Item A, CC TSCLS, is to be entered by the Closing Function Tax Examiner.

Place a check in the box if the Form 5650 is for a full closure of a TEFRA related return. CC TSCLS must be entered at the terminal before a final closure of a Partnership Control System (PCS) linked case. CC TSCLS releases a freeze on AIMS to allow input of CC AMCLSP. Partnership Information Control File (PICF) Codes 5 and 6 denote cases linked through PCS and prevent the premature closing of the investor return unless all necessary flow-through adjustments from the key-case(s) to the investor have been resolved. Refer to IRM 4.29, Pass-through Control System, and IRM 4.31, Pass-through Entity Handbook, for procedures on TEFRA-PCS.

CC TSCLS should not be input if only a partial assessment is being made, the case is being transferred to the Ogden Campus PCS Function or is being closed to Appeals. CC TSCLS will automatically check all of the investor’s linkage to see if they have been closed. If all linkages are closed then CC TSCLS will set the PN-SUM-CLOSED-IND on the partner record and the PICF-CD to a closed status on the PCS and the AIMS data bases. When the "REQUEST COMPLETED" message is transmitted to the screen, the Closing Function Tax Examiner can proceed to enter the CC AMCLSP.

If all linkages were not properly closed upon input of the CC TSCLS, the error message "CANNOT CLOSE, PCS CONTROL" will be displayed on the screen. The Closing Function Tax Examiner must input CC TSUMY, secure a print, attach it to the Form 5650 and route the case file back to the originator.

Item CC AMCLS_ is completed by the Closing Function Tax Examiner.

The Closing Function Tax Examiner must enter the definer to indicate the type of closure. Definers are:

Positions 7-18, TIN, are to be completed by the Examiner.

Enter either an EIN or SSN. The first digit of the number must be entered in the left most position, it will be included on the examination label .

Enter EIN for all 5500 Series Returns beginning in the left-most position followed by File Source "P" . Form 5330 NMF returns closed with an EIN, should have a File Source "N" entered after the EIN. When closing Form 5330 NMF returns with an SSN, should have a File Source

When closing Form 990-T, use the applicable RCCMS Closing Record tabs in lieu of Form 5599, TE/GE Examined Closing Record. When the 990-T is picked up by EP for a 401(a) Trust, you must use the EIN of the Trust, not the employer’s EIN.

The MFT is to be entered by the Examiner.

Enter the MFT Code of 76 when closing NMF Forms 5330. Enter the Plan Number when a 5500 Series Return (MFT 74) is being closed with Form 5650.

The Tax Period is to be entered by the Examiner.

Enter the Tax Period or Plan Period in "YYYYMM" format. For example, if a calendar year 2013 return, enter 201312. If the tax period is a fiscal year, (i.e., September 30,2013) enter 201309. The tax period on Form 5650 should match that of the return on EPMF. To verify if the tax period is correct, utilize IDRS CC EMFOLT.

The Name Control/Check Digit is to be entered by the Examiner.

A Check Digit is two-alpha characters printed on the examination label following the tax period on the first line. If there is no check digit, or name control on the first print line of the examination label, underline the name control on line two (generally the first four characters). The name control or check digit is also entered by the Examiner when using the TE/GE work center.

If a check digit was used to establish the account, the check digit must be used to close the account. Enter the check digit in the last two positions of the name control section on Form 5650.

The Name is to be entered by the Examiner.

Enter the name as shown on the tax return and/or EPMF.

If necessary, edit the name not to exceed 35 characters.

Enter the name as follows:

The Batch Position Indicator is to be entered by the Closing Function Tax Examiner.

Only NMF accounts require batch position indicators. This field is used to indicate whether the record being processed is the first, last, continuation, addition to a block, or a single closing of a block.

Valid indicators are as follows:

The Block Number is to be entered by the Closing Function Tax Examiner.

This item must always be entered with the first closing and must be three characters in length. The first character must always be numeric and the remaining characters may either be numeric or "X." See Exhibit 4.5.2-1., MF Sorting and Blocking Series for Document Code 47 Adjustments. The Closing Function Tax Examiner assigns a Blocking Series for NMF accounts.

Valid blocking series by Command Code:

This field is used by the Closing Function Tax Examiner to number the input documents.

Plan Number is to be entered by the Examiner.

Enter the three digit Plan Number of the Form 5500 return being closed with this Form 5650.

Disposal Code is to be entered by the Examiner.

A disposal code must be entered for all examined returns. Valid disposal codes used on Form 5650 for examined cases are 01 through 14 and 19.

The Statute Extended to Date is to be entered by the Examiner.

If the statute expiration date has been corrected or extended, and has not been updated on AIMS, the Statute Extended to Date must be entered in item 14 on Form 5650. Form 5595, TE/GE Update, must also be completed and submitted to the Closing Function Tax Examiner before the Form 5650 is forwarded for closure off AIMS. The extended date must always be in "MMDDYYYY" format.

IDRS/AIMS through RCCMS only allows updates to alpha status.

When attempting to close alpha statutes through RCCMS/AIMS they automatically revert to a numerical date appearing as expired (e.g. 07/PP/2017 would show as 07/31/2017).

The Appeals Code is to be entered by the Examiner.

If the case is going to an Appeals Office, enter the applicable three-digit Appeals Office Code. See Exhibit 4.5.2-6 or Document 6209 for Appeals Office codes.

Examiner's Time is entered by the Examiner.

This item must contain an entry.

Examiner's Time must be reported in 15 minute intervals. Valid entries for Item 28 are:

The Technique Code is to be entered by the Examiner.

This item must have an entry if Item 13 (Disposal Code) is 01 through 15. The valid codes are:

The Examiner's Grade is to be entered by the Examiner.

This item must have an entry if Item 13 (Disposal Code) is 01 through 15. Valid range is 05 through 14.

The Case Grade is to be entered by the Group Manager.

Must be 09 or 11-14.

The Examiner's Name is to be entered by the Examiner.

Enter last name, space and first initial. This item is a required entry for all examined returns.

The Hash Total is to be entered by the Closing Function Tax Examiner.

A Hash Total entry must be made for all closures using Form 5650. "Hash Total" is a term applied to the sum of several unrelated items entered on Form 5650. The computer will compare the Hash Total to the total of individual items as entered by the Closing Function Tax Examiner. This should ensure the accuracy of the individual item as entered by the Closing Function Tax Examiner. Minus figures will be treated as minus.

Items to be included in the Hash Total are:

The Project Code is to be entered by the Examiner.

Enter the current fiscal year's —four-digit Project Code that indicates which special project code the case was worked under. Document 11308 Information Systems Codes, Quick Reference for TE/GE Employees for valid project codes. Ensuring that the current fiscal year's Project Code is entered will eliminate Campus and Detroit Computing Center rejects.

The Accounts Receivable Dollar Inventory (ARDI) Code is to be entered by the Examiner.

In order to track agreed deficiencies for ARDI as a result of an examination, this item must be completed if the DC is 03, 06, 09 or 15. Otherwise, leave this item blank. Valid ARDI codes are as follows:

The Employee Group Code (EGC) is to be entered by the Examiner.

A four-digit code that is the group code number establishing the account on AIMS. An EGC is a required entry on all Examined full closures with the exception of DC 34 - Surveyed Claims. Valid range is 7600-7699.

Fax Agreement Indicator is to be entered by the Examiner.

The Fax Agreement Indicator is a one-digit code on AIMS. Enter a "1" if the taxpayer faxed the agreement to the Examiner, otherwise leave this item blank. If entered, DCs must be 03 or 15.

The Operator Employee No./Date is entered by the Closing Function Tax Examiner.

This item is entered by the Closing Function Tax Examiner after the Form 5650 is input on the terminal. The entry should include the Closing Function Tax Examiner’s employee number, sequence number and the date of input.

This item is completed by the Closing Function Tax Examiner only if Form 5650 is rejected.

