4.29.4 PCS Reports

Manual Transmittal

November 27, 2017

Purpose

(1) This transmits a revision with Table of Contents and text for IRM 4.29, Partnership Control System (PCS) Handbook, Section 4, PCS Reports.

Material Changes

(1) Editorial changes throughout.

(2) Removed references to Masterlink and related reports

(3) Removed references to TEFRA S-corps and related procedures throughout.

(4) IRM 4.29.4.1 - Program Scope and Objectives. New section.

(5) IRM 4.29.4.2 - General PCS Report Information. Changes made to reflect that all nonTEFRA key cases are processed in Brookhaven.

(6) IRM 4.31.4.3.1 - General Information on National Directories. Removed the reference to CD-ROM and microfiche.

(7) IRM 4.29.4.3.2 - National Directory, Key Case TIN Sequence, Report 22–1. Reports now printed and stored on Control-D.

(8) IRM 4.29.4.3.4 - National Directory, Field or CTF, Report 22–3. Added an explanation of the report.

(9) IRM 4.29.4.4.1- General Information on Database Maintenance Reports. Removed two reports.

(10) IRM 4.29.4.5.3 - TEFRA One-Year Assessment Statute Date Listing, Report 4–4 . Removed the retention requirement.

(11) IRM 4.29.4.6.1 - General Information About Action Reports. Added paragraph (1)(b).

(12) IRM 4.29.4.6.2 - TEFRA Key Case Action Report for Campus CTF, Report 21–3. Added explanation of the report.

(13) IRM 4.31.4.6.3 - NonTEFRA Key Case Action Report for Campus CTF, Report 21–3(N). Added explanation of the report.

(14) IRM 4.29.4.6.5 - TEFRA CTF Investors With New NonTEFRA Linkages, Report 5-3. Removed outdated parenthetical after paragraph (2).

(15) IRM 4.29.4.6.8 - No Load Tier Report, Report 8-6. New Section.

(16) IRM 4.29.4.7 - Special Purpose Reports. Removed reference to two reports.

(17) IRM 4.29.4.8 - Run Controls. New section.

(18) IRM 4.29.4.8.1 - PCS59. New section.

(19) IRM 4.29.4.8.2 - PCS62. New section.

(20) IRM 4.29.4.8.3 - PCS63. New section.

(21) IRM 4.29.4.8.4 - PCS68. New section.

(22) IRM 4.29.4.8.5 - PCS85. New section.

(23) IRM 4.29.4.8.6 - PCS87. New section.

Effect on Other Documents

This material supersedes IRM 4.29.4, dated 09/02/2008. Changes to this IRM will also affect the Pass-Through Entity Handbook, IRM 4.31 Sections 1 through 7. That IRM is currently being rewritten and will include the changes contained in this IRM.

Audience

Field and campus personnel working TEFRA pass-through entities and/or their investors.

Effective Date

(11-27-2017)

Michael Damasiewicz,
Director, Examination - Field and Campus Policy
Small Business/Self Employed

Program Scope and Objectives

  1. This IRM section provides an explanation of the reports generated from the Partnership Control System database.

  2. Purpose: This IRM is to describe the use and basic guidelines for working PCS generated reports.

  3. Audience: Field Examination Revenue Agents and campus Revenue Agents, Tax Compliance Offers, Tax Examiners and Clerks working pass-through entities and/or their investors linked on the Partnership Control System.

  4. Policy Owner: Director, SB/SE, Headquarters, Examination - Field and Campus Policy (SE:S:E:HQ:FCP)

  5. Program Owner: Program Manager, Campus Examination and Field Support (SE:S:E:HQ:FCP:CEFS)

  6. Primary Stakeholders: Small Business/ Self Employed, Large Business and Industry, and Appeals

  7. Program Goals: PCS is a database used to create an electronic linkage between pass-through entities and their underlying partners. Linking in some instances is mandatory. Linkage allows for the proper control of statutes and ensures all relevant partners are processed.

Background

  1. PCS was created to monitor and control pass-through entity investors. Pass-through entities can have many partners and many levels of tiering. Tiering occurs when an investor in a pass-through entity is also a pass-through entity. This complexity can make it difficult to keep track of statutes and monitor all the investors.

  2. Suggestions regarding the format or content of this handbook should be sent to the Director, SB/SE, Headquarters, Examination - Field and Campus Policy, Campus Exam and Field Support (SE:S:E:HQ:FCP:CEFS), Attn: Examination - Field and Campus Policy, at the New Carrollton Federal Building, 5000 Ellin Road, Lanham, MD 20706.

Authority

  1. PCS control is a policy that was established in response to the partnership provisions of the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982. It has been expanded to cover other pass-through entities that fall outside of TEFRA.

Responsibilities or Roles and Responsibilities

  1. The Director, SB/SE, Headquarters, Field and Campus Policy, Campus Exam and Field Support (SE:S:E:HQ:FCP) is responsible for:

    1. Coordinating and implementing PCS enhancements;

    2. Coordinating resolutions for PCS systemic problems; and

    3. Updating this Handbook.

  2. The Director, SB/SE Examination - Field and Campus Policy is responsible for:

    1. Ensuring that PCS procedural changes and computer program changes are implemented and coordinated with area office and campus examination personnel; and

    2. Monitoring and evaluating area office and campus examination PCS quality control procedures.

  3. Field Territory Managers, Field Area Directors, Director over LB&I Ogden and Director, Examination - Brookhaven, are responsible for ensuring that:

    1. An accurate database is established by designating PCS responsibilities and activities; and

    2. A PCS quality control system is implemented. This includes timely action on PCS record establishments, PCS reports, and AIMS TC424 Reject Registers. It also includes timely processing of TEFRA notices and Appeals settlement letters (campus only).

