4.4.26 Reopening/Reclosing/Reinputting Records184.108.40.206 Overview220.127.116.11 Impact of Reopening Records18.104.22.168.1 Exceptions to Reopening a Record22.214.171.124.2 Statute Considerations126.96.36.199.3 Impact on Exam Results188.8.131.52.4 Impact on Cycle Time184.108.40.206.5 Impact on Exam Tables220.127.116.11.5.1 Reopened in the Same Fiscal Year18.104.22.168.5.2 Reopened in a Subsequent Fiscal Year22.214.171.124 Reopening Restrictions126.96.36.199.1 Reopening Examined Closures188.8.131.52.2 Reopening Non-Examined Closures184.108.40.206.3 Approvals Required220.127.116.11 Identifying Reopened Records18.104.22.168 Reopening Records, AIMS Users22.214.171.124.1 Return on AIMS126.96.36.199.2 Return Not on AIMS188.8.131.52 Reopening Records, ERCS Users184.108.40.206.1 Return on AIMS220.127.116.11.2 Return Not on AIMS18.104.22.168 Charge-Out and Labels22.214.171.124 Source Code, Group Procedure126.96.36.199 Reclosing Reopened Cases, Group Procedures188.8.131.52.1 When to Reclose184.108.40.206.2 Form to Use220.127.116.11.3 Reclosing Instructions18.104.22.168.3.1 Form 5344, Items 12 and 15: Assessment Information22.214.171.124.3.2 Form 5344, Item 13: Disposal Code126.96.36.199.3.3 Form 5344, Items 23 and 28: Examiners Time188.8.131.52.3.4 Form 5344, Item 34, Exam Adjustment Amount184.108.40.206.3.5 Form 5344, Item 35, Manual Assessment220.127.116.11.3.6 Form 5344, Item 414, Delinquent Return Amount18.104.22.168.3.7 Form 5344, Item 415, Amended Return Amount22.214.171.124.4 Impact on Tables126.96.36.199.4.1 Returns Closed and Reopened in the Same Fiscal Year188.8.131.52.4.2 Returns Closed and Reopened in Different Fiscal Years184.108.40.206 Reinputting Form 5344 after CC TERUP/QRACN, CCP/Campus Procedures220.127.116.11.1 Reinputting AMCLSE18.104.22.168.1.1 Impact on Exam Results22.214.171.124.2 Reinputting AMCLSF126.96.36.199.2.1 Impact on Exam Results Part 4. Examining ProcessChapter 4. AIMS Procedures and Processing InstructionsSection 26. Reopening/Reclosing/Reinputting Records 4.4.26 Reopening/Reclosing/Reinputting Records Manual Transmittal February 14, 2014 Purpose (1) This transmits revised IRM 4.4.26, AIMS Procedures and Processing Instructions, Reopening/Reclosing/Reinputting Records. Material Changes (1) This IRM was revised as follows: IRM Reference Description of Changes IRM 188.8.131.52.1 Retitled and added information to clarify when a prior closure by Appeals can be reopened. IRM 184.108.40.206.2 Retitled and added information for ERCS users IRM 220.127.116.11.3 Retitled and moved information to IRM 18.104.22.168.1 IRM 22.214.171.124.4 Retitled and moved information to IRM 126.96.36.199 IRM 188.8.131.52.5 Retitled and moved information to IRM 184.108.40.206 IRM 220.127.116.11.6 Moved information to IRM 18.104.22.168.4 IRM 22.214.171.124.7 Moved information to IRM 126.96.36.199.2 IRM 188.8.131.52.8 Moved information to IRM 184.108.40.206 IRM 220.127.116.11.9 Moved information to IRM 18.104.22.168.1 IRM 22.214.171.124.10 Moved information to IRM 126.96.36.199 IRM 188.8.131.52 Retitled and moved information to IRM 184.108.40.206.2 IRM 220.127.116.11 Retitled and added information to identify a reopened record IRM 18.104.22.168 Retitled and included instructions for AIMS users IRM 22.214.171.124 Retitled and included instructions for ERCS users IRM 126.96.36.199 Added section and Included instructions for source code determination IRM 188.8.131.52 Added section, included instructions for reclosing reopened cases and impact on Exam tables IRM 184.108.40.206 Added section and included instructions for IDRS CC TERUP and QRACN Effect on Other DocumentsIRM 4.4.26, dated August 1, 2003 is superseded. AudienceLarge Business and International (LB&I), Small Business and Self Employed (SB/SE), Wage and Investment (W&I), Tax Exempt and Government Entities (TEGE) Employees and Appeals. Effective Date(02-14-2014)Signed by Samuel F. PerdueDirector, Business ReengineeringSmall Business/Self-Employed 220.127.116.11 (02-14-2014) Overview This chapter explains how to reopen and reclose Examination records, also referred to as "cases" or "returns" that have been previously closed and the impact these actions have on the Audit Information Management System (AIMS) tables. This chapter also covers reinputting Form 5344, Examination Closing Record, after Integrated Data Retrieval System (IDRS) Command Code (CC) TERUP or QRACN was input. 