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

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

The Director, SB/SE, Headquarters, Examination Field and Campus Policy is responsible for:

The SB/SE Program Manager, Examination Field and Campus Policy, Campus Exam & Field Support is responsible for:

The campus PCS Coordinator is responsible for:

Program Reports: PCS generates a variety of reports used to monitor the inventory and related statutes. The data source for the reports is the Partnership Information Control File located in Martinsburg, WV.

Program Effectiveness: PCS is used to help identify the effectiveness of the Campus Pass-Through Function program. PCS shows the number of investors linked within a pass-through structure. Failing to link partner returns timely can result in barred statutes or the need to follow burdensome procedures such as manual assessments or untimely notice procedures.

IRS will implement access control measures that will provide protection from unauthorized alteration, loss, unavailability, or disclosure of information.

SACS controls all the IDRS user accesses and permissions.

List of terms and definitions used throughout this IRM section.

IRM 4.29, Partnership Control System (PCS)

IRM 4.31, Pass-Through Entity Handbook

Form 8340, PCS Establish or Add with Notice Generation

Form 8341, PCS Establish or Add Without Notice Generation

IRM 10.8.1, Information Technology (IT) Security, Policy and Guidance

The Partnership control is established on the PICF with CC Definers " K" and Blank only if the Partnership return is under examination on the AIMS data base.

With the exception of Non-Masterfile (NMF) cases, if the Related Partner return is not on the AIMS data base, the Taxpayer Identification Number ( TIN) and the Name Control of the Related Partner will be checked against the NATIONAL ACCOUNT PROFILE (NAP) files to verify that the TIN is on Masterfile and the name control matches the input. If the TIN and Name Control has a match on the NAP, a skeletal record (Record-Type-Cd = "F1" ) is established on the AIMF. A TC424 record is generated to the GENDATA tape.

When a Related Partner entry matches a "424" Tax Module or a full Non-NMF Tax Module, a TC424 is generated to the GENDATA tape. For NMF cases, CC AMNON must have previously been used to establish the record on the AIMF and generate the Form 5546 and labels.

If a Related Partner entry matches a "424" Information Tax Module (AIMS-SOURCE-CD = 60 and EMPLOYEE-GROUP-CD = 1000 or 2000), then the AIMS data on the Tax Module is replaced with standard "424 " AIMS data on the Tax Module. A TC424 is generated except for NMF cases.

References in this manual to partnerships generally refer to the Key Case, and references to partners generally refer to the Investor.

TSLOD will count each successful linkage of an Investor to a Key Case. The result will be displayed in the message, "REQUEST COMPLETED/UPDATES nnnn" , where nnnn is the number of links made. TSLOD with CC definer "Z" will reset the update counter to zero.

Partnerships are initially established on the Partnership Investor Control File (PICF) using Command Code TSLOD with a Blank CC definer. ( Exhibit 2.2.2-1 and Exhibit 2.2.2-2)

This initial establishment will accommodate the loading of the Partnership, and the linking of up to ten (10) Partners, on the PICF .

Input document for this screen is Form 8341.

After initial establishment of the Partnership on the Partnership Investor Control File (PICF), additional Partners may be added by using Command Code TSLOD with a Blank CC definer. ( Exhibit 2.2.2-1 and Exhibit 2.2.2-3)

TSLOD with a Blank CC definer will accommodate the linking of ten (10) additional Partners to an existing Partnership.

Input Document for this screen is Form 8341.

TEFRA partnerships may also be initially established on the Partnership Investor Control File (PICF) using Command Code TSLOD with a CC (Command Code) Definer of "K" . One partner may be linked to the Partnership and Schedule K1 data for the individual partner may be added. This CC Definer may also be used to link additional TEFRA partners with their respective Schedule K1 data. ( Exhibit 2.2.2-4, Exhibit 2.2.2-5, and Exhibit 2.2.2-6)

Input Document for this screen is Form 8340.

When a subsidiary return is identified, both the parent and the subsidiary need to be linked.

First, a TSLODP will be input to link the parent to the key case. The existence of a normal tier value (# or blank) on the key case will result in the establishment of the parent as an investor, but a P will be displayed on the tier indicator of the Partner record. A TSLODP will not generate a NBAP to the parent. The NBAP to the subsidiary returns is all that is needed.

A TSLODS will then be used to load the subsidiary return(s). The NMF AIMS record must be created, and then the TSLODS will be input. The TSLODS will establish the NMF linkage, and S will be displayed on the tier indicator of the partners record.

When errors are detected on lines 1-2 or on lines 3-12 (as indicated by "**" in screen positions 39-40) one of the following messages will be displayed on line 13 of the input screen. Where appropriate, the operator should correct the input screen element and re-enter. If all the lines are successfully processed, the message "REQUEST COMPLETED " is displayed on line 13.

THE FOLLOWING ROLLBACK EXCEPTION COMMON MESSAGES ARE FOUND IN ALL PCS REALTIME COMMAND CODES.