3.24.176 Audit Selection System

Manual Transmittal

January 30, 2018

Purpose

(1) This transmits revised IRM 3.24.176, ISRP System, Audit Selection System.

Material Changes

(1) IRM 3.24.176.1 added new section titled "Program Scope and Objectives" to comply with new Internal Controls.

(2) IRM 3.24.176.1.1 added new section titled "Background" to comply with new Internal Controls.

(3) IRM 3.24.176.1.2 added new section titled "Authority" to comply with new Internal Controls.

(4) IRM 3.24.176.1.3 added new section titled "Responsibilities" to comply with new Internal Controls.

(5) IRM 3.24.176.1.4 added new section titled "Program Management and Review" to comply with new Internal Controls.

(6) IRM 3.24.176.1.5 added new section titled "Program Controls" to comply with new Internal Controls.

(7) IRM 3.24.176.1.6 added new section titled "Terms, Definitions/Acronyms" to comply with new Internal Controls.

(8) IRM 3.24.176.1.7 added new section titled "Related Resources" to comply with new Internal Controls.

(9) Updated tables to make exhibits 508 compliant.

(10) IRM 3.24,176.2.2(1), Forms / Program Numbers / Format Codes, removed references to Form 8199 and Form 8757.

(11) Deleted Form 8199, Amended Return Order and Form 8757, U.S. Real Estate Mortgage Investment Conduit Tax Return Order from Exhibit 3.24.176-1, Block Header Data Entry for: Form 5337, Fiduciary Returns Order, Form 6162, Partnership Returns Order, Form 6356, Individual DIF Returns Order, and Form 6897, Corporation Returns Order.

(12) Deleted Exhibit 3.24.176-5, Section 01 Form 8199, Amended Return Order. Form 8199 was obsoleted on May 12, 2014. Renumbered subsequent exhibits.

(13) Deleted Exhibit 3.24.176-6, Section 02 Form 8199, Amended Return Order. Form 8199 was obsoleted on May 12, 2014. Renumbered subsequent exhibits.

(14) Deleted Exhibit 3.24.176-7, Form 8199, Amended Return Order. Form 8199 was obsoleted on May 12, 2014. Renumbered subsequent exhibits.

(15) Deleted Exhibit 3.24.176-15, Section 01 Form 8757, U.S. Real Estate Mortgage Investment Conduit Tax Return Order. Form 8757 was obsoleted on May 12, 2014. Renumbered subsequent exhibits.

(16) Deleted Exhibit 3.24.176-16, Section 01 Form 8757, U.S. Real Estate Mortgage Investment Conduit Return Order. Form 8757 was obsoleted on May 12, 2014. Renumbered subsequent exhibits.

(17) Editorial changes were made throughout this IRM.

Effect on Other Documents

IRM 3.24.176 dated October 13, 2015 (effective January 01, 2016) is superseded.

Audience

ISRP Data Transcribers in Wage and Investment Division

Effective Date

(01-30-2018)


Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: The Integrated Submission and Remittance Processing System (ISRP) is used to process forms and remittances. Data is entered, processed and fed to other IRS systems. This chapter provided instructions for the Original Entry, Key Verification, and Block Edit of tax returns and related data through ISRP.

    1. This section provides instructions for entering and verifying Individual, Partnership and Corporation Discriminant Index Function (DIF) Returns Orders containing requests for returns from the current and prior DIF Inventories, the Unreported Income Projects (UIP) Inventory and the Self-Employment Tax (SET) Inventory, using the Integrated Submission and Remittance Processing (ISRP) system. This chapter also provides for entering and verifying Amended Return Inventory Orders.

  2. Audience: The primary users of this IRM are Submission Processing employees; mainly data transcribers, clerks and managers

  3. Policy Owner: The Director of Submission Processing

  4. Program Owner: Paper Processing Branch, Mail Management / Data Conversion Section (an organization within Submission Processing)

  5. Primary Stakeholder: Management officials who rely on accurate data gathered by the ISRP Program

Background

  1. The Integrated Submission and Remittance Processing (ISRP) System transcribes and formats data from paper returns/documents/vouchers for input into the Generalized Mainline Framework (GMF) and other systems by key entry operators. It also captures check images for archiving. Transaction Management System (TMS) is a Commercial-Off-the-Shelf (COTS) product that is an integral part of ISRP.

Authority

  1. The following provides authority for the instructions in this IRM to be performed in support of completing compliance functions to make credits or refunds of any internal revenue tax, processing of non-revenue forms, and administrative support forms.

    1. Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC).