  4. Area office Examination Managers and campus Field Support Operations managers are responsible for:

    1. Maintaining an updated copy of IRM 4.29, Partnership Control System (PCS) Handbook, in their respective functions;

    2. Ensuring the training of technical and clerical employees in PCS procedures; and

    3. Establishing PCS records and acting on PCS reports in a timely manner to assure an accurate PCS database.

  5. The campus PCS Coordinator works with:

    • The other PCS coordinator(s)

    • Their local employees

    • Other campus functional areas to ensure timely processing of PCS related activities

  6. The campus PCS Coordinator is charged with:

    • Identifying and resolving technical problems

    • Identifying and coordinating the resolution of PCS systemic problems

  7. Following are specific campus PCS Coordinator responsibilities:

    1. Coordinate PCS operations among areas, CTFs, and other campus functions;

    2. Ensure timely processing and distribution of PCS output;

    3. Ensure that all requests for establishment and linkage on PCS are reviewed for accuracy, completeness, and timeliness;

    4. Maintain accuracy of the PCS database by ensuring that action and error reports are worked in required time frames;

    5. Resolve AIMS problems;

    6. Assist in the training of examination personnel in PCS procedures and the system;

    7. Establish and update CTF and Appeals parameter files;

    8. Review completed Form 8346, PCS Notice Parameters, prepared by the CTF and Appeals;

    9. Create, load, print, proofread, and edit parameter file data using Form 8346, PCS Notice Parameters;

    10. Coordinate with Computer Systems Analyst (CSA) whenever a change is made to parameters;

    11. Review and input all campus Mass Change (MSCHG) and linkage deletion (TSDEL) requests;

    12. Coordinate requests for PCS IVLs with campus computer services and the requesting function.

Program Management and Review

  1. Program Reports: PCS generates a variety of reports used to monitor the inventory and related statutes. These reports are explained in detail in IRM 4.29.4.

  2. Program Effectiveness: PCS is used to help identify the effectiveness of the TEFRA program. PCS shows the number of partners linked within a partnership structure. Failing to link partner returns timely can result in barred statutes or the need to follow burdensome procedures such as manual assessments or untimely notice procedures.

Program Controls

  1. PCS is a IDRS based system. Access to command codes are restricted based upon need. For example, generally only the PCS Coordinator is allowed to delete records from the system.

Terms/Definitions/Acronyms

  1. There are several terms unique to PCS. Examples of these words:

    Defined Terms

    Word Definition
    Key Case A linked pass-through entity that is being examined. This entity is where any pass-through adjustments will originate.
    Linkage The electronic relationship between a pass-through entity and its investor.
    One Year Date This is a statute date applicable only to TEFRA partnerships. Adjustments to the partner returns must be made within one year of a final partnership determination that finalizes the key case adjustments.
    Record Information stored on the PCS database for a key case or an investor.
    Tier A pass-through entity that is a partner of a pass-through entity. An S-corporation would be a tier partner of a partnership.

     

  2. See IRM Exhibit 4.29.1-1 for a list of acronyms.

Related Resources

  1. The following Internal Revenue Manual cross references may be helpful to PCS coordinators:

    1. Terminal Operator Instructions: IRM 2.2 Sections 1–10

    2. Processing: IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates Handbook

    3. Handling of Output: IRM 3.13.62, Media Transport and Control Handbook

    4. Management of Interrelated and Related Cases: IRM 4.31, Pass-Through Entity Handbook

    5. AIMS: AIMS/Processing Handbook, IRM 4.4

General PCS Report Information

  1. This section is broken into four PCS report categories:

    • National Directories,

    • Database maintenance reports,

    • Statute processing reports, and

    • Key Case Action Reports.

  2. Exhibit 4.29.4-1, PCS Reports, provides a summary of each report generated by PCS.

  3. Each report is generated for the field and CTFs based on the TEFRA indicator.

    Note:

    The term campus refers to both Brookhaven and LB&I PTE Ogden.

  4. In general, the Brookhaven campus works all SB/SE key cases (PBC 2XX), LB&I NonTEFRA key cases and their related investors (PBC 295); and the Ogden PTE works all LB&I TEFRA key cases (PBC 3XX) and their related investors (PBC 398).

  5. Appeals cases (PBC 6XX) will be worked in each campus. PCS will determine the correct campus and segregate the cases to the proper reports.

  6. Each campus is responsible for distributing copies of report data to the field and/or Appeals offices.

National Directories

  1. The following sub-sections relate to national listings of the information in the database, restated for different parameters.

General Information on National Directories

  1. The following three reports are national directories:

    • National Directory, Key Case TIN Sequence, Report 22-1,

    • National Directory, Promoter Number Sequence, Report 22-2, and

    • National Directory, Field/CTF, Report 22-3.

  2. Reports 22-1 and 22-2 are produced monthly on Control-D. Report 22-3 is a printed report.

National Directory, Key Case TIN Sequence, Report 22–1

  1. Report 22-1, produced monthly, lists key case records in TIN order with linked investor records in TIN order grouped by PBC.

  2. The report reflects open key case records and closed key case records which have at least one open linked investor record. Open key cases are in a status code below 80. Closed key cases are in a status code 80 or above.

    Caution:

    These are Examination definitions and reflect whether the key case can be found in the AIMS open case database or closed case database. The actual PCS, Appeals, and Service definition is "any case under status code 90 is open" .

  3. Following the TIN sequence listing, an alpha listing of key cases is provided. This allows research by DBA name if the key case TIN is not available.

  4. The report is a research tool providing a history of the key case and linked investors.

  5. All microfiche must be retained for 30 years. The CD-ROMs must also be kept for thirty years, but recopied every five to seven years. Special procedures must be followed when disposing of microfiche. Please contact the Headquarters TEFRA analyst or the Records Officer prior to disposing of those records.

  6. Beginning in January 2016 this report is printed and stored on Control-D. CDs are no longer produced.

National Directory, Promoter Number Sequence, Report 22–2

  1. Report 22-2, produced monthly, lists key cases with linked investor records in promoter number TIN sequence. It is used for research; it provides a history of key cases and investors within a promotion.

