This Internal Revenue Manual (IRM) contains information on AIMS:

IRM 2.8.1, Audit Information Management System (AIMS) - Introduction to AIMS REALTIME Processing. This IRM provides instructions for the use of the AIMS display terminals in the campuses or area offices.

Users of AIMS have the responsibilities of maintaining the data fields, on the AIMS record, by updating field values and correctly reporting closing actions taken on the taxpayers account, as determined during the audit process.

Users of AIMS have the responsibility of maintaining the final closing actions to complete the adjustment to be sent to MF and to ensure AIMS and examination results are correct.

AIMS program reports are available to Headquarters Office and field personnel.

AIMS program reports provide timely and reliable information to monitor the current year’s examination plan, as well as specific programs reports and statistical tables.

AIMS is accessed through Integrated Data Retrieval System (IDRS).

IDRS access is managed using Business Entitlement Access Request System (BEARS) request.

A background investigation and managerial approval is required for IDRS access.

A Personal Identity Verification (PIV) Smart Card and Personal Identification Number (PIN) are used to sign on to IDRS.

The following is a list of terms and definitions used throughout this IRM Section:

AIMS Processing Codes and information:

The following chart provides additional information for the reports created, the computing center the report is generated from, the frequency each report is generated, and useful IRM references and Exhibits.

The following references contain the primary sources of guidance for updating and correcting the AIMS database.

Form 5345-B, Examination Request Non-ERCS Users, and Form 5345-D, Examination Request ERCS (Examination Returns Control System) Users, are the most commonly used forms to request examination controls on AIMS and ERCS.

The forms listed in paragraph one must be maintained according to Document 12990, Records Control Schedule (49), Examination Record/Control Cards. This document provides instructions for maintaining the control cards.

AIMS and ERCS users should utilize the weekly TC 424 Reject Register and TC 424 Overage Report to assist in the identification and resolution of skeletal records that have not fully established or have dropped from AIMS. See IRM 4.4.36.11.11, TC 424 Reject Register. Additionally, ERCS users should utilize the "Check AIMS Results" menu option located on the ERCS Examination Main Menu, to promptly review and resolve any rejected requisitions for their AIMS Assignee Code (AAC). See IRM 4.7.5.4.1(8), Administrative Support Staff.

ERCS users must reconcile the ERCS Overage Requisition Report, at least monthly, to verify that ERCS-AIMS upload and reject problems are resolved. See IRM 4.7.5.4.1(8), Administrative Support Staff.

IVLs are generated by the AIMS/ERCS Analyst or AIMS Coordinator using the SSIVL Program. The AIMS/ERCS Analyst or AIMS Coordinator should refer to the SSIVL chapter in the ERCS Technical Reference Manual. See Exam Systems Knowledge Base.

To request an IVL for cases in PBC 19X or 29X or cases in a field PBC but physically located at a campus, for example Employee Group Code (EGC) 1000 or 2000, contact the Campus AIMS Coordinator. A listing of Campus AIMS Coordinators can be found at: Exam Systems Knowledge Base.

To request an IVL for field cases, contact your local Small Business/Self-Employed (SB/SE) Area AIMS/ERCS Analyst. A listing of Area AIMS/ERCS Analysts can be found at: Exam Systems Knowledge Base.

The 100 percent validation package distributed to Examination groups/functions should include the following items (this list is not all-inclusive):

The manager charged with the returns should start the validation within 2 working days of receipt of the list and it must be completed no later than 25 calendar days from receipt of the listing.

Verify the physical possession of all returns (case files should be located for non-filed returns) listed on the validation listing. This may include an original or copy of return or any other electronic facsimile of the return (TRDBV/TRPRT, RTVUE/BRTVU, MeF, etc.).

In offices where ERCS is used in conjunction with AIMS to maintain inventory control, the AIMS IVL must be compared to an ERCS inventory listing. Discrepancies must be annotated and corrected.

Review each element on the validation list to verify its accuracy. See IRM 4.4.36.3.2.1.

Timely update the appropriate database to correct identified errors. Corrections may require managerial approval.

Use Form 8721 to list the original returns not presently charged to the organization but actually in its possession.

If a skeletal record exists on AIMS for a return or case file listed on Form 8721, conduct further research to determine if the skeletal condition is due to an error when establishing the AIMS record. If so, and the record/case file has been in the possession of the validating group or function greater than 30 days, then the record is counted as an error.