The Closing Function Tax Examiner will enter the date in the reject (Rej.) block when an entry on Form 5650 does not meet a validity check at the terminal. The Closing Function Tax Examiner must attach a print of the CC AMCLSP to the Form 5650 and indicate the item that failed to meet the validity check and the reason it failed. This procedure will alert the Closing Function Tax Examiner of what item failed to meet the validity check. Local procedures may require returning the case to the originator or AIMS Coordinator.

The Document Locator Number is to be entered by the Closing Function Tax Examiner.

The appropriate blocking series must be determined by the Closing Function Tax Examiner and annotated on Form 5650 for an EPMF account. For NMF accounts, the Closing Function Tax Examiner must notate on a 3 x 5 paper the notation "NMF Blocking needed" . The 3 x 5 paper is to be stapled to the front of Form 5650.

The renumbered DLN must be entered for NMF closing. A log, consisting of DLN, EIN, Plan and Tax Period, must be maintained by the Closing Function Tax Examiner to keep track of the DLN’s assigned to each account.

When an EPMF case has been closed, only a portion of the DLN is assigned by the terminal. The remainder of the DLN (last digit of the block number, two-digit serial number, and list year) is not determined and assigned until the end of day computer processing is completed. The refile DLN is not entered on MF closing documents.

Corrections are to be entered by the Closing Function Tax Examiner.

The date the correction is made will be placed in the corrected (Cor.) block by the Tax Examiner or person making the correction to the item rejected. Form 5650 should then be returned to the closing function for re-input. Refer to IRM 4.5.1, TE/GE AIMS Manual, TE/GE AIMS Processing, for additional information on terminal rejects.

EP Taxes are to be entered by the Examiner.

When an examination results in the assessment of additional tax (excise on prohibited transactions, minimum funding, etc.), the applicable amounts must be reflected in Item 602. Item 602 should also include the tax reflected on original Form 5330 delinquent returns sent to the Campus for processing, unless additional tax or penalties were assessed during examination. The Closing Function Tax Examiners must calculate interest on any additional tax assessed. If the DC is 03, an entry of at least one dollar ($1) must be entered in Item 602. Item 602 should be entered through the terminal and may be positive or negative. An ARDI Code must be entered in Item 42 on Form 5650.

The Penalty and Section is to be entered by the Examiner. The Interest is entered by the Closing Function Tax Examiner.

This item must reflect the interest to be assessed on Item 602 amounts. In addition, the type and amount of penalties assessed during examination should be reflected in item 603. Enter any penalties picked up during the exam that is not reflected on Form 5599 of a related Form 5330. This entry is necessary for processing the adjustment using NMF procedures. Item 603 should not be entered through the terminal. The penalty amount and IRC section must be entered by the Examiner. The Closing Function Tax Examiners must compute and enter the interest amount.

Total penalties and/or interest from Item 603 must be entered by the Closing Function Tax Examiners.

Item 604 must be entered through the terminal and may contain a positive or negative amount.

Adjustments to SB/SE, TS, LB&I or Adjust To Income/Deductions is to be entered by the Examiner.

Enter the amount of the proposed adjustment referred to SB/SE, TS or LB&I.

Total Deductions Claimed are to be entered by the Examiner.

Enter the total deductions claimed (whole dollars only) as reflected on the taxable return (i.e., the deductions claimed on Form 1120, etc.). No commas or decimal points are to be used.

The valid range is 1-999999999. If a deduction is not claimed, a minimum entry of one dollar ($1) must be reflected in Item 606.

Total Trust Assets is to be entered by the Examiner.

Enter the total gross assets of the trust pertaining to only the plan referenced in P53–55 or Item L. An entry must be made. Enter total trust assets as of the end of the plan year. The asset amount may be variable up to 12 digits (include whole dollars only, must be at least $1). No commas or decimal points are to be used.

The Number of Participants Affected are to be entered by the Examiner.

Enter the number of participants directly affected by the results of the exam.

The valid range is 0-99999999.

Type of Plan is entered by the Examiner.

Enter the Type of Plan. Valid entries are:

EP NAICS Code is to be entered by the Examiner.

The EP NAICS Code must be a six-digit numeric character. Refer to Document 11308 for valid EP NAICS Codes.

EP Closing Agreement Results are to be entered by the Examiner.

The Closing Agreement Results must be 12 numeric characters based on the sanction amount.

The Reviewer’s signature and date the report was approved must be entered if the return was reviewed.

The Tax Examiner closing the case that codes, edits, verifies, assembles and sends the case for input through the computer will complete Item K. Item K will include the first initial, last name, and may include the unit employee number. The date that the case was completed and sent for input must also be completed.

The Form Number is to be entered by the Examiner.

Enter the Form Number of the return being closed with Form 5650.

CC TSCLS is to be completed by the Examiner to release the AIMS Freeze on Investor Closures.

The TSCLS is not a valid item for EP BMF Form 5330s.

PICF Code 5 or 6 will prevent premature closing of the investor return unless the Examiner responsible for final case closure has considered any necessary flow-through adjustments from the key case(s) to the investor return.

If a partial assessment is appropriate, entries will not be made in this item. CC TSCLS is only used as part of the final closing action. Do not complete this item when a return is transferred to the service center or closed to Appeals.

When entered, CC TSCLS will automatically check all of the investor’s linkages to see if they have been closed. If all linkages are closed, then CC TSCLS will set the indicator on the partner record and the PICF-CD to a closed status on the Partnership Control System, PCS, and AIMS data bases. When the "REQUEST COMPLETED" message is transmitted to the screen, the Closing Function Tax Examiner can proceed to enter the CC AMCLSO.

If the terminal rejects the input of CC TSCLS, the closing error message "CANNOT CLOSE, PCS CONTROL." The Closing Function Tax Examiner will return the case to the Closing Function with a CC TSUMY (one line summary display for the line 1 Partnership/Partner record and each of its linked Partner/Partnership accounts) print attached.

Partial Agreement (Item B) is to be completed by the Closing Function Tax Examiner to indicate that a partial agreement is being made.

Partial closures of AIMS will allow an adjustment to be made to the tax module without closing the AIMS database. Placing a check in the box marked "Partial=F" instructs the Closing Function Tax Examiner to input the account as a partial and not a final closure on AIMS. Enter the letter F in P1-6 CC AMCLS. RCCMS 3198–A, Special Handling Checksheet should be prepared and attached to the case file by the Examiner providing instructions as to return the case file and copies of assessment documents (i.e., Form 5599 or Form 2859) once the partial has posted.

The only valid item numbers on a partial closures on Form 5599 are 02, 03, 04, 05, 6a, 6b, 6c, 07, 08, 09, 11, 12, 13, 14, 15, 36, 38 and 43.

When a partial assessment is being processed, even though a Hold Code 1 is automatically generated to prevent the release of an advance payment pending the processing of the final adjustment action, TC 570 must be posted to the account. The TC 570 is necessary if a payment has been posted and the TC 30X transaction has or will have a 23C Date that is later than the transaction date of the TC 640. A subsequent posting of a TC 29X/30X will release the TC 570, or when the module balance becomes zero or a debit.

For partial assessments with open TEFRA linkages, an original and copy of Form 5599 must be included in the case file. The copy of the closing document will remain with the case file and will be forwarded to the Campus, Examination Suspense Unit. The original closing document will be forwarded to the Campus Files Function as a source document after terminal input.

For closures to Appeals where the tax adjustment is processed as a partial and is quick assessed, after processing the quick assessment via Form 2859, Request for Quick or Prompt Assessment, prepare Form 3177, Notice of Action for Entry on Master File, to input TC 570. TC 570 will prevent the erroneous refund of a credit balance or advance/subsequent payment that may be on the tax module. When the partial closure to Appeals is not quick assessed, Hold Code 1 is entered on Form 5599 to prevent erroneous refunds.