  2. The report reflects open key case records and closed key case records which have at least one open linked investor record. Open key cases are in a status code below 80; closed key cases are in a status code 80 or above.

    Caution:

    These are Examination definitions and reflect whether the key case can be found in the AIMS open case database or closed case database. The actual PCS, Appeals, and Service definition is "any case under status code 90 is open" .

  3. All microfiche must be retained for 30 years. The CD-ROMs must also be kept for thirty years, but recopied every five to seven years. Special procedures must be followed when disposing of microfiche. Please contact the Headquarters TEFRA analyst or the Records Officer prior to disposing of those records.

Proper Access and Security of CD-ROM Data
  1. The information provided on the CD-ROMs must be kept in a locked cabinet when not in use.

  2. The disks are shipped encrypted and password protected. Those authorized to receive the disks will be provided the password.

  3. For assistance in accessing the data, contact the Headquarters TEFRA analyst.

National Directory, Field or CTF, Report 22–3

  1. Report 22-3 lists key case records with all linked investors. Field reports reflect nonTEFRA key cases and their linked investors. CTF reports reflect TEFRA key cases within the campus's jurisdiction and their linked investors.

  2. The report includes investor records in a TC424 status. They are indicated by an asterisk to the left of the investor sequence number. One asterisk indicates the record has been in a TC424 status for one month. Two asterisks indicate two months or more.

  3. The report is generated weekly if at least one investor is a skeletal record. The AIMS 424 Reject Register should be worked with this report. The reject code, listed in IRM 4.4, AIMS/Processing Handbook, identifies the reason for the reject. Research the record, correct the reject condition, and establish the investor in full display.

  4. This report is used to identify investors with incorrect CTF PBCs. For example, there should be no cases in PBC 295 appearing on Ogden's report, or PCS 398 cases on the Brookhaven report. When cases like this are seen, the CTF Indicator needs to be corrected.

Database Maintenance Reports

  1. The following sub-sections discuss special reports that identify specific problems in the database.

  2. These conditions require immediate attention.

General Information on Database Maintenance Reports

  1. The following five reports are database maintenance reports:

    • Real-time Error Register, Report 1-1, and

    • Deleted Investors, Report 7-3.

Real-time Error Register, Report 1–1

  1. During centralized processing at MCC, PCS data is input in the database in date and time order of input. An input can be accepted during real-time but rejected during centralized processing if the accessed record is no longer on the PICF.

  2. Report 1-1 notifies the key case field office or CTF of inputs rejected during centralized processing. A literal reject message appears on the report. Literal reject messages are shown in Exhibit 4.29.4-2, Error Register Reject Literals. The command code originally input, as well as pertinent key case and investor information, is included on the error register.

  3. This error register should be analyzed when received by the PCS Coordinator to ensure that corrected inputs are made. No action is needed for TSCLS rejects.

  4. Retain the report until the next report is received

Deleted Investors, Report 7–3

  1. Report 7-3, Deleted Investors, lists investor records dropped from PCS when the only key case linkage has been deleted. The key case linkage is identified on the report to assist contacting the key case field office or CTF.

  2. The report gives the reason the investor record dropped from the PCS:

    • CC TSDEL;

    • Purge-date realized; or

    • 424-drop date realized.

    The report lists all linkage records that were present when the investor record dropped.

  3. The investor record and key case record are displayed in the following format:

    • The first 12 positions are for an edited TIN;

    • There are two blank positions, then the next two positions are the MFT code; and

    • There are two blank positions, then the next six positions are the tax period.

  4. Investor records dropped from the PCS are printed on Report 7-3 only once. They do not repeat on subsequent weekly reports. AIMS records are not affected when the record drops from the PCS.

  5. The investor field function or CTF must determine whether to re-control the case on the PCS, close the case on AIMS, or leave the case controlled on AIMS, but not on the PCS.

    1. To re-control the case on the PCS, submit Form 8341, PCS Establish or Add Without Notice Generation, (using CC TSLOD) to establish the linkage.

    2. If there are other issues (unrelated to the PCS) that require AIMS control, no further action is necessary.

    3. If there is no reason to control the case on the PCS or on AIMS, then the AIMS record must also be closed via Form 5351, Examination Non-Examined Closings, or Form 5546, Return Charge-Out. Refer to IRM 4.4, AIMS/Processing Handbook, for procedures to close non-examined returns.

  6. Retain this report for three months.

Statute Reports

  1. The following sub-sections relate to statute reports produced by the PCS.

General Information on Statute Reports

  1. The PCS generates four reports that show information about the PCS cases with pending statute of limitation dates. The PCS only provides statute reports with regard to TEFRA one-year assessment statute dates. Fields and CTFs must also utilize AIMS Tables 4.1 and 4.0 to ensure statute dates are protected on all assigned cases.

  2. Report 2-2 provides a count of records with a one-year assessment statute date on the investor record. Criteria for items excluded from the report are provided below.

  3. Report 4-4 lists all records on the PCS with a one-year assessment statute date on the investor record.

  4. Report 5-5 provides a list of key cases within an CTF’s jurisdiction that are in status 90 and have linked investors without a one-year assessment statute date.

Number of Returns by One-Year Assessment Statute Date, Report 2–2

  1. Report 2-2 is a count of TEFRA investor records with a pending one-year assessment statute date.

  2. Report 2-2 reflects pending one-year assessment statute records by month for the current month and the following 14 months. Each area in the CTF’s jurisdiction is displayed with a breakdown between records in status code 34 and records in a status code other than 34.

  3. The report does not include investor records that have "11111111" entered in the one-year assessment statute date field.

  4. The CTF should use the report to determine volume of pending one-year date cases requiring action and for required staffing.

TEFRA One-Year Assessment Statute Date Listing, Report 4–4

  1. Report 4-4 lists all CTF investor records that have a TEFRA one-year assessment statute date present on a linkage record. Key case information for linkage records with a one-year date present is displayed to the right of the investor record information.

  2. The CTFs must ensure reports are written and tax, penalty, and interest are processed prior to the expiration of the one-year assessment statute date.

  3. Investor records with an entry of A, B, C, M, R, or S in the package received indicator field are listed on separate report pages. See IRM Exhibit 4.29.3-3, Report Package Received Indicator Codes, for the meaning of these codes. Records with MFT code 34 are also listed on separate report pages. All other IMF investors are listed separately from all other BMF investors.

  4. Investor records added to Report 4-4 within the prior three PCS cycles are identified by the literal "NEW" to the extreme right of the report. Records identified as "NEW" are listed at the beginning of each separate sort for the report.

  5. The "NEW" investor records are listed in one-year assessment date order followed by all other investor records in one-year assessment statute date order. If an investor has multiple linkages with a one-year date present, the investor and all linkages with a one-year date will be listed on the report by the earliest one-year date.

  6. An entry of "Y" in the Report Package Received Indicator field signifies that the investor report writing package was received. Follow-up action must be taken to secure packages that have not been received.

  7. TEFRA investor records, with the TEFRA assessment already processed, appear on this report with a "11111111" one-year assessment statute date. The one-year assessment statute date field MUST NOT be deleted when the TEFRA assessment is made. If it is deleted the investor record reappears on this report as a new investor requiring action, when a mass change update takes place after the assessment is made.

  8. When the TEFRA assessment is made, the one year assessment statute date must be updated to "11111111" .

  9. If there is an unagreed penalty or affected item issue, the one-year assessment statute date must be updated to the six digit numeric date followed by "P" (YYYYMMDDP) with CC TSCHG. The one-year date for the penalty or affected item issue will be updated to "11111111" when the penalty or affected item is assessed.

  10. One-year assessment statute dates that have been updated to "11111111" for investors linked to a tier with multiple key case linkages, will be removed from the linkage record with an entry of "T" in item 05 of CC TSCHG.

    1. This will allow subsequent one-year assessment statute dates to flow through to the tier investors, and it retains accomplishments from the investor report.

    2. The "Y" report package received indicator must also be removed, after the partial assessment has been made and before the investor file is suspensed, before the next adjustment.

Incomplete TEFRA Key Case Closures for Key Case Campus, Report 5–5

  1. Report 5-5 lists key cases that are in status 90 that have linked investors without a one-year assessment date.

  2. The key case CTF will use this report in conjunction with Report 21-3, TEFRA Key Case Action Report, for the Campus CTF, to ensure timely receipt of incoming packages.

  3. The key case CTF must input one-year assessment statute dates on each linked investor when there is sufficient information in the key case administrative file to determine the correct date.

  4. The key case CTF must coordinate with the key case field office when there is insufficient information:

    1. To provide the CTF with the closing package; or

    2. To secure the key case return and take appropriate action.

  5. Retain this report for two years. It will be reviewed by the National Headquarters Office when the CTF is on the visitation schedule. In general, no local jurisdiction investor, other than an investor in Appeals or the courts, should cause a local key case to appear on this report.

Incomplete NonTEFRA Key Case Closures for Key Case Campus, Report 5–5(N)

  1. Report 5-5(N) lists key cases that are in status 90 that have linked investors without a report package received indicator date.

  2. The key case CTF must input the report package received indicator code on each linked investor when a report is received.

  3. The key case CTF must coordinate with the key case field office when a package cannot be located:

    1. To provide the CTF with the closing package; or

    2. To assist in securing the key case return.

  4. Retain this report for two years. It will be reviewed by the National Headquarters Office when the CTF is on the visitation schedule.

Incomplete Appeals TEFRA Key Case Closure for Key Case Campus, Report 5-5(A)

  1. Report 5-5 lists Appeals key cases that are in status 90 that have linked investors without a one-year assessment date.

  2. The key case CTF will use this report in conjunction with Report 21-3, TEFRA Key Case Action Report, for the Campus CTF, to ensure timely receipt of incoming packages.

  3. The key case CTF must input one-year assessment statute dates on each linked investor when there is sufficient information in the key case administrative file to determine the correct date.

  4. The key case CTF must coordinate with the key case Appeals office when there is insufficient information:

    1. To provide the CTF with the closing package; or

    2. To secure the key case return and take appropriate action.

  5. Retain this report for two years. It will be reviewed by the National Headquarters Office when the CTF is on the visitation schedule. In general, no local jurisdiction investor, other than an investor in Appeals or the courts, should cause a local key case to appear on this report.

Action Reports

  1. The following sub-sections relate to reports that identify a needed action, but an immediate response is not required.

General Information About Action Reports

  1. The following reports are action reports:

    1. TEFRA Key Case Action Report CTF, Report 21-3,

    2. NonTEFRA Key Case Action Report for Campus CTF, Report 21–3(N)

    3. Changed TEFRA Key Cases, Report 5-1,

    4. TEFRA CTF Investors with New NonTEFRA Linkages, Report 5-3, and

    5. Weekly Update Report of PCS Investors by Key Case, Report 5-4.

  2. All action reports should be retained for three months.

TEFRA Key Case Action Report for Campus CTF, Report 21–3

  1. Report 21-3 lists TEFRA key cases, by Primary Business code within the campuses jurisdiction, when the TEFRA key case record enters status code 27, 28, 29, or 80 and above for the first time. This gives the CTF/PTE an alert that key case adjustments have been finalized and will be moving into the notice phase.

  2. The date the FPAA was issued to the TMP is displayed to determine the date by which all investor FPAAs must be issued. Investor FPAAs must be issued within 60 days of the date the FPAA was mailed to the TMP.

  3. The key case administrative file will be reviewed to determine if the necessary documentation was received from the field office, or if follow up is needed.

