing — this list reflects all records as entered on IDRS

    • CSP 4344, Special Extracts from CSDB — this list shows all returns that were deleted from the CSDB.

  6. The CFSU should compare both listings; those that did not delete may not have been on the CSDB or will require additional research.

  7. Problems with the delete process should be brought to the immediate attention of the CFSU manager. An AIMS update of the status and EGC alone will not delete a return from the CSDB. The most common problems encountered with deletes include:

    1. Incorrect identification of valid versus invalid AIMS records

    2. Returns not on the CSDB - In order for a return to delete from the database, it must be on the CSDB at the time the delete request is processed

      Note:

      An AIMS update of the status and organization code alone will not delete a returns from the CSDB.

4.19.12.9  (12-02-2011)
Surveys from the CSDB

  1. (1) The Area Office PSP, has sole authority to survey returns. CFSU managers must have written authorization from the Area Office PSP Territory Manager before surveying returns from the Area Office’s CSDB.

  2. Although surveys are normally done on an Area Office-by-Area Office basis using the tax year as the main criterion, surveys may be requested for a specific activity code, specific POD, specific year or a combination thereof. A survey may be done any time the PSP Territory Manager, determines the returns are not needed. When possible, Area Offices should request surveys quarterly (or more often, if desired), to avoid the need for large survey requests at the end of the year.

  3. The CFSU will use Command Code CSSADS to survey the returns

  4. The following listings will be generated for use by the CFSU:

    • CSP 2940, Survey/Delete Listing —a listing of survey returns in AIMS Serial Number sequence

    • CSP 4343, Returns Surveyed from the CSDB —a listing of survey returns in AIMS Serial Number sequence

    • CSP 3241, Late Filed Returns — shows returns with statute dates in the calendar year following those being surveyed. These returns will remain on the CSDB; they will not survey

  5. The following survey actions will be performed by the CFSU after CSP 4343 is received:

    1. Pull returns shown on CSP 4343.

    2. Check name on return against name on list to ensure that correct returns have been pulled.

    3. Stamp the return with a survey stamp.

    4. Attach the charge-out document (Form 5546) to the return and assemble the return package according to local procedures. Disposal Code 35 will be used to close off AIMS.

  6. Returns designated as "Employee" or "Potentially Dangerous Taxpayer" should be surveyed like other returns. They will be secured from the Chief, Classification Section/Branch or the CFSU manager for closing.

4.19.12.10  (12-02-2011)
Employee Returns

  1. Employee returns will be identified by the literal "Employee Indicator" on Form 5546, Examination Return Charge-Out Sheet. If the literal "Employee Indicator" is other than "00" , it is an employee, and the classifier should write the word "Employee" on the chargeout.

  2. Selected employee returns may have issues checked for examination but must be designated as "Pre-Contact Analysis" for administrative purposes. The Pre-Contact designation will prevent the return from being scheduled for an appointment.

  3. It will be the responsibility of the CFSU manager or designee to hash total the checksheet and prepare the folder. After completion of the hash total, the return will be routed to the Chief, Classification or designee for storage in a secured area.

  4. Once the return has added to the CSDB per the Returns Added List, the file folder with the AIMS Examination Charge-out (Form 5546) and the checksheet will be filed in AIMS serial number sequence like any other return.

  5. When an employee return appears on the Master Appointment Schedule as a Pre-Contact Analysis case, the return will be secured by the CFSU manager and the case file will be shipped in a pink envelope as follows:

    1. Returns of non-managerial employees will be shipped to the PSP Territory Manager

    2. Returns of Division level personnel or above will be shipped to the Director, Examination Planning and Delivery

    3. Returns of all other managers will be shipped to the Area Director, Examination

  6. The Chief, Classification or designee, will make a list of the non-managerial employee returns shipped to the , PSP territory Manager. The list will be sent in a pink envelope to the Area Director, Examination , in the area office. See IRM 4.1.4Other Priority Programs and Other Source Workload, for complete instructions.

  7. All employee information deleted from the MAS will be forwarded to the examination group. Indicate on the MAS in AIMS Serial Number sequence (held in the unit) "Employee - Forwarded to PSP" .’ This will serve as the unit’s documentation of the return disposition.

  8. At survey time, employee returns will be surveyed the same as any other return.

4.19.12.11  (12-02-2011)
Batching

  1. For campuses that use Batching, the following information is provided:

    1. Returns are received from Returns Files following the input of an MCC order requested by a PSP

    2. Orders include Form 5546, labels, and IRMF transcripts

    3. Returns are then batched by PBC and activity code and sent to the classifiers for screening

    4. All DIF returns are source code 01 (Automatics) or 02 (Computer Identified)

    5. All other Source Codes should be pulled and given to the Lead

  2. Returns will be sorted according to:

    1. Cycle

    2. PBC

    3. Activity and Organization code 4

  3. Second Search is received separately. Make sure the cycle (unless second search), PBC, and volume are shown, and IMF is circled before giving to the senior.

