Part 7. Rulings and Agreements

Chapter 15. Processing TEGE Determination Applications

Section 1. Tax Exempt Determination System (TEDS), Employee Plans User Manual Introduction

7.15.1  Tax Exempt Determination System (TEDS), Employee Plans User Manual Introduction

Manual Transmittal

June 07, 2011

Purpose

(1) This transmits new IRM 7.15.1 Tax Exempt Determination System (TEDS), Employee Plans User Manual Introduction.

Material Changes

(1) This IRM provides information and guidance on TEDS to the Employee Plans (EP) function.

Effect on Other Documents

None

Audience

TE/GE (Employee Plans)

Effective Date

(06-07-2011)

Robert Choi
Director, Employee Plans
Tax Exempt and Government Entities

7.15.1.1  (06-07-2011)
Overview

  1. Tax Exempt Determination System (TEDS) is a Web-based information system which provides a single electronic case and inventory management system used across TE/GE Determination units. This user manual contains procedures for employees in the Employee Plans (EP) function for processing the determination application in TEDS.

  2. TEDS functionality includes:

    • Real time access to inventory data.

    • Reduced cycle time through electronic transfer of case files and online review.

    • Increased uniformity and consistency in processing cases.

    • Interfacing with Letter and Information Network User-fee System (LINUS).

    • Interfacing with legacy systems to establish and update master file entities and account information.

    • Providing information to management for work planning and resource management.

  3. Images of original determination applications and associated data along with subsequent related documentation are stored in an electronic Records Repository. TEGE employees such as actuaries have fast access to TEDS electronic imaging allowing them to render quick assistance to determination specialists.

7.15.1.2  (06-07-2011)
Windows Based

  1. TEDS looks and feels like a common Microsoft Outlook application. The system is user friendly, requiring basic computer skills such as locating data files, using tool bars, printing files and file maintenance.

  2. If you are uncomfortable utilizing Windows or applications such as Word, Excel or Adobe Acrobat, there are several avenues to help improve computer skills.

    Windows Tutorial http://serp.enterprise.irs.gov/database/learning.dr/ windows/page1.htm
    Mouse Tutorial http://serp.enterprise.irs.gov/database/learning.dr/ mouse/page1.htm
    Microsoft Office & Adobe The IRS Electronic Learning Management System (ELMS) has several courses: https://elms.web.irs.gov/
    Microsoft Office & Adobe The Treasury e-learning site has an extensive inventory of information technology courses: https://elms.web.irs.gov/
    Reference Books http://www.books24x7.com/login.asp?ic=0

7.15.1.3  (06-07-2011)
System Support

  1. The TE/GE Business Systems Planning Office has program management responsibility for the TEDS.

  2. As part of this responsibility, TE/GE Operational Program Support (TOPS) Analysts provide functional support and informational bulletins to TEDS users.

  3. Information on requesting help with TEDS is located in IRM 7.15.2, Accessing the Tax Exempt Determination System.

7.15.1.4  (06-07-2011)
User Community

  1. TEDS allows a community of users to electronically access the case files within the system.

  2. TEDS users include:

    • Determinations specialists who perform determination activities relating to a specific taxpayer (e.g., reviewing applications and employee plans, making exemption determinations, etc.).

    • Individuals who interact with the taxpayer community (e.g., customer service).

    • Managers of various IRS groups/functions including managers who assign inventory, approve closures, and conduct workload and case reviews.

    • Individuals who supervise IRS managers such as the Directors of each TE/GE Business Operating Unit.

    • Individuals performing clerical work within TEGE such as documenting case transfer, tracking statute expiration dates, inputting status updates, assembling case files, etc..

    • Individuals performing data mining functions which include researching tax-related trends and patterns across numerous data resources.

    • Individuals supporting TEDS users with technical problems (i.e., TOPS, System Administrators, Field Support, Server Support, and the System Help Desk. (These users can refer to the, TEDS System Administrators Manual and the TEDS Installation and Configuration Manual).