    Status Definition Action
    Status 27 PREPARE TEFRA LETTER: TEFRA and non-TEFRA key case and/or investor closed to Technical Services for processing of agreed cases, issuance of no change letters, preparation of 60-day and FPAA letters, and preparation of certain TEFRA investor statutory notices. If the package was received, process according to IRM 4.31. If the package was not received, contact Technical Services.
    Status 28 TEFRA LETTER ISSUED: TEFRA key case - 60 day letter or FPAA has been issued or an FPAA default package is in process. If the package was received, process according to IRM 4.31. If the package was not received, contact Technical Services or Appeals
    Status 29 OTHER TEFRA SUSPENSE: TEFRA key case and/or investor in suspense. No Comment
    Status 80 Note the file that the audit file was transferred to Appeals No Comment
    Status 82 Note the file that the key case is docketed Update PCS with the docket number via CC TSCHG, item 28
    Status 90 Verify that the key case administrative file was closed One-year assessment statute dates, "11111111" , or "22222222" should be present for all investors
  4. Verify that all investors had a proper closing action as follows:

    1. Accepted Form 870-PT, Agreement to Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax, and Additional Amounts;

    2. Accepted Form 870-LT, Agreement to Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax, and Additional Amounts and Agreement for Affected Items;

    3. Accepted Form 870-PT(AD), Settlement Agreement For Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax and Additional Amounts;

    4. Accepted Form 870-LT(AD), Settlement Agreement For Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax and Additional Amounts, and Agreement for Affected Items;

    5. Accepted Form 906, Closing Agreement on Final Determination Covering Specific Matters;

    6. Defaulted FPAA, Notice of Final Partnership Administrative Adjustments; or

    7. Court decision.

  5. Retain this report for three months.

NonTEFRA Key Case Action Report for Campus CTF, Report 21–3(N)

  1. Report 21-3(N) lists NonTEFRA key cases, by Primary Business code within the campuses jurisdiction, when the NonTEFRA key case record enters status code 27, 28, 29, or 80 and above for the first time. This gives the CTF/PTE an alert that key case adjustments have been finalized and will be moving into the notice phase.

  2. The key case administrative file will be reviewed to determine if the necessary documentation was received from the field office, or if follow up is needed.

    Status Action Note:
    Status 80 Note in the file that the audit file was transferred to Appeals The field should only send a key case to Appeals if a field controlled investor files a protest. The field should be contacted to ensure that an investor under their control filed a protest.
    Status 90 Verify that the key case administrative file was closed "22222222" should be present for all investors. If no closing package was received, contact the field and secure the return.
  3. Retain this report for three months.

Changed TEFRA Key Cases, Report 5–1

  1. All key cases whose TEFRA indicator was changed using CC TSCHG or CC MSCHG during the previous three weeks are listed with their linked investors.

  2. Key case and investor campuses use this report to ensure that returns are properly controlled and that administrative files accurately reflect return status.

  3. Key case CTFs should verify that the change to the key case TEFRA indicator is correct. If the change is correct:

    If And Then
    NonTEFRA to TEFRA   Contact the controlling organization and secure a key case administrative file
    TEFRA to nonTEFRA The change is correct Forward the administrative file to the controlling organization
      The change is incorrect Follow-up with the controlling AIMS organization

    Note:

    The CTF should check with the local TEFRA or nonTEFRA units for copies of the administrative files prior to contacting the field.

  4. The CTF with control of the investors will review the report and take action to secure or transfer investors files.

    If And Then
    NonTEFRA to TEFRA   Contact the controlling organization
      There are no other nonTEFRA issues Request that the investor return and AIMS control be transferred to the appropriate CTF TEFRA or nonTEFRA unit.
      There are other nonTEFRA issues Secure a copy of the investor return
    TEFRA to nonTEFRA   Review the investor file and determine if the statute is open or barred
      The statute is open Transfer the AIMS control and investor return to the CTF nonTEFRA function, if necessary
      The statute is barred Refer the file to the statute coordinator
  5. Retain this report for three months.

TEFRA CTF Investors With New NonTEFRA Linkages, Report 5–3

  1. This report identifies returns in status 34, employee group code 58XX, to which a nonTEFRA linkage has been added within the last three weeks.

  2. Returns listed on this report should be forwarded to nonTEFRA suspense.

    1. AIMS control is updated to nonTEFRA status 33 and employee group code 54XX.

    2. The statute of limitations date is corrected on AIMS.

  3. An asterisk (*) identifies the new nonTEFRA linkage which was added.

  4. Retain this report for three months.

Weekly Update Report of PCS Investors by Key Case, Report 5–4(I)

  1. This report is a listing, for the key case CTF, of investors that match AIMS weekly updates for bankruptcy, Criminal Investigation, Disaster Related, Combat Zone, and potentially dangerous taxpayer (PDT) transactions.

  2. The report should be associated with the key case administrative file and appropriate action taken:

    1. Bankruptcy: Ensure the one-year assessment statute date and "Bankrupt" literal is input and the TEFRA literal is removed from PCS. This will prevent future TEFRA notices from generating.

    2. Criminal Investigation: Coordinate with Criminal Investigation to determine whether the investor should receive a notice when a package is received from TEFRA notice mail out.

    3. PDT: Annotate the key case administrative file that the investor is potentially dangerous.

  3. The investor CTF receives the AIMS Weekly Update Report with these messages.

  4. Retain this report for three months.

Weekly Update Report of Key Case Transfers, Report 5–4(K)

  1. The report will list the key cases that have transferred into the CTF during the given week. The report will list cases transferred in from the field, Appeals or another campus. This listing will afford the CTF/PTE notice that a key case has been transferred to them.

No Load Tier Report, Report 8-6

  1. The report list tiers with an "X" tier indicator. A decision was made by the CTF/PTE not to link the partners of these tiers because a material adjustment is unlikely.