  4. Sorting will be as follows:

    1. Ensure no returns from prior list years are included. If found, stamp "Excess Survey" . Send to closing unit.

    2. Sort current year items into PBC.

    3. Sort each area into activity codes in ascending order.

    4. Set all second search aside for separate cart.

    5. Pull out returns showing a prior year in status 00/06/08/10 or 12. If still in 00/06/08, they are okay and should be batched accordingly. If in 10/12, give to clerk handling that specific area so the related cases can be sent to the PSP.

  5. The Batch Sheet (OSC 8) must contain:

    • TPI (activity code)

    • Cycle (misc. for Second Search)

    • Form number (1040, 1120, etc.)

    • DIF or Second/Special Search (at top of batch sheet)

    • Date when released to classifiers

    • Area

    • Volume (no more than 25 per batch)

    • Name stamp & date when batched

    • List cart number and applicable batch number at top right margin of each sheet to match corresponding batch number from batch control sheet

  6. Continue processing as follows:

    1. Batch Area by state and then activity codes.

    2. Fill out batching sheet (2 copies--one to clerk, one with truck) with block number.

  7. Inventory Control Reports Database information - Before any cart of batched work is released to the classifiers, this database information must be entered by the person responsible for this (usually the person responsible for control of the batch sheets).

4.19.12.12  (12-02-2011)
97X (Amended Returns)

  1. When receiving amended returns due to open AIMS controls in status 06, the amended return will be sent back to the originator with instructions to follow Accounts Management (AM) processing requirements. If the amended return has already been processed and is sent for association with an open case in status 07 or 08, the case should be immediately pulled for review by the local Campus Classification Unit to determine if the case and amended return should be sent to the field. No amended return should be associated with a case ready to be closed survey.

4.19.12.13  (12-02-2011)
Hashing Selected Office Returns

  1. Hashing a return is a process that allows for a validation check against what has been transcribed for returns during Submission Processing data entry. After reviewing the Form 6754, Examination Classification Checksheet for accuracy, a total of specific items is input on the form which is then entered to the ISRP system. ISRP then matches this total against output from data entry of return transcription.

    Note:

    Only office returns are hashed.

  2. Prior to hashing returns, ensure accuracy of Form 5546, Examination Return Charge-Out Sheet. Review the Form 5546, as follows:

    1. Check for Power of Attorney (CAF).

    2. Check for Employee or PDT returns - these returns are hashed the same way except make a copy of the Form 5546 and put the copy in the folder on the hash cart and give the original return to the MANAGER - these returns are kept in a locked cabinet.

    3. Check for Collection indicators below – if found, refer to Work Leader for processing -B - Bankruptcy; C - Current status 26 TDA; N - Currently not collectable.

    4. Check for POD 999 - Pull and give to whomever works that Area for correction.

    5. Ensure labels and case match.

    6. Check DLN for current list year

    7. Watch for bypass years and Source Codes.

    8. Ensure only Source Codes 01 & 02.

    9. Ensure case has Form 6754 and Form 5546; if no Form 5546, an AMDISA print must be secured in lieu of the 5546.

    10. Ensure Form 5546 states SB - not WI or LMSB.

    11. Ensure PBC and state coincide.

    12. If there is a CAF, PDT (CAU), or C, B, or N present, the return must be selected for Pre-Contact Analysis. Check Box 3 with red pen. Be sure and put a "P" at the end of your hash totals.

  3. Ensure tax return, Form 5546, and Form 6754 are all for the same taxpayer.

  4. Prior to hashing, ensure accuracy of Form 6754 by considering:

    • at least one but not more than thirteen issue numbers should be checked. If no issue numbers checked, tax year becomes the hash total.

    • If more than 13 issue number are checked, the return has to be marked for Pre-Contact Analysis.

    • If issue number 33, 34, or 35 is checked, there must be a printed message in the corresponding boxes. If there is a printed message and NO check mark, check or X the corresponding box.

    • Schedule C, E, or F issues - if more than one issue number box is checked across, only add the number one time. (Example- Col. C box 50 checked- Col. F box 50 checked only add "50" one time into the hash total.

    • If issue number 8 is marked with an "X" , there must be a "4" in Box D (Priority No.) or issue number 9 must be marked with an "X" .

    • Issue number 8 cannot be checked alone.

  5. Hash Form 6754 as follows:

    1. Put a POD label on the folder and a STATUS label on both pages of the check-sheets (Form 6754).

    2. Ensure your initials and date are stamped or written on the outside of the folder or under Box G, Form 6754 as appropriate by campus.

