4.4.34 Updating/Correcting AIMS Data Base220.127.116.11 Overview18.104.22.168.1 Who Can Correct/Update a Record22.214.171.124.2 Restrictions on Correcting a Record (added error messages)126.96.36.199 Impact of Correcting Closed Records188.8.131.52.1 Corrections to Records Closed in a Prior Fiscal Year184.108.40.206 Forms to Use220.127.116.11.1 Managerial Approval18.104.22.168.2 Disposition of Forms22.214.171.124 Items that can be Updated/Corrected/Deleted and Form to Use126.96.36.199.1 Abstract Codes188.8.131.52.2 AIMS Open Control Number184.108.40.206.3 Activity Code220.127.116.11.3.1 Substitute for Return18.104.22.168.3.2 Non-Master File22.214.171.124.3.3 Retention Register126.96.36.199.3.4 Non-Taxable Returns188.8.131.52.4 Claim Amount184.108.40.206.5 Claim Rejection Date220.127.116.11.6 Disposal Codes18.104.22.168.7 Examiners Time22.214.171.124.8 Freeze Codes126.96.36.199.8.1 Use of Codes188.8.131.52.8.2 Skeletal Records184.108.40.206.8.3 Priority Order220.127.116.11.8.4 AMFRZ Suspense File18.104.22.168.8.5 AMFRZ Closed File22.214.171.124.9 IRA Code126.96.36.199.10 Manual Assessment Amount188.8.131.52.11 Master File Information184.108.40.206.12 NAICS Codes220.127.116.11.13 Partial Agreement Indicator18.104.22.168.14 PIA Code22.214.171.124.15 Renumbered DLN Item 5126.96.36.199.16 Source Code188.8.131.52.16.1 Campus TEFRA Function (CTF) Returns184.108.40.206.16.2 Claim for Abatement/Refund220.127.116.11.16.3 Special Rules for Specific Source Codes18.104.22.168.16.3.1 Source Code 014.4.34.4.16.3.2 Source Code 024.4.34.4.16.3.3 Source Code 064.4.34.4.16.3.4 Source Code 254.4.34.4.16.3.5 Source Code 422.214.171.124.17 Status Code126.96.36.199.17.1 Managerial Approval188.8.131.52.18 Statute Date184.108.40.206.19 Statute Consent Code220.127.116.11.20 Survey Reason Code18.104.22.168.21 Verified Assessment Code22.214.171.124.22 X-REF DLN Part 4. Examining ProcessChapter 4. AIMS Procedures and Processing InstructionsSection 34. Updating/Correcting AIMS Data Base 4.4.34 Updating/Correcting AIMS Data Base 126.96.36.199 (03-04-2011) Overview This chapter contains information on updating and correcting open and closed AIMS data bases. Generally, CC AMSTU is used to update open records and CC AMAXUE is used to update closed cases. See IRM 2.8, Audit Information Management System (AIMS), for command code input formats. 188.8.131.52.1 (03-04-2011) Who Can Correct/Update a Record A correction to all Item #’s except Item 60, TC-300-IND, Item 61, Partial Agreement indicator, Item 64, IRA-CD, and Item 90, Verified Assessment Code on a closed record (Status Code 8X or 90) can only be input by an Examination employee at a terminal serviced by the Closing Area/Industry. Corrections to an employee Group Code 5XXX record, must be input using a terminal identified as a campus terminal and the terminal must match the PBC. If input is attempted the error message "EGC 5XXX MUST USE SERVICE CENTER TERMINAL" will be displayed. For area office cases in Status Code 5X, if a Processing Campus Code (PCC) is present, a correction can be input if the terminal matches the PCC campus. Appeals employees who are identified by an Employee Number starting with 66, are blocked from inputting an AMAXUE. 184.108.40.206.2 (03-04-2011) Restrictions on Correcting a Record (added error messages) Skeletal records with a Project Code of 0010 will block any CC AMAXUE input until the record becomes a full record. If input is attempted, the error message "TC424 RECORD" will be displayed. Only Item 27, Activity Code, Item 50, Employee Group Code, Item 58, XREF DLN/AIMS, and Item 400, CIC-IND, can be updated if the record is a skeletal record. If any other item number is input the error message "TC424 RECORD" will be displayed. A CC AMAXUE with an Item number 27 cannot be input at a service center terminal unless the EGC is 5XXX. An AIMS base with a Freeze Code Q, R, S, or T will block any CC AMAXUE input until the freeze is released. A record with a Report Extraction Indicator of 3 cannot be corrected using CC AMAXUE. The Report Extraction Indicator will be updated out of 3 after the next AIMS monthly cycle at which time the correction can be input. Cannot update Item Numbers 17, 18, 22-24, 28, 30 32, 34, 35, 37, 38, 44-47, 65, 401-403, 405-408, 411, 412, 414-416, 418, 422 (See IRM 2.8.6, AIMS Command Code AMAXU, for a complete list and definitions for item numbers) unless the status code is greater than 79. Blocks have been added to AIMS to prevent the correction of a record after the extended fiscal year has ended. If an input is attempted the following error message will be displayed "CLOSED IN PRIOR FISCAL YEAR – CANNOT CORRECT" . A record that has aged off of AIMS cannot be corrected. 