Unperfected Tier Report, Report 8-7

  1. This report lists tier partnerships that have not been perfected. An unperfected tier is one that does not have a tier indicator of "#" or "X" . The CTF/PTE should work this report timely to ensure that all tiers partners are linked, or determine that the tier should be a 'no-load'. These unperfected partnerships must be perfected on the system to maintain adequate control of inventory.

Special Purpose Reports

  1. Special reports are generated from the PCS database to provide management information used to plan staffing levels and for accomplishing special initiatives. These reports should be retained for one year.

  2. Report 2-3, CTF Workload, provides a count of open TEFRA Notice Investors, TEFRA Report Investors, TEFRA tiers, TEFRA key cases, and TEFRA Key/Tier Cases by CTF jurisdiction. All invalid cases are printed on a run control list for follow-up by the appropriate CTF/PTE. It is used by the National Headquarters to plan CTF staffing.

  3. Report 2-3(N), CTF NonTEFRA Workload, provides a count of open NonTEFRA Report Investors, NonTEFRA tiers, NonTEFRA key cases, and by CTF jurisdiction. It is used by the National Headquarters to plan CTF staffing.

  4. Report 6-8, TEFRA Investor Returns/TEFRA Investor Count, totals returns by campus/PTE, field office, and special project code.

  5. Report 6-8(N), NonTEFRA Investor Returns/NonTEFRA Investor Count, totals returns by campus/PTE, field office, and special project code.

  6. Report 6-9, Inventory of Key Cases, lists TEFRA key cases in statuses less than 80.

  7. Report 6-9(N), Inventory of Key Cases, lists nonTEFRA key cases in statuses less than 80.

  8. Report 6-9A, TEFRA Key Case Count, totals TEFRA key cases in statuses less than 90, broken out by status and tax period. The totals are summarized to show prior year returns, so that overage returns can be effectively monitored.

  9. Report 6-9A(N), NonTEFRA Key Case Count, totals nonTEFRA key cases in statuses less than 90, broken out by status and tax period. The totals are summarized to show prior year returns, so that overage returns can be effectively monitored.

  10. Report 8-1, Number of NonTEFRA CTF Investor Returns by Tax Period, counts returns in employee group codes 54XX, if they have only nonTEFRA linkages.

  11. Report 8-2, Number of NonTEFRA CTF Tiers by Tax Period, totals nonTEFRA CTF (54XX EGC) status 33 tiers.

  12. Report 8-3, TEFRA Assessments, totals TEFRA assessments, overassessments, and no-changes by dollars and counts.

    1. The information on the report reflects the assessment amounts input by the CTFs via CC TSCHG when a partial assessment or a full closure is made to an investor account.

    2. The amount of the assessment is input along with the "11111111" in the one-year assessment statute date field.

    3. The program will only include the last amount input for a given linkage during the weekly reporting cycle.

    4. The report also provides year-to-date accomplishments, report writing inventory, and suspensed investor returns.

    Caution:

    Assessment information is only included on Headquarter reports.

  13. Report 8-3(N), NonTEFRA Assessments, totals nonTEFRA assessments, overassessments, and no-changes by dollars and counts.

    1. The information on the report reflects the assessment amounts input by the CTFs via CC TSCHG when a partial assessment or a full closure is made to an investor account.

    2. The amount of the assessment is input along with the "22222222" in the one-year assessment statute date field.

    3. The program will only include the last amount input for a given linkage during the weekly reporting cycle.

    4. The report also provides year-to-date accomplishments, report writing inventory, and suspensed investor returns.

    Caution:

    Assessment information is only included on Headquarter reports.

  14. Report 8-3A, TEFRA Assessments By Key Case Field Office, totals TEFRA assessments, overassessments, and no-changes by dollars and counts.

    1. The information on the report reflects the assessment amounts input by the CTF’s via CC TSCHG when a partial assessment or a full closure is made to an investor account.

    2. The amount of the assessment is input along with the "111111111" in the one-year assessment statute date field.

    3. The program will only include the last amount input for a given linkage during the weekly reporting cycle.

    4. The report also provides year-to-date accomplishments, report writing inventory, and suspensed investor returns.

    Caution:

    Assessment information is only included on Headquarter reports.

  15. Report 8-4, TEFRA Inventory Aging Report, shows aging of TEFRA key cases in status codes 12, 20, 23, 27, 28, and 29. Question the field office when any item is in the same status more than 9 months, except when in status 12.

  16. Report 8-4(N), NonTEFRA Inventory Aging Report, shows aging of TEFRA key cases in status codes 12, 20, 23, 27, 28, and 29. Question the field office when any item is in the same status more than 9 months, except when in status 12.

  17. Report 8-5, TEFRA Assessments by Promoter Number, provides accomplishments for cases with a promotion number NNNNAA where N = number and A = alpha numeric.

    Caution:

    Assessment information is only included on Headquarter reports.

PCS Run Control Reports

  1. The run controls contains various counts of records processed by the programs. These counts include the number of records in the input file read by the program (a INPUT-COUNT); a count of how many records the program bypasses instead of processing (a BYPASS-COUNT); how many records that are not bypassed but contain an error (an ERROR-COUNT); and how many records that are not bypassed (processed) and are considered valid (a VALID-COUNT).

  2. The different programs usually check the values of certain fields in a record to determine whether or not a record is added to the different counts. For example, the Primary Business Code (PBS) is checked for certain values. If the value matches one of the specified values, the valid count is recorded. If the campus that controls the PN record isn’t Ogden or Brookhaven, then the record is added to the error count.

PCS59

  1. The bypassed records count is a count of records whose LN-PN-TEFRA-CD is not a space (i.e., a TEFRA case) or if the PBC-PTR field is not equal to 700.

  2. The valid records count are those records whose PBC-PTR field doesn’t equal 700(any invalid PBC), and if (the TEFRA-ASSMT-RPT-DATE is greater than or equal to the PREVIOUS-DAY) or (the TEFRA-ASSMT-RPT-DATE is less than or equal to the CURRENT-DAY).

