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Part 7. Rulings and Agreements

Chapter 13. Employee Plans Automated Processing Procedures

Section 6. Inventory Control Subsystems

7.13.6  Inventory Control Subsystems

7.13.6.1  (03-01-2006)
Overview

  1. The EP/EO Determination System (EDS) Inventory Control Subsystem (ICS) tracks employee plans determination letter applications from transcription through closing.

    1. lCS replaces the EP/EO Application Control System (EACS) as the inventory control system for determination letter requests.

    2. EACS continues to exist in the service centers but is now referred to as the Masterfile Pipeline System (MPS).

    3. MPS functions as the link between EDS and the Employee Plans Master File (EPMF) in Martinsburg, West Virginia.

  2. An entity is electronically transferred to the master file for each case closed on ICS with closing codes 00, 01, 02, 04, 06, and 09. Employee Plans (EP) entities are transferred to EPMF.

  3. Use IDRS terminals to access the master files for research and to update or correct unrestricted fields on the master file, when necessary.

  4. Access to ICS is available to each employee (whether clerical, technical or managerial) based on the permissions set (profile) for that employee.

  5. The Transmittal Sheet (Form 8326), may be printed after the case has been transcribed. This Transmittal Sheet has a case chronology section. The Transmittal Sheet can be printed multiple times and, although not necessary or recommended, the duplicate copy of this document can be folded and used as a control card.

  6. Programs are available on the EDS to print labels for the administrative file and for mailing. These labels may be printed from a terminal.

  7. Management Information Reports (MIR's) previously generated by Detroit Computing Center are being produced (with modifications) by the Rulings and Agreements office based on data from EDS through the service centers. Through future enhancements, these reports will be produced locally.

    1. MIRs previously generated by the service centers and newly developed MIR's are now generated in the Area offices from EDS inventory control.

    2. In addition, Area offices are able to develop local reports or to generated local reports by executing structured query language (SQL) queries. MIR's are discussed, in detail, in IRM 7.13.9, Management Information Systems.

7.13.6.2  (04-15-2003)
Status/Action Codes

  1. Update the status/action codes each time the case is moved from one location, process, or specialist. The status/action code for tracking EP cases are as follow:

    1. 31 — (In Review) This status is automatically generated on EDS for cases selected for sample, mandatory, or manager review.

    2. 32 — (Returned on Review Memo) This code will be used by the Quality Assurance Staff (QAS) to update the record from Code 31 before a case file is returned to the specialist with a Reviewer’s Memorandum for additional consideration.

    3. 33 — (Returned from Review) This code will be used by QAS to update the record of a case that is being returned to the group without a Reviewer’s Memorandum.

    4. 34 — (In Counsel for Approval) This code will be used by the QAS to update the record of any case that must be sent to Counsel for Approval before the letter is issued and the case closed. Cases included in this category are final adverse letter prepared when the applicant fails to appeal a proposed adverse letter, favorable letter prepared based on Tax Court findings and final adverse letter prepared based on Technical Advice.

    5. 35 — (30-Day Letter Mailed by QAS) This code will be used by the group manager or specialist to update the record when the proposed adverse letter is mailed.

    6. 37 — (Suspense in the Group) This code will be issued by the specialist or group clerk to update the record of any case placed in suspense at the group level.

    7. 38 — (Suspense in QAS) This code will be used by the QAS to update the record of any case placed in suspense at the QAS level.

    8. 39 — (Suspense in Technical Screening) This code will be used to update the record of any case placed in suspense at the technical screening level.

    9. 40 — (Proposed Adverse Determination) This code will be used by the specialist to update the case record when a proposed adverse determination letter is prepared and ready for managerial review. The specialist must also enter all closing data, except the 02 Closing Code, before releasing the case for managerial approval. The Closing Code 02 will be entered by QAS, when appropriate.

    10. 41 — (Proposed Technical Advice) This code will be used by the specialist to update the case record when technical advice request is prepared and ready for managerial review, approval and transmission to Review Staff.

    11. 50 — (New Case Establishment) This code is automatically generated by lCS when a case is entered on DTS.

    12. 51 — (Awaiting Assignment After Technical Screening) This code is used to update the record of cases identified for assignment by technical screeners.

    13. 52 — (Case Assignment) This code is used to update the case record when the case is assigned to a specialist or reviewer.

    14. 53 — (Returned to Specialist by Manager) The case record is updated with this code by the manager or group clerk when a case is to be returned to the specialist.