    2. All Policy Statements for Submission Processing are contained in IRM 1.2.12, Servicewide Policies and Authorities, Policy Statements for Submission Processing Activities:

    • Code sections which provide the IRS with the authority to issue levies.

    • Congressional Acts which outline additional authorities and responsibilities like the Travel and Transportation Reform Act of 1998 or the Tax Reform Act of 1986.

    • Policy Statements that provide authority for the work being done.

Responsibilities

  1. The Operations manager is responsible for securing, assigning and providing training for the staff needed to perform the task required throughout this instruction.

  2. The Planning and Analysis Staff is responsible for providing feedback and support to local management to achieve and effectively monitor scheduled goals.

  3. The team manager is responsible for and assigning, monitoring and controlling the work flow to accomplish timely completion of the tasks required throughout this IRM.

  4. The employee is responsible for applying the instruction present to the assigned task on the ISRP system to accurately convert paper data to electronic data record for proper posting for use by the Service.

Program Management and Review

  1. Program Reports: Below are a list of reports to use to show receipts, production and inventory for the paper return to electronic data conversion process. These reports will be utilized to report and monitor daily and weekly status of the program to completeness.

    • PCC 6040, SC WP&C Performance and Cost Report

    • PCC 6240, SC WP&C Program Analysis Report

  2. Program Effectiveness: Goals will be measured utilizing standard managerial reports by documents processed per hour and completion of each function compared to the established schedule for completion each week. Each functionality is expected to retain or exceed schedule prior to the program completion date stated in IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates. Quality reviews are expected to be conducted and monitored by local management and corrective action taken to ensure quality products are released to the next function.

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager

Program Controls

  1. The reports for the Control Data Analysis, Project PCD, are on the Control-D/Web Access server, which has a login program control.

Terms, Definitions/Acronyms

  1. The following terms or acronyms are utilized throughout this IRM:

    Term Definition
    BOD Business Operating Division
    Discriminant Index File (DIF) Discriminant Index Function (DIF) is a methodology for developing workload selection systems.

Related Resources

  1. IRM 3.24.37, ISRP System - General Instructions.

  2. IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates.

Introduction

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

Source Documents

  1. The block header information will be entered from the top of three (3) Form 5337, Fiduciary Returns Order , Form 6162, Partnership Returns Order, Form 6356, Individual DIF Returns Order, or Form 6897, Corporation Returns Order. Each form will constitute the entire block with all "documents" shown on that form.

Forms/Program Numbers/Format Codes

  1. Data transcribers should determine the appropriate program number and format codes from the table below using the forms.


    FORM
    PROGRAM NUMBER FORMAT CODE
    Form 5337 35708 349
    Form 6162 35709 349
    Form 6897 35713 349
    Form 6356 35712 168

General Instructions

  1. If any entries (including zero(s)) are made in Section 02, enter the section. If no entries are made in Section 02, (i.e., section is blank) do not enter this section.

  2. For all "Volume" fields, do not enter leading zeros. If all zeros, enter one zero (0) only.

MUST ENTER Fields

  1. Some fields require entry of data. These fields are referred to as MUST ENTER fields. They are indicated in the Transcription Operation Sheets by the presence of stars (★★★★★★).

Integrated Submission and Remittance Processing (ISRP) Transcription Operation Sheets

  1. The following exhibits represent specific data entry procedures.

Block Header Data Entry for: Form 5337, Fiduciary Returns Order, Form 6162, Partnership Returns Order, Form 6356, Individual DIF Returns Order, and Form 6897, Corporation Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) SC Block Control ABC <ENTER> The screen displays the Alpha Numeric Block Control (ABC) that was entered in the Entry Operator (EOP) Dialog window. It cannot be changed.
(2) Service Center Code FLC/DO <ENTER> Service center code "00" will always be generated. No entry is required.
(3) Format Code FCODE <ENTER> Enter the format code as follows:
  • "349" for Form 5337, Form 6162, and Form 6897