  3. The error count is those records whose PBC and service center code are not a valid combination.

PCS62

  1. The bypassed records count includes those records whose LN-1-YR-ASSMT-DATE has either spaces or zeroes as values. It also includes those records whose ASSESSMENT-DATE is more than 998 days in the past.

  2. The valid records count are those records whose BOD-PBC doesn’t contain certain values (398, 301-309, 315-317 or 298) and the APPL-BOD and PN-CTF-IND are "O" . Records whose PBC contains other values (295, 201-207, 212-214) and the APPL-BOD and PN-CTF-IND are "B" .

  3. The error count is those records whose PN-CTF-IND is not either "B" or "O" (Brookhaven or Ogden).

PCS65

  1. The bypassed records count include those records whose LN-LN-TEFRA-CD is not "T" (i.e., a non-TEFRA case). Also included in the count are those records whose PS-KEY is not the same as the previous record’s PS-KEY. Those records which do not meet the criteria for a valid record (see below) are also added to the bypassed count.

  2. The valid records count are those records whose PBC-PTR field doesn’t equal 700 (any invalid PBC), and if (the TEFRA-ASSMT-RPT-DATE is greater than or equal to the PREVIOUS-DAY) or (the TEFRA-ASSMT-RPT-DATE is less than or equal to the CURRENT-DAY).

  3. The error count includes those records whose PBC are not found in a table and the PS record’s key is not the same as the previous PS record.

PCS68

  1. The bypassed count are those records which do not meet the valid record criteria (see below).

  2. The valid records count are those records where (the TEFRA-ASSMT-RPT-DATE is greater than or equal to the PREVIOUS-DAY) or (the TEFRA-ASSMT-RPT-DATE is less than or equal to the CURRENT-DAY).

  3. The error count includes those records whose PBC are not found in a table.

PCS85

  1. The bypassed records count are those records which do not meet the valid record criteria below.

  2. The valid records counts include non-TEFRA cases (the LN-PN-TEFRA-CD not equal to "T" ). Also included are those records whose PBC-PTR field doesn’t equal 700 (any invalid PBC), and if (the TEFRA-ASSMT-RPT-DATE is greater than or equal to the PREVIOUS-DAY) or (the TEFRA-ASSMT-RPT-DATE is less than or equal to the CURRENT-DAY).

  3. The error count includes those records whose PBC are not found in a table.

PCS87

  1. The run control file lists those records whose TICKLER-PS-KEY is less than the PS-KEY.

PCS IVL

  1. PCS IVL allows each campus to input parameters to generate customized counts or listings of PCS records on a weekly basis.

  2. The PCS Coordinator will coordinate with campus computer services to input, via a demand terminal, the IVL parameters.

  3. These reports are generated by the campus for their own purposes. The length of time these reports are retained is up to the campus.

PCS Reports (Text 4.29.4.1)

