Solicit the delinquent return(s).

Establish the case on AIMS Master File for the applicable MFT in IRM 4.71.17.2 (3). If the taxpayer has a Form 5500, Annual Return/Report of Employee Benefit Plan, filing requirement, follow the procedures in IRM 4.71.1.21, Amended, Substitute and Secured Forms 5500.

Delete the NMF AIMS account (the NRU account) using Form 10904, following the procedures in IRM 4.71.17.10, NRU Cases Established in Error.

Get your manager’s approval.

Complete Form 5588, TE/GE Non-Master File Request and email it to your group manager for approval. See IRM 4.71.17.2.1 and at IRM 4.71.17 - Exhibit 1, Form 5588 for an example of a completed Form 5588.

After the group manager approves, email Form 5588 to Classification at the address in IRM 4.71.17.1.4, Contact Information.

A plan number is required for MFT 74 NRU cases.

MFT 99 NRU cases should not have a plan number.

For Governmental IRC 401(a) plans, use plan numbers beginning with 201. If you examine additional plans for the same entity, number them with the next successive number (for example, 202, then 203).

For IRC 403(b), IRC 457(b), and IRC 457(f) plans, use plan numbers beginning with 301. If you examine additional plans for the same entity, number them with the next successive number (for example 302, then 303).

For SIMPLE IRA, SARSEP, and SEP IRA-based Plans, use plan numbers beginning with 901. If you examine additional plans for the same entity, number them with the next successive number (for example, 902, then 903).

For NRU cases established with a plan number that does not follow the guidelines in paragraphs c) through e) above, continue to use the plan number initially assigned to the NRU.

For consistency, if you pick up an additional year, use the same plan number or plan number series of the initial case.

IDRS command code ERTVU may give the taxpayer’s phone number or plan sponsor’s phone contact.

Command code INOLE with a definer "T" gives information for both business and employee plan information.

Command codes PMFOL and IRPTR also show addresses and phone numbers.

Command code NAMEE provides an EIN if only the taxpayer’s name and at least a city and state are known. Information obtained from this command code will show EINs the taxpayer used for both business returns and employee plan returns.

On the RCCMS NRU case, enter the statute date of the related Form 941, Form 1120, Form 1120S, Form 1065, or Form 1040, affected by the NRU examination.

The statute date helps you and your group manager monitor the case for a timely referral or to pursue a Form 1040/1120 discrepancy adjustment, or pursue and assess applicable penalties, when necessary.

Initially, Classification uses the normal statute date of the related Form 941 for IRC 403(b) and IRC 457(b) examinations for statute control purposes on RCCMS.

The Form 941 return for IRC 403(b) and IRC 457(b) examinations aren’t controlled on AIMS.

Even though AIMS doesn’t control the Form 941 statute dates for the tax years reviewed, protect the Government’s interests for any potential tax adjustments to that return before the statute of limitations expires.

It’s advisable to also extend the statue of limitations on Forms 1040 for individual participants in some 403(b) and 457 examinations if the IRS is proposing adverse action that would cause participant’s account balances to be taxable.

Steps to protect the Government's interest include making a timely referral on Form 5666 with EO or FSL/ET to ensure the Form 941 statute is protected for any adjustments being proposed.

When you make a timely referral to EO or FSL/ET (whichever business unit has jurisdiction over the taxpayer), you’re no longer responsible to protect the statute. When you make a timely referral, update the statute of limitations to alpha "EE" in RCCMS and NMF AIMS (for example "04/EE/2023" ).

When you and your manager determine that there are no tax consequences to the related Form 941 or the tax on the Form 941 is insignificant, you may update the statute date for the IRC 403(b) and IRC 457(b) examination to alpha "EE" .

When you pick up a prior year and the related Form 941 statute has already barred (for example, the examination is being resolved through EPCRS and you’re opening prior years to verify correction), you may update the statute date for the IRC 403(b) and IRC 457(b) examination to alpha "EE" .

EP Examinations, EO or FSL/ET may extend the statute of limitations for Form 941 using Form SS-10. See IRM 4.71.9 - Exhibit 18, Form SS-10 for an example of a completed form.

When you secure Form SS-10 and your group has a scanner, scan the Form SS-10 and save it in RCCMS Office Documents folder using the RCCMS Naming Convention, regardless of whether EO or FSL/ET secures it. If not scanned, place a copy of the SS-10 in the paper case file.

Initially, Classification uses the normal statute date of the related Form 1040 for SEP, SARSEP, SIMPLE IRA, and 457(f) examinations for control purposes on RCCMS.

If you establish the related Form 1040 discrepancy adjustment on AIMS and RCCMS, you may update the statute date for the SEP, SARSEP, SIMPLE IRA, or IRC 457(f) examination to alpha "EE" .

You may also update the statute date for the SEP, SARSEP, or SIMPLE IRA examination to alpha "EE" in RCCMS and NMF AIMS when you and your manager determine that the SEP/SARSEP complies with IRC 408(k) or the SIMPLE IRA complies with IRC 408(p).

Don’t start an NRU examination for a given year if the statute date for the related tax return will expire within 12 months unless you get your manager’s approval.

The case may be surveyed per group manager discretion.

The examination may continue at the group manager’s discretion.

Examines current plan years

Finds issues and seeks correction for current plan year operational and plan form (plan language) deficiencies

Addresses abusive and egregious IRA-based plans

The taxpayer has significant numbers of rank and file employees who met the plan’s eligibility requirements but aren’t included in the plan.

