Employee Plans (EP) Determinations now processes most applications through the automated system, TEDS. However, EDS continues to play a major role in working paper cases and in closing the majority of all cases. The procedures in this IRM primarily pertain to working EDS (paper cases) with certain sections applying to both systems. For more information on TEDS see IRM 7.15.1, Employee Plans TEDS User Manual, Tax Exempt Determinations System (TEDS) Employee Plans User Manual Introduction.

This IRM supplements IRM 7.14.5, Employee Plans EDS User Manual, Inventory Control Subsystem (ICS) and provides additional instructions to EP specialists, reviewers and managers on the Inventory Control System (ICS) segment of EDS.

ICS includes many features which allow users to manage, track, and otherwise control applications from transcription through closing.

For cases not worked in TEDS, updates should be made directly to EDS through the ICS. Updates for cases being worked on TEDS, should be made directly in TEDS. Updates made in TEDS automatically roll over to EDS. This includes status updates, correcting information on the Master Record and/or closing updates. Open status codes are located in IRM 7.13.7.4, Open Codes and Descriptions.

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. See Exhibit 7.14.5-6, Case History Record Screen in IRM 7.14.5.

After the specialist has worked the case to completion , the group secretary will:

The ICS will automatically update the case status to 55 (Awaiting Closing Approval) when any of the proposed closing codes are entered on the Master Record.

Status code 55 is a managerial code. When a case is in this code, the manager has the following options:

Closed status codes are located in IRM 7.13.7.5, Closing Codes and Descriptions.

If the specialist’s actions are acceptable, the manager will initial the Form 8671 and approve the case on EDS. See Exhibit 7.14.5-9, Approval of Case Closing Screen

If the case is returned to the specialist for further analysis, the case is updated to status 53, 64, or 73. See Exhibit 7.13.7-1, Open Codes and Descriptions.

The specialist must attach a Form 3198, Special Handling Notice to the front of the file when the case is QAS mandatory review. The Form 3198 alerts management of the mandatory review requirement. Management must update the case to status 31 on EDS (TEDS is not equipped for QAS as of the date this IRM is being published). The status is updated by entering an "x" next to the case number on the Case Approval Screen. See IRM 7.11.1.40.1, Mandatory Review Cases. Send the case to QAS at one of the addresses in Exhibit 7.13.7-3, QAS Address List.

EDS automatically, on a random basis, selects cases for TE/GE Quality Measurement Standards (TEQMS) review. If a case is selected, "SENT FOR TEQMS" is reflected on the comment line of the Case Approval Screen. The DL should not be mailed to the taxpayer, instead, the secretary will send the complete case file (the paper case and orange folder, if applicable) to QAS on a Form 3210, Document Transmittal. A Form 3198, Special Handling Notice should be attached to the front of the administrative file indicating "TEQMS" . The address for QAS is listed in Exhibit 7.13.7-3, QAS Address List.

DL applications must be held open for 60 days from the control date to allow adequate time to receive interested party comments. ICS will prevent EP cases from closing before the required 60-day hold period unless the closing code is:

An unpostable condition code may appear in the MF status field if a case opening or closing record was not accepted on the transfer from EDS to the Master File. The code identifies the unpostable condition and indicates whether it occurred on opening or closing. Cases can be updated for proposed closing but the unpostable condition must be resolved before the manager approves the closing. Contact the Unpostable Clerk to resolve the condition. See IRM 7.13.8, EDS Unpostables.

The status/action code must be updated each time a case is moved from one location, process, or specialist.

See Exhibit 7.13.7-1, Open Codes and Descriptions for a list of all the available status/action codes for open cases.

The closing status/action code must be entered on the EDS Master record before a case can be closed.

See Exhibit 7.13.7-2, Closing Codes and Descriptions for a list of all the available status/action codes for closed cases.