18.104.22.168 (02-14-2014) Impact of Reopening Records Examination records that were closed (Status Code 90), but still on AIMS, can be reopened using IDRS CC AMSTUR. Examination records that were closed to Appeals (Status Code 8X), can be returned to Examination from Appeals using IDRS CC AMSTUB. Input of the CC AMSTUR generates a TC 420 to Master File. It does not generate a request for the return. Caution: Generally the AIMS database DOES NOT need to be reopened or returned to Examination to make corrections. Returns in status code 8X or 90 can be corrected using IDRS CC AMAXUE. See IRM 4.4.34, AIMS Procedures and Processing Instructions, Updating/Correcting AIMS Database, for the procedures and a list of the items that can be corrected. 22.214.171.124.1 (02-14-2014) Exceptions to Reopening a Record Examination records in Status Code 90 with a prior Status Code of 8X (Appeals) cannot be reopened. You must wait until the case ages off of AIMS before reopening the return. The case will age off AIMS after the third report extraction cycle after the case was closed by Appeals (approximately 3 months). 126.96.36.199.2 (02-14-2014) Statute Considerations Verify AIMS reflects the correct Assessment Statute Expiration Date (ASED) prior to reopening the case. If the ASED is incorrect, complete Form 5348, AIMS/ERCS Update to update AIMS before the case is reopened. ERCS users may update the statute date on ERCS when re-establishing controls. 188.8.131.52.3 (02-14-2014) Impact on Exam Results When a case is reopened in the same fiscal year, the Exam Results are deleted from the AIMS tables. If the case is reopened in a subsequent fiscal year, the results cannot be deleted; therefore, the results will be netted when the case is reclosed. When a case is returned from Appeals, (even if the case has been transferred to another Appeals Office), the database will automatically revert back to the Exam office that closed the case to allow for the record to be deleted from the ORIGINAL closing office's AIMS tables. If the case is in an Appeals office that is serviced by another campus, the case will automatically start the transfer process to the closing office's campus the weekend after CC AMSTUB was input. Note: It is important to secure an AMDISA before the AMSTUR is input. Attach the AMDISA to the inside of the case folder. This will help to ensure the correct amounts are reinput upon final closure. 184.108.40.206.4 (02-14-2014) Impact on Cycle Time Cycle time is computed from the original Exam Start Cycle until the final closing. Example: The original closing has an Exam Start cycle of 200906. The case was closed in June 2010 making the cycle time one year. The case was reopened 6 months later (December 2010) and reclosed in June 2011. The new cycle time will be 2 years even though the case was in a closed status for 6 months. If the case has aged off the AIMS database, the case cannot be reopened but must be established as if it were a new opening using IDRS CC AM424. 220.127.116.11.5 (02-14-2014) Impact on Exam Tables Reopening a return affects the accomplishment tables of the Closing Primary Business Code (PBC) office. How the tables are affected depends on whether the return was reopened or returned from Appeals in the same fiscal year or subsequent fiscal year. 18.104.22.168.5.1 (02-14-2014) Reopened in the Same Fiscal Year If a case is reopened or returned from Appeals in the same fiscal year (this includes the extended fiscal year which ends after the November report extraction cycle) in which it was closed into either status code 8X or 90, the original closure is totally eliminated (deleted) from the closing PBC's accomplishment tables and the record is added back into the inventory tables. AIMS retains the Examination Time, Cumulative Assessment Amount and Manual Assessment Amount from the original closure. All other accomplishment data is deleted from the AIMS record. Refer to IRM 22.214.171.124.3 for reclosing instructions. 126.96.36.199.5.2 (02-14-2014) Reopened in a Subsequent Fiscal Year If a case is reopened or returned from Appeals after the end of the extended fiscal year of the original closing, the original closure cannot be deleted from the closing PBC's accomplishment tables since the fiscal year tables have been finalized. The record is added back into the inventory tables, and the record is counted again when it is subsequently reclosed. All Prior Fiscal Year (PFY) AIMS information is stored on the history file which the AIMS program uses to NET the figures when the reopened record is subsequently reclosed. Refer to IRM 188.8.131.52.3 for reclosing instructions. 