7.15.3  Tax Exempt Determination System (TEDS) Employee Plans (EP) Business Rules

Manual Transmittal

March 07, 2014

Purpose

(1) This transmits revised IRM 7.15.3, Employee Plans TEDS User Manual, Tax Exempt Determination System (TEDS) Employee Plans (EP) Business Rules.

Background

Tax Exempt Determination System (TEDS) is a Web-based information system that provides an electronic case and inventory management system used across Tax Exempt and Government Entities (TE/GE) Determinations business units.

TEDS was launched as a Pilot in 2003 and from that time on, with a few exceptions, the EP Determination applications have been processed using this electronic system. EP Determination applications are uploaded to TEDS and using on-screen capabilities, specialists review and process cases from start to finish.

Material Changes

(1) This IRM is updated to reflect the chapter title change.

(2) This is a complete rewrite.

Effect on Other Documents

IRM 7.15.3 dated June 07, 2011 is superseded.

Audience

TE/GE (Employee Plans)

Effective Date

(03-07-2014)

Robert Choi
Director, Employee Plans
Tax Exempt Government Entities

7.15.3.1  (06-07-2011)
Overview

  1. Business rules streamline administrative duties, improve the determination process, and facilitate accurate and consistent business policy implementation across the country. TEDS uses the Business Rules Engine (BRE), a managerial software program, which automates operational business decisions. BRE is used by TEDS to program information from the application package into an electronic format. The BRE allows the IRS to more easily write, view, manage, modify or change business processes as needed. It covers the complete life cycle of a case within Tax Exempt and Government Entities (TE/GE), Employee Plans (EP) Determinations.

7.15.3.2  (03-07-2014)
Converting Information into Electronic Format

  1. TEDS business rules results are developed by taking data transcribed from the following:

    • Form 5300, Application for Determination for Employee Benefit Plan

    • Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans

    • Form 5316, Application for Group or Pooled Trust Ruling

    • Form 5310, Application for Determination Upon Termination

    • Form 5310A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business

    • Form 8717, User Fee for Employee Plan Determination Letter Request

  2. The data establishes summary information about the case (e.g., case grade, preliminary user fee validation, open case status, etc.).

7.15.3.3  (03-07-2014)
How Business Rules Work

  1. The transcribed information is translated into "if – then" statements which are uploaded into the BRE.

  2. Cincinnati Service Processing Center (CSPC) manually inputs the data from the application.

  3. The data is converted into binary code or computer language. The Business Rule responses to the binary code or computer language are as follows:

    Answer from Business Rule Result
    Yes 1
    No 0
    True T
    False F
    Correct C

    Note:

    If an item is left blank on the application form or the item is not applicable to that form, there is no entry in the related business rule field.

  4. There are two categories of business rules:

    • Opening business rules

    • Closing business rules

  5. After an application has been scanned and assigned a case number, business rules based on the following factors:

    • Case Classification

    • Case Complexity

    • Case Complexity

    • Case Category

    • Case Grade

    • Disclosability

7.15.3.4  (03-07-2014)
Business Rules Results

  1. Some business rules results record case data, which can be found in the Case Information file on the General Case Information and Receipt and Handling tabs. Other business rules results are stored within the BRE Results folder.

  2. Business rules can be used to:

    • Identify issues that may need development in the determination process.

    • Determine why a case was classified in a particular way.

    • Identify why a case cannot be closed to the manager for review.

  3. Business rules results can be viewed by opening BRE folder, which may contain::

    • Summary Messages

    • BRE Response

    • Closing Rule Results

  4. Accessing the case folder BRE Results allows the user to view the Summary Message screen. Accessing this screen allows the user to view the result for each business rule set.

  5. Business rules results can also be viewed within the case file by accessing the case file BRE Response. This opens a TEDS Package Facts document. The document contains all of the data fields that are transcribed at the establishment of the case.

7.15.3.5  (03-07-2014)
Opening Business Rules

  1. Opening business rules are run to determine auto-closure or merit closure.

    • Auto-closure - the system closes the case based on the business rules.

    • Merit closure - bases on the business rules, a determination specialist will review the case.

  2. Disclosability business rules determine whether the case is disclosable (greater than 25 participants) or non-disclosable (less than or equal to 25 participants. The opening business rules are as follows:

    1. Case classification business rules consider the outcome of case complexity, case completeness, and the user fee opening business rules.

    2. Case completeness business rules determine if the application package is complete for purposes of TEDS opening business rules. It also helps determine the case type, e.g., initial application / submission, amended plan or Affiliated Service.

    3. Case complexity which evaluates the data from the application form.

    4. User fee business rules verify whether the fee paid is correct. The accuracy of the fee is determined based on the amount received and various answers to application questions.

    5. Case category business rules provide information related to a case that may be used for research purposes.

    6. Case grading business rules determine the grade.

  3. To be complete an application package must include:

    • Form 5307, Form 5300, Form 5310, or Form 5316.

      Note:

      Opening business rules determine if the application package is complete. For purposes of establishing an application on TEDS. Determination Specialists determine whether an application is complete in accordance with the Instructions for the application and the standards established by Rev. Proc. 2013-6, 2013-1 I.R.B. 198 (revised annually).

    • Plan document, or adoption agreement or trust document, if applicable.

    • Copy of the Opinion or Advisory Letter, if applicable.

  4. Case complexity rules evaluate the data from the application form.

  5. Case category business rules determine the case type, e.g., initial application/submission, amended plan or Affiliated Service.

  6. User fee business rules verify whether the fee paid is correct. The accuracy of the fee is determined based on the amount received and various answers to application questions.

  7. Case grading business rules determine the grade.

  8. Case classification business rules consider the outcome of case complexity, case completeness and the user fee opening business rules.

  9. Disclosability business rules determine whether the case is disclosable (greater than 25 participants) or non-disclosable (less than or equal to 25 participants)

7.15.3.6  (03-07-2014)
Closing Business Rules

  1. Closing business rules automatically run when a specialist attempts to update a case to the manager in status 74PC for proposed closure or when the manager attempts to update a case to status 57 for closure on EDS." at the end of the first sentence. See IRM 7.15.5 , Case Identification and Status Codes and IRM 7.15.7, Electronic Case Processing.

7.15.3.7  (03-07-2014)
Editing Business Rules

  1. Opening and closing business rules can not be modified. See IRM 7.15.5,, Case Identification and Status Codes, and IRM 7.15.7, Electronic Case processing


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