Purpose: This section provides information to campus and area office personnel who use the Centralized Filing & Scheduling (CF&S) system. It is structured to follow the process of supporting the Area Office personnel with returns received in the campus for Planning and Special Programs (PSP) classification. Returns ordered and classified through the Compliance Data Environment (CDE) system are covered in IRM 4.103, Compliance Data Environment (CDE), IRM 4.1.2, Workload Identification and Survey Procedures, and IRM 4.1.5, Case Building, Classification, Storage and Delivery

Audience: These guidelines and procedures apply to SB/SE exam employees who support Area Office classification of returns.

Policy Owner: The Small Business/Self-Employed Division (SB/SE) Director of Examination Campus and Field Policy.

Program Owner: Program Manager Campus Examination and Field Support

Primary Stakeholders: Small Business/Self-Employed Division (SB/SE)

Program Goals: The program goals are to ensure support of Area Office identification and classification of tax returns for examination to promote voluntary compliance.

Before the Area Offices began using CDE for ordering and classifying DIF returns, the PSP Territory Manager submitted return orders to the campuses in accordance with IRM 4.1.2.9, Guidelines for Ordering Returns. The orders were submitted to Martinsburg Computing Center (MCC) each cycle for processing. Returns were received approximately six to eight weeks later with Form 5546, Examination Return Charge-out Sheet, labels, and Individual Return Masterfile (IRMF) transcripts and forwarded to Field Examination for classifiers to screen.

For planning purposes, it was imperative that the CF&S Team Manager be provided with the volume of returns ordered each cycle and approximate date classification began. This information allowed the manager to effectively allocate resources in order for newly-classified returns to be processed through the system in a timely fashion because:

Classifiers screening returns completed the appropriate classification form based on the return type for each selected return. IRM 4.1.5.3.2, Classification Background, provides instructions for the completion of the checksheet by the classifier. After screening, returns were forwarded to CFSU for processing.

Currently the only returns CF&S receive are audit coded returns that are automatically opened on AIMs. These returns are classified by the area offices.

The AIMS Serial Number is a vital part of CF&S. The AIMS Serial Number is a 12-digit number. The first 3 digits represent the Area Office Primary Business Code (PBC), the next 3 digits indicate weekly opening cycle, and the remaining 6 digits are sequentially assigned when the return is established on AIMS.

If an AIMS Serial Number is not on the AIMS Data Base, CFSU should:

If duplicate AIMS Serial Numbers are present (for example, when a return is transferred from one area office to another), a new AIMS Serial Number may be assigned using IDRS Command Code AMAXU.

Manual Orders are received in CFSU from the area PSP via e-mail, requesting cases be pulled from various POD's and activity codes. The order may be requested by either receipt of an e-mail or an Excel spreadsheet containing IVL information. The PSP will request the status, organization code, secondary business code, post of duty, activity code (TPI class), and number of cases needed.

Paper Returns- When an original return is filed and processed through Submission Processing (SP), an audit code is placed on the return if it meets certain conditions. See IRM 3.12.2-5 , Audit Codes, and IRM 3.11.16.9.1 , Audit Codes. Depending on the audit code, an AIMS base is automatically opened and the return is shipped to the campus CFSU. The CFSU routes the returns out as directed by the Area office for PSP classification. An overview of the process is as follows:

MOD-E or MeF- Electronically filed returns pulled for a DIF Order are classified on-line electronically are referred to as Mod-E. A charge-out package (Forms 5546 and label) may be sent to the CFSU when the returns are pulled. The campus CFSU will receive an e-mail and/or a Excel spreadsheet from the PSP with the return classification results. An overview of the process is as follows.

The Area Office PSP has sole authority to survey returns. CFSU managers must have written authorization from the Area Office PSP Territory Manager before surveying returns.

Although surveys are normally done on an Area Office-by-Area Office basis using the tax year as the main criterion, surveys may be requested for a specific activity code, specific POD, specific year, or a combination thereof. A survey may be done any time the PSP Territory Manager determines the returns are not needed. When possible, Area Offices should request surveys quarterly (or more often, if desired), to avoid the need for large survey requests at the end of the year.

The PSP sends an e-mail listing of cases to be surveyed to the CFSU. The following survey actions will be preformed by CFSU for classified paper returns in status 08 EGCs, 1066, 1067, 1068, 2050, and 2051:

The following survey actions will be preformed by CSU for Mod-E filed returns in status 08 EGCs, 1066, 1067, 1068, 2050, and 2051:

:

There are times when an account cannot be surveyed because of a -A freeze on the module. The -A freeze is set when a duplicate return (TC 976), subsequent return (TC 977) or a TC 971 with action code (AC) 010 or AC 012-015 (amended return), post to an account. Amended returns in status 08 or lower will be in Accounts Management (AM) or Submission Processing (SP) for processing. See IRM 21.5.3-1, Claim Processing with Exam Involvement. CFSU cannot survey the return until the -A freeze is resolved by AM or SP. CSFU will e-mail the AM headquarters claim analyst with the account information identifying the campus where the claim is located. The AM analyst coordinates the -A freeze resolution between campuses and notifies CFSU when it is resolved.

When receiving amended returns due to open AIMS controls in status 08 and lower, the amended return will be sent back to the originator with instructions to follow Accounts Management (AM) processing requirements. If the amended return has already been processed and is sent for association with an open case in status 07 or 08, the case should be immediately pulled for review by the local Campus Classification Unit to determine if the case and amended return should be sent to the field. No amended return should be associated with a case ready to be closed survey.

Updating and foldering selected field returns includes entering appropriate EGC code and perfecting appropriate forms. Selected field returns may be IMF or BMF. IMF returns may be selected for Field rather than Office if complexity warrants.

All IMF selected Field returns will have a Form 6754, Examination Classification Checksheet.

If BMF return, the forms may vary according to MFT, Return, or Area. The forms used are: Form 6256, S Corporation Classification Checksheet, Form 6250, Partnership Classification Checksheet, Form 6241, Non-DIF Corporate Classification Checksheet and Form 10264, Revenue Agent - Classification Checksheet.

Folder returns as follows:

Selected field returns get foldered and updated to status 08 and to EGC 1066, 1067, 1068, 2050, or 2051 according to what grade the classifiers grade them as or per classifier's comments. Some areas may grade them all the same such as 1066:

Cases are then placed in a designated holding area unless PSP provides different direction.

Classifiers may accept returns as filed. When the classification details were held at the campus, they stamped the return "Accepted as Filed" with the classifier's number and date. The PSP now provides an e-mail or Excel spreadsheet containing return closing guidance. Accepted cases will be closed using disposal code 20 or 21 (if working "Survey Excess Cases" the disposal code will be a 35).

The Area office may provide accepted closing guidance on certain audit coded paper returns received in CFSU. Process as follows:

Mod-E returns will have only a Form 5546 and classification sheet. Depending on the local process, a folder may be built and filed in AIMS serial order.

In order to send a case to PSP, continue to look for the case. If you have a case controlled that is in 08/2050-2066-1066-1067-1068-1030-2030 but you cannot locate, research it before conducting any further work on the case.

If closing the case, take the following steps:

Periodically, a list of all returns on which the statute of limitations will expire in 180 days or less or has expired is sent to the organization charged with the returns. To work the table correctly, the following actions are taken: