Area Offices and Business Segments submit preliminary Implementation to Headquarters Office for review and approval. Final approved plans by Area Offices and Business Segments are submitted to Headquarters Office personnel for each Operating Division.

In this development and approval process, the workplan is used by Headquarters Office personnel and by Area Office and Business Segments. This form provides for allocating total TE/GE technical time to the various work activities for both Operational and Non-Operational time.

After approval by Headquarters Office, Area Office plans are approved for final input by TE/GE Business Systems Planning, with data converted to be used as feeder reports for the TE/GE web-based Technical Time Reporting System.

The WebETS system enables the production of reports at the group level and replaces the function previously performed by DCC in creating MIRs, with its own MIR production.

The Activity Codes/Project Codes listed on the workplan planning document, help Headquarters, Directors and Area Office planning officers in preparing their specific plans. The listing of codes on planning documents will also ensure accuracy in processing the documents within the WebETS system for both TE/GE technical time and TE/GE examination workplan processing.

The Activity Code/Project Code structure is not consecutive, permitting changes or expansion in TE/GE activities or program emphasis, which are monitored by Business System Planning.

Current Activity Codes/Project Codes and definitions needed to prepare the workplan are listed in the Workplan Document sent out each year by Headquarters Office in the following systems codes booklets:

Record/Report Time- Employees account for their normal tour of duty hours by tracking the number of hours expended on each of their work assignments or leave. Items can range anywhere from examination of a particular return to administrative type duties to leave. After the employee has completed entry of their hours for the reporting period, the employee prints the Form 6490, and electronically transmits the completed report to their manager.

Manager Reviews and Validates Group Data/Prints Group Reports - Once the Manager has received and reviewed all of his/her employees' completed monthly time reports, the Manager should validate the group data within the WebETS application. The validated data is then electronically sent to the WebETS server. Once the group data has been validated, the Manager should generate and print the Group Reports.

Verification of Data/Print Reports -The group data is electronically sent to the Second Level Manager who verifies and prints the applicable reports. The Second Level Manager is responsible for ensuring that the verification check is transmitted to the WebETS server.

Validation/Correction Processing- The validation and consistency check process checks each web-based time report to ensure the amount of total hours reported do not exceed the total amount allowed and that the codes used are valid and used appropriately with other codes.

Management Information Reports- Management information reports are produced at the United States Summary level, the Business Segment Summary level and the Group summary level by the Business Unit Coordinators. These individuals are designated by each Business Operating Division, and have access to the Work Plan Module for electronic submission of workplan data. .

The TE/GE Shared Services Director, as the business owner of WebETS, has program management responsibility for WebETS.

When reporting a system problem, the user must provide a detailed description of the action you were trying to accomplish and the problem encountered. Detailed descriptions enable the programming staff to recreate the same scenario and result for analysis.

Notification of updated program version releases, changes in the WebETS tech time reporting process or procedures and other information impacting WebETS users are communicated to TE/GE employees and Managers via WebETS bulletins.

The Business System Planning office, on an as needed basis, issues WebETS Bulletins. Each WebETS Bulletin is numbered sequentially starting with '01' each fiscal year. The first two digits represent the fiscal year the bulletin was issued. For example the first WebETS Bulletin issued in fiscal year 2006 will be numbered 06–01. WebETS Bulletins are issued electronically to all TE/GE WebETS users. The WebETS Bulletins are also available on the TE/GE BSP web site.

The need for accuracy cannot be overemphasized when completing each web-based Form 6490. Form 6490 for each individual must show the total work time in a given month. Total work time is computed automatically using the automated Form 6490 program by multiplying the number of workdays by eight hours and making Alternate Work Schedule (AWS) adjustments to the total daily time when AWS time is applied (Activity Code 860). Deducting Saturdays, Sundays and national holidays from the number of days in the month determines the number of workdays in a month. Authorized overtime is reported under the appropriate Activity Code with an offsetting adjustment under "Details In" Activity Code "840."

Form 6490 provides a systematic means for accumulating the time for each technical employee classified as Specialists, Examiners, Group Managers, etc.

To simplify this follow-up of work in process, the web-based 6490 program will calculate and insert the number of months in process for each examination.

Each employee makes daily entries and the employee retains the current report throughout the month. The current report is available to supervisory personnel for management review.

