- 4.7.8 Centralized Case Processing
- 220.127.116.11 Overview
- 18.104.22.168 CCP User Capabilities
- 22.214.171.124 CCP Employee Records and Permissions
- 126.96.36.199 Security
- 188.8.131.52 Approval Authority
- 184.108.40.206 Role and Responsibilities of CCP Managers
- 220.127.116.11 Role and Responsibilities of CCP Users
- 18.104.22.168 Work Flow and Processes
- 22.214.171.124.1 Field Office Resource Team
- 126.96.36.199.2 Examined, Non-streamlined Case Closures
- 188.8.131.52.3 Examined, Streamlined Case Closures
- 184.108.40.206.4 Non-examined Case Closures
- 220.127.116.11.4.1 Paperless Non-examined Closures
- 18.104.22.168.4.2 Scanning Process Form 5546, Examination Return Charge-Out Sheet, Bar Code
- 22.214.171.124.4.3 Original Return - No Form 5546
- 126.96.36.199.5 IAT Closures
- 188.8.131.52.6 Special Closures
- 184.108.40.206 ERCS Codes
- 220.127.116.11 Reports
- Exhibit 4.7.8-1 CCP Program Numbers and Suspense Types
- Exhibit 4.7.8-2 CCP Reject Reasons
- Exhibit 4.7.8-3 CCP Position Codes
- Exhibit 4.7.8-4 Processing Campus Codes (PCC)
Part 4. Examining Process
Chapter 7. Examination Returns Control System (ERCS)
Section 8. Centralized Case Processing
May 13, 2011
(1) This transmits revised IRM 4.7.8, Examination Returns Control System (ERCS), Centralized Case Processing.
(1) Editorial changes were made and text was changed throughout to replace Case Processing Support to Centralized Case Processing
(2) References to "tax examiners with and without inventory" was changed to "tax examiners" .
(3) References to LMSB were changed to LB&I (Large Business and International).
(4) Links were updated or added as needed.
(5) IRM 18.104.22.168.1 was added to include generation of Form 3210 and managerial approval of statute updates are tasks performed in CCP.
(6) IRM 22.214.171.124.2, CCP Employee Records and Permissions, was added.
(7) IRM 126.96.36.199 was updated to remove "requesting returns" as a task performed in CCP.
(8) IRM 188.8.131.52 (4) was updated to add references to the In Transit Report and the Suspense Report.
(9) IRM 184.108.40.206 (5) was updated to add references to the "p" on reports that denotes pending managerial approval.
(10) IRM 220.127.116.11 was updated to add a notation of the importance of assigning work in CCP.
(11) IRM 18.104.22.168.1 (c) was added to include working AIMS Error Reports.
(12) IRM 22.214.171.124 was updated to include additional tasks performed in CCP.
(13) IRM 126.96.36.199.1 through Section 188.8.131.52.6 was added to explain the work flow through CCP.
(14) IRM 184.108.40.206 was added to discuss the ERCS only codes used in CCP.
(15) IRM Exhibit 4.7.8-1 was updated for code changes.
(16) IRM Exhibits 4.7.8-2 through 4.7.8-4 were added.
Charlestine D. Hardy
Director, Examination Planning and Delivery
Small Business/Self Employed
This section contains information and procedures for the territory managers, support managers, tax examiners, and clerical staff.
The instructions for Centralized Case Processing (CCP) users for navigating the ERCS programs can be found in the ERCS CCP Handbook. The purpose of this section is to provide policy guidelines and procedures for the use of ERCS in Centralized Case Processing.
CCP users can:
Add or update employee information for CCP employees
Generate reports of returns in CCP statuses
Research and display records
Update, transfer, and close returns in CCP statuses
Generate a Form 895, Notice of Statute Expiration
Generate a Form 3210, Document Transmittal
CCP managers can approve ASED updates to returns in their authorized Audit Information Management System (AIMS) Assignee Code (AAC).