220.127.116.11 (03-04-2011) Impact of Correcting Closed Records Inputting a Form 5349, Examination Correction Request, causes the Report Extraction Indicator to be reset. If the record passes all the consistency and validity checks, the corrected record will be extracted during the next report extraction period and the Examination tables for the closing area/industry will be updated with the correct information. The literal "CORR" will appear next to the record on the Examination Tables 10.1b, 15 and 16. 18.104.22.168.1 (03-04-2011) Corrections to Records Closed in a Prior Fiscal Year In order to allow the official systems of records (AIMS) to be as accurate as possible, there is an extension of the correction capability for two additional reporting cycles (October and November) after the close of the fiscal year. During this time period, records that failed the computer validity and consistency checks which appear on the Accomplishment Error Registers and records entered incorrectly can be corrected. AIMS records cannot be corrected after the extended fiscal year has ended. 22.214.171.124 (03-04-2011) Forms to Use Several different forms are used to request updates/corrections. Form 4844, Request for Terminal Action, is used to update Master File information Form 5348, AIMS/ERCS Update (Examination Update), is used to update cases that are open on AIMS Form 5349, Examination Correction Request, is used to correct closed cases on AIMS 126.96.36.199.1 (03-04-2011) Managerial Approval Completed forms are routed to the approving official who reviews the forms to ensure the quality and integrity of the requested action. Requirements for managerial approval are dependent on the field being changed. See Form 5348 , AIMS/ERCS Update (Examination Update)to determine if managerial approval is required. Note: Automated managerial approval for batch cases is permitted for the Unattended Case Processing records. 188.8.131.52.2 (03-04-2011) Disposition of Forms Form 4844, Form 5348 (except for freeze code requests), and Form 5349 are retained by originator or terminal function depending on local option and destroyed when no longer needed in current operations, but no later than 3 months after input. More information can be found in IRM 1.15.23-1, Records Control Schedule for Examination. 184.108.40.206 (03-04-2011) Items that can be Updated/Corrected/Deleted and Form to Use Following is a list of items that can be updated and/or corrected. F1 means that you can update or correct the field on a skeletal record. If you want to Use Form update, correct or delete 5348 5349/Item # 4844 3121Q-Amount 418 abstract code 404 abstract delete indicator 409 activity code 27-F1 aging reason code XF1 410 AIMS Open Control Number XF1 59-F1 amended return amount 415 assessment statute date (ASED) X CIC Indicator 400 claim amount XF1 21 claim amount disallowed (RBP) 22 claim hours (RBP) 23 claim rejection date 20 claim type (RBP) 24 credit CF disallowed amount 46 credit CF type 47 delinquent return amount 414 delinquent return code 37 disposal code 13 employee group code XF1 50-F1 exam adjustment amount 34 exam technique code 30 examiner’s grade 31 examiner’s name 33 examiner’s time 28 fax agreement indicator 416 fraud condition code 38 freeze code XF1 grade of case 32 IRA code 64 IRS Employee Code-AIMS 419 installment agreement code 412 International Examiner’s results % 403 International Examiner’s time % 402 joint investigation indicator 54 manual assessment amount 35 Master File information X NAICS code 19-410/ NOL CF Disallowed Amount 44 NOL Indicator 45 PIA code 413 partial agreement indicator 61 payment code 411 POD code XF1 57 project code XF1 40 related MFT code 406 related return alpha code 408 related tax period 407 related TIN 405 renumbered DLN (see X-REF DLN) secondary business code 49 source code 26 status code XF1 statute consent code X statute date X survey reason code 65 TC 300 indicator 60 TEFRA Code 423 tracking code 417 unagreed amount 18 verified assessment indicator 90 unified-credit-adjustment-amt 422 whipsaw indicator 401 X-Ref DLN/AIMS 58-F1 X-Ref TIN 421 220.127.116.11.1 (03-04-2011) Abstract Codes Abstract codes may be corrected. See instructions for Item 404 on Form 5349, Examination Correction Request. 