The following special rules apply when processing a partial assessment:

Final disposition of the case will require use of another Form 5599 and will follow normal procedures, with the following exceptions:

CC AMCLS with a definer code "O" is to be entered by the Closing Function Tax Examiner to indicate a final closing on AIMS.

The upper left corner of Form 5599 must be completed with the definer code to CC AMCLSO. The definer will be entered in the space immediately following CC AMCLS. Depending upon the type of closure, the valid Form 5599 definer codes are:

The TIN is to be entered by the Examiner.

The Taxpayer Identification Number (TIN) identifies the specific taxpayer's account being adjusted. The first digit of the TIN will be entered in the left most position of P7-18. The File Source designates which specific Master File they represent. There are different formats to the TIN, according to the type of return being adjusted. Section 2 of Document 6209, IRS Processing Codes and Information, lists the different types of returns and their respective File Source. The File Source designates which specific Master File they represent. The following are examples of the various TIN formats.
Designation of Master File Sources:

An adjustment can be made against a temporary SSN. The Campus Service Center Entity Control Function will attempt to secure the correct SSN from the taxpayer and perform the "merge" of the correct number to the account after the SSN is secured. In situations where a taxpayer does not have an EIN or refuses to file Form SS-4, Application for Employer Tax Identification Number, the Examiner is required to secure a permanent EIN from the Campus Service Center Entity Control Function. The Examiner will have the return controlled NMF until the permanent number is received.

If an asterisk (*) is present, indicating an invalid SSN, correction may have been made during the examination. Research both the correct number and the invalid number to determine where the original return posted. It may have posted to the invalid number. Carefully study transcripts of all accounts involved before making adjustments. These cases may also involve a duplicate filing condition caused by returns of two different taxpayers trying to post the same account.

CC BNCHG will be used to process merge transactions (TC 011) and fiscal year end changes (TC 05X). THIS COMMAND CODE IS RESTRICTED TO THE ENTITY CONTROL FUNCTION IN THE CAMPUS SERVICE CENTERS. Cases meeting criteria for CC BNCHG should be identified and sent to BMF Entity Control with the proper research attached.

When it is definitely determined that a return has posted to a different taxpayer’s account, perform the following actions:

MFT is to be entered by the Examiner.

The MFT Code or NMF Code must be entered. The MFT designates the numerous types of tax returns as a two-digit code. MFT Codes help to identify the specific tax module in which the adjustment is to post. MFT 76 is the valid entry for Form 5330. Refer to Document 6209, IRS Processing Codes and Information, Section 2, for a complete listing of MFTs.

Tax Period is to be entered by the Examiner.

For TEB, enter the bond issue date in this item.

The tax period is the measure of time for which a return is required to be filed. The format for tax period is YYYYMM. The first four-digits represents the year, the next two digits represents the month. For Form 11-C and Form 730, the beginning of the tax period must be entered. The most common types of filing periods are:

The Name Control/Check Digit is to be entered by the Examiner when using RCCMS TE/GE Work Center.

The name control must appear completely and legibly. The name control is the first four characters of the name, the last name of an individual, or the first partner for partnership returns. No spaces are used except at the end of the name control. If the last name is less than four letters, the remaining positions will be blank.

A check digit is two alpha characters printed on the examination label following the tax period on the first line. If a check digit or name control does not appear on the first print line of the examination label, underline the name control on line two. If the check digit was used to establish the account, the check digit must be used at closing. Enter the check digit in Positions 33 and 34.

CC AMDISA shows the check digit on line one after NM-CTRL is established on AIMS with the check digit.

Although the IRS can apply no sure rule to determine whether a taxpayer is using his or her mother’s maiden name as part of their last name, rather than a middle name, inspection of the return may help. Consider the taxpayer’s use of initials and spacing, and whether they enter a double name in the last name block. From all the information available, select the name control as accurately as possible.

The Name is to be entered by the Examiner.

Enter the name of the taxpayer as shown on the tax return. If necessary, edit the name not to exceed 35 characters.

Enter the name as follows:

The Batch Position Indicator is to be entered by the Closing Function Tax Examiner.

The Batch Position Indicator is not a valid item for EP BMF Form 5330s.

Only NMF accounts require a batch position indicator. This item is used to show whether the record being processed is the first, last, continuation, addition to a block, or single closing of a block.

Valid indicators are as follows:

The Block Number is to be completed by the Closing Function Tax Examiner.

All closures require a blocking series number. The block number identifies the type of return being adjusted and whether or not the return is an original. The Block Number is incorporated into the Document Locator Number (DLN) as the ninth, tenth and eleventh digits. See Exhibit 4.5.2-1 for MF Sorting and Blocking Series for Document Code 47 Adjustments. The Closing Function Tax Examiner will assign a Blocking Series for NMF accounts.

An original Block Number signals to the computer system that there are no other documents that will need to be associated when filing the Form 5599, original return and examination package. Use an original return blocking series for electronically filed returns, and cases in which the TC 150 is a Dummy TC 150. The original return blocking series is necessary, since a paper original return for either of these cases is not available.

A copy Block Number signals to the computer system that there is an original document filed in another location. If the copy blocking series is used, a CP notice will be generated, instructing Files Function in the Campus to pull the original return and associate it with the examined closing documents being filed.

The Sequence Number is to be entered by the Closing Function Tax Examiner.

The Closing Function Tax Examiner, for each case, will enter the sequential number assigned by the terminal within the block on the input document.

The Unpostable Indicator is to be entered by the Closing Function Tax Examiner.

This is a required entry for CC AMCLSU and is used to input adjustments that have unposted or were deleted using CCs TERUP or QRACN. It also identifies the type of unpostable being corrected. The case must be in Status Code 8X or 90 or a partial assessment must have been made. The TC 300 Indicator must be "5." The TC 300 Indicator can be changed with CC AMAXU. A two-digit alpha character is entered and must be one of the following: "LO," "LA," , "PO," or "PA."

The Plan/Report Number is to be completed by the Examiner.

This is a required entry for (Form 8038 returns series), .

For MFT 76, valid Plan Numbers are 000-999

For MFT 46, valid Report Numbers are as follows:

Individual Retirement Account is to be completed by the Examiner.

The IRA SSN of the spouse is a required item when there is an adjustment to the spouse's IRA account.

The Penalty Reason Code is to be completed by the Examiner.

If applicable, complete this item for all EO, FSL/ET or ITG returns in which abatements of penalties or a penalty is considered but not asserted.

This item is not applicable for TEB returns.

The penalty reason code is a required input for abatements of penalties, TC 161, 171, 181, 201, 235, 271, 281, 311, 321, 351 and 241 with Reference Numbers (negative amounts only) 680, 681, 685, and 686. For EP Form 5330 returns the abatement of penalties will be for TC 161, 271, 281, 321, 351 and 241 with Reference Numbers (negative amounts only) 680, 681, 685 and 686.

The reason code can also be input (but not required) with TC 300, 304, and 308. This processing will allow the capture of data when a penalty is considered but not asserted, and when a penalty is considered for abatement, but not abated.

The case file should be returned to the originator if a penalty is being abated and the reason code is not entered. See Exhibit 4.5.2-2 for valid Penalty Reason Codes.

Letter Date and Letter Amount are to be completed by the Examiner.

If the Form 5330 is not for a "C" corporation, these items should remain blank.

If applicable, complete this item for all EO, FSL/ET or ITG returns.

This item is not applicable for TEB returns.

A 2% increased rate of interest is imposed on large corporate underpayments LCU). A "C" corporation defines a large corporate underpayment as any underpayment of tax for any taxable period, if the amount of the underpayment exceeds $100,000. "C" corporations are any corporations other than subchapter S (Small Business) Corporations. Thus, Section 6621(c) applies to Form 990s, Form 990-PFs, Form 990-EZs, Form 1120-POLs and Form 5330s. However, it applies only to corporations, not trusts or associations. A "C" corporation indicator is set in the entity section of corporations defined as "C" corporations. These fields are completed to allow MF to calculate 2% interest when warranted.