7.15.1.5  (06-07-2011)
Case Processing

  1. The EP/EO Determination User Fee Unit at the Cincinnati Submission Processing Center (CSPC) establishes the application forms and related data in TEDS.

  2. The final determination letter and closing documents, with the exception of auto closures, continue to be prepared in EDS and all closing information is still processed to the Master File through its existing process.

  3. LINUS is still the system of record for all user fee payments, refunds, and adjustments. All application packages processed at CSPC are still stamped with either "remit DLN" or "non-remit DLN" , as appropriate. Unpostable reconciliations and updates to the master file continue to be made through EDS. See IRM 3.45.1Processing Employee Plans and Exempt Organizations Determination Applications and User Fees.

  4. Forms 10132, EP Attachment, are inserted between various document types to assist TEDS with document identification and electronic indexing.

  5. Both sides of each sheet of paper are scanned. Blank pages are deleted after scanning. TEDS captures and stores electronic images in TIFF format. Envelopes are not scanned. Non-scannable items are notated on an input sheet which is scanned into TEDS.

  6. Data fields from the application packages and related forms (e.g., Forms 2848, 8717, etc.) are manually transcribed at CSPC. Optical character recognition (OCR) is used to automatically transcribe data fields from Form 5307.

  7. After a case has been scanned, images and data are verified as readable and correct. An application package containing unreadable images is re-scanned.

  8. After scanning and verification, all documents are reassembled and placed in a case file that has a printed label attached to the outside. See Figure 7.15.1-1 for a sample of the EP case label format.

  9. The paper copies of application packages are shipped to the Cincinnati Processing Unit. See IRM 7.11.1Employee Plans Determination Letter Program.

    Figure 7.15.1-1

    Control Date: 03/01/2006 Case Grade: 12
    Name: New Horizons EP Co. Form # 5307
    Case #: EP-2006090-000001 Type of Request: I
    EIN: 12-3456789 Plan #: 002
    Case Classification: Merit  
    Potential Dup. #: EP 2006089  
      BBTS #: 6090
    DLN: 12345678901234 Non-Scan Item: N

    Note:

    The potential Dup. # field will only appear when there is a duplicate case associated with the new determination application. In addition - the EDS case number is hand written on the label.

7.15.1.6  (06-07-2011)
TEDS Determination Process

  1. Significant changes took place throughout the EP Determination case processing system.

  2. The new processes include:

    1. Creation of a unique TEDS case number. The TEDS case number does not replace the EDS case number but is populated in addition to the EDS case number.

    2. Running of Business Rules to determine, the classification, category, grade of case, user fee status and whether the acknowledgement notice is sent to a power of attorney (POA). See IRM 7.15.3,Tax Exempt Determination System (TEDS) Employee Plans (EP) Business Rules.

    3. Case data transmit from TEDS to the Legacy Systems. Status updates to EDS and LINUS case data are performed automatically as well as manually.

    4. Auto-Closure recommendations for Form 5307 cases.

    5. Automatic closure to the TEDS Records Repository for Forms 5310-A.

    6. Quality Review performed in TEDS in place of or in addition to reviewing the paper case file.

    7. Case history record updates to reflect any new information such as case assignments, status updates, transition to manual case processing, etc.

    8. Case images and data electronically stored in the TEDS Records Repository.

    Note:

    To ensure efficient case processing, with managerial consent, some cases established in TEDS will be manually processed through EDS.

  3. TEDS provides a case chronology record for each case. The case chronology is automatically updated by TEDS for some entries such as case assignment. Specialists can make case chronology entries to cases in their inventory and can view all the entries. Other users can only view the entries they themselves make.

  4. Currently TEDS transmits case data to Correspondence Letter System (CORRESPONDEX, CRX). From this data the auto-closure determination letters are generated by CRX.

  5. Future enhancements to TEDS will include the letter generation feature for all types of determination letters.

  6. Final determination letter images will be stored in TEDS and will be available for viewing and/or printing.


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