18.104.22.168.2 (03-04-2011) AIMS Open Control Number Item 59, AIMS Open Control Number is auto populated if a return is requested on the requisition. Centralized Files and Scheduling files returns by the AIMS Open Control Number. If Item 59 is input on a skeletal record, the information input will be overlaid with the AIMS Open Control Number when the full base is received if a return was requested. After the return is assigned to the field, the AIMS Open Control Number is no longer useful and the field can be used to enter other information but it must be numerics. If input, Item 59 must be the only item number on the screen or the following error message will be displayed "ONLY ITEM 59 MAY BE ENTERED" 22.214.171.124.3 (03-04-2011) Activity Code The activity code is based on the return as filed without considering any later changes made by IRS. This is why the activity code must not be updated with the exception of Substitute for Returns, Non-Master File accounts and Retention Register accounts. See IRM Exhibit 4.4.1-1, Reference Guide, for a list of Activity Codes See IRM Exhibit 4.4.1-13, Form Number, Master File and Non-Master File Tax Codes Valid on AIMS, for a list of Activity Codes and the corresponding MFT codes 126.96.36.199.3.1 (03-04-2011) Substitute for Return The activity code used when a substitute for return was established on AIMS/ERCS must be updated before the case leaves the group. If a delinquent return is secured, update the activity code on AIMS/ERCS upon receipt of the return, using the figures on the delinquent return. If a delinquent return is not secured, update the activity code using the amounts on the RAR before the case leaves the group. 188.8.131.52.3.2 (02-08-1999) Non-Master File If the estimated activity code of a Non-Master File requisitioned return is wrong, it must be corrected. 184.108.40.206.3.3 (02-08-1999) Retention Register Generally, returns manually re-established on Master File after being placed on the retention register will receive an incorrect activity code of 000. These are returns that were originally listed on the TC 424 Reject Register with reject codes 1970 or 3471. These cases should be flagged so that the activity code is reviewed when AIMS becomes a full record. 220.127.116.11.3.4 (03-04-2011) Non-Taxable Returns If an assessment has been made through AIMS which is evidenced by an amount in the EXAM-CUM-ASSESSMENT-AMT field, you cannot update to a non-taxable activity code. If input is attempted, the error message "EXAM-CUM-ASSESSMENT-AMT PRESENT - CANNOT UPDATE TO NON-TAXABLE ACT-CD" . 18.104.22.168.4 (05-01-2003) Claim Amount Claim amount is not valid with Source Code 31. CC AMSTU - a "C" must precede the amount claimed. CC AMAXUE - if claim amount is entered, the claim date will be generated if not present on AIMS. If claim amount is deleted the claim date will also be deleted. 22.214.171.124.5 (03-04-2011) Claim Rejection Date The claim rejection date input with CC AMCLSE is sent to Master File. If the claim rejection date is incorrect, only the date on AIMS can be corrected with a new date using CC AMAXUE. The claim rejection date at Master File cannot be corrected. The claim rejection date can be deleted from the AIMS base by inputting a CC AMAXUE, Item 20-D. The claim rejection date at Master File cannot be corrected 126.96.36.199.6 (03-04-2011) Disposal Codes Disposal codes cannot be changed From: To: non-examined examined examined non-examined changed no change if Exam Results are present no change changed if Exam Results are not present 188.8.131.52.7 (03-04-2011) Examiner’s