At the close of the last workday of the month, the web-based 6490 is:

Under ordinary circumstances, each employee will prepare one Form 6490, TE/GE web-based Time Report, per month. However, under certain conditions it is necessary for Examiners/Specialists to file more than one (1) Form 6490.

Following is the one EP MIR report produced by WebETS system along with a description. Refer to the WebETS User Guide, the web-based Reporting System for the format of the report.

Report 11 - EP Technical Staff day Analysis (Number: EP Technical Time Report 11). Report 11 provides an analysis, based on the workplan submitted at the beginning of the fiscal year and the monthly Form 6490 received from the business segments, area offices and employee groups. Analysis is provided on the staff day accomplishments and the percent of total time. Report 11 can be generated monthly in the web-based system.

Following is a listing of EO MIR’s produced in the web-based system along with a description of each. Refer to Document 6494, EO Technical Time Reporting System for the format of each report.

Following is a listing of GE MIR's produced in the web-based system along with a description of each. Refer to the GE Technical Time Reporting System document for the format of each report.

Report NO-CP:E:FS-01 - There are two separate return year reports under this title, for two return years (e.g., Return period ending 199912-200011 is for the 1999 return and return period ending 199812-199911 is for the 1998 return.) The returns, when posted, are added into their appropriate return year. The report reflects accumulated totals by the form number of the Annual Return/Reports or their schedules. The report provides current statistics on return filings for pension plans on a nationwide basis.

Report NO-CP:R:R-308 - This report is produced by area and sub-totaled by group within each area. There are reports under this title for two return years and are further distinguished by Form Number for a total of ten (10) reports. The statistics shown on this report do not include welfare plans. This report provides the capability for the areas to monitor the number of returns posted to the EPMF, by the following categories:

Report NO-7100-E:O:S-28 - This report is used to monitor the volume of delinquent returns. The report reflects the total number of notices issued and the disposal transactions within each campus. The report is generated through IDRS beginning each July and accumulates totals for the first notice issued by plan year. Other than first notice activity, accumulation is based on service campus production counts.

Table 4.0, Returns with Statute Date Pending, is a computer generated listing produced monthly by the Ogden Campus from AIMS data showing returns in all status codes, where:

The AIMS Coordinator sends Table 4.0 to the Area Staff Assistant for distribution to the individual group managers. Each month a list of all the returns on which the statute of limitations will expire or has expired, is sent to the function charged with the returns by the AIMS Coordinator. Although the responsibility for this report rests with the Group Manager, the Group Secretary, or Group Manager's designee, has certain duties connected with this report.

The Group Secretary, or Group Manager's designee, should compare the employer names on Table 4.0 to the names in the Statute Control File. An update must be prepared for those cases where the Statute Control File shows later statute dates than the report shows. The Group Secretary, or Group Manager's designee, should bring the discrepancy (between the Statute Control File date and the report date) to the attention of the responsible Examiner/Specialist and Group Manager. Annotate Table 4.0 to show the Examiner/Specialist and Group Manager have been notified.

Where a Statute Control File does not exist, but the employer’s name is listed on Table 4.0, the Group Secretary, or Group Manager's designee, should locate the case and do the following:

Table 4.0 should be given to the Group Manager after the Group Secretary, or Group Manager's designee duties have been performed so he/she can perform the monthly review of statute control. To work the report correctly, the Group Manager must ensure the following tasks are performed prior to receipt of the following months report:

To update the database:

If the correct date is actually earlier than the date on the AIMS database, follow the procedures below to correct an incorrect Statute of Limitations Date:

The AIMS database must be updated for the statute date because:

When a MF request for AIMS establishment is input via the terminal, a TC 424 is processed to the MF. If the TC 424 is a reject, e.g., does not match Master File information, the account is not established on the AIMS file. A register of these accounts is generated at Ogden Campus. The register is distributed weekly to each TE/GE Area Office. The rejected accounts are listed alphabetically by Employee Group Code for cases assigned to groups in the Area Offices.

The first line on each rejected item contains information from the MF highlighting the error condition encountered and as much other information as available. The second line of information contains information from the AIMS database at the time the rejected item was received.

The Reject Code is comprised of four digits. The first 3 digits are the Unpostable Code (UPC) and the fourth digit is the Reason Code (RC). All reject codes can be found in Document 6209 (IRS Processing Codes & Information). Also, refer to IRM 4.4.35, Unpostable Resolution, for additional information. If not available, contact the AIMS Coordinator/Systems Analyst in the area office.

Changes to an employer account at the EPMF are reported to the TE/GE function on the AIMS Weekly Update Report. This report notifies TE/GE when, for example:

Case files should be updated with the information from the Weekly Update Report. The report should be kept in the case file to minimize later research.

The AIMS Weekly Update Report is sorted by these groupings:

The AIMS system generates weekly and monthly processing reports at Ogden Campus. The Ogden Campus Computer Program ARP’s were created to subject:

Error registers reflect cases excluded from AIMS reports which are generated at Ogden Campus due to the presence of the error condition indicated. Corrective action for these errors will be initiated by TE/GE personnel. It is imperative that all corrective actions be completed before the next monthly extraction cycle to ensure that the corrected items are updated and included in reports.

The AIMS Duplicate Records Report (ADRR) is a weekly computer printed listing identifying employer accounts current under AIMS control that have been received again from the EPMF. Proper use of the information in this report is essential to ensure appropriate disposition of the tax return.

Returns are listed in the ADRR by employer identification number (EIN). Each item contains (reading from left to right) the file source, employee plan number, plan period, and employer’s name, together with AIMS file (AIMF) information and opening information from EPMF. AIMF information includes the Employee group code, status code, source code and the area office code to which the return is assigned. Opening record information includes the employee group code, source code, project code, message code of the duplicate request and area office code for the opening record.

Frequently the ADRR contains a critical examination issue other than that which originated the AlMS control. Analysis of each item listed is necessary to determine appropriate action. Upon receipt of the ADRR, analyze each item to determine what, if any, follow-up action is required.

Each item will contain one of the following message codes.

Ogden Campus has available a utility program which will generate a listing of skeletal accounts which have been on the database over 60 days. This listing serves as a tool to monitor accounts which have not become full AIMS cases because they were opened with a push code or there is a systemic problem.

The listing will provide the EIN, tax/plan period, MFT/employee plan number, name control/check digit, employee group code, area office code, creation date, push code, and project code.

The listings are generated electronically and sent to the AIMS Coordinator/Systems Analyst by secure email.

TE/GE Directors are responsible for the accuracy and completeness of records on the AIMS database. TE/GE Directors must ensure that the AIMS database is updated to reflect current status, employee group code and other update data for all returns sampled or appearing on an inventory validation listing.

Validation Lists are electronically generated and sent to the AIMS Coordinator/Systems Analyst by secure email, on a monthly basis.

EP/AIMS inventory reports provide information which enables an area office to monitor its inventory efficiently to meet its current year EP Examination Plan. The reports provide information on the status of various examinations in process. Refer to Document 6834 for specific instructions on each report.

EP/AIMS Report 52 - EP Inventory Status of Returns by Project Code

EP/AIMS accomplishment reports provide information on returns examined and are used to monitor the EP Examination Plan and special project programs. The reports provide information on the disposal of the various examinations. Refer to Document 6834 for specific information on each report.

Table 4.0, Returns with Statute Date Pending, is a computer generated listing, produced monthly by the OSC, from AIMS data showing returns in all status codes where:

The AIMS Coordinator sends Table 4.0 to the Area Staff Assistant for distribution to the individual group managers. Each month a list of all the returns on which the statute of limitations will expire or has expired, is sent to the function charged with the returns by the AIMS Coordinator. Although the responsibility for this report rests with the Group Manager, the Group Secretary, or Group Manager's designee, has certain duties connected with this report.