In order to run ERCS programs, a user must have the following:
A valid login and password for the ERCS server
An ERCS employee record containing the user's login name
A user is granted access to the ERCS server via the Online 5081, Automated Information System (AIS) User Registration / Change Request. Refer to IRM 4.7.2, Security, for details.
Employee records for CCP users must be added by another ERCS user with update permission for the AAC to which the new user will be assigned. Details on adding a CCP employee record to ERCS can be found in the Employee Records chapter of the ERCS CCP Handbook. The user should enter all information accurately and completely.
CCP users are added to ERCS in a CCP campus primary business code of 296, 297, or 298, the secondary business code of 89700 and an ERCS defined employee group code. The employee group codes for CCP users are in the 3xxx series. These three codes make up the AAC of the employee's assignment on ERCS.
CCP users utilize Position Codes 302 - 307, 310 and 400. See Exhibit 4.7.8-3 for the definitions of these position codes.
ERCS employee records should be inactivated when the employee leaves the service or transfers within the service to a non-ERCS position.
ERCS employee records should be updated to the new AAC if the employee transfers from CCP to another ERCS position outside of CCP.
A CCP user's permissions are added by a CCP AIMS/ERCS analyst. Permission records may be added before or after the employee record is added.
CCP users are generally given read and write permission for the CCP campus.
CCP managers are generally given first level approval permission for the CCP campus.
Permission records should be deleted when they are no longer needed.
Inactivating the employee record on ERCS also results in the deactivation of the employee's permission records on ERCS.
ERCS operates on the principle that users should only change data on returns under the user's control. Consequently, a CCP user may change information only on returns in CCP status codes within the AACs in which the user has permission. Throughout ERCS, error messages appear when a user attempts to update returns for AACs or status codes for which the user does not have permission.
Because of the potential for section 1204 violations, reports generated in CCP that contain any Record of Tax Enforcement (ROTER) information are to be shared only at the manager level or higher. For more information about ROTER, see the Section 1204 website. IRM 1.5, Managing Statistics in a Balanced Measurement System Handbook, provides further guidelines for the appropriate use of statistics by managers and employees.
Users in CCP must be aware of the potential for Unauthorized Access of Taxpayer Accounts (UNAX) violations from the use of ERCS. As with Integrated Data Retrieval System (IDRS) and AIMS, data from ERCS should be accessed only for IRS business purposes. No attempt should be made to access the user's own social security number (SSN) or that of a spouse. If the user's personal SSN or that of a spouse is entered, an employee audit access message is created of a possible breach of security. An employee audit access message is also created if a user attempts to view or update an employee audit return that the user does not have permission to update.
Updates to returns in CCP requiring managerial approval are approved by a CCP manager. Types of updates by users in CCP that require approval are:
Changes to returns on ERCS requiring approval do not roll up to AIMS until they are approved.
Disapproval of updates cause the items to revert to their prior value. Returns with pending approval cannot be transferred or closed on ERCS. ERCS does not create a "reject" list or otherwise mark disapproved updates. ERCS only lists those transactions that are pending approval and what the updated value will be when approved.
ERCS cannot prevent returns from being physically transferred to CCP that are still pending managerial approval in the group for the transfer. Returns in transit to CCP can be monitored using the "In Transit Report" or by generating the "Suspense Report" for Suspense Type 498. Both reports are on the Inventory Reports menu.
Updates pending managerial approval, show a "p" next to the value on the screens in the Correct or Display Records program.
Responsibilities of the CCP managers include but are not limited to:
Ensuring the ERCS employee information for their employees is accurate
Ensuring prompt assignment of incoming cases
Unassigned returns are associated with the CCP campus by the Processing Campus Code (PCC) on the return. Returns are not associated with a CCP group until the returns are assigned to a CCP employee on ERCS.