    3. Put folders in AIMS serial number order.

    4. Verify the correct return is in the folder and that the proper labels have been used.

    5. Ensure each Form 6754 has the appropriate service center code in the space above Block A.

    6. Ensure Box B (Type of Examination) has only one item checked.

    7. If Pre-Contact Analysis is checked, enter a "P" at the end of the hash total.

    8. If Correspondence is checked, "Reject the Cases" .

    9. Field Examinations are not hashed.

    10. Box C If any box is checked, add this number to your hash totals - these are batched separately and labeled "Special Inventory."

    11. If Box D (Priority) has a 4 in it, issue number 8 must be marked.

    12. If Box E (POD Override) is checked, add to the hash total.

  6. Total hash information and enter in Box G, Form 6754 (pencil only), the following information:

    1. Tax Year

    2. Issue numbers checked including write-in issues

    3. Block C - Special Inventory

    4. Block E - POD Override

  7. Put cases in AIMS serial number order after removing white copy of Form 6754. The white copies of the Form 6754 are then batched and sent to Data for input.

  8. Number Form 6754 in the top right-had corner beginning with 00 to 99 (if 100 documents in batch).

  9. Send white copies of Form 6754 to Batching with Form 1332, Block and Selection Record. Complete Form 1332 with the following information:

    • Total volume of Forms 6754

    • Current date

    • Program code

    • Employee initials

    • Type of examination

    • Alpha character (may vary by campus).

  10. Provide a copy of the transmittal to the Lead.

  11. Follow local procedures for monitoring receipt of Form 1332.

4.19.12.14  (12-02-2011)
Updating and Foldering Selected Field Returns

  1. Updating and foldering selected field returns includes entering appropriate EGC code and perfecting appropriate forms. Selected field returns may be IMF or BMF. IMF returns may be selected for Field rather than Office if complexity warrants.

  2. All IMF selected Field returns will have a Form 6754 placed on the back of the stamped, selected return with the word "Field" written across the Form 6754.

  3. If BMF return, the forms may vary according to MFT, Return or Area. The forms used are: Form 6256, S Corporation Classification Checksheet, Form 6250, Partnership Classification Checksheet, Form 6241, Non-DIF Corporate Classification Checksheet or Form 10264, Revenue Agent - Classification Checksheet.

  4. Folder returns as follows:

    1. Place a POD label on the top right corner of a plain folder.

    2. Place a status label on the selected classification form in the name and address area.

    3. Sort in AIMS order by grade.

  5. Selected field returns get foldered and updated to status 08 and to EGC 1066, 1067, or 1068 according to what grade the classifiers grade them as or per classifier's comments. Some areas may grade them all the same such as 1066:

    • Grade 11 to EGC 1066

    • Grade 12 to EGC 1067

    • Grade 13 to EGC 1068

  6. Cases are then placed in a designated holding area unless PSP provides different direction.

4.19.12.15  (12-02-2011)
Closing Accepted Field and Office Returns

  1. Classifiers may accept returns as filed. They should be stamped "Accepted as Filed" with the classifier's number and date. Accepted cases will be closed using disposal code 20 or 21 (if working "Survey Excess Cases" the disposal code will be a 35), in the following manner:

    1. Compare return against Form 5546 to make sure the SSN, Name and/or DLN match.

    2. Ensure SSN/EIN, MFT, and year are intact on Form 5546.

    3. Fold Form 5546 in half and staple at left center of return so the taxpayer's name and address are visible. Use two staples (if no Form 5546 attached, a complete AMDISA print must replace it and stamped "In lieu of F5546" .

    4. Ensure source codes are 01, 02, or 20.

    5. Stamp or write disposal code 20, 21 or 35 on top of Form 5546.

      Note:

      Status 06 Source Code 01 or 20 is a disposal code 20; Status 06 Source Code 02 is disposal code 21; Status 08 is disposal code 35

    6. Make sure the return has been stamped "Accepted as Filed " .

    7. Make sure that the names and addresses match the Form 5546 and return.

    8. Destroy labels and any Information Return Selection System (IRSS) documents..

    9. Trim large envelopes, keeping postal date intact.

    10. Close off AIMS using command code AMSOC and batch according to post-processing local procedures.

4.19.12.16  (12-02-2011)
Processing Master Appointment Schedule Orders

  1. When the PSPs place an order through CSORD, it generates a CSP 4026, Master Appointment Schedule Report. Master Appointment Schedules (MAS) are generated in AIMS serial number sequence.

  2. MAS are in appointment sequence by date and time order (CSP 4025). This listing (CSP 4025) is for use by the Area group. .