The Group Secretary, or Group Manager's designee, should compare the organization names on Table 4.0 to the names in the Statute Control File. An update must be prepared for those cases where the Statute Control File shows statute dates later than the report shows. The Group Secretary, or Group Manager's designee, should bring the discrepancy (between the Statute Control File date and the report date) to the attention of the responsible Examiner/Specialist and Group Manager. Table 4.0 should be annotated to show the Examiner/Specialist and Group Manager have been notified. If a Statute Control File does not exist, but the organization’s name is listed on Table 4.0, the Group Secretary, or Group Manager's designee, should locate the case and do the following:

Table 4.0 should be given to the Group Manager after the Group Secretary, or Group Manager's designee, duties have been performed so that the Group Manager can perform the monthly review of statute control. To work the report correctly, the Group Manager must ensure the following tasks are performed prior to receipt of the following months report:

To update the database:

If the correct date is actually earlier than the date on the AIMS database, follow the procedures below to correct an incorrect Statute of Limitations Date:

The AIMS database must be updated for the statute date because:

A form that does not process through the terminal is returned to the originating function for correction. If the reject is due to an erroneous or missing name control, this entry is corrected in red by the Group Clerk in the originating function and returned for input. When there are items that must be corrected by the Examiner/Specialist, the form is returned to the Examiner/Specialist for perfection. When the form has been corrected and is returned to terminal input, the Group Clerk indicates the date returned in the block marked "Cor" , when available.

The TC 424 Reject Register is produced by the OSC weekly, and is distributed to each TE/GE AO, to identify AIMS requisitions that could not be honored. When a request for AIMS establishment is input via the terminal, a TC 424 is processed to the Master File (MF). If the TC 424 is a reject, e.g., does not match MF information, the account is not established on the AIMS file. The rejected accounts are listed alphabetically by Organization Code for cases assigned to groups in the area offices.

The first line on each rejected item contains information from the MF highlighting the error condition encountered and as much other information as available. The second line of information contains information from the AIMS database at the time the rejected item was received.

The Reject Code is comprised of four digits. The first 3-digits are the Unpostable Code (UPC) and the fourth digit is the Reason Code (RC). All reject codes can be found in Document 6209 (IRS Processing Codes & Information). Also refer to IRM 4.4.35, Unpostable Resolutions. If not available, contact the AIMS Coordinator. See Exhibit 4.5.5-1. for a listing of the most frequent TC 424 reject codes and the action indicated.

Changes to an exempt organization account on the EO/BMF are reported to TE/GE Division on the AIMS Weekly Update Report. Use the information provided to update corresponding case files and to take whatever course of action is required. The report should be kept in the case file to minimize later research. See Exhibit 4.5.5-2. for an explanation of the codes on the report.

The AIMS Weekly Update Report is sorted by these groupings:

This report is an inventory report which is broken down to the Primary Business Code and Employee Group Code. It contains the Taxpayer’s Name, EIN/SSN, Report Number , Tax Period, Form Number, Source Code, Status Code and Status Code Date.

The AIMS Error Register is produced by the OSC monthly to identify all error conditions which could adversely affect the accuracy of statistical reports and historical records. The Ogden Campus Computer Program ARP’s were created to subject monthly report records to separate validity and consistency checks as a double check on AIMS. ARP 1940 produces the monthly AIMS Extract Error Register which is separated by inventory, accomplishment and non-examined errors. They prevent the closing of an opened account and the extraction of both open and closed account information used as input to reports produced by the DCC.

Error registers reflect cases excluded from AIMS reports, which are generated at the OSC, due to the presence of the error condition indicated. Corrective action for these errors should be initiated by EO personnel. It is imperative that all corrective actions be completed before the next monthly extraction cycle to ensure that the corrected items are updated and included in reports. Up to five error conditions can be identified for a single account. All identified error(s) must be corrected before the error indicator can be removed from an account. Error conditions fall into two categories:

An account corrected through the IDRS terminal before the next reports extraction cycle will not reappear on the AIMS Error Register unless another error condition is identified. An account not corrected until after the reports extraction cycle will reappear, however, it is not necessary to re-correct the error(s) unless the account continues to appear on the register. Failure to correct error condition(s) will result in one of the following situations:

The AIMS Duplicate Records Report (ADRR) is a weekly computer printed listing identifying employer accounts current under AIMS control that have been received again from the BMF. Proper use of the information in this report is essential to ensure appropriate disposition of the tax return.

Returns are listed in the ADRR by employer identification number (EIN). Each item contains (reading from left to right) the file source, MFT, tax period, and organization’s name, together with Taxpayer Information File (TIF) information and opening information from BMF. TIF information includes the current EGC, status code, source code and the AO code to which the return is assigned. Opening record information includes the EGC, source code, special project code, and message code of the duplicate request.