The plan makes contributions for owner-employees or HCEs only, but doesn’t allow eligible rank and file employees to participate.

Plan contributions for owner-employees or HCEs are substantially in excess of the annual contribution limits and/or in excess for multiple plan years.

Salary deferrals made by participants are not being deposited into their IRA accounts.

If you determine that a SEP/SARSEP doesn’t comply with IRC 408(k) in a given year, that year of non-compliance stands alone and remains non-compliant until the sponsor enters into a closing agreement covering that specific year.

An IRA-based plan that doesn’t comply in a particular year isn’t automatically considered non-compliant in a subsequent year. In order to be considered to be non-compliant in a subsequent year, the plan must have violated IRC 408(k) or 408(p) in the subsequent year.

Discuss the issue with your manager and determine whether the violation can be corrected through the Audit Closing Agreement Program (Audit CAP) or through the Self-Correction Program (SCP).

Follow IRM 4.71.3.5, EPCRS and Closing Agreements, when resolving an issue through EPCRS or Delegation Order 8-3. Rev. Proc. 2021-30 gives examples of acceptable correction methods for SEP, SARSEP, and SIMPLE IRA violations. Discuss reasonable methods of correction with your manager.

If the examination is resolved through SCP, use Letter 1744-A to close the examination.

If the examination is resolved through Audit CAP, use Letter 1744-G or Letter 1744-H (as applicable) to close the examination.

If the IRC 408(k) violations are significant and not resolved through Audit CAP, the SEP is considered to be non-compliant with IRC 408(k).

Likewise, if the IRC 408(p) violations are significant and can’t be resolved through Audit CAP, the SIMPLE IRA is considered to be non-compliant with IRC 408(p).

Discrepancy adjustment program (for income tax adjustments)

By securing Forms 5329 (for IRC 4973 excise tax), and/or through securing delinquent Forms 5330 (for IRC 4979 excise tax).

The "Form Number" in the upper part of the letter should be "Non-Return Unit" .

The first sentence in the body of the letter should be revised to read, "We have completed our examination of your plan for the above year(s)."

Inform the taxpayer and/or POA that we’ve completed the examination and a closing letter will be issued covering years under examination.

Discuss with the taxpayer and/or POA the issues found during the examination, actions taken to resolve them and prevention of future occurrences.

Document the CCR that the closing conference occurred and what was discussed.

The information in RCCMS must accurately reflect the examination results.

Make sure your time in RCCMS agrees with the time listed on the CCR.

When you select "Validate for: Close" in RCCMS, all required fields will be highlighted in red font.

Input the correct information for all fields highlighted in red.

An examination is not warranted.

The number of returns assigned to the group exceeds the number that can be examined and timely processed.

Complete the designated mandatory fields for a surveyed closure. When you select "Validate for: Close" in RCCMS, all required fields will be highlighted in red font.

Select the appropriate Survey Reason Code from the drop-down and when appropriate, provide a narrative explanation supporting your decision to survey in the General tab, Remarks and Comments field.

Manager’s comments will include any applicable Special Handling instructions as required.

To add a manual chronology entry, click on the Chronology tab and select the new Chronology Button.

The Untitled – Chronology Box opens and allows you to input various entries.

Complete the required red asterisked fields.

Click Save and Close to save your entry.

If no taxpayer contact was made, use disposal code 32 (AIMS) and 908 (RCCMS).

If taxpayer contact was made, use disposal code 36 (AIMS) and 909 (RCCMS).

To delete the incorrect AIMS account, prepare Form 10904, Request for Record Deletion from AIMS, as follows:

Secure group manager and Area Manager approval on an electronic Form 10904.

Post the approved Form 10904 in the RCCMS Office Documents folder.

Secure AMDISA and INOLES prints for the account being deleted and save them in the RCCMS Office Documents folder.

The group manager (or designee) updates the case to status 51 on AIMS and RCCMS when it is closed.

Close the NRU examination on RCCMS (disposal code 901) and AIMS (disposal code 33) to the TE/GE Closing Group, requesting status "56" (Form 10904).

The EP AIMS Coordinator deletes the account upon receipt of the RCCMS record.

Complete only one checksheet that incorporates all years when multiple years for the same plan are under exam.

Always set the Adobe view percentage to "100%" . Using this setting will help you to complete "No" in Questions 12B, 12C and 12D, if applicable.

Turn-off the Auto-Complete feature in Adobe: open an Adobe document; select Edit, then Preferences; within the Categories column, select Forms; set Auto-Complete to "Off" .

Always provide an answer to every CECA question, even if the answer is "zero" so the reader doesn’t think you skipped the questions.

Complete and precise reporting helps EP capture our efforts and results and CP&C to further refine our compliance strategies.

Examination results is vitally important for reporting purposes and determining future compliance initiatives.

Save the CECA checksheet in the RCCMS Office Documents folder using the RCCMS Naming Convention.

Annotate the Case Chronology Record (Form 5464) that you completed the CECA checksheet and save the Form 5464 in the RCCMS Office Documents folder using the RCCMS Naming Convention.

Close the case to the group manager.

Finds the CECA checksheet in the RCCMS Office Documents folder.

Reviews the completed CECA checksheet, ensuring that all questions have been answered and that the entered data is within the statistical norms for the type and size of the taxpayer plan reviewed, and the type of change issue(s) documented.

Securely email an electronic copy of the checksheet to the CECA mailbox (*TE/GE-EP-CECA).

Generate notes on the CCR that the examiner completed the CECA checksheet, and that the manager reviewed it and forwarded to the CECA mailbox.