  3. Process as follows:

    1. Pull all returns listed on the MAS appointment sequence.

    2. Check returns off list as they are pulled.

    3. Check POD and taxpayer name on label and return

    4. Check the message on the CSP 6440 for any special instructions.

      Note:

      Look at the Form 5546 and appointment letter for address correctness. If address is changed and POD is different, pull letter and return from order.

    5. Band together multiple returns identified on the MAS and note on folders that two returns are attached for this taxpayer.

  4. After the order is pulled:

    1. Prepare Form 3210, Document Transmittal for each POD showing order number, POD, status/EGC, and volume of returns being sent.

    2. Attach one copy of the Master Appointment Schedule behind Form 3210.

    3. Send another copy to the Area office Control Clerk by EGC.

    4. On EMPLOYEE AUDITS, give folder to manager with copy of MAS. Employee Audits are pre-contact. Notate on the MAS that the case is an employee audit and cross out the information.

      Note:

      Cases on Master Appointment Schedule, in AIMS sequence, are automatically updated to status 12 and the EGC when the order is run on the weekend, except for pre-contact analysis - they will update to status 10 and the EGC shown.

    5. File a copy of the CSP 4026 once order is completed.

    6. The manager or lead shall call the PSP when the Unfilled Order List (CSP 3640) is received. If it is a large volume or the PSP needs cases, a delete order can be done.

  5. For Group Orders with Unlocatable Returns - Orders unfilled because the case cannot be located need special handling as follows:

    1. Search shelves, all registers, and research before notating "unavailable" .

    2. Upon completion of the order, additional research should be completed on the lost case.

    3. Upon completion of Master Appointment Order, unlocatable cases must be deleted from the area EGC and put back in 2050 inventory or closed.

4.19.12.17  (12-02-2011)
Manual Orders from PSP

  1. Manual Orders are received in CFSU from the area PSP by fax, E-mail, or SSIVL list. These orders are received from the PSPs requesting cases be pulled from various POD's and activity codes. If an order is requested from the PSP:

    1. Complete Form 6834, Centralized Storage Requisition for Selected Returns with the information. The PSP will request the status, organization code, secondary business code, post of duty, activity code (TPI class), and number of cases needed.

    2. Pull cases from inventory list CSP # 5744 for EGC 1066, 1067, 1068 and 2066 and CSP # 4240 for EGC 2050, using the highest DIF codes first.

    3. Enter the PSP ordering information, date of order, requester and title. Status will always be 10.

      Note:

      When either of these orders is received, date stamp the forms with the CFSU received stamp.

  2. Procedure for pulling cases is as follows:

    1. Using Central Files Inventory, CSP 5540, pull the number of returns in each TPI class and POD requested from the files.

    2. When the Multiple Indicator (M) shows, refer to the Multiple Returns List and pull the other case(s) for that taxpayer (the Multiple Returns List is in SSN sequence).

    3. Check names from labels, returns, and Form 5546 to ensure a match.

    4. After all returns have been pulled to fill the order, update cases to the status indicated on the Form 6834 or local method.

    5. State on the Manual Order Sheet the total ordered and total shipped.

    6. After order is completed, date stamp the manual order requisition and make four copies. Original copy is stapled to Form 3210, one copy is for the mail desk, one to lead, one for your reference and the other copy is mailed to the PSP Control Clerk.

    7. Mail completed Manual Examination orders to the correct group within prescribed timeframes.

    8. No stuffers for EGC 2066 or for Pre-Contact.

4.19.12.18  (12-02-2011)
Excessing

  1. Office Returns - PSP will send a memo request to excess inventory. A request to excess inventory should be done quarterly if possible, to avoid large survey requests at the end of each year. The PSP Territory Manager must approve it. A memorandum must be received before any excessing is done. Send copy of the excessing memo to the Classification Control Unit.Process as follows:

    1. Manager requests CSP 4343, Returns Surveyed from the Centralized Database - After the CSP4343 survey list is received, pull cases shown on CSP 4343 from inventory, check name on return against name on list to ensure that correct returns have been pulled. Reinput all current list year cases deleted incorrectly, and pull, delete, and close any prior list-year cases not surveyed (not shown on listing but found in inventory).