184.108.40.206 (02-14-2014) Reopening Restrictions Restrictions are based on whether the original closing was an examined or non-examined closing. 220.127.116.11.1 (02-14-2014) Reopening Examined Closures AIMS uses the Report Extraction code to determine when a case can be reopened. If the code indicates that the record has been reversed on the AIMS tables (code is not equal to "1" ) then a CC AMSTUR can be reinput if the current date is at least 21 days from the status code 90 date. If the Report Extraction code is a "1" , you will have to wait 40 days from the status code 90 date. For more information on the Report Extraction Code Indicator refer to IRM 4.4.1-1, AIMS Procedures and Processing Instructions, Introduction. A TC 30X input for the prior closure must not be pending or unpostable. Returns reopened in employee group code 1XXX or 2XXX must be reopened in a status code greater than 11. Returns reopened in employee group code 5XXX must be reopened in a status code greater than 08. 18.104.22.168.2 (02-14-2014) Reopening Non-Examined Closures Non-examined closures do not require a waiting period prior to reopening. 22.214.171.124.3 (02-14-2014) Approvals Required The immediate manager and PSP Support Manager, or Campus AIMS Coordinator must approve the reopening request. 126.96.36.199 (02-14-2014) Identifying Reopened Records There are two indicators that reflect if a return has been reopened or backed down from Appeals - the Reopening Indicator and the TC 300 Indicator. The Reopening Indicator will be set when a return is reopened on AIMS. It remains set after the case is reclosed. The table below provides the definitions for the reopening indicators. This information is also contained in IRM 4.1.1, AIMS Procedures and Processing Instructions, Introduction. Indicator Definition 0 Account never reopened 1 Account reopened using CC AMSTUR 2 Case backed down from Appeals using CC AMSTUB 3 Case has been reopened and backed down The TC 300 Indicator is set to a "6" if a return has been reopened or backed down from Appeals. The table below provides the definitions for the TC 300 indicators. This information is also contained in IRM 4.4.1, AIMS Procedures and Processing Instructions, Introduction. Indicator Definition 1 IMF/BMF Assessment 2 IRAF Assessment made against primary SSN 3 IRAF Assessment made against secondary SSN 4 IRAF Assessment made against both SSNs 5 The TC 300 indicator has been reset using CC AMAXU causing the return to appear on the Non-Assessed Closure Listing (NACL) 6 The TC 300 indicator has been reset using CC AMSTUR (a status code 90 case being reopened by Exam) or CC AMSTUB (case returned to Exam from Appeals) 188.8.131.52 (02-14-2014) Reopening Records, AIMS Users The procedures for reopening a return on AIMS depend on whether or not the return is still on AIMS. 184.108.40.206.1 (02-14-2014) Return on AIMS CC AMSTUR is used when closed examination records are in status 90, but still on AIMS. Complete Form 5348, Examination Update, and submit the form according to local procedures. Since input of CC AMSTUR generates a TC 420 to Master File but does not generate a request for the return, you may request the original paper return via CC ESTAB following local procedures. Appeals (status code 8X) uses AMSTUB to update the status code to an Exam Technical Services Status Code of 21 to return cases from Appeals to Examination. 220.127.116.11.2 (02-14-2014) Return Not on AIMS Returns that are no longer on AIMS (no AMDIS available) are not able to be reopened. A request of this type is a "new" opening on AIMS. See IRM 4.4.23, AIMS Procedures and Processing Instructions, Openings. 18.104.22.168 (02-14-2014) Reopening Records, ERCS Users For Examination Return Control System (ERCS) users, controls may be requested using Form 5345-D, Examination Request, ERCS Users. Input of Form 5345-D reopens the ERCS controls only. Procedures for reopening depend on whether the return is still on AIMS. 22.214.171.124.1 (02-14-2014) Return on AIMS If the return still has an AIMS record (AMDIS) the user will use the "Re-establish" option to regain control of the return in the group. This option does not produce an AMSTUR. Therefore the group must complete Form 5348 and fax or e-mail the request to their local AIMS/ERCS analyst to re-open the AIMS controls. Note: The case(s) will be reopened on ERCS with all prior examination hours. 126.96.36.199.2 (02-14-2014) Return Not on AIMS If the return is no longer on AIMS (no AMDIS available) the user must request a second exam using the "Request Tax Return" option. This will generate the AM424 or AMNON command code to establish the return on AIMS. 188.8.131.52 (02-14-2014) Charge-Out and Labels Charge-outs and labels are not generated when a return is reopened on AIMS. Use CC AMLAB if labels are needed. 184.108.40.206 (02-14-2014) Source Code, Group Procedure When reopening a return, you must enter the appropriate source code. The following examples provide guidance for determining the source code. The return is on AIMS (AMDIS available), use the same source code (SC) as the original opening, unless the original closure was non-examined in which case use an appropriate source code. The return is not on AIMS (no AMDIS available), use an appropriate SC. For additional assistance in determining the appropriate source code, see the Source Code Job Aid at: Source Code Job Aid. 220.127.116.11 (02-14-2014) Reclosing Reopened Cases, Group Procedures Reopening in the same fiscal year or subsequent fiscal year has no bearing on how the case should be reclosed. A non-examined closing must be reclosed as examined. Exception: A SC 45 return can be reopened and reclosed as SC 45. 18.104.22.168.1 (02-14-2014) When to Reclose If you reopened the case the same month as the original closure, you can immediately reclose the case. If you reopened the case in a reporting cycle after the cycle of the closure, you must wait until the end of the next reporting cycle before the return can be reclosed. This is to allow the original closure to be removed from the Exam tables. 22.214.171.124.2 (02-14-2014) Form to Use Form 5344 is used to reclose all records. All returns once reopened must be reclosed using Command Code AMCLSE. Form 5344 must be prepared using normal procedures as though the previous closing had not been done with the following exceptions: Note: If using Report Generation Software (RGS), you must manually input the correct amounts. 126.96.36.199.3 (02-14-2014) Reclosing Instructions The cumulative amounts of ALL Form 5344 entries, excluding Items 12, 15 and 35, must be reinput. 188.8.131.52.3.1 (02-14-2014) Form 5344, Items 12 and 15: Assessment Information Because CC AMSTUB/R does not reverse Items 12 and 15 from the original closing, the Exam Cumulative Assessment Amount (shown on page 3 of CC AMDISA) is retained on the AIMS data base when a case is reopened. Therefore, only additional adjustments should be entered in Item 12 and Item 15 of the Form 5344. 184.108.40.206.3.2 (02-14-2014) Form 5344, Item 13: Disposal Code All prior non-examined closings must be reclosed as examined. Use the table below to determine the correct disposal code. If the reclosing results in: then enter the: no change from original closing original disposal code a change from original closing new disposal code based on the new closure abatement in full DC 12 and enter $1 in Item 35 or, process the full abatement using CC AMCLSF, then enter the AMCLSE using a no-change DC. a closure to Appeals, if the tax was assessed and Exam is not abating the assessment, DC 07, 11 or 12 and enter $1 in Item 18. Note: For Audit Reconsideration cases, only use the original disposal code if there is no change to the original determination. 220.127.116.11.3.3 (02-14-2014) Form 5344, Items 23 and 28: Examiner’s Time The total time from both closings must be entered in this field. The computer will net the amount entered in Item 23 and/or Item 28 with the amount that is on the database from the prior closure and the correct amount will be reflected on the Examination tables. Because of the automatic netting, the computer will require the amount entered in Item 28 to be equal or greater than the time entered on the original closing. The computer will also prevent a correction to the time field on the database before the case is closed. 18.104.22.168.3.4 (02-14-2014) Form 5344, Item 34, Exam Adjustment Amount The Exam Adjustment Amount is not retained on the AIMS database. Re-enter the amount from the original closure. 22.214.171.124.3.5 (02-14-2014) Form 5344, Item 35, Manual Assessment The manual assessment amount is retained on the AIMS database. If additional manual assessments were made after the case was reopened, re-enter Item 35 with the total of all TC 30X adjustments. Even though you may be reversing the manual assessment by inputting a TC 301, you still must enter the manual assessment or you end up with negative results rather than zero results. 