Time If it is identified that the Examiner’s time on a case that was closed is incorrect, but the case is now back in inventory, (AMSTUR/AMSTUB) the Examiner’s time cannot be corrected until the case is reclosed. The case must close with an amount equal to or greater than the original closing. Time cannot be corrected if the reopening was after the end of the extended fiscal year as the time input was extracted for the prior fiscal year tables. If it is determined that all the time on the case is Revenue Base Protection (claim for refund) time and the Examiner's time must be zero, using CC AMAXUE, enter a blank in Item 28 and the correct time in Item 23. 184.108.40.206.8 (03-04-2011) Freeze Codes CC AMFRZS is used to set and CC AMFRZR is used to release freeze codes on the AIMS data base. You must input the specific code you want to set or release. Freeze codes can be used: To ensure association of an open return with newly available information, correspondence, claim or amended returns. To ensure requisitions returned "Record on File, Status 06, Organization Code 1000–2000" are not closed. To ensure all procedural requirements are met for cases in special examination programs or projects. After a freeze code is set, the Form 5348 should be forwarded to the area responsible for maintaining the listing of who requested the freeze code and the reason for the freeze. A listing of freeze code contacts can be found at: http://mysbse.web.irs/exam/mis/contacts/11807.aspx 220.127.116.11.8.1 (03-04-2011) Use of Codes Following describes the use of freeze codes. If you want to: then use freeze code: Prevent case closure A through P, V, W, Y or 1-9 Allow closure to Appeals but prevent final closure H Prevent closing and updating Q, R, S and T (Q will not block if DC is 11) Prevent closing if TC300 is greater than zero. U Prevent closing if TC300 is positive unless DC is agreed. X Prevent transfer (AMSOC DC 30) A-G, I-J, L, Q-S, V or W Prevents a DC 29 Closure Z 18.104.22.168.8.2 (03-04-2011) Skeletal Records When a TC 424 skeletal record contains a freeze code, the code will be printed on the Form 5546, Examination Charge-Out when the Form 5546 is generated which will not happen until a TC 150 posts. 22.214.171.124.8.3 (03-04-2011) Priority Order Only one freeze code can be on a module at a time with exception of the U freeze. The following order of priority: Q, N, P, O, H, M, Z, 1-9. 126.96.36.199.8.4 (03-04-2011) AMFRZ Suspense File The forms will be placed in an open suspense file, in alphabetical order by freeze code. However, if the areas have defined specialized freeze codes which eliminate the need for the AMFRZ Suspense File, the maintenance of the file is not required. Form 5348 (AMFRZR) received from the terminal function will be used to purge and close the open suspense file. Staple the open Form 5348 (AMFRZS) to the Form 5348 (AMFRZR) and place them into a closed file. If the freeze release is approved telephonically, annotate the name of the approving manager and the date the freeze was released on the Form 5348 and place it in the closed file. If the campus input the freeze code, there will be no open Form 5348 (AMFRZS) in the area office suspense file. Note on the Form 5348 (AMFRZR) reason for no open Form 5348 (i.e. campus input freeze code) and place in a closed file. 188.8.131.52.8.5 (03-04-2011) AMFRZ Closed File The closed file will be maintained in alphabetical order or by purge date. The closed file will be purged monthly and Forms 5348 that are 120 days old or older determined from the date of input of AMFRZR will be destroyed in accordance with IRM Exhibit 1.15.23–1, Records Control Schedule for Tax Administration – Examination. 