    2. Count all returns excessed.

    3. Write the count and date on excessing sheets.

    4. Close cases and give count to lead or manager.

  2. Procedures for excess surveyed cases using disposal code 35 are:

    1. Stamp "Excess Survey" on the front of the return.

    2. Fold Form 5546 in half and destroy checksheet unless needed for Disclosure.

    3. Compare return against Form 5546 and ensure they match.

    4. Ensure SSN, EIN, MFT, and year are intact on Form 5546.

    5. Destroy any remaining labels.

    6. Ensure a count is taken for each PBC closed and the sheet on cart is completed with counts and date stamp.

    7. Close the cases using AMSOC (via GII when possible).

  3. Field Returns - PSP will send a request to excess inventory. A request to excess inventory should be done quarterly if possible, to avoid large survey requests at the end of each year. It must be approved by the PSP Territory Manager. A memorandum must be received before any excessing is done. A count is taken and noted on sheet on top of cart the same as in office instructions. All Field excess cases must be closed with disposal code 35.

  4. Any cases remaining on inventory shelves that are the same list year as that being excessed should be researched as follows:

    1. Check AIMS for status/org.

    2. Check IDRS for correct TC 150 list year.

    3. Close cases with correct disposal code. (status 06=21/08=35).

  5. Close cases via AMSOC (using IDRS batch processing if possible).

4.19.12.19  (12-02-2011)
Unlocatable Cases

  1. In order to send a case to PSP, continue to look for the case. If you have a case controlled that is in 08/2050-2066-1066-1067-1068-1030-2030 but you cannot locate, research it before conducting any further work on the case.

  2. If closing the case, take the following steps:

    1. Pull an AMDISA for the SSN/EIN for the correct Tax Year.

    2. Pull IDRS for the same year.

    3. If AMDISA shows status 08, print a TRDBV , all copies.

    4. Associate the AMDISA to the TRDBV and prepare for closing. Be sure to include proper blocking series on the AIMS print when closing.

4.19.12.20  (12-02-2011)
Statute Dates Pending

  1. Periodically, a list of all returns on which the statute of limitations will expire in 180 days or less or has expired is sent to the organization charged with the returns. To work the table correctly, the following actions are taken:

    1. Check AMDISA for current status and organization.

    2. If on database (status and EGC’s 08/2050-2066-1066-1067-1068 or other EGCs according to campus), check in files for return.

    3. If not in files, request IMFOLT/BMFOLT to obtain the 150 DLN or refiled DLN.

    4. ESTAB for return under the 150 DLN or refile DLN.

    5. When the return is received, close case with a 35 disposal code.

    6. If the return is not received after ESTAB has been sent to Files and only a charge-out is received, close with disposal code 33.

    7. Cases on the Table 4.1 showing in status 06 EGC 1030 or 2030, should be pulled and worked the same.

Exhibit 4.19.12-1 
CSP Reports

The table is a list by output #, title, and description of all Centralized Scheduling listings by number resulting from adding, changing, or deleting returns to CSDB or special processing.

Output # Title Description
CSP 2940 Survey/Delete Listing SSN sequence of all surveys/deletes input. Generated weekly.
CSP 3240 CSDB Update Error Listing SSN sequence of error items with code identifying cause of error condition, out of districts, intelligence freezes, and amended freezes.
CSP 3240 (last page) CSDB Update Control Report Volume entered by DIS; numbers of related items, error items, deleted items, etc.; total volume added to CSDB; current CSDB inventory.
CSP 4240 CSDB Inventory Listing Scheduling sequence (AO, activity code, priority code, descending DIF score, etc.) of all returns on CSDB. Generated weekly.
CSP 4241 Multiple Return Listing Multiple year returns printed in AIMS serial # sequence by AO. Only primary returns will be scheduled. Generated weekly.
CSP 4340 Returns Added to CSDB AIMS serial # sequence by district of all returns added to CSDB during a particular cycle. The returns are now available for scheduling. Listing is also used to update returns to Status 08, Org 2050.
CSP 4341 Related Returns Listing SSN sequence of returns now on the CSDB or being input for addition to the CSDB for which a related year is open on AIMS in Status 10 or 12 for the same taxpayer. "New Items" will not add to CSDB, "Existing Items" will drop off CSDB.
CSP 4342 Entity Changes AIMS serial # sequence of returns on CSDB for which a change of address (keyed on zip code) has posted to AIMS within the past week. If the change requires a reassignment to a new POD within the same district, updating the POD on AIMS will automatically update the CSDB the following week. Delete/Reinput action is not required for POD changes only.
CSP 4343 Returns Surveyed from CSDB AIMS serial # sequence by district of all returns to be pulled from the files and surveyed as excess inventory as authorized by each PSP. Generated usually once a year.
CSP 4344 Returns Deleted Report SSN sequence of all returns manually deleted from the CSDB.
CSP 4840 Zip File Listing Printout showing all CSDB zip codes requiring special handling, i.e., "late" scheduling or "call-in-site" designation. Generated each time Form 6876 are processed and affects only returns which add after the zip code file is updated.
CSP 4940 CSDB POD Listing All address information used by a district by POD level. Shows specific information to be printed on the contract letter including location of appointment, contact person, and telephone number.
5641 Multiple Case Listing Weekly list of the multiple cases in field.
CSP 5642 Related Case Listing Related case is defined as another tax year already in audit for the same taxpayer.
CSP 6040 Inventory by DIF Score Range All district CF&S returns by DIF score range, POD, and activity code. Generated monthly.
CSP 6340 Returns Surveyed by DIF Score Range Cumulative list of all district returns surveyed by POD and activity code. Generated quarterly.
CSP 6740 Survey of Returns by POD Cumulative listing of returns which have been surveyed from the CSDB. Should be generated only upon request. Not intended as weekly output.