    15. 54 — (Transferred to Appeals) QAS will update the case record with this code before transferring a case to Appeals.

    16. 55 — (Awaiting Closing Approval) This code removes the case from the specialist’s inventory and places at the managerial level. It is generated automatically by lCS when the specialist updates the case record with any closing code.

    17. 56 — (Technical Advice Request-Suspense) QAS will update the case record with this code when the technical advice request is ready to be mailed to the Washington D.C. Office (Code 41 must be previously entered by specialist.)

    18. 58 — (Workload Transfer) This code is used to update the case record for cases transferred to another Area Office or Washington D.C. Office for development.

    19. 60 — (Open & Technical Screening).

    20. 62 — (Assigned & Technical Screening). This code is used to update the case record to a technical screener.

    21. 75 — Unassigned Inventory

  2. The following status codes will automatically update to status 55 when entered:

    1. 40 (Proposed Adverse Determination)

    2. 41 (Proposed Technical Advice)

    3. 00 (Approved — Issue Only)

    4. 01 (Approved — Fully Worked)

    5. 02 (Final Adverse Determination)

    6. 03 (Returned Incomplete)

    7. 04 (Withdrawn by Taxpayer)

    8. 05 (Returned Substantially Deficient)

    9. 06 (Closed on Merit without Contact)

    10. 07 (Form 5310CA Referral Generated)

    11. 08 (Forms 5310-A/4471B Accepted As Filed)

    12. 09 (Closed on Merit With Contact)

    13. 30 (Correction Disposal)

  3. The code for unassigned inventory is 75.

    1. Code 51 (awaiting assignment after technical screening), is made available primarily for Area offices who wish to track cycle time for the technical screening function, but its use is not mandatory.

    2. However to facilitate research during periods of high inventory, the Area office should consider using code 51 for cases that have been technically screened but not closed on merit or assigned to a specialist.

  4. Ideally, all cases that are not closed on merit should be assigned to a specialist. This may not be practical or possible during periods of high inventory.

    1. Case assignment requires the entry of a specialist number; therefore, if the Area offices prefer to keep unassigned inventory at the group level rather than at the technical screening level as discussed in (2), above, a ‘dummy’ specialist number can be established for each group and used for this purpose.

7.13.6.3  (04-15-2003)
Case Tracking

  1. Cases transcribed in DTS are automatically placed in status 50 (area office receipt). Cases not eligible for technical screening (Forms 4461, 4461–A, and 4461–B) should be assigned to a specialist.

    1. To assign several cases access the Multiple Assignment Screen to update status.

    2. Cases may be individually updated through the Query/Update KDO Master File Screen.

    3. All other cases are physically transported to the technical screening area but no status update is made on lCS.

  2. To produce meaningful determination cycle tables on lCS, it is important to update lCS when the case is physically removed from the technical screening area.

    1. The use of a dummy specialist number for unassigned group inventory will reduce the number of entries required at the technical screening level to update cases for assignment.

    2. Although not necessary, the case grade for EP cases (which is determined by the technical screeners) can be entered at the same time.

    3. lCS does not require an entry in the EP case grade field until the case is closed.

  3. Cases meeting the conditions for merit closure can be updated for closing at any time but ICS will prevent EP cases from closing before the required 60-day hold period.

  4. The Multiple Assignment Screen can be used at the group level to assign several cases to one specialist or the cases can be individually assigned through the Update Master Record Screen.

  5. Cases placed in suspense must be updated with the appropriate suspense code.

  6. Each action and update (e.g., assigning cases, creating letters or correcting entity information) entered on EDS creates a case history record reflecting the information entered into the system and the identity of the employee who entered the information.

    1. This case history can be displayed on the Update Master Record Screen by depressing a function key.

    2. The history record can be printed (see the EDS Users Manual for printing instruction).

  7. Exhibits 7.13.6–1, 7.13.6–2, 7.13.6–3, and 7.13.6–4 are guides for entering status and action updates on master records on ICS. Complete instructions for updating lCS records are contained in IRM 7.13.7, Moving Cases through the Inventory Control Subsystem.

Exhibit 7.13.6-1  (04-15-2003)
Technical Screening & Initial Assignment

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Exhibit 7.13.6-2  (04-15-2003)
Manager Case Assignment & Approval

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Exhibit 7.13.6-3  (04-15-2003)
EP Specialist Updates on ICS

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Exhibit 7.13.6-4  (04-15-2003)
Reviewer Updates on ICS

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