The 2% Interest Date is to be completed by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

This item is completed when interest is manually computed and input with TC 340 and 2% is applicable. The date that the 2% interest begins will be entered.

This entry must be 30 days later than the date entered in Item 03 and serves as the trigger date for LCU interest accrual. A terminal reject will occur if:

The 2% Interest Date field is not to be used with the Letter Date and Letter Amount fields. Enter this field when 2% applies and interest is manually computed and input with TC 340.

The Interest to Date is to be completed by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

Enter the Interest to Date field as an information item for personnel making updates to the account. Providing this information will help toward eliminating the need for retrieving the source document to determine how a restricted interest calculation was done.

This field is always completed when interest is manually computed and input with TC 340 or 341. For debit interest, this date will be the date that the interest calculation stopped. This date can be the waiver plus 30 days, a payment date, or 23C assessment date. The date that the final interest calculation stopped on is to be used. For example, partial payment is made on an account before the waiver date. The calculation continues to the waiver date, since the tax is not full paid. The "Interest to Date" will be the waiver date plus 30 days. For credit interest calculations, enter the refund schedule date or the last date that the interest calculation stopped.

If TC 340 for a zero amount is entered, enter the current date in Item 6a. For Offer in Compromise cases, where the adjustment may not be calculated based on an actual "FROM" and "TO" date, enter the date to which the Offer in Compromise was agreed. For bankruptcy cases, which involves an abatement of interest, enter the bankruptcy discharge date.

If TC 340/341 is used and Item 6a is not completed, a terminal reject will occur. The reject will occur to CC AMCLS and CC ADJ54. The Interest to Date cannot be later than the 23C Date or an unpostable condition will occur (Unpostable Code 291, Reason Code 05).

When a quick assessment is warranted, enter the Interest to Date in Item 17 of Form 2859, Request for Quick or Prompt Assessment.

The Credit Interest to Date is to be completed by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

The Credit Interest to Date is input for IMF and BMF. Enter the "TO" date used to manually compute credit interest. This is a required entry when a TC 770 is input for an amount other than zero. This entry is not required for TC 770 with a zero amount. Items 6a and 6b may both be entered when processing TC 770 and TC 340.

Compute Interest Amount is to be completed by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

The Compute Interest Amount is input for both IMF and BMF. Enter the amount, which will include the manually computed interest (TC 340 amounts and any TC 772 netted interest), module balance, accrued and assessed interest, and assessed failure to pay. If the taxpayer does not pay the bill within ten days from the 23C Date, this entry allows the computer to update the interest systemically.

The Hold Code is to be entered by .

The Hold Code is a single digit code that is used to restrict certain MF actions. Hold Codes are used when it is necessary to prevent or delay the issuance of a refund and/or notice. Hold Codes should not be used indiscriminately. If the DC is 07 or 11 and a TC 640 is present on MF, then a Hold Code is required. Refer to Document 6209, IRS Processing Codes and Information, Section 8. Valid Hold Codes are as follows:

Examples of Situations requiring a Hold Code:

The Agreement Date is to be entered by the Closing Function Tax Examiner.

An agreement date is required on the following types of returns when the DC used in Item 13 is 03.

For agreed deficiency cases, enter the date (in MMDDYYYY format) an agreement was received. An entry is not required for overassessment cases or surveyed claims.

Determining the Agreement Date - The agreement date is the received date in the IRS office or the date the Examiner received the agreement from the taxpayer. This should be a date stamp or a handwritten date initialed by the person receiving the document. The following guidelines should be followed in determining the agreement date:

Situations Not Requiring an Agreement Date

Do not make an entry for cases that have no signed agreement, e.g., default cases and United States Tax Court decision cases.

If a second signed agreement is obtained because of an additional assessment, enter the most recent agreement date. A manual computation of interest may be required. Manually compute and restrict interest ONLY when the tax, penalties, and interest are not paid, since interest must be computed to more than one interest stop date. For example: interest on the tax, penalties, and interest from the first agreement will stop on the respective waiver pIus 30 days and interest on the tax and penalty difference between the two agreements will end on the respective waiver plus 30 days. Manual computation is required since MF cannot compute interest to the separate dates.

If the tax, penalties, and interest are FULL paid on two agreements, do NOT manually compute and restrict interest. Interest on the tax, penalties, and interest due, based on the two agreements, will stop as of the payment date. Computing TWO separate interest "STOP" dates is not necessary.

Manual computation of interest is computed in the following manner:

When a payment is accepted in lieu of a signed agreement, the received date can be entered in Item 08 to close the case. If the agreement was received after a payment, enter the received date of the agreement. MF will use the TC 640 date and the "Form 870 date" to compute interest correctly.

The Priority Code is to be entered by the Closing Function Tax Examiner.

A priority code is a single digit code that must be used in order to post adjustments to MF when certain conditions exist. Failure to use the priority code when specified will cause the transactions to unpost. A transaction going unpostable may cause erroneous notices, refunds or billings. Valid Priority Codes to close AIMS cases are 1, 2, 3, 4, 5, 8 and 9. Priority Code 2 or 3 is a required entry for all examinations closed without the original return in the file. The definitions for Examination (AIMS) priority codes are not necessarily the same priority codes for Data Processing (DP) adjustments. See Exhibit 4.5.2-3 for the valid Priority Codes. Refer to Document 6209, IRS Processing Codes and Information, Section 8, for additional information on the definitions for data processing priority codes.

The use of Priority Codes to release amended returns is needed only after it has been considered by the Examiner.

The Settlement Amount is to be entered by the Closing Function Tax Examiner.

The Settlement Amount is the amount of the tax liability currently posted on the tax module. An entry is required on all cases closed on a copy of a return, unless the case is being closed to Appeals.

On Form 5599, Item 10, enter the amount of "Tax Shown on Return or as Previously Adjusted" from the examination report. If the tax per return is zero, enter a $1.00.

The tax liability amount of $850.00 in the previous example should match the tax previously adjusted line from the examination report for the specific tax period. Also, $850.00 is the "Settlement Amount" that would be entered in Item 10 on Form 5599.

For DC 01–06, 08–10, 12–19, 34, 50, 52–55, if the tax per return is zero, enter $1.00 in Item 10, Settlement Amount.

For DC 01 and 02, enter an amount in Item 10 to be compatible with RCCMS programming. A Priority Code 2 or 3 must be entered in Item 09. Use Priority Code 3 only when Priority Codes 1 and 2 both apply.

Make an entry in Item 10 required if Priority Code 2 or 3 is entered in Item 09.

If the settlement amount for an examination case, closed on a copy of a return, does not equal (within $10.00) the original tax liability amount plus any subsequent adjustment transactions, an unpostable condition will result unless Priority Code 2 or 3 is present.

The Interest Computation Date is to be entered by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

If IRC Section 6205 Interest Free Adjustment is applicable, (TC 340) this field must be completed.

For cases closed with TC 304, 305, 308, or 309, enter the date interest begins. For further information refer to IRM 20.2 , Interest.

The Tax Liability Adjustment is to be entered by the Closing Function Tax Examiner.

Transaction Code (TC) is identified as "Code" on Form 5599. The "Code" must be three digits. The DOC Code for each TC placed on Form 5599 must be 47. Refer to Document 6209, IRS Processing Codes and Information, for TC’s and DOC Codes. The Increase in Tax Dollars and Decrease in Tax Dollars may be up to 11 digits. The Adjustment Penalty, Penalties and Interest may also be up to 11 digits.

The Adjustment/Penalty and Penalties may be up to 11 digits. The DOC Code to assess or abate a penalty on the Form 5599 must be 47. See Exhibit 4.5.2-4 for valid Transactions Codes.