  • "168" for Form 6356

Section 01 Form 6356, Individual DIF Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Press <ENTER> if the correct number appears automatically; otherwise, enter the edited two digit number from Item 8.
(3) DIF File Year YR <ENTER> ★★★★★★ Enter the four digits from Item 9.
(4) MCC Process Cycle CY <ENTER> ★★★★★★ Enter the six digits from Item 10.
(5) Order Type TYPE <ENTER> Enter the edited characters from the space following Item 11, above "SC" .
(6) Service Center SC <ENTER> Enter the characters from "SC" Item 11.
(7) Area Office AO <ENTER> Enter the digits from "AO" Item 11.
(8) Post of Duty POD <ENTER> Enter the digits from "POD" Item 11.
(9) Business Operating Division (BOD) Code BOD <ENTER> ★★★★★★ Enter the BOD Code (LM, WI, or SB) from Item 11.
This is a MUST ENTER field unless Element 5 "TYPE" is "SE" .
(10) BOD Client Code CLIENT <ENTER> Enter the client code from Item 11.
(11) Indicator - 13 I13 <ENTER> Enter the alpha character from Item 13.
(12) Volume - 14 VOL14 <ENTER> Enter the volume from Item 14.
(13) Indicator - 15 I15 <ENTER> Enter the alpha character from Item 15.
(14) Volume - 16 VOL16 <ENTER> Enter the volume from Item 16.
(15) Indicator - 17 I17 <ENTER> Enter the alpha character from Item 17.
(16) Volume - 18 VOL18 <ENTER> Enter the volume from Item 18.
(17) Indicator - 19 I19 <ENTER> Enter the alpha character from Item 19.
(18) Volume - 20 VOL20 <ENTER> Enter the volume from Item 20.
(19) Indicator - 21 I21 <ENTER> Enter the alpha character from Item 21.
(20) Volume - 22 VOL22 <ENTER> Enter the volume from Item 22.
(21) Indicator - 23 I23 <ENTER> Enter the alpha character for Item 23.
(22) Volume - 24 VOL24 <ENTER> Enter the volume from Item 23.
(23) POD Exclusion 1 PODEX1 <ENTER> Enter the 1st POD from Item 25.
(24) POD Exclusion 2 PODEX2 <ENTER> Enter the 2nd POD from Item 25.
(25) POD Exclusion 3 PODEX3 <ENTER> Enter the 3rd POD from Item 25.
(26) POD Exclusion 4 PODEX4 <ENTER> Enter the 4th POD from Item 25.
(27) POD Exclusion 5 PODEX5 <ENTER> Enter the 5th POD from Item 25.
(28) POD Exclusion 6 PODEX6 <ENTER> Enter the 6th POD from Item 25.
(29) POD Exclusion 7 PODEX7 <ENTER> Enter the 7th POD from Item 25.
(30) POD Exclusion 8 PODEX8 <ENTER> Enter the 8th POD from Item 25.
(31) POD Exclusion 9 PODEX9 <ENTER> Enter the 9th POD from Item 25.
(32) POD Exclusion 10 PODE10 <ENTER> Enter the 10th POD from Item 25.
(33) POD Exclusion 11 PODE11 <ENTER> Enter the 11th POD from Item 25.
(34) Override Code OV <ENTER> Enter the digit from Item 26.

Form 6356, Individual DIF Returns Order

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Section 02 Form 6356, Individual DIF Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT: <ENTER> Press <ENTER> if already present on the screen; otherwise enter "02" always.
(2) Indicator - 31 I31 <ENTER> Enter the alpha character from Item 31.
(3) Volume - 32 VOL32 <ENTER> Enter the volume from Item 32.
(4) Indicator - 33 I33 <ENTER> Enter the alpha character from Item 33.
(5) Volume - 34 VOL34 <ENTER> Enter the volume from Item 34.
(6) Indicator - 35 I35 <ENTER> Enter the alpha character from Item 35.
(7) Volume - 36 VOL36 <ENTER> Enter the volume from Item 36.
(8) Indicator - 37 I37 <ENTER> Enter the alpha character from Item 37.
(9) Volume - 38 VOL38 <ENTER> Enter the volume from Item 38.
(10) Indicator 39 I39 <ENTER> Enter the alpha character from Item 39.
(11) Volume - 40 VOL40 <ENTER> Enter the volume from Item 40.
(12) Indicator 41 I41 <ENTER> Enter the alpha character from Item 41.
(13) Volume - 42 I42 <ENTER> Enter the volume from Item 42.
(14) POD Exclusion 1 PODEX1 <ENTER> Enter the 1st POD from Item 39.
(15) POD Exclusion 2 PODEX2 <ENTER> Enter the 2nd POD from Item 39.
(16) POD Exclusion 3 PODEX3 <ENTER> Enter the 3rd POD from Item 39.
(17) POD Exclusion 4 PODEX4 <ENTER> Enter the 4th POD from Item 39.
(18) POD Exclusion 5 PODEX5 <ENTER> Enter the 5th POD from Item 39.
(19) POD Exclusion 6 PODEX6 <ENTER> Enter the 6th POD from Item 39.
(20) POD Exclusion 7 PODEX7 <ENTER> Enter the 7th POD from Item 39.
(21) POD Exclusion 8 PODEX8 <ENTER> Enter the 8th POD from Item 39.
(22) POD Exclusion 9 PODEX9 <ENTER> Enter the 9th POD from Item 39.
(23) POD Exclusion 10 PODE10 <ENTER> Enter the 10th POD from Item 39.
(24) POD Exclusion 11 PODE11 <ENTER> Enter the 11th POD from Item 39.

Section 01 Form 6162, Partnership Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Press <ENTER> if the correct number appears automatically; otherwise enter the two-digit number from Ser. No. column.
(3) DIF File Year YR <ENTER> ★★★★★★ Enter the four digits from Item 8.
(4) MCC Process Cycle CY <ENTER> ★★★★★★ Enter the six digits from Item 9.
(5) Service Center SC <ENTER> Enter the characters from "SC" , Item 10.
(6) Area Office AO <ENTER> Enter the digits from "AO" , Item 10.
(7) Post of Duty POD <ENTER> Enter the digits from "POD" , Item 10.
(8) BOD Code BOD <ENTER> ★★★★★★ Enter the BOD Code (LM, WI, or SB) from Item 10.
(9) BOD Client Code CLIENT <ENTER> Enter the client code from Item 10.
(10) MFT MFT <ENTER> Enter the digits from Item 11.

Note:

This element is only entered on the first document.

(11) Indicator - 1 12I <ENTER> Enter the digit from Item 12.
(12) Volume - 1 13V <ENTER> Enter the volume from Item 13.
(13) Indicator - 2 14I <ENTER> Enter the digit from Item 14.
(14) Volume - 2 15V <ENTER> Enter the volume from Item 15.
(15) Indicator - 3 16I <ENTER> Enter the digit from Item 16.
(16) Volume - 3 17V <ENTER> Enter the volume from Item 17.
(17) POD Exclusion 1 PODEX1 <ENTER> Enter the 1st POD from Item 19.
(a) Form 5337 - End the section.
(18) POD Exclusion 2 PODEX2 <ENTER> Enter the 2nd POD from Item 19.
(19) POD Exclusion 3 PODEX3 <ENTER> Enter the 3rd POD from Item 19.
(20) POD Exclusion 4 PODEX4 <ENTER> Enter the 4th POD from Item 19.
(21) POD Exclusion 5 PODEX5 <ENTER> Enter the 5th POD from Item 19.
(22) POD Exclusion 6 PODEX6 <ENTER> Enter the 6th POD from Item 19.
(23) POD Exclusion 7 PODEX7 <ENTER> Enter the 7th POD from Item 19.
(24) POD Exclusion 8 PODEX8 <ENTER> Enter the 8th POD from Item 19.

Form 6162, Partnership Returns Order

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Section 01 Form 5337, Fiduciary Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Press <ENTER> if the correct number appears automatically; otherwise enter the two-digit number from Ser. No. column.
(3) DIF File Year YR <ENTER> ★★★★★★ Enter the four digits from Item 8.
(4) MCC Process Cycle CY <ENTER> ★★★★★★ Enter the six digits from Item 9.
(5) Service Center SC <ENTER> Enter the characters from "SC" , Item 10.
(6) Area Office AO <ENTER> Enter the digits from "AO" , Item 10.
(7) Post of Duty POD <ENTER> Enter the digits from "POD" , Item 10.
(8) BOD Code BOD <ENTER> ★★★★★★ Enter the BOD Code (LM, WI, or SB) from Item 10.
(9) BOD Client Code CLIENT <ENTER> Enter the client code from Item 10.
(10) MFT MFT <ENTER> Enter the digits from Item 11.

Note:

This element is only entered on the first document.

(11) Indicator - 1 13I <ENTER> Enter the digit from Item 13.
(12) Volume - 1 14V <ENTER> Enter the volume from Item 14.
(13) Indicator - 2 15I <ENTER> Enter the digit from Item 15.
(14) Volume - 2 16V <ENTER> Enter the volume from Item 16.
(15) Indicator - 3 17I <ENTER> Enter the digit from Item 17.
(16) Volume - 3 18V <ENTER> Enter the volume from Item 18.
(17) Indicator - 4 19I <ENTER> Enter the digit from Item 19.
(18) Volume - 4 20V <ENTER> Enter the volume from Item 20.

Form 5337, Fiduciary Returns Order

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Section 01 Form 6897, Corporation Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <ENTER> Press <ENTER> if the correct number appears automatically; otherwise enter the two digit number from Ser. No. column.
(3) File Year YR <ENTER> ★★★★★★ Enter the digits from Item 8.
(4) MCC Process Cycle CY <ENTER> ★★★★★★ Enter the digits from Item 9.
(5) Service Center SC <ENTER> Enter the characters from "SC" , Item 10.
(6) Area Office AO <ENTER> Enter the digits from "AO" , Item 10.
(7) Post of Duty POD <ENTER> Enter digits from "POD" , Item 10.
(8) BOD Code BOD <ENTER> ★★★★★★ Enter the BOD Code (LM, WI, or SB) from Item 10.
(9) BOD Client Code CLIENT <ENTER> Enter the client code from Item 10.
(10) MFT MFT <ENTER> Enter the digits from Item 11.

Note:

This element is only entered in the first document.

(11) Indicator 1 - Formula 1 12I <ENTER> Enter the digits from Item 12.
(12) Volume 1 13V <ENTER> Enter the volume from Item 13.
(13) Indicator 2 - Formula 2 14I <ENTER> Enter the digit from Item 14.
(14) Volume 2 15V <ENTER> Enter the volume from Item 15.
(15) Indicator 3 - Formula 3 16I <ENTER> Enter the digit from Item 16.
(16) Volume 3 17V <ENTER> Enter the volume from Item 17.
(17) Indicator 4 - Formula 4 18I <ENTER> Enter the digit from Item 18.
(18) Volume 4 19V <ENTER> Enter the volume from Item 19.
(19) Indicator 5 - Formula 5 20I <ENTER> Enter the digit from Item 20.
(20) Volume 5 21V <ENTER> Enter the volume from Item 21.
(21) POD Exclusion 1 PODEX1 <ENTER> Enter the 1st POD from Item 28.
(22) POD Exclusion 2 PODEX2 <ENTER> Enter the 2nd POD from Item 28.
(23) POD Exclusion 3 PODEX3 <ENTER> Enter the 3rd POD from Item 28.
(24) POD Exclusion 4 PODEX4 <ENTER> Enter the 4th POD from Item 28.
(25) POD Exclusion 5 PODEX5 <ENTER> Enter the 5th POD from Item 28.
(26) POD Exclusion 6 PODEX6 <ENTER> Enter the 6th POD from Item 28.
(27) POD Exclusion 7 PODEX7 <ENTER> Enter the 7th POD from Item 28.
(28) POD Exclusion 8 PODEX8 <ENTER> Enter the 8th POD from Item 28.

Section 02 Form 6897, Corporation Returns Order

Elem No Data Element Name Prompt Fld Term Instructions
(1) Section Number SECT: <ENTER> Press <ENTER> if already present on the screen; otherwise enter "02" always.
(2) 1120S no B/S Indicator 31I <ENTER> Enter the digit from Miscellaneous Corporation Returns Order, Item 31.
(3) 1120S no B/S Volume 32V <ENTER> Enter the volume from Item 32.
(4) 1120S Assets <$200M Indicator 33I <ENTER> Enter the digit from Item 33.
(5) 1120S Assets <$200M Volume 34V <ENTER> Enter the volume from Item 34.
(6) 1120S Indicator <$200M 35I <ENTER> Enter the digit from Item 35.
(7) 1120S Volume <$200M 36V <ENTER> Enter the volume from Item 36.
(8) 1120L Indicator 39I <ENTER> Enter the digit from Item 39.
(9) 1120L Volume 40V <ENTER> Enter the Volume from Item 40.
(10) 1120 Inactive Indicator 41I <ENTER> Enter the digit from Item 41.
(11) 1120 Inactive Volume 42V <ENTER> Enter the volume from Item 42.
(12) 1120PHC Indicator 43I <ENTER> Enter the digit from Item 43.
(13) 1120PHC Volume 44V <ENTER> Enter the volume from Item 44.
(14) 1120PC Indicator 45I <ENTER> Enter the digit from Item 45.
(15) 1120PC Indicator 46V <ENTER> Enter the volume from Item 46.
(16) 1120H Indicator 49I <ENTER> Enter the digit from Item 49.
(17) 1120H Volume 50V <ENTER> Enter the volume from Item 50.
(18) 1120DF/SF Indicator 51I <ENTER> Enter the digit from Item 51.
(19) 1120DF/SF Volume 52V <ENTER> Enter the volume from Item 52.
(20) 1120RIC Indicator 53I <ENTER> Enter the digit from Item 53.
(21) 1120RIC Volume 54V <ENTER> Enter the volume from Item 54.
(22) 1120REIT Indicator 55I <ENTER> Enter the digit from Item 55.
(23) 1120REIT Volume 56V <ENTER> Enter the volume from Item 56.
(24) 1120ND Indicator 57I <ENTER> Enter the digit from Item 57.
(25) 1120ND Volume 58V <ENTER> Enter the volume from Item 58.

Form 6897, Corporation Returns Order

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