126.96.36.199.3.6 (02-14-2014) Form 5344, Item 414, Delinquent Return Amount The Delinquent Return Amount is not retained on the AIMS data base. Re-enter the amount from the original closure plus additional amounts if applicable. 188.8.131.52.3.7 (02-14-2014) Form 5344, Item 415, Amended Return Amount The Amended Return Amount is not retained on the AIMS database, therefore, re-enter the amount from the original closure plus additional amounts if applicable. 184.108.40.206.4 (02-14-2014) Impact on Tables How the reclosure affects the tables depends on whether the reopening was in the same fiscal year of the prior closing or for a subsequent fiscal year. 220.127.116.11.4.1 (02-14-2014) Returns Closed and Reopened in the Same Fiscal Year Since the original closure was totally eliminated from the AIMS accomplishment tables, all the results from the reclosure will be sent to the accomplishment tables. 18.104.22.168.4.2 (02-14-2014) Returns Closed and Reopened in Different Fiscal Years How the reclosure affects the tables depends on whether the total examination results of the subsequent closure are more or less than the prior fiscal year's closure. Example with Additional Dollars FY 2012 closure = $10,000 and 10 hours FY 2013 closure = $ 4,000 and 5 hours Total = $14,000 and 15 hours The computer will NET the FY 2013 closure against the FY 2012 history file resulting in the FY 2013 table reflecting only $4,000 and 5 hours since credit was already received for the $10,000 and 10 hours in the FY 2012 tables. Example with Less Dollars FY 2012 closure = $10,000 and 10 hours FY 2013 closure = $– 4,000 and 5 hours Since we cannot reduce the FY 2012 tables after November, and we do not back out prior year results from current year figures, an amount of $0 and 5 hours would appear on the FY 2013 table. 22.214.171.124 (02-14-2014) Reinputting Form 5344 after CC TERUP/QRACN, CCP/Campus Procedures IDRS Command Codes TERUP and QRACN are used to correct AIMS Exam results and prevent the transaction(s) from going to masterfile. Note: IDRS Command Code TERUP allows an employee to delete his/her erroneous entry on the date of input. See IRM 2.4.13, IDRS Terminal Input, Command Code TERUP, for additional information . Note: IDRS Command code QRACN is a quality review command code used to perform an action upon the transaction(s) being quality reviewed. The reviewer can accept, reject or review the specific transaction screen input displayed. See IRM 2.4.5, IDRS Terminal Input, Command Codes QRADD, QRADDO, QRNCH, QRNCHG, RVIEW, QRACN, and QRIND for the IDRS Quality Review System, for additional information . The procedures to follow when reinputting the assessment, depend on whether the original input was a final closure (CC AMCLSE) or partial assessment (AMCLSF). 126.96.36.199.1 (02-14-2014) Reinputting AMCLSE Since the case is in Status Code 8X/90, the following steps are required in order to reinput a long closure (CC AMCLSE) that was deleted by a CC TERUP/QRACN. Reset the TC 300 Indicator to a "5" using CC AMAXU. Reinput the Form 5344 using CC AMCLSU -L. If the AMCLSU is not input the same week that the TC 300 Indicator was set to a "5" , the record will appear on the NACL. See IRM 4.4.27, AIMS Procedures and Processing Instructions, Reports, for information on the (NACL). 188.8.131.52.1.1 (02-14-2014) Impact on Exam Results The computer must remove the amount that was "torn-up" by CC TERUP or QRACN from the Cumulative Assessment Amount field (which is one of the components that make up the Exam Results, page 3 of the AMDISA). This is done automatically when CC AMCLSU-L is input. The computer deletes the amount that appears in the "Last Amt Put in Cum" field (page 3 of the AMDISA) from the Cumulative Assessment Amount field and replaces it with the new amounts reinput. 184.108.40.206.2 (02-14-2014) Reinputting AMCLSF The following steps are required in order to reinput a partial assessment that was deleted by CC TERUP/QRACN . Reinput CC AMCLSF with the amounts necessary to reverse the deleted AMCLSF, IMMEDIATELY FOLLOWED BY CC TERUP OR QRACN. This is necessary to delete the original "torn-up" input from the Cumulative Assessment Amount field. Reinput the corrected CC AMCLSF. 220.127.116.11.2.1 (02-14-2014) Impact on Exam Results The "torn-up" transaction is not automatically deleted from the Cumulative Assessment Amount Field when reinputting a partial assessment. Failure to follow the above instructions will cause duplicate results.