Ensuring work is evenly distributed among their employees
Ensuring users timely and accurately input required data to ERCS
Ensuring users timely and accurately resolve any ERCS rejects
Monitoring statuses and statutes of all CCP cases
Ensuring ERCS reports are generated timely
Ensuring prompt closing of all outgoing cases
Ensuring separation of duty is being maintained
Ensuring timely reporting of any ERCS user or system related problems to the CCP AIMS/ERCS analyst
CCP users are defined as tax examiners and clerical support staff. Responsibilities of CCP users include but are not limited to:
Ensuring ERCS is updated timely for all changes to returns
Ensuring any ERCS rejects from the daily ERCS to AIMS upload are corrected timely
Ensuring returns listed on AIMS Error reports generated from the weekly AIMS to ERCS download are researched and corrected timely
Generating the ERCS inventory and monitoring reports
Ensuring any ERCS user or system related problems are reported to the CCP AIMS/ERCS analyst timely
Work flow in CCP begins with receipt and control into CCP and ends with case closures.
After receipt in CCP, cases should be updated out of Status 51 within 3 days, the Form 3210 acknowledged with a receipt sent back to the field, and the Form 3198, Special Handling Notice for Examination Case Processing, analyzed for case assignment.
The ERCS record is checked to verify it is controlled on AIMS, if AIMS control is required.
The statute should be checked and updated as necessary on the ERCS record.
The following values should be verified and updated as necessary on the ERCS record via the Integrated Automation Technologies (IAT) system:
CCP employee ID
Date in CCP
Returns are selected for sample review on ERCS as they are updated out of Status 51. If a return is selected for sample review, the sample selection sheet should be printed and attached to the front of the case file.
The Field Office Resource Team or FORT is comprised of revenue agents, tax auditors, and tax compliance officers. The FORT serves as a liaison between CCP and the Examination groups in the field.
If CCP encounters issues with returns that cannot be resolved in CCP, the returns are sent to the FORT.
Examined, non-streamlined cases are worked, coded, and the Form 5344, Examination Closing Record, is updated. Then the cases are forwarded to a remote terminal operator to be closed on AIMS.
Examined, streamlined case closures are identified by the notation on Form 3198 as being closed on the Report Generation System (RGS). These returns are routed to the streamline closure team for closure.
CCP employees perform the following processing for non-examined case closures based on whether the return is paperless, scanned or an original or copy of the tax return.
Form 5351, Examination Non-Examined Closings, and Form 3210 are faxed into the Campus FORT or the designated CCP team.
Form 5351 and Form 3210 are stamped, validated and acknowledged. After acknowledgement, Form 3210 is mailed and/or faxed back to the originator. Form 5351 is maintained for processing the non-examined closures.
The Taxpayer Identification Number (TIN) listed on the Form 5351 is input into the IAT system. IAT updates the case from Status 51 to Status 90 closure. No source document folder is needed for Files.
Cases are updated from Status 51 to 57 and the Primary Campus Code (PCC) is verified and updated as necessary.
Cases are separated by blocking series and closed to Status 90 via CC AMSOC on AIMS using the IAT system. IAT can accept and close up to 22 cases at one time with the exception of Disposal Code 35 returns which must be closed separately.
IAT generates a closure sheet for preparation of Form 6502, Employee Source Document Folder Label, for Files.
The same work flow in IRM 220.127.116.11.4.2 is followed for closing an original tax return when there is no Form 5546 plus the additional step below.
An AMDISA print is generated upon closure. The AMDISA print includes the document sequence number, input operator number, closing date and disposal code.
Closures done through IAT close the AIMS record. The AIMS closure causes the closure of the ERCS record during the next weekend when AIMS to ERCS batch processing is run.
ERCS uses a combination of AIMS and ERCS codes for inventory control records and employee records. The following codes are defined on ERCS only. More information about these codes may be found in the Codes chapter of the ERCS CCP Handbook, or in Exhibit 4.7.8-1, Exhibit 4.7.8-2, or Exhibit 4.7.8-3.