Determination of the Tax Adjustment - It is very important that the person closing the case accurately identify the tax adjustment. The correct tax adjustment is determined by the following formula: Corrected Tax minus Previously Adjusted Tax = Tax on Form 5599.

For MFT 46, if additional tax is being assessed the "Interest Section" should contain a TC 340 -0-, as interest is not applicable.

With respect to employment tax case closure processing:

The Disposal Code is completed by the Examiner.

One DC must be entered that best describes the examination results.

The Statute Extended to Date is completed by Examiner.

For TEB, MFT 46, this Item is not applicable.

The statute date should be determined for all cases. If the statute expiration date has been extended, and it was not previously updated on AIMS, complete Item 14. When the entry in Item 14 is input, it will generate an extended statute date (ASED/TC 560) on the MF. TC 560 will not post at MF if the only return transaction code is an SFR TC 150. If a valid Form 872, Consent to Extend the Time to Assess Tax, is in the file, the extended statute date must be entered in Item 14.

A date must also be entered when Form 872 has not been secured, but only if the statute has extended the expiration date.

If the AIMS database contains an alpha character in the statute date, that date must be updated to a numeric date before closing, if an assessment is input. (For example, AA = Claim Update, refer to IRM 25.6, Statute of Limitations, for a list of alpha statute codes.) Updating the alpha date is not required on "No Change" cases. Failure to input a numeric date will cause an unpostable condition, if the MF statute date has expired and an assessment attempts to post. Since AIMS does not send an alpha statute update to MF, the original statute date is still present (AIMS Status Update has Failed for. Statue less than 60 days/ Quick Assessment Required. Note: The system has a validity check to identify statues with 60 days or less to prevent unpostables). If "872-A" is reflected on the AIMS data base, Item 14 must be updated to a valid date unless the case is closed to Appeals. Timely filed examined claims that result in a refund will post to MF even when the ASED has expired.

When preparing Form 872-A, use the most current form available. Form 872-A for fully agreed deficiencies and overassessment or for no change and unagreed overassessment cases, extend the period of limitations 90 days after the date the Service mails a written notification (Form 872-T, Notice of Termination of Special Consent to Extend the Time to Assess Tax) to the taxpayer; or 90 days after the date the Service receives an executed Form 872-T from the taxpayer. In the above situations, Form 872-T is always required to terminate the Form 872-A. For unagreed overassessment cases closed from Appeals, the statute extended to date will be entered on Form 5403, Appeals Closing Record. Forms 872-A for fully agreed deficiencies and overassessment extends the period of limitations until the assessment/overassessment is made. Form 872-T would not be required. In this situation, enter a statute extended to date of 120 days from the date the case is expected to close on AIMS at the terminal. Form 872-A for unagreed deficiencies may involve the issue of a notice of deficiency to the taxpayer. See Exhibit 4.5.2-5 Computation of Statute Dates, for computing the statute date.

Form 872-T must be prepared for all "No Change" cases regardless of the Form 872-A revision date. If a Form 872-T, executed by the Director of EP, EO or GE (FSL/ET or ITG) Examination or their designee is in the case file, it will be mailed to the taxpayer upon closing the case.

Attach copies of executed Forms 872-T, mailed to the taxpayer, to the tax return on which it applies. Copies of Form 872-T should be made for other tax years, if they are present on Form 872-T.

If the case involved Fraud, the period of limitations is not a factor; however, a statute extended to date entry may be applicable. Enter a statute date of 120 days from the date it is expected to close at the terminal. An entry is not necessary if Item 38 (Fraud Condition) on Form 5599 has an entry.

If the examination resulted, from a written request by the taxpayer for prompt assessment under IRC 6501(d), the statute expiration date is 18 months from the date the written request is received, but not to exceed the normal three-year statute. Enter the requested date in Item 14.

The minimum ASED on a bankruptcy case is 60-days after the bankruptcy stay on assessment is lifted plus the number of days remaining on the normal statute before the stay went into effect. Alpha code KK is used to control bankruptcy cases until the case is ready to be closed from the AIMS system. Consult the Special Procedures Staff in Collection Division for further information.

The Credit and Tax Computation Adjustment item is completed by the Closing Function Tax Examiner.

A Credit/Item Reference Number is a three-digit code used to adjust taxpayer information according to the type of return being examined.

When making any entry in Item 15 of Form 5599 you must ensure that the (+) or (-) is identified in the last column. The (+) or (-) must be circled to ensure that the correct Reference Information or Credit Adjustment is made to the taxpayer's account. The IMF Adjusted Gross Income (AGI) amount may be a positive or a negative amount on the transcript (IMFOLR or TXMODA). Therefore, an adjustment to IMF AGI may bring the amount to below zero. This would be shown as a negative figure on the transcript. The IMF Taxable Income (TI) will only reflect a positive amount, or zero. The IMF TI may not be adjusted to below zero.

Entries in this item are used to:

An entry identified with a (+) in Item 15 reflects an increased adjustment amount. Therefore, if there is an increase in TI, AGI or Exemptions, that amount is entered in Item 15 with the (+) circled in the last column

An entry identified with a (-) in Item 15 reflects a decreased adjustment amount. Therefore, if there is a decrease in TI, AGI or Exemptions, that amount is entered in Item 15 with the (-) circled in the last column.

Follow the guidelines listed below when processing adjustments to AGI and TI for IMF returns:

IMF Credit/Item Reference Numbers:

Adjustment to Prepayment Credits:

Refundable Credits:

EP BMF Form 5330 Credit/Item Reference Numbers: This field must be completed if assessing or abating 5330 taxes in Item 12 of Form 5599. The Tax (TC 300/ TC 301) must match Reference Codes listed below for final closing. More than one Reference Code must match tax exactly (e.g. Ref 163 = 1000 and Ref 225 = 1500 then TC 300 = 2500). Any mismatch with dollars/cents in Tax or Reference Code will cause a reject case to close. Listed below are the valid Credit/Item Reference Numbers entries for Item 15:

BMF Credit/Item Reference Numbers: (Form 1120, Form 1041 and Form 990-T) Any time taxable income is changed due to an adjustment, use Item Reference Number 886 to correct. When decreasing taxable income, use Item Reference Number 886 with a minus (-) after the money amount.

Form 941: On all Form 941 series adjustments all increases and decreases in tax must use reference numbers for employment tax returns. The sum of Reference Numbers 003, 007 and 008 must equal the tax amount that is being adjusted.

Any Employment Tax Returns will be processed using the new reference codes since processing procedures for Submission Processing must be initiated at the beginning of the year.

The following is noted with regards to previous IRN usage with Form 941 (and Form 944 where applicable):

See the following references for IRNs and CRNs applicable to other employment tax form:

Form 940: All increases and decreases in tax must use reference numbers associated with the State indicated on the return. The total of the tax reference amounts must equal the tax amount that is being adjusted. If the increase or decrease in wages, a wage reference number is required. Reference numbers for MFT 10 (Form 940) will be alphabetic, and the left most position will be either a "T" (adjustment to tax) or "W" (adjustment to wages), followed by the appropriate State abbreviation.

The second and third positions are standard state abbreviation codes, which are as follows:

Form 720: Is filed to report and pay excise taxes levied on specific services and the manufacturing and sale of certain items. The items are identified by an IRS Abstract Number on the return. When the tax is adjusted on Form 720, the IRS Abstract Number must also be adjusted.

Form 4720: Applicable Item Reference Numbers are as follows:

Adjustments to Certain Penalties - The adjustments to certain penalties in Item 15 on Form 5599 are limited to the following REF:

A total of eight reference items, may be input. The positive and negative fields may be changed according to the reference number if needed. If more than eight reference items are needed, the excess should be processed on Form 8485, Assessment Adjustment Case Record or Form 3870, Request for Adjustment using CC ADJ54. The reference items processed via ADJ54 must be those items that do not affect tax and penalties which are included in Examination Results (e.g., reference items 878, 879, 886, 887, 888, and 889.) Ensure that reference items that do not affect tax and penalties, which are included in Examination Results (e.g., reference items 680, 681, 682, 764/765, 766/767, or 806/807), are processed through CC AMCLS.