The table is a list by output #, title, and description of Centralized Scheduling listings generated by return orders.

Output # Title Description
CSP 3540 Total Orders by POD Report Number of items ordered for each POD. Gives total by AO and grand total. Used to identify and resolve any discrepancies before order output is generated.
CSP 3640 Unfilled Examination Group Orders AO and POD list of any unfilled appointments. Identifies Organization Code, TPI, and date/time not filled.
CSP 3641 Run Controls Volumes of items ordered, pre-contact analysis returns listed, letters generated, and any unfilled appointments.
CSP 4025 Master Appointment Schedule Appointment sequence of all taxpayers scheduled for interviews. Pre-contact analysis returns being sent with the order are listed at the end. Four copies received. For callback and DIF CORR orders, the list is in SSN sequence.
CSP 4026 Master Appointment Schedule - AIMS Serial # Sequence AIMS serial # sequence of all interview and pre-contact analysis returns included in each order. One copy received. Used strictly for pulling returns from the files.

Exhibit 4.19.12-2 
CSP Error List

The table is a list by code, definition and cause, and resolution action of CSDB error codes.

Code Definition and Cause Resolution
A Audit Type and Audit Hash are not equal (I, C, P). Make sure Audit Type on Form 6754 agrees with symbol entered in Hash (i.e., Interview = I; Pre-contact Analysis = P; Correspondence = C).
B New item not added because it matches a record. Will only occur if a "C" code condition is present. Classification item is dropped. Research AIMS. If no data, a transcript may be ordered - a) If return is on AIMS in Status 08/Org Code 2050, message may be a computer read error - reinput, b) If SSN change, enter correct SSN on label on Form 6754, reinput, and document case file.
C Existing Item on CSDB matches AIMS but is not in 2050 after 2 weeks (If correspondence, in Org. Code 5XXX). Research AIMS to determine current status and organization -
  1. If status 06/08 and return is in files and should be on CSDB, update to Status 08/Org Code 2050 and refile (Update probably had not been done or was done incorrectly.)

  2. If status is other than 06 or 08 and return is in files, delete from CSDB (via delete card) and forward return to assigned org code.) Group is probably working from a copy.)

  3. If return is not in files, it was probably updated and mailed out without being deleted. Delete from CSDB. No further action required (Return pulled for manual order or at group's request.)

Note:

"C" errors do not drop from CSDB. They are regenerating errors. If corrections to AIMS tape is created, it may be appropriate to delete Cs to avoid repetitive errors and reinput to the next cycle. Expeditious handling of updates is recommended to avoid the additional work of the delete/reinput process.

D Reserved  
E Issue #33 indicated but write-in issue #33 not present.
  1. If Issue #33 is checked and a write-in issue is present - DIS Error and reinput checksheet

  2. If Issue #33 is checked and no write-in issue is present - circle Issue #33, recompute hash total and reinput.

F Issue #34 indicated but write-in issue not present. Same as E above.
G Issue #35 indicted but write-in issue not present. Same as E above.
H   A SCH-TYPE-CEF of 01, 02, or 03 does not follow a CLASSIFICATION-SECTION-03 ISSUE-NUM-CEF or SCH-TYPE-CEF 01 or 03 follows ISSUE-NUM-CEF 40 or SCH-TYPE-CEF 02 follows ISSUE-NUM-CEFs 42, 44,45,50,51,57,58,61,67,70,74,79, or 80.
I   DIS entered necessary section for this Examination Classification Checksheet (Form 6754) incorrectly or TIN change and no CLASSIFICATION-SECTION-01 on new item or (CDSB-AUDIT TYPE is equal to C or I and no issues were entered in CLASSIFICATION-SECTION-1, CLASSIFICATION-SECTION-02, and CLASSIFICATION SECTION 03.
J   CLASSIFICATION-SECTION-02-CD is not 02 and entries are present in CSDB-OTHER-ISSUE-33 or CSDB-OTHER-ISSUE-34, and/or CSDB-OTHER-ISSUE-35, or CLASSIFICATION-SECTION-03-CD is not 03 and ISSUE-NUM-AND-SCH-CEF-GRP has entries.
K No AIMS match for the SSN, MFT, Tax Period for this new classification item. Classification item drops.
  1. If no data on AIMS, initially research account with invalid TIN indicator (*). If still no data, order transcript (CC ACTRA) to determine if TC420 present. If not, request manual TC424 openings. If TC420 posted, look for TC421. Refile DLN Blocking Series will determine appropriate action to be taken, i.e., associate with refile DLN (Blocking Series 900) or TC424 manual reopening (Blocking Series 100)