Suspense type and action date
CCP employee ID
Date in and date out of CCP
CCP position codes
ERCS penalty Master File Tax (MFT) codes
For a complete listing of ERCS reports available for CCP users, please refer to the ERCS CCP Handbook.
IRM 4.7.6, Reports, contains detailed descriptions as well as recommended uses and frequency of generating reports available through ERCS.
Program numbers are used in CCP to classify types of work. The only association between the program number and any other ERCS codes (such as status code, suspense type or number of days in suspense) is by user association. ERCS does not enforce consistency between the program number and the other values listed in the chart below.
|51||498||10||---||In-Transit||There is no program number associated with returns in-transit|
|52||413||45||10062||Estate, Gift and Excise||Cincinnati only - Form 706, Form 709|
|414||45||10058||Claim||Includes Disposal Code 34|
|417||45||10720||Excise||Cincinnati only -Form 720|
|418||45||10940||Employment - Stand Alone||Cincinnati only - Form 940 and Form 941|
|476||45||10941||Employment - Tag Along||Cincinnati only - related return|
|53||420||60||10121||Restricted Interest||per Form 3198|
|422||60||10218||Complex Interest / Net Rate||per Form 3198|
|423||60||16404||6404(g) - 2nd Notice Date||*See note below|
|431||10||10053||Statute within 120 days||Short statute|
|432||10||14760||Over $100,000||Agreed, unpaid|
|433||10||10219||Expedite Complex Interest||per Form 3198 (also includes Net Rate)|
|435||10||10054||VPN Project||Virtual Private Network (VPN) / Telephone Excise Tax Refund (TETR)|
|436||10||10055||Restricted Interest - Expedite||when short statute or over $100,000|
|441||45||10303||Unagreed Default||Stat Notice, from Technical Services|
|453||60||10531||Suspense-other||Disaster or other projects|
|57||460||45||10090||Survey||Non-examined disposal codes except 34|
|10092||Paperless Survey||Non-examined paperless surveys|
|58||470||60||10996||Special Projects||Cincinnati only|
*If 6404(g) is checked on Form 3198 with or without a date or money on a single year, the case is a single waiver 6404(g). It becomes a Pipeline case. If 6404(g) is checked on Form 3198 with dates on 1st and 2nd notice date line, the case is not a single waiver and it becomes a Restricted Interest case. If 6404(g) is checked on Form 3198 with or without a date or money and not applicable is also checked, the case is not a 6404(g). It becomes a Pipeline case.
ERCS reject reasons are associated with returns sent back to the group from CCP. When the group sends the return back to CCP, the reject reason is removed from the return.
|401||Reject to Group|
|402||TC 976/977 Amended Return|
|404||Form 5344 Missing or Incomplete|
|405||Freeze Code on AIMS|
|406||Tax Mis-match on Report/Trans.|
|412||Partial Assessment Completed|
|413||Telephone Group Request|
|416||Error on Report/Missing Report|
|418||Penalty Computation Incorrect/Incomplete|
|427||Delinquent Return/SFR Problem|
|432||Sent to CCP in Error|
|438||Non-examined Closure Problems|
|442||To Tech Services|
|444||Related Return Problems|
|451||Return not on AIMS|
|452||Controlled in Another Area/PBC|
The table below lists the valid position codes and grade ranges used in ERCS for CCP employee records.
|304||Management Analyst/Functional Automation Coordinator||05-13|
|305||Lead Tax Technician||05-09|
|306||Tax Compliance Officer/Revenue Agent||05-13|
|400||Program Analyst/Tax Analyst||03-16|
Returns closed to Status 51 on ERCS are assigned a PCC by the program based on the PBC on the return using the following correlations. The PCC determines the ownership and location of unassigned returns in CCP.
|PCC||Definition||Servicing Returns for Area/Industry|
|17||Cincinnati Campus||212 - 214, 315|
|49||Memphis Campus||201-207, 217|