If a change to AGI, Taxable Income or Self-Employment Income/Tax, has been made, but it results in no income tax due (no change with adjustment case), process these reference item adjustments using DC 01 and Item 15 with the appropriate reference number and amount.

The Closing Function Tax Examiner will enter Item D after Form 5599 is input on the terminal. The entry should include the tax examiner’s employee number and the date of input.

This item is completed by the Closing Function Tax Examiner only if Form 5599 is rejected.

The Closing Function Tax Examiner will enter the date in the reject (Rej.) block when an entry on Form 5599 does not meet a validity check at the terminal. The Closing Function Tax Examiner must attach a print of the CC AMCLSO to the Form 5599 and indicate the item that failed to meet the validity check and the reason it failed. This procedure will alert the Closing Function Tax Examiner of what item failed to meet the validity check.

The Closing Function Tax Examiner must determine and annotate the appropriate blocking series on Form 5599 for MF cases. See Exhibit 4.5.2-1 for MF blocking information.

The Closing Function Tax Examiner will enter the complete renumbered DLN after the closing data has been input. The Closing Function Tax Examiner will assign a NMF block to all NMF case files.

The date the correction is made will be placed in the corrected (Cor.) block by the Closing Function Tax Examiner or person making the correction to the item rejected. Form 5599 will then be returned to the closing function for input. Refer to IRM 4.5.1 for additional information on terminal rejects.

The Appeals Office Code is entered by Mandatory Review.

Enter a three-digit numeric code if the case is to be forwarded to Appeals. Valid DCs would be 07, Non-Docketed cases or DC 11 for Docketed cases. See Exhibit 4.5.2-6 for valid Appeals Office Codes. Cases going to Appeals should not be forwarded out of their jurisdiction. Appeals will update and forward these cases to the appropriate Appeals office.

The EO/GE Appeals Issue Code is entered by Mandatory Review.

Not a valid item for EP BMF Form 5330s.

DC must be 07 or 11. For valid Appeals Issue Codes, refer to:

The Unagreed Amount is entered by Mandatory Review.

If a return is being closed to Appeals, the unagreed amount being appealed (DC 07), or petitioned (DC 11), is a required entry. The entry should only reflect the unagreed portion of tax, penalties, and credit adjustments. (Do not include the interest portion of the penalty due to negligence and fraud.) This will be the full deficiency less any partial assessments of the agreed portion of the tax. Circle the "+" or "-" at the end of the line to denote a positive or negative amount.

If a claim without other adjustments is being referred to Appeals, an amount of negative $1 must be entered in Item 18. The claim amount that is being appealed is entered in Item 21 (Amount Claimed).

The AIMS/MF Update Data is to be entered by the Examiner.

If the NAICS coder is not accurate on the AIMS data base enter reference number 410/NNNNNN=NAICS Code.

Items 20-24 are to be completed by the Examiner.

Protection of the revenue base is the work done by TE/GE personnel to prevent the release of money from the Treasury to a taxpayer. Item Numbers 22, 23, and 24 are to be completed only if Revenue Base Protection (RBP) applies. The most common example of RBP is the examination of a claim submitted by a taxpayer whose account has no outstanding liability for which they filed a claim. If they disallow the claim, Examiners are expending resources to prevent the release of money from the Treasury. We measure this valuable contribution by TE/GE personnel, through the completion of the Revenue Base Protection Section of Form 5599, Items 20-24.

A claim is only considered as RBP if we are preventing money from leaving the Treasury. If an outstanding balance is due on the account, the RBP amount will not be the entire amount of the claim. A calculation must be done to determine how much of the claim qualifies as RBP. Since the taxpayer can be making payments on the outstanding liability while the examination is taking place, the Examiner must make the calculation when the examination is completed.

Not all claims are considered RBP; therefore, a claim Source Code does not have any relationship with RBP. Although the following situations are sometimes called "claims," they do not qualify as RBP:

Claim Rejection Date is to be completed by the Examiner if a signed Form 2297 is secured. If a letter needs to be issued, the Claim Rejection Date is to be completed by the Examiner.

If the Campus previously allowed the claim, an entry should not be made.

If a date is entered, the EP, EO or GE DC must be 01, 03, 07, 10, or 11 and the Source Code must be 30. DC 34 cannot be used.

The Amount Claimed is to be completed by the Examiner.

Enter the amount of the claim or reduction of tax requested by the taxpayer. If the Source Code is 30, this item is a required entry.

Form 843, Form 1040-X, Form 1120-X, amended returns, or written claim requests by taxpayers are considered claims. The amount from the applicable form must be entered unless the amount is in error. For example, the taxpayer submits a claim for $1,500. In examining the claim, it is discovered that the taxpayer made a computation error and the correct amount is $2,500. A correction must be made to the Amount Claimed field on AIMS to reflect the correct amount. Form 5598 (CC AMAXUO) is prepared to correct the claim amount. If the AIMS database does not show a claim amount, then use Form 5595 (CC AMSTU) to update the claim amount on AIMS. Claims filed during an examination after an examination report has been written are treated as claims. Protective claims are treated as claims. Oral requests for a refund made during an interview or by telephone are not claims.

If the taxpayer submitted a protective claim for $1, when the correct amount of the claim is determined, AIMS should be updated using CC AMSTU to reflect the correct amount. Enter the corrected amount in Item 21, at closing.

The Claim Amount Disallowed is to be completed by the Examiner.

Enter the dollar amount that was protected from leaving the revenue base (a disallowed claim amount). This amount cannot exceed the amount that is entered in Item 21 or in the amount claimed field on AIMS. An entry must not be made if the claim was allowed in full.

If the claim is being referred to Appeals, enter the entire disallowed amount in this field and a negative $1 in Item 18. If the taxpayer is also protesting other issues, enter the protested amount of the other issues in item 18 and the claim amount disallowed in Item 22. See Exhibit 4.5.2-7, Claim Amount Examples, for Item 22 entries.

Claim Hours is to be completed by the Examiner.

Time spent on revenue base protection must be entered in whole hours only. Examiners must include any hours or fractions of hours spent on non-revenue in Item 28.

If Item 22 is entered, Items 20, 21 and 24, are also required.

Claim Type is to be completed by the Examiner.

All Claims with examination criteria will be slotted into one of two categories for screening. The examination criteria are divided into two categories: Category A and Category B. Category A criteria denotes high examination potential. Category B criteria are issues that do not meet Category A criteria and have a refund of at least $200.00 or more. The allowable alpha codes identify the type of revenue base protection. These codes represent examples of the types of requests for the release of money which, when examined, would be categorized as Revenue Base Protection. Remember, the codes are only applicable if the tax liability has been paid and the money requested on the claim has not been released. Exhibit 4.5.2-9 for a listing of valid Claim Type Codes.

Examiner's Time is to be completed by the Examiner.

Enter the total time spent on non-revenue base protection issues for each return examined. Do not include this time in Item 23. Time should not be entered for partially agreed cases.

If the return has been re-established from Status Code 90 using CC AMSTUR or returned from Appeals using CC AMSTUB, the total time from both closings must be entered in this field.

An entry is required for all examined returns and is reported in full hours and 15 minute increments. The entry must be in the range :i.e. .3 =.15 minutes; .5 = .30 minutes; and .7 = .45 minutes.

The entry for cases also involving protection of the Revenue Base must only include Non-Revenue Production Time. The protection of the Revenue Base Time must be entered in Item 23 in whole hours.

An entry is not made for Surveyed Claims, DC 34.

The Examination Technique code to be entered by the Examiner.

An entry is required for all examined returns. An entry is not made for DC 34 (Surveyed Claims). Valid codes for this item are:

The Examiner's Grade is to be entered by the Examiner.