184.108.40.206.9 (03-04-2011) IRA Code The IRA Code can be updated using CC AMAXUE using Item Number 64. If input it must be the only item number on the screen or the following error message will be displayed "ONLY ITEM 64 MAY BE ENTERED" 220.127.116.11.10 (03-04-2011) Manual Assessment Amount The manual assessment amount is not valid with a Disposal Code 01 or 02. It is also not valid with a non-taxable activity code. To delete the manual assessment amount on an open record use CC AMAXUE and enter a blanks in Item 35. To delete the manual assessment amount on a closed record use CC AMAXUE, Item 35-D. 18.104.22.168.11 (03-04-2011) Master File Information Command Code AMREQ is used to correct AIMS when update information has not been received from Master File. This command code generates a TC429. Upon receipt of the TC429, BMF and IMF will send an AIMS update record which will correct the AIMS base. The correction should be reflected within two to three weeks from input date. Following are some examples of why CC AMREQ is used: Master File reflects a TC 912 but the TC 914 has not been reversed on AIMS. Master File reflects that the amended return has been released but AIMS still has the TC 97X freeze. Taxpayer name or address at Master File does not match AIMS record. 22.214.171.124.12 (03-04-2011) NAICS Codes Use CC AMAXUE, Item 19-410/ and the 6 digit code. NAICS codes are valid with MFT codes 01, 02, 04, 06, 10, 11, 14, 16 or 30. 126.96.36.199.13 (03-04-2011) Partial Agreement Indicator The partial agreement indicator can be updated using CC AMAXUE, Item 61. If input, it must be the only item number on the screen or the following error message will be displayed "ONLY ITEM 61 MAY BE ENTERED" 188.8.131.52.14 (05-01-2003) PIA Code Only valid with MFT Codes 02, 05, 06 and 30. Use CC AMAXUE, Item 413-D to delete the PIA code from the data base when a PIA code is not valid with the MFT on the record. 184.108.40.206.15 (03-04-2011) Renumbered DLN Item 58 See X-Ref DLN. 220.127.116.11.16 (03-04-2011) Source Code Generally, unless the source code used on the original opening was in error, the source code should not be changed unless it meets one of the situations stated in this section. Source codes should reflect the reason the return was examined. Therefore if a return was waiting to be examined in one source code, but actually examined for a different reason, the source code should be updated. Example: The return was on AIMS in a DIF Source Code 02; but it was examined as part of the Compliance Initiative Program. The source code should be updated to 62. 18.104.22.168.16.1 (03-04-2011) Campus TEFRA Function (CTF) Returns All Area Office Source Codes are Valid with EGC 54XX or 58XX cases. It is not necessary to change the source code when sending cases to the ESU. 22.214.171.124.16.2 (03-04-2011) Claim for Abatement/Refund If the return was previously examined and the taxpayer files a claim, do not change the source code unless the prior examination has aged off of the data base and a new AIMS opening (AM424) is input. 126.96.36.199.16.3 (03-04-2011) Special Rules for Specific Source Codes Some source codes have special rules. 188.8.131.52.16.3.1 (03-04-2011) Source Code 01 If a Source Code 01 return is being assigned to a group because the group is controlling a prior or subsequent year, the case must be updated from 01 to a "related" source code if the return will be examined as part of the package audit (no later than when the case is updated to Status Code 12). Example: A Source Code 02 tax period 200812 is in the area office. Tax period 200912 is opened (created on AIMS) with a Source Code 01, (automatic opening) and is sent to the group controlling 200812. Tax period 200912 should be updated to related Source Code 10 (multiple year return related to DIF) as soon as possible. At the latest, this would be when the case is updated to Status Code 12. If the Source Code 01 return is not examined as part of the package audit or is surveyed, the source code does not need to be updated out of Source Code 01. If the Source Code 01 was updated prior to a determination, it can be updated back to 01 if the opening Source Code is 01. Returns related to Source Code 01 are considered as Non-DIF related. AIMS will not allow you to update out of source code 01 until the status code is greater than 07. AIMS will allow you to update back to a Source Code 01 if the opening source code displayed on the AMDISA is 01. 