Frequently the ADRR contains a critical examination issue other than that which originated the AIMS control. Analysis of each item listed is necessary to determine appropriate action. Upon receipt of the ADRR, analyze each item to determine what, if any, follow-up action is required.

Each item will contain one of the following message codes.

OSC has available a utility program which will generate a listing of skeletal accounts which have been on the database over 60 days. This listing will serve as a tool to monitor accounts which have not become full AIMS cases because they were opened with a push code or there is a systemic problem. The listing will provide the EIN, tax/plan period, MFT/employee plan number, name control/check digit, EGC, AO, creation date, push code, and project code.

EO Area Managers are responsible for the accuracy and completeness of records on the AIMS database. EO Area Managers must ensure that the AIMS database is updated to reflect current status, EGC and other update data for all returns sampled or appearing on an inventory validation listing. IRM 4.5.5.7 TE/GE AIMS Inventory Validations, for procedures on conducting a validation.

EO/AIMS inventory reports provide information which enables an area office to monitor its inventory efficiently to meet its current year EO Field Examinations Plan. The reports provide information on the status of various examinations in process. For specific information on a report.

EO/AIMS accomplishment reports provide information on returns examined and are used to monitor the EO Examination Plan and special project programs. The reports provide information on the disposal of the various examinations. For specific information on a report.

EO/AIMS TRAC Reports provide analysis of EO examination closures. The reports provide information on the disposal of the various examinations for use by Headquarters. For specific information on a report.

Table 4.0, Returns with Statute Date Pending, is a computer generated listing, produced monthly by the OSC for Indian Tribal Governments (ITG), Tax Exempt Bonds (TEB), and Federal State and Local Governments (FSLG), from AIMS data showing returns in all status codes where:

The AIMS Coordinator sends Table 4.0 to the Area Staff Assistant for distribution to the individual group managers. Each month a list of all the returns on which the statute of limitations will expire or has expired, is sent to the function charged with the returns by the AIMS Coordinator. Although the responsibility for this report rests with the Group Manager, the Management Assistant has certain duties connected with this report.

The Management Assistant should compare the organization names on Table 4.0 to the names in the Statute Control File. An update must be prepared for those cases where the Statute Control File shows statute dates later than the report shows. The Management Assistant should bring the discrepancy (between the Statute Control File date and the report date) to the attention of the responsible Examiner/Specialist and Group Manager. Table 4.0 should be annotated to show the Examiner/Specialist and Group Manager have been notified. If a Statute Control File does not exist, but the organization’s name is listed on Table 4.0, the Management Assistant should locate the case and do the following:

Table 4.0 should be given to the Group Manager after the Management Assistant duties have been performed so that the Group Manager can perform the monthly review of statute control. To work the report correctly, the Group Manager must ensure the following tasks are performed prior to receipt of the following months report:

To update the database:

If the correct date is actually earlier than the date on the AIMS database, follow the procedures below to correct an incorrect Statute of Limitations Date:

The AIMS database must be updated for the statute date because:

The TC 424 Reject Register is produced by the OSC weekly for ITG, FSLG, and TEB and is distributed to each GE AO, to identify AIMS requisitions that could not be honored. When a request for AIMS establishment is input via the terminal, a TC 424 is processed to the Master File (MF). If the TC 424 is a reject, e.g., does not match MF information, the account is not established on the AIMS file. The rejected accounts are listed alphabetically by Organization Code for cases assigned to groups in the area offices.

The first line on each rejected item contains information from the MF highlighting the error condition encountered and as much other information as available. The second line of information contains information from the AIMS database at the time the rejected item was received.

The Reject Code is comprised of four digits. The first 3-digits are the Unpostable Code (UPC) and the fourth digit is the Reason Code (RC). All reject codes can be found in Document 6209 (IRS Processing Codes & Information). Also refer to IRM 4.4.35, Unpostable Resolutions, or contact the AIMS Coordinator. See Exhibit 4.5.5-1. for a listing of the most frequent TC 424 reject codes and the action indicated.

A form that does not process through the terminal is returned to the originating function for correction. If the reject is due to an erroneous or missing name control, this entry is corrected in RED by the group clerk in the originating function and returned for input. When there are items that must be corrected