If no skeletal record exists on AIMS and the return has been in the possession of the group/function greater than 30 days, then the record is counted as an error.

Locate returns charged to the validating group/function not found in the physical inventory.

Completed IVLs (with supporting documentation), Form 8721, and Form 8722 should be given to the manager for review and approval before forwarding to the Area AIMS/ERCS Analyst or AIMS Coordinator. This can be done in writing or by signing electronically in a PDF file.

If using the 100 percent validation, divide the total number of returns with errors by the total number of returns on the IVL, plus returns in inventory but not on the IVL. Multiply this number by 100 to determine the error rate percentage.

If using the Quarterly Time Frame Validation, divide the number of returns with errors by the total number of returns exceeding the time frames specified in IRM 4.4.36.3, Inventory Validation Listing (IVL). Multiply this number by 100 to determine the error rate percentage.

Error rate of 5 percent or lower is acceptable.

Revalidation requirements depend on whether a 100 percent annual validation or the quarterly time frame validation was performed.

If the initial error rate for any validating organization was more than five percent, but all errors have been resolved by the next quarterly IVL, no revalidation is required.

For offices that have a greater than five percent error rate, for two consecutive quarters, a 100 percent validation of the status codes with the high error rate is required during the subsequent quarterly time frame validation, until the error rate is below 5 percent, which is the acceptable level.

When using the statistical sampling application of the SSIVL as an alternative to the annual 100 percent IVL, each Area must validate a minimum of 100 returns every other week. Exceptions to the minimum sample size and frequency must be approved by the National Headquarters AIMS and/or ERCS Analyst.

The AIMS/ERCS Analyst or AIMS Coordinator will distribute the listings to the groups/functions within two workdays of generating the sample.

The validation will follow the procedures as outlined in IRM 4.4.36.3.2, Conducting the Validation.

The manager charged with the sample returns will be responsible for ensuring the sample is accurately completed and returning the listing to the AIMS/ERCS Analyst or AIMS Coordinator within four workdays of receipt.

The AIMS/ERCS Analyst or AIMS Coordinator will compute an error rate on the completed listing.

The report will contain the following information for each organization:

The report will contain the following information:

The validation lists and reports of the IVL results (including revalidation documents) should be destroyed after three years.

See Document 12990, Records Control Schedules, Section 23 for more information.

Table 10.1(B) gives an alphabetic listing of returns with examination results of $100,000 or greater and returns that were placed back in inventory with examination results of $50,000 or greater except if the return is also a LCC (see Table 15) or a Whipsaw case (see Table 16). Table 10.1(B) provides a historical audit trail on actions taken on the record once it has been extracted as an accomplishment record for the first time. This listing must be reviewed to ensure that the cases have been correctly entered on AIMS. See Exhibit 4.4.36-1 for an explanation of the abbreviations and symbols on the listing.

Table 15 is a listing of all cases with a LCC Indicator present. This listing provides a historical audit trail on actions taken on the record once it has been extracted as an accomplishment record for the first time. See Exhibit 4.4.36-1 for an explanation of the abbreviations and symbols on the listing.

Table 16 is a listing of all accomplishments that have a whipsaw indicator of "K" or "R" indicating that more than one TP's case was closed with recommended dollars or assessed for the same liability. Audit results for records that have an "R" are not included in the AIMS tables since they are a duplicate of the key case closure which is included in the AIMS tables. This listing provides a historical audit trail on actions taken on the record once it has been extracted as an accomplishment record for the first time. See Exhibit 4.4.36-1, Tables 10.1(B), 15 and 16 Explanation of Symbols, for the abbreviations and symbols on the listing.

Table 37 provides data from Examination Time Reports (ETR) which is used to monitor resources (staff year). It reflects staff year application by class of tax, activity codes, and by direct examination and non-direct examination activities. The table provides data from AIMS, which is used to monitor examinations, inventory, surveyed returns, and accepted returns from classification.

Table SC38 provides data from AIMS which is used to monitor completed examinations at the campuses. The table also provides data to monitor examinations, inventory, surveyed returns, and accepted returns from classification.

See IRM 25.6.23, Examination Process-Assessment Statute of Limitations Controls, for statute information.

This table provides management with concise analytical information for use in managing the Examination function at the campuses. The table provides data from AIMS which is used to monitor returns as completed examinations. The table also provides data to monitor examinations, inventory, surveyed returns, and accepted returns from classification.