184.108.40.206.16.3.2 (03-04-2011) Source Code 02 If a Source Code 02 return is being assigned to a group because the group is controlling a prior or subsequent year, the case must be updated from 02 to a "related" source code if the return will be examined as part of the package audit (no later than when the case is updated to Status Code 12). Example: A Source Code 62 tax period 200812 is in the area office. Tax period 200912 is opened (created on AIMS) as part of a DIF order and is sent to the group controlling 200812. Tax period 200912 should be updated to related Source Code 40 (multiple year non-DIF related) as soon as possible. At the latest, this would be when the case is updated to Status Code 12. If the Source Code 02 return is not examined as part of the package audit or is surveyed, the source code does not need to be updated out of Source Code 02. AIMS will allow you to update back to a Source Code 02 if the opening source code displayed on the AMDISA is 02. 220.127.116.11.16.3.3 (03-04-2011) Source Code 06 Update the source code of any return that has been identified for more than one campus Exam Correspondence Program to 06. 18.104.22.168.16.3.4 (03-04-2011) Source Code 25 AIMS will allow you to update back to a Source Code 25 if the opening source code displayed on the AMDISA is 25. 22.214.171.124.16.3.5 (03-04-2011) Source Code 45 When the return was requested for reference or information, managerial approval is needed before an examination of the return can be initiated, and the Source Code 45 must be changed to the appropriate source code. A source code cannot be changed to 45. If DC 45 is present, source code cannot be updated out of 45. If input attempted, the error message "SOURCE-CD/DISP-CD INCONSISTENT" will be displayed. 126.96.36.199.17 (03-04-2011) Status Code ERCS and RGS automatically generate status code updates when a case is moved from one status code to another. The status code date is updated automatically with the input date. For Status Code 10, 12, and 22 through 24, a specific date may be entered. For Status Code 12 the date entered cannot be more than 31 days before or after the entry date and for Status 10 or 22 through 24, the date entered cannot be more than 20 days before or after the entry date. Status Code 24 is automatically generated when CC AMSTUS is input, the date depends on whether or not the date is entered or computer generated. 188.8.131.52.17.1 (03-04-2011) Managerial Approval Managerial approval which includes automated managerial approval for batch cases through systems like CEAS, are required for all status code updates with the following exceptions: Updated from 10 to 12 Updates done through unattended automated systems such as CEAS. 184.108.40.206.18 (03-04-2011) Statute Date When an all numeric statute date is input (no alpha code or 872), that does not match the current AIMS statute date, an update to the ASED is sent to Master File. Sometimes a TC 560 is generated, other times the ASED field is updated without a TC 560. If the TC 150 is a SFR, a TC 560 will post but will not update the ASED field. If an alpha code is applicable, it can be entered by itself in the MM space on the input screen. This will update the DD portion of the statute date. 220.127.116.11.19 (05-01-2003) Statute Consent Code The Statute Consent Code should be input if a restricted statute extension has been secured. An "R" sets the restricted consent indicator. It will be displayed on AMDIS immediately after the ASED date. The input of a "U" unsets the restricted consent indicator. The ASED must be input along with the consent code when setting or removing the code. The consent code is valid with all alpha codes except "EE" 18.104.22.168.20 (03-04-2011) Survey Reason Code The Survey Reason Code can be removed on an open record by inputting CC AMAXUE with a blank in Item 65. 22.214.171.124.21 (03-04-2011) Verified Assessment Code The Verified Assessment Code can be input using CC AMAXUE, Item 90. If input it must be the only item number on the screen or the following error message will be displayed "ONLY ITEM 90 MAY BE ENTERED." 126.96.36.199.22 (03-04-2011) X-REF DLN The X-REF DLN can be added to a record (including skeletal records) using CC AMAXUE, Item 58. If input, it must be the only item number on the screen or the following error message will be displayed "ONLY ITEM 58 MAY BE ENTERED"