  2. If TIN change on AIMS, enter correct TIN on label on Form 6754 and reinput. Also document case file.

L New item not added because multiple existing item in freeze status. Hold until freeze indictor is dropped per CSDB inventory listing and reinput.
M Area office code is not valid for this campus. Classification item is dropped. Research AIMS. Reinput if valid AO code. If not valid, follow local procedures for resolution.
N First two digits of CSDB - POD for new item is not in range 01-98.
  1. If the first two digits of the POD are within range 01-98, reinput.

  2. If not, determine correct POD per zip code. A change of the POD on AIMS will be needed (AMAXU.)

O Classification Record adds and becomes primary return. Existing year becomes a multiple CSDB record. Information code - no action required.
P CSDB record remains as primary and the later year (Classification Record) adds as a multiple. Same as Error Code O.
Q Attempting to add same tax period as an existing CSDB item. Form 6754 input for an existing CSDB record (An unusual number of "Q" errors may indicate reinput of Form 6754 for returns already on CSDB and further research is recommended to determine cause). May indicate duplicate use of DIS tape.
R AIMS Activity Code other than 530-539, 631-634. Check activity code on AIMS. If not 530-539, refer to Classification for activity code determination. If other than 530-634 and issue #50 or #51 is checked on Form 6754, refer to Classification for resolution. Reinput Form 6754 after correction is made.
S AIMS Item is 2050 with no matching item on CSDB (excludes Status 90). Used to validate AIMS Data Base. Recommend that CFSU request periodic printing of "S's" through MITS as part of inventory validation Validate against latest MAS. Research Extracts Listing, Error Register, Related Returns Listing, MAS, Suspense Files to locate returns charged to CFSU on AIMS but not on CSDB. If return should be on CSDB, reinput Form 6754 when return is located. If return was mailed out as evidenced by listings, take appropriate action Returns should be thoroughly researched until all are accounted for and corrective actions taken.
T Invalid Status, Org. Combination for return trying to add. Research AIMS to determine current status/org code
  1. If return is charged to another organization, forward return accordingly if you have a copy (Group is probably working from a copy.)

  2. If return is in Status 90, determine action be taken per disposal code and refile DLN Blocking Series, i.e., send to Files for association per refile DLN (900 Blocking Series), request manual 424 opening (Disposal Code 29 or 100 Blocking Series.)

Note:

To go through CF&S system item must be in 06/any org code or 08/2050. Any other status/org code will be a T Error Code.

U Existing item does not match on AIMS-one week freeze. Item will drop from CSDB inventory. Research AIMS
  1. If no data on AIMS, order transcripts (CC ACTRA). TC421 refile DLN Blocking Series will determine appropriate action, i.e., associate with refile DLN or TC424 manual reopening.

  2. If SSN change, correct SSN on label on Form 6754 and reinput. Also document case file.

  3. If return is on AIMS in Status 08, Org Code 2050, error message is probably a result of a computer read failure. Will require reinput of Form 6754.

Note:

"U" errors do drop from the CSDB.

V AIMS Record AO Code/State Abbreviation are not consistent. Change AIMS to reflect the appropriate area as shown per latest AIMS/TIF address.
W Special Inventory Code transcribed is not blank (5-9).
  1. If, on Form 6754, Type of Examination is checked and Hash Total matches, reinput.

  2. If type of Examination is blank, refer to Classification - reinput when corrected.

  3. If Special Inventory is blank, DIS error - reinput.

.
X More than 13 CSDB Issues transcribed. If more than 13 issues including write-in issues (#33, 34, and 35) are checked on Form 6754, refer to Classification for determination of disposition.
Y Reserved  
Z New item not added because related item exists on CSDB.  
* Item on CSDB in one POD and an item trying to add is in a different POD. The new item will not add. Determine which tax year reflects the correct POD and change AIMS (CC AMAXU) accordingly.

Note:

The objective is for the POD's to be the same, and due to Zip Code/POD updates and realignments, the latest year should be the controlling factor. EXCEPTION: POD is 99 for latest year. Corrective action for the resolution of this error code must be determined on a case-by-case basis after appropriate research.

