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IRS Audits

Chapter 5. TE/GE AIMS Manual

Section 1. TE/GE AIMS Processing

4.5.1  TE/GE AIMS Processing

4.5.1.1  (04-01-2003)
Support Processing Overview

  1. This manual contains procedures for the Audit Information Management Systems (AIMS). The procedures are for Examination Special Support (ESS) Tax Examiners for processing complex cases and cases closed to Appeals. These procedures also assist TE/GE employees who process examination cases. They are also used by EP and EO Technical Screening functions.

  2. AIMS is a computerized system used to secure returns, maintain inventory control of examinations, record examination results, and provide management with the statistical reports required under examination and compliance programs. Under AIMS, extensive use is made of the Integrated Data Retrieval System (IDRS) terminals located in the ESS area offices.

  3. This IRM is a companion to the AIMS/Processing procedures found in IRM 4.4. For a glossary of general AIMS terms, refer to IRM 4.4.1, Exhibit 4.4.1-1.

  4. The ESS conducts mass processing operations in direct support of EP, EO and GE programs, including—

    1. inputting data to and extraction from the Integrated Data Retrieval System (IDRS)

    2. maintaining suspense files, including statute controls

    3. processing case files and other documents

    4. other direct, specialized clerical support services, etc.

     

  5. The work in ESS is diversified and may require additional background information. Besides this manual and IRM 4.4, AIMS/Processing Handbook, each processing unit should refer to the following materials for research or reference:

    • Doc. 6209, ADP and IDRS Information

    • Doc. 6379, Exempt Organization Management Information Systems Codes

    • Doc. 6476, Employee Plans Computer Systems Codes

    • Doc. 11308, Government Entities Computer Systems Codes

    • IRM 2.2, Partnership Control System Command Codes

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 2.8, Audit Information Management System (AIMS)

    • IRM 2.9, Integrated Data Retrieval Systems (IDRS) Procedures

    • IRM 3.12.6, DP Tax Adjustments

    • IRM 3.12.12, Exempt Organization Returns

    • IRM 3.12.32, General Unpostables

    • IRM 3.12.166, EPMF Unpostables

    • IRM 3.12.179, IMF/BMF/EPMF/IRMF/CAWR Unpostables

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.13.12, Exempt Organization Account Numbers

    • IRM 3.13.36, EPMF Account Numbers

    • IRM 3.13.122, Entity Control Unpostables for IMF and IRAF

    • IRM 3.13.222, Entity Control Unpostables for the BMF

    • IRM 3.15.259, EPMF DP Tax Adjustments

    • IRM 3.27.68, ADP Systems Codes

    • IRM 20.1, Penalty Manual

    • IRM 20.2, Interest Manual

    • IRM 25.6, Statute of Limitations

    • IRM 25.7, Exempt Organization Business Master File

     

  6. The TE/GE Technical Screening Function should refer to the procedures in the following manuals:

    • IRM 2.3, IDRS Terminal Response

    • IRM 2.4, IDRS Terminal Input

    • IRM 4.71, EP Examination Procedures

    • IRM 4.75, EO Examination Procedures

    • IRM 7.13, EP Automated Procedures

    • IRM 7.21, EO Automated Procedures

    • IRM 25.7, Exempt Organization Business Master File

     

  7. The IRS Restructuring and Reform Act of 1998 (RRA ‘98) enacted into law several provisions which impact the processing of EP, EO and GE returns and reports. These provisions are covered in depth in other portions of the IRM and include:

    • RRA section 2001, Electronic Filing

    • RRA section 3301, Elimination of interest rate differentials

    • RRA section 3305, Suspension of interest

    • RRA section 3306, Requirements for imposition of penalties and additions to tax.

    • RRA section 3308, Notice of interest charges

    • RRA section 3417, Notice of IRS third party contact

    • RRA section 3706, Use of pseudonyms by IRS employees.

     

4.5.1.1.1  (04-01-2003)
Problem Reporting

  1. Employees may discover systemic or procedural problems while doing ESS and the EP and EO Technical Screening tasks. Report problems through the appropriate channels as follows:

    1. Use Form 5391, Procedural/System Change Request, to request a procedural change or correction/enhancement to a procedural data processing system

    2. Use Form 5715, System Production Evaluation Report, to report programming and operational problems

     

  2. State the problem and draft the proposed manual revision, if appropriate.

  3. When ESS submits a Form 5391 or 5715 to TE/GE Headquarters Office (Business Systems Planning), the recommended solution must be specific and not merely state that clarification or instructions are needed. ESS must properly research and document the recommended solution with volume and cost/savings information included when applicable (such as computer programming changes).

4.5.1.1.2  (04-01-2003)
Taxpayer Contact

  1. Contact with taxpayers by employees in TE/GE processing functions will be limited to correspondence generated by TE/GE and telephone inquiries related to that correspondence.

    1. Employees charged with the responsibility of preparing correspondence sent to taxpayers should insure that all correspondence reflects accurate information in an appropriate format. The quality of correspondence received by the taxpayer, both in its appearance and content, directly relates to the impression of the Service.

    2. Direct contact with the taxpayer must be kept to an absolute minimum, following prescribed procedures. Extreme care must be exercised in answering taxpayer inquiries concerning restricted interest questions. Employees charged with these responsibilities must not furnish advice and counsel to taxpayers beyond that required to process their work. They should refer questions of a technical nature, regarding the applicable principle of the law, to the TE/GE Customer Account Services Function.

     

  2. Under no circumstances will Terminal Operators respond to direct inquiries from taxpayers. Any inquiries from taxpayers, received by these employees, are to be referred to the TE/GE Customer Account Services Function.

4.5.1.2  (04-01-2003)
IDRS Research and Command Codes

  1. General instructions are provided for IDRS research and the use of Command Codes for TE/GE personnel.

  2. Procedures relating to researching on IDRS to Terminal Operations are found in IRM 4.4, AIMS/Processing Manual.

4.5.1.2.1  (04-01-2003)
Inadvertent Taxpayer Data Access

  1. Safeguards have been established to help managers and employees deal more effectively with IDRS accesses that may raise questions about proper authorization. Form 11377, Inadvertent Taxpayer Data Access, was implemented service-wide to provide employees with a trail in various situations. Employees may use the form at their discretion to document reasons for IDRS access when:

    • Research of taxpayer information is required in the performance of their duties but they have concerns as to the existence of data/documentation indicating the authorized access related to an assigned case;

    • An inadvertent access of taxpayer information occurs; or

    • The employee has concerns that no document is maintained to show authorized access.

     

  2. Managers are required to date and initial the Inadvertent Taxpayer Data Access forms at the end of the business day, or as soon as practicable, to indicate receipt. The bottom part of the form (Form 11377-A) is returned to the employee as a personal record. This may be retained by the employee for six years. Form 11377 are filed