Table 36, Examination Program Monitoring, provides all levels of management concise analytical information for use in managing the Examination function. The table provides data from AIMS which is used to monitor examinations, inventory, surveyed returns, and accepted returns from classification.

Each month the current months accomplishment records are posted to the AIMS report history file. Correction records (generated by an employee using CC AMAXU on a previously closed record) and deletion records (generated by an employee using CC AMSTUB or AMSTUR on a previously closed record) are matched to the originally closed records. If there is no match, the record is not posted to the reports history file and is listed on the AIMS Monthly Unmatched Corrections/Deletion Report.

Each campus produces separate monthly and weekly error registers. They identify accounts that failed to pass validity and consistency checks. These accounts are excluded from AIMS tables (for example, Table 36) until they have been corrected.

The monthly error register identifies errors on the following:

The weekly error register identifies only errors on inventory and accomplishment records.

The AIMS Duplicate Records Report (ADRR) is a weekly computer generated listing identifying TP accounts currently under AIMS control, that have been previously received from MF.

Changes to a TP’s account at MF are reported to Examination on the AIMS Weekly Update.

This two page report provides a current status listing of the number of returns in process in each type of program (source code), a listing of examined returns (changed and no-changed), and total dollar adjustments recommended broken down by program (source code) and cumulative weekly through a monthly reporting period.

This listing is generated quarterly and contains skeletal accounts which have been on the database over 30 days and Non-filer skeletal accounts (Source Code is 12, 24, 25, 44, or 65, or the Project code is 0149, 0154, 0156, 0437, 0438, or 0449) which have been on the database over 120 days.

The Status Workload Review lists campus returns which have been in a given status for periods longer than the normal time. Exam Operations use this report to identify those returns requiring special action to expedite closing.

Aging criteria may be established for all status codes by each Exam Operations for purposes of monitoring workload.

Only returns that have been in a given status over the specified number of days will be listed on the Status Workload Review.

The TC 424 Reject Register is generated at the campus when a TC 424 fails to post to MF.

The AIMS Non-Assessed Closures Listing (NACL) is generated weekly to notify Examination or Appeals that the AIMS TC 300 indicator is set at five and the case is in Status 90. This situation usually occurs when the closure unposted. Refer to the chapter on unpostables for information on how the indicator gets set to five. Each campus center and area office will receive a copy of the NACL containing items from their EGC.

The Unverified Assessment Listing is generated monthly for closed cases with a significant money amount that had been successfully input through CC AMCLS but the Taxpayer Information File (TIF) still contains a pending TC 300.

The item will be generated on the report if the AIMS record is over one month old or the statute is within two months of expiring.

The pending transactions to be included are Adjustment Pending (AP), Pending Action (PN), Resequenced (RS), Corrected Unpostable (CU), and Nullified Unpostable (NU). Pending transaction for Unpostable (UN) will appear on the report if the AIMS record is over two months old or the statute is within two months of expiring.

The Unallowable Items Frozen Refund Report is generated from the IMF each month from February through December and is distributed to the Chief, Exam Operations.

Various freeze codes and unsettled account conditions at MF generate transcripts to the Accounts Maintenance (AM) or Statute Units in the campuses. These transcripts identify TP accounts that require analysis or action to release the freeze or settle the account.

AM or statute transcripts generated for accounts under Examination control generally have no direct bearing on the examination (except those involving amended return freezes), and are usually resolved automatically when the examination closing posts to MF. Some AM and statute transcripts require action by TS to avoid processing delays and repeated TP contact. If Examination is controlling the case and the type of transcript generated requires sending a copy of the return to TS so they can continue processing or contacting the TP for additional information.

Diagnostic transcripts are produced weekly for those entity or tax modules containing predetermined criteria which might indicate incorrect processing.

Civil Penalty Credit Transcripts generate every 12 cycles when a payment posts to a civil penalty account and no assessment is made to offset the credit on the account.

When a TC 290 is input with .00 on a civil penalty module, it will generate a TC 240 with .00 which will also post on MF.

Blocking series 52 in used to post the first manual TC 24X in an account and 53 is used to post subsequent penalties. Use blocking series 15 to release a freeze.

The Examination Overage Report is generated weekly at the campus. It is a listing by IDRS employee number of the open control bases on TXMOD or ENMOD.

A multiple case control report is generated weekly if more than one employee has controlled the same module.

A correction to all Item numbers 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 or Industry.