ADJNEW New item dropped because a 29X freeze exists on AIMS.  
ADJOLD Existing item dropped because a 29X freeze is established on AIMS.  
AMND-N New item not added because a 97X freeze exists on AIMS The objective is to associate the amended return, have the case re-screened by Classification, have necessary adjustments made on "Accepted " claims and forward "Selected" claims to the appropriate areas. Once the TC290 or 291 has been input for the Accepted claims and the 97X freeze is released on AIMS, the Form 6754 can be reinput for addition to CSDB.
AMND-O Existing item dropped because a 97X freeze established on AIMS.

Note:

No deletes are necessary since item drops for CSDB.

BADPOD New item is not added because the Audit Type = C and the POD is invalid.  
BDCOLL A collectibility indicator B, C, or N has been added to the AIMS Record. The type of examination is checked as I or C. Secure an AMDISA print to determine the indicator. If indicator is a B (bankruptcy), send return to PSP. If indicator is a C (field collection) or N (currently not collectible), change the Form 6754 Item B to a 3 for pre-contact analysis - then rehash and reinput through DIS.
BDSC New item not added because the SC-CODE does not match the System site SC-CODE.  
BDTYPE New item not added because the Audit Type = I or the Audit Type is not consistent with the PBC or SBC on AIMS.  
CHGCOL A collectibility indicator B, C, or N has been added to the AIMS record. The type of examination is checked as an I or C. The type of examination will change to a "P" on CSDB. Secure an AMDISA print to determine the indicator. If indicator is a "B," delete return form CSDB and send to PSP. If indicator is a "C or N," insert AMDISA print into case file. File back on shelf. Record will not drop from CSDB.
COMBAT Entity Combat Zone Indicator is established on AIMS. The new item or existing item that matches AIMS is dropped.  
DISAST Entity Disaster Indicator is established on AIMS. The new item or existing item that matches AIMS will not drop.  
DSTORM Existing item CSDB record dropped because a combat indicator exists on the TIF-AIMS record.  
DUPCLS Eliminates duplicate checksheets for the same T/P and TAX-PRD. Verify that only one record is on the inventory for that T/P and TAX-PRD by looking at the CSP4240 and CSP4241 reports.
DUPHLD Eliminates duplicate CSDB records for the same T/P and TAX-PRD. Verify that only one record is on the inventory for that T/P and TAX-PRD by looking at the CSP 4240 and CSP 4241 reports.
NAMCHG Name line on existing item does not match name line on AIMS. The Name line on CSDB record changed to agree with AIMS.  
NOAIMS Status Change Record for which no match was found on the AIMS database. If the Status Code is 08, it is being added to the CSDB. If the Status Code is 10 or 12, it is being scheduled for an audit.
TEFRA This taxpayer has made a TEFRA election and is controlled as a TEFRA case.  
TC914N New item not added because a Criminal Investigation Freeze exists on AIMS. Forward return to appropriate AO PSP Territory Manager for coordination with CI in the area. Make sure status and organization code are updated on AIMS.
TC914O Existing item dropped because a Criminal Investigation Freeze established on AIMS. Same as for TC914N above.

Note:

No deletes are necessary.

TC916N New item not added because a Criminal Investigation Freeze exists on AIMS.  
TC916O Existing item dropped because a Criminal Investigation Freeze established on AIMS.  
TC918N Same as TC916N  
TC918O Same as TC916O  
TYPCHG The PDT indicator on AIMS = 1 or 2 and either the new item or the existing item that matches AIMS has an Audit Type = I. The Audit Type changed to P.  
1 Non-numeric SSN transcribed from Classification Checksheet. DIS Error - Reinput.
2 Invalid IMF File source (not * or blank) transcribed. DIS Error - Reinput.
3 Non-numeric Tax Period transcribed. DIS Error - Reinput.
4 Invalid Check Digit or Name Control transcribed. DIS Error - Reinput.
5 Issue Numbers not in Range 04-32, 36-37, 90-92 - Classification Section 01, Range 33-35 - Classification Section 02, Range 40-45, 50-82 - Classification Section 03,99. If Examination Type is C or I and no issues checked, return to Classification. If issues checked - DIS Error - reinput.
6 Examination Type transcribed is not 1, 2, or 3. DIS Error - Reinput.
7 Classification Priority Code (Block D) is not 0, 2, 3, or 4. If Priority Code is valid, DIS Error - Reinput. If not valid, refer to Classification and reinput.
8 Bypass Related AIMS year (Block F) transcribed is not number or blank. DIS Error - Reinput.
9 Issue Hash not equal to total of tax year, and issue numbers, Special Inventory and POD override. Re-compute Hash Total on Form 6754. If correct, DIS Error - Reinput. If incorrect, make correction and reinput.

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