Report Number Title Description Purpose Users Text Frequency
1–1 REAL-TIME ERROR REGISTERS List real-time inputs that reject during processing. Exhibit 4.29.4–2 defines reject literals These reports are used to identify transactions that need to be reinput PCS Coord 4.4.2, WEEKLY
2–2 NUMBER OF RETURNS BY ONE- YEAR ASSESSMENT STATUTE DATE Provides count of cases with 1–Year Assessment Statute Date by month. A separate count is provided for each PBC within an CTF’s jurisdiction broken down by status code 34 and other than status code 34 This report is used to schedule workload involving protection of the 1–Year Assessment Statute Date. CTF 4.5.2 WEEKLY
2–3 CTF TEFRA WORKLOAD Counts TEFRA key cases and TEFRA investors linkages by CTF Indicator Used to plan CTF workload and staffing. HQ 4.6 MONTHLY
2–3(N) CTF NONTEFRA WORKLOAD Counts nonTEFRA key cases and nonTEFRA investors linkages by CTF Indicator Used to plan CTF workload and staffing. HQ 4.6 MONTHLY
4–4 TEFRA ONE-YEAR ASSESSMENT STATUTE DATE LIST Lists all cases with a 1–Year Assessment Statute Date This report is used to identify cases requiring a TEFRA assessment CTF 4.5.3 WEEKLY and DAILY
5–1 CHANGED TEFRA KEY CASES Lists key cases where the TEFRA Indicator was changed by TSCHG or MSCHG within the last three weeks This report is used to ensure proper control and establishment of administrative files and related investor returns CTF 4.6.4 WEEKLY
5–3 TEFRA CTF INVESTORS WITH NEW NONTEFRA LINKAGES Lists returns in status code 34, employee group code 58XX to which a nonTEFRA linkage has been added within the past three weeks This report identifies returns which need to be forwarded to the field office or CTF nonTEFRA area for suspense pending resolution of the nonTEFRA issue CTF 4.6.5 WEEKLY
5–4(I) WEEKLY UPDATE REPORT OF PCS INVESTORS BY KEY CASE Lists investors that match AIMS weekly updates for bankruptcy, criminal investigation, disaster related, combat zone, and potentially dangerous taxpayer transactions (PDT) This report identifies returns which may need to be removed from TEFRA proceedings CTF 4.6.6 WEEKLY
5-4(K) WEEKLY UPDATE REPORT OF KEY CASE TRANSFERS List key cases transferred into a campus from an Area Office, another campus or Appeals. This report identifies key cases that have been transferred into the campus. CTF 4.6.7 WEEKLY
5–5 INCOMPLETE TEFRA CLOSURES QUARTERLY REPORT Lists TEFRA key cases in status 90 with investors linked to it without a one-year assessment statute date This report is used to ensure proper disposition and statute protection CTF; Appeals 4.5.4 WEEKLY
5-5(A) INCOMPLETE APPEALS TEFRA KEY CASE CLOSURES FOR KEY CASE CAMPUS Lists Appeals key cases that are in status 90 that have linked investors without a one-year assessment date. This report is used to ensure proper disposition and statute protection CTF; Appeals 4.5.6 WEEKLY
5–5(N) INCOMPLETE NONTEFRA CLOSURES QUARTERLY REPORT Lists nonTEFRA key cases in status 90 with investors linked to it with no report package received indicator code This report is used to ensure proper disposition and statute protection CTF; Appeals 4.5.5 WEEKLY
6–1 TAXPAYER BY TIN MASTER LISTING (suspended) Lists all PCS cases within the field or campus in TIN order and key case linkages are displayed for each investor. The report is divided into two sections: open investors and closed investors This report is an investor IVL displaying all investors and their linkages TEFRA Coord; PCS Coord; PSP   MONTHLY
6–8 TEFRA INVESTOR RETURNS/ TEFRA INVESTOR COUNT Totals TEFRA investor returns Used to plan CTF workload and staffing CTF 4.6 MONTHLY
6–8(N) NONTEFRA INVESTOR RETURNS/ NONTEFRA INVESTOR COUNT Totals nonTEFRA investor returns Used to plan CTF workload and staffing CTF 4.6 MONTHLY
6–9A TEFRA KEY CASE COUNT Totals TEFRA key cases Used to plan CTF workload and staffing HQ; CTF; Appeals 4.6 MONTHLY
6–9A(N) NONTEFRA KEY CASE COUNT Totals nonTEFRA key cases Used to plan CTF workload and staffing HQ; CTF; Appeals 4.6 MONTHLY
6–10 APPEALS TEFRA KEY CASE COUNT Count of TEFRA key cases by Appeals Office Code and by status Used for planning purposes NH; Appeals 4.6 MONTHLY
7–3 DELETED INVESTORS Lists investor cases that dropped from PCS because the only linkage to a key case was deleted This report is used to determine if the investor record should be re-established on PCS PCS Coord 4.4.3 WEEKLY
8–1 NUMBER OF NONTEFRA CTF INVESTOR RETURNS BY TAX PERIOD Count of nonTEFRA CTF returns Used to plan CTF workload and staffing HQ; CTF 4.6 MONTHLY
8–3 TEFRA ASSESS- MENTS Counts number of assessments, overassessments, and no changes, with total dollars by PBC within the CTF; also inventory per CTF Used to monitor CTF accomplishments for TEFRA HQ; CTF 4.6 WEEKLY
8–3(N) NONTEFRA ASSESS MENTS Counts number of assessments, overassessments, and no changes, with total dollars by PBC within the CTF; also inventory per CTF Used to monitor CTF accomplishments for nonTEFRA HQ; CTF 4.6 MONTHLY
8–3A TEFRA ASSESS- MENTS BY KEY CASE FIELD OFFICE Counts number of assessments, overassessments, and no changes, with total dollars by PBC within the CTF; also inventory per PBC per CTF Used to monitor PBC accomplishments for TEFRA. PBC of key case/tier and investor must equal before the record is used for this report HQ; CTF 4.6 MONTHLY
8–4 TEFRA INVENTORY AGING REPORT Ages TEFRA key cases in status codes 12, 20 23, 27, 28, and 29 Used to monitor TEFRA inventory HQ; CTF 4.6 MONTHLY
8–4(N) NONTEFRA INVENTORY AGING REPORT Ages nonTEFRA key cases in status codes 12, 20, 23, 27, 28, and 29 Used to monitor nonTEFRA inventory HQ; CTF 4.6 MONTHLY
8–5 TEFRA ASSESS- MENTS BY PROMOTER NUMBER Provides accomplishments and inventory for cases with a NNNNAA promoter/promotion number Used to monitor inventory and accomplishments on identified projects HQ; 4.6 MONTHLY
8-6 NO LOAD TIER RPT List of tiers whose partners will not be loaded onto PCS Used to monitor those tiers the CTF did not link on PCS due to small potential for adj. CTF 4.6.8 MONTHLY
8-7 UNPERFECTED TIER RPT List of tiers with no tier indicator on PCS. Used to monitor those tiers that need to either be linked or coded as a no-load tier. CTF 4.6.9 MONTHLY
21–3 TEFRA KEY CASE ACTION REPORT CTF Lists TEFRA key cases which have moved into status codes 27, 28, 29, 8X, or 90 This report is used to identify actionable TEFRA administrative files CTF 4.6.2 WEEKLY
21-3(N) NonTEFRA KEY CASE ACTION REPORT CTF Lists NonTEFRA key cases which have moved into status codes 27, 28, 29, 8X, or 90 This report is used to identify actionable NonTEFRA administrative files CTF 4.6.3 WEEKLY
22–1 NATIONAL DIRECTORY KEY CASE TIN SEQUENCE (CD-ROM) Lists all key cases nationwide in TIN order. Investor cases are displayed for each key case in TIN order by location. An alpha index is provided This report is used for research of key case and related investors, nationwide HQ; CTF 4.3.2 MONTHLY
22–2 NATIONAL DIRECTORY PROMOTER NUMBER SEQUENCE (CD-ROM) Lists all key cases nationwide by promoter/promotion number order. Investor cases are displayed for each key case in TIN order by location This report is used for research of key case and related investors nationwide by promoter number HQ, CTF 4.3.3 MONTHLY
22–3 NATIONAL DIRECTORY FIELD/CTF Lists all linked TEFRA or nonTEFRA key cases by campus CTF Code and their investors in TIN order This report is used to determine that all investors are properly linked to their key cases CTF; PSP; TEFRA Coord; Exam Group 4.3.4 WEEKLY

Error Register Reject Literals (Text 4.29.4.3.2)

LITERAL MEANING
PARTNERSHIP RECORD NOT FOUND The key case identified by the command code could not be found on the PICF
PARTNER RECORD NOT FOUND The investor identified by the command code could not be found on the PICF
PARTNER NOT LINKED TO PARTNERSHIP The linkage identified by the command code could not be found on the PICF