Corrections to an Employee Group Code (EGC) 5XXX record, must be input using a terminal identified as a campus terminal and the terminal must match the Primary Business Code (PBC). If input is attempted by a non-campus terminal or a terminal that does not match the PBC, the following error message will be displayed EGC 5XXX MUST USE SERVICE CENTER TERMINAL.

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 CC AMAXUE.

Skeletal records with a Project Code (PC) 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 (AC)), Item 50 (EGC), 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 (REI) of 3 cannot be corrected using CC AMAXUE. The REI will be updated out of 3 after the next AIMS monthly cycle at which time the correction can be input.

Cannot update Item Numbers 18, 22-24, 28, 30, 32, 34, 35, 37, 38, 44-47, 65, 401- 403, 405-408, 411, 412, 414 - 416, 418, and 422 unless the status code is greater than 79. See IRM 2.8.6, AIMS Command Code AMAXU, for a complete list of definitions for item numbers.

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.

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.

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.

Form 4844, Request for Terminal Action, Form 5348, AIMS/ERCS Update (Examination Update), (except for freeze code requests), and Form 5349, Examination Correction Request, are retained by originator or terminal function depending on local option and destroyed when no longer needed in current operations, but no later than three months after input. More information can be found in Document 12990, Records Control Schedules.

Abstract codes may be corrected. See instructions for Item 404 on Form 5349, Examination Correction Request.

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 database 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 item number 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.

The Activity Code (AC) is based on the return as filed without considering any later changes made by IRS. This is why the AC must not be updated with the exception of Substitute for Returns (SFR), Non-Master File (NMF) accounts, and Retention Register accounts.

Claim amount is not valid with Source Code (SC) 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.

The claim rejection date input with CC AMCLSE is sent to MF. 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 MF cannot be corrected.

The claim rejection date can be deleted from the AIMS database by inputting a CC AMAXUE, Item 20-D. The claim rejection date at MF cannot be corrected.

Disposal codes (DCs) cannot be changed:

If it is identified that the examiner’s time on a closed case is incorrect, and the case has been returned, (AMSTUR or AMSTUB) the examiner’s time cannot be corrected until it is resubmitted for closure. 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, the examiner's time must be zero. Using CC AMAXUE, enter a blank in Item 28 and the correct amount of time in Item 23.

CC AMFRZS is used to set freeze codes and CC AMFRZR is used to release freeze codes on the AIMS database. You must input the specific code you want to set or release. Freeze codes can be used:

After a freeze code is set, the Form 5348, AIMS/ERCS Update (Examination Update), 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 on the Exam Systems Knowledge Base site at: ERCS Codes Listing.

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.

The manual assessment amount is not valid with a DC 01 or 02. It is also not valid with a non-taxable AC.

To delete the manual assessment amount on an open record use CC AMAXUE and enter a blank space in Item 35.

To delete the manual assessment amount on a closed record use CC AMAXUE, Item 35-D.

CC AMREQ is used to correct AIMS when updated information has not been received from MF. This CC generates a TC 429. Upon receipt of the TC 429, BMF and IMF will send an AIMS update record which will correct the AIMS database. The correction should be reflected within two to three weeks from input date. Following are some examples of why CC AMREQ is used:

Use CC AMAXUE, Item 19-410/ and the 6 digit code. North American Industry Classification System (NAICS) codes are valid with MFT codes 01, 02, 04, 06, 10, 11, 14, 16, or 30.

The Partial Agreement Indicator (Item 61), can be updated using CC AMAXUE. 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.

Only valid with Master File Tax (MFT) Codes 02, 05, 06, and 30.

Use CC AMAXUE, to delete the PIA code (Item 413-D) from the database when a PIA Code is not valid with the MFT on the record.

See X-Ref DLN.

Generally, unless the source code (SC) used on the original opening was in error, the SC should not be changed unless it meets one of the situations stated in this section.

The SC should reflect the reason the return was examined. Therefore if a return was waiting to be examined in one SC, but actually examined for a different reason, the SC should be updated.

ERCS and Report Generation Software (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.

When an all numeric statute date is input (no alpha code or Form 872, Consent to Extend the Time to Assess Tax) that does not match the current AIMS statute date, an update to the Assessment Statute Expiration Date (ASED) is sent to MF. 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.

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.

The Survey Reason Code can be removed on an open record by inputting CC AMAXUE with a blank space in Item 65.

The Verified Assessment Code (Item 90), can be input using CC AMAXUE. 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.

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.