Enter the two-digit grade of the Examiner who performed the examination. This is a required entry for all examined returns. An entry is not required for DC 34 (Surveyed Claims). Valid range of grades are 05 through 14.

Case Grade is to be entered by the Group Manager.

Group managers determine grade of case for all returns. The manager will consider both the primary and related returns to determine the grade level.

For the EP Form 990-T, the case grade must be 09, 11, 12, or 13.

For Discrepancy Adjustments, all grades of cases must begin with "3."

The related returns are graded to be the same as the primary return, therefore, the same three-digit code is used followed by an "R." When other Examiners examine the related entities, each manager grades the separate entities as separate cases and they do not enter the "R."

When entering the case grade in this item, left justify the entry. Refer to the chart below for correct case grade entries.

The Examiner's Name is to be entered by the Examiner.

This item is a required entry for all examined returns. An entry is not required for DC 34, Surveyed Claims. Enter the last name first, followed by a space and the first initial.

The Exam Adjustment Amount is to be completed by the Closing Function Tax Examiner.

Not a valid item for EP BMF Form 5330s.

This field is used to reflect adjustments to non-taxable returns only.

The Manual Assessment Amount is to be entered by the Closing Function Tax Examiner.

Enter the net of all adjustments processed using quick (manual) assessment procedures. If more than one quick assessment has been made, ensure that this entry is the total of all assessments processed.

Do not complete this item for no change cases (DC 01, 02 or 08), or for non-taxable returns.

AIMS contains many computer checks that are based on the DC and the Examination Results. Any changed DC requires Examination Results. Cases that are truly changed cases, but have no examination results, will require an amount of $1 in Item 35. Some examples of these cases are:

The Hash Total is to be entered by the Closing Function Tax Examiner.

This entry will be made for all examined returns. "Hash Total" is a term applied to the sum of several unrelated item numbers entered on Form 5599. The computer will compare the Hash Total entered in Item 36 with the total of individual items as entered by the Closing Function Tax Examiner. This will assure the accuracy of the input of individual entries.

Items to be included (if entered) in the Hash Total are as follows:

The Delinquent Return Code is entered by the Examiner.

Item 37 must always be completed when closing delinquent returns picked up during the examination and sent to the campus for a posting for TC 150. This entry is what gives TE/GE credit for a delinquent return pick-up on Report 20.

If the delinquent return is incorporated into the examination, this item must be left blank.

Segregate the closing records of delinquent returns secured by MFT code. For each type of return included in the case file, the Group Clerk will:

The Fraud Condition Code is to be entered by the Examiner.

The Fraud Condition code identifies the existence of fraud detected during an examination.

This item is not applicable for TEB returns.

This item may be blank or contain an entry of "C" (Civil) or "F" (Fraud) or "B" (Both).

Disclosure Code is to be entered by the Closing Function Tax Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

This item must be completed when disclosure is made to a state agency for state tax administration under IRC 6103(p)(3)(A) of IRM 11.3, Disclosure of Official Information . Exhibit 4.5.2-10 for valid Disclosure Codes.

The Special Project Code is to be entered by the Examiner.

Special Project Codes are used to identify a Priority Emphasis Program or a referral to SBSE, TS or LB&I Areas. Valid project codes are 4 Digits in the range of 0000-9999. Refer to the following for valid Special Project Codes:
• Document 11308. (EP/EO/GE)

No Change Issue Codes are to be entered by the Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

This entry identifies examined discrepancy issues that resulted in a "No Change" to taxable income. An entry must be present when closing examinations of Form 1040 or Form 1040-A (MFT 30) with a "No Change" DC on Discrepancy Adjustments only.

The following codes are valid codes for a "No Change" on a Discrepancy Adjustment:

The ARDI Code is to be entered by the Examiner.

Enter a one-digit code in this item for an agreed deficiency under the Accounts Receivable Dollar inventory (ARDI) project.

When closing multiple years and an overassessment from one year will be used to offset an assessment from another year, consider the overassessment as payment secured. Full Paid or Partially Paid depends on the amount of the overassessment.

The ARDI Code is valid for all IMF and BMF MFT Codes. Valid DCs are:

Valid ARDI Codes are as follows:

The Delay Posting Code is to be entered by the Closing Function Tax Examiner.

This item is not applicable for TEB returns.

A one position field with values of 1-6. Values indicate the number of cycles (weeks) delayed between posting transactions.

NOL CF Disallowed Amount is to be entered by the Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

This item should be completed if all or part of an NOL Carry Forward year return is not picked-up. If Item 44 is entered, item 45 NOL Indicator is required. If Item 44 is input, DC 02 cannot be entered in Item 13 on Form 5599. NOL CF Disallowed Amount is 1-11 characters. May not be negative or zero. This item is to be included in Item 36, Hash Total.

NOL Indicator is to be entered by the Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

Values are 1, 2, or 3. This item is only used to identify the three types of NOL/Carry Forward Returns.

NOL/Related Return Examples:

Offset Example:

Credit CF Disallowed Amount is to be entered by the Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

This item is used if you made adjustments to a credit that was carried forward but did not pick-up the carry forward year return. Enter the amount that was disaIlowed.

CF Credit Type is to be entered by the Examiner.

Not a valid item for EP BMF Form 5330s or TEB returns.

Enter the type of credit that was disallowed in Item 46. If more than one type of credit was disallowed, enter "M" for multiple. The following table lists the credit type to enter in Item 47 and the corresponding definition.

A four–digit code to be entered by the Examiner.

The Secondary Business Code (SBC) is reserved for future use by TE/GE. Must be blank or have an entry of five zeros (i.e., 00000).

The Employee Group Code is to be entered by the Examiner.

The Employee Group Code (EGC) is a four-digit code designating a specific group. An EGC is a required entry on all Examined full closures with the exception of DC 34, Surveyed Claims. The following list identifies the EGCs used by TE/GE:

The Check Box is to be completed by the Examiner when additional entries are entered on Page 2 of the Form 5999.

The Check Box alerts the Closing Function Tax Examiner of the completion of the additional items on Page 2.

Reviewer/Date is to be entered by the Reviewer.

The Reviewer’s signature and date must be entered, if the return was reviewed.

Tax Examiner/Date is to be entered by the Tax Examiner in the Closing Function.

The Tax Examiner closing the case who codes, edits, verifies, assembles and sends the case for input through the computer will complete Item K. Item K will include the first initial, last name and may include the unit employee number. The date that the case was completed and sent for input must also be entered.

The Reason Codes are to be entered by the Examiner.

There are several reason codes valid on master file. However, only the reason codes listed below are valid on AIMS. The same reason code can appear only once in Items 51-53. Valid reason codes are:

The credit is valid for 1040's MFT 30 only.

No entry can be a duplicate of another as AIMS will reject the closure.

The SHIP-LIVE/AMT is to be entered by the Examiner.

This item is used when updating the average number of lives covered under these health insurance policies or plans. SHIP-Lives (906) is Specified Health Insurance Policies Average Number of Lives covered.

The value for the first three-digits is pre-populated with 906 the remaining nine spaces are to be completed by Examiner.

The ASIHP-LIVE/AMT is to be entered by the Examiner.

ASIHP-LIVE (907) is applicable Self-Insurance Health Plans Average number of lives covered.

The value for the first three-digits is pre-populated with 907 the remaining nine spaces are to be completed by Examiner.

The SHIP-LIVE-OCT is to be entered by the Examiner.

This item is used when updating the average number of lives covered under these health insurance policies or plans after October 1, 2015 and before October 1, 2016 and in subsequent years.

The value for the first three-digits is pre-populated with 908 the remaining nine spaces are to be completed by Examiner.

The ASIHP-LIVE-OCT is to be entered by the Examiner.

This item is used when updating the average number of lives covered under these health insurance policies or plans after October 1, 2015 and before October 1, 2016 and in subsequent years.

The value for the first three-digits is pre-populated with 909 the remaining nine spaces are to be completed by Examiner.

The CIC Case Indicator is to be entered by the GE Examiner.

Not a valid item for EP BMF Form 5330s.

For EP (5500 Returns),TEB, FSL/ET and ITG - If the examination is a large case examination, a "L" should be entered. This entry is valid only in the area having primary responsibility for a large case examination.

The Whipsaw Indicator is to be entered by the Examiner.

This item is not applicable for TEB returns.

Where the Government's interest is being protected by making the same adjustment against the same taxpayer for different tax periods, or against two or more taxpayers, an alpha indicator (K = Key Case, R = Related Case) must be entered to identify the case as a Whipsaw case.

If there are additional issues on the return that have been adjusted, the indicator should be used only if the majority of the adjustments were due to the whipsaw.

The International Examiner's Time is to be entered by the Examiner.

This item is not applicable for TEB returns.

Enter the percentage of the total time (reported in Item 28) that represents the International Examiner's time.

Do not include the international examiners time spent on Revenue Base Protection issues in this calculation.

The International Exam Results is to be entered by the Examiner.

This item is not applicable for TEB returns.

Enter the percentage of the exam results (agreed and unagreed) that is due to the international examiners involvement.

Do not include Revenue Base Protection results due to the International Examiner.

Abstract Information is to be entered by the GE Examiner.

This item is not applicable for TEB returns.

When a Form 720 is established on AIMS, the database contains only one abstract code which is located in the activity code field. All activity codes that were examined must be entered in Item 404.

Entries for the total time spent on the case and all assessments are made on the front of the Form 5599.

Entries for AIMS statistical reporting purposes are made in Item 404a-404d on the back of the form.

This item is not applicable for TEB returns.

The Related Return Information Section is to be completed by the GE Examiner.

Required entry for all examined returns worked by Examiners in a 72XX Organization Code. The information entered must be from the primary return which is the initial return that started the examination.

If several returns were assigned initially, the Examiner will designate one return as primary.

An examination label may be used, but the name control must be lined out and Item 408 entered separately.

Missing or conflicting information will cause a terminal reject.

If there is an installment agreement, this code should be entered by the GE Examiner.

This code is not applicable for MFT 46 cases.

Select the code based on whether an installment agreement was secured.

Delinquent Return Amount is to be entered by the Examiner.

In order to capture accurate results when TE/GE secures delinquent returns, a separate field has been initiated. Previously this amount was entered in the dual-purpose field, Item 34, Adjustment Amount. Item 34 will be used to reflect adjustments to non-taxable returns only. Item 414 will be used for delinquent returns secured by TE/GE.

For taxable returns, the amount entered in Item 414 must reflect the balance due or refund amount per the return that was forwarded to the Campus r for posting of the TC 150. If this amount is zero, enter a $1 in this field.

For EP taxable returns, i.e., Form 5330s, the amount entered in Item 414 must reflect the tax and penalties that were assessed after the return was forwarded to the Campus. Zero is an invalid entry.

For non-taxable returns, enter the amount in Item 414 of the ordinary net income/loss or special allocation items per return forwarded to the Campus for posting of the TC 150. If this amount is zero, enter a $1 in this field.

If Item 414 is entered, Item 37-Delinquent Return Code must also be entered and vice versa.

If Item 414 is entered, Item 13-Disposal Code must not be 02 (No Change) or 34 (Surveyed Claim).

Item 414 can be corrected by using CC AMAXUO.

If there is no balance due/refund due or no change to income/loss, enter a $1 in Item 414.

The delinquent return amount will no longer be included in "Exam Results." It will appear in a separate column of the AIMS reports.

Amended Return Amount is to be entered by the Examiner.

In the past, if a taxpayer filed an amended return with the Service Center, even if it was due to an ongoing examination, TE/GE could not take credit for the adjustment. To accurately capture the Examiners’ efforts, a new Item 415 has been initiated. This entry is only valid if MF shows that the examination was started before the taxpayer filed the amended return or an original return, if the TC 150 is a Substitute for Return (SFR). Enter the amount of the TC 29X processed by the Campus that has posted to MF, if the return was filed as a result of an ongoing examination. A current transcript must be included in the case file supporting the amount entered in Item 415. The TC 42X date must be prior to the TC 29X date. If there is no other assessment to be made, close the case using DC 01. Leave Item 37 blank.

For taxable returns, enter the amount of the TC 29X, less any credits posted. In most cases this is the balance or refund due.

For non-taxable returns, enter the adjustment amount to income or loss.

Item 415 can be corrected by CC AMAXUO.

Fax Agreement Indicator is to be entered by the Examiner.

This item is not applicable for TEB returns.

If the taxpayer faxed the agreement to the Examiner, enter a "1" . Otherwise, leave this item blank.

3121q amount is entered by the Examiner.

This item is valid only for 941 returns.

The IRC Subsection is to be entered by the EO Examiner.

Not a valid item for EP BMF Form 5330s or GE returns.

Enter the appropriate two-digit code. If an IRC Subsection does not apply, leave this item blank. Refer to Document 11308, Information Systems Codes Quick Reference for TE/GE Employees when Item 702 is a required entry.

The Asset Code is to be entered by the EO Examiner.

Not a valid item for EP BMF Form 5330s or GE returns.

Entry is valid for 990-PFs (MFT 44) only, in all other instances, leave this item blank. Refer to Document 11308, Information Systems Codes Quick Reference for TE/GE Employees for the appropriate asset amount codes.

Related Return is to be entered by the EO Examiner.

Not a valid item for EP BMF Form 5330s or GE returns.

When closing a 990-T account related to a 990 examination, enter a "1." When closing a 990-T account related to a 990-PF examination, enter a "2." In all other instances leave blank.

The Additional EO/GE Examined Closing Information is to be entered by the EO or GE Examiner.

Not valid for EP BMF Form 5330s.

Complete for the primary return only.

The Analysis of Change in Tax Liability items are to be entered by the EO or GE Examiner.

Not valid for EP BMF Form 5330s.

Complete for the Primary Return ONLY.

GE - In Items 721-724, enter the change in tax liability resulting from the examination. For a non-tax issue or a "No Change" closing, leave these items blank.

EO - On the appropriate line(s), enter the change in tax liability resulting from the examination. For a non-tax issue or a "No Change" closing, leave Items 708 through 720 and 728 through 731 blank.

For Form 4720 complete the following, if applicable:

For Form 990-PF complete the following, if applicable:

For Form 990-BL complete the following, if applicable:

For Form 990-T complete the following, if applicable:

For Form 940, Form 941, Form 942, Form 943, Form 945, Form CT-1, Form CT-2 or Form 1042, complete the following, if applicable:

For IRC Section 507, Termination Tax, complete the following, if applicable:

For IRC Section 527, Political Activity, complete the following if applicable:

For IRC Section 6684, Penalty, complete the following, if applicable:

For Penalty (Other), complete the following, if applicable:

For Fair Market Value Property (Result of Corrections) complete the following, if applicable:

For IRC Section 6652(c)(1)(A)(i), Failure to File Return

For IRC Section 6652(c)(1)(a)(ii), Failure to include required information on return.

For IRC Section 6652(c)(1)(B), Penalty on Manager for failure to file return/failure to include required information.

For IRC Section 6652(c)(1)(C), Failure to disclose annual return for public inspection.

For IRC Section 6652(c)(1)(D), Failure to disclose application for exemption for public inspection.

For IRC Section 6685, Penalties for failure to meet public inspection requirements.

For IRC Section 6033(e)(2), Income Tax

The Comments Section will be completed by the EP, EO or GE Examiner.

Cases having related returns will be identified by the EP, EO or GE Examiner by writing "Related Case" in the "Comments" area. In addition, the name, EIN, and the return form number of the related case will be shown. Other pertinent information related to the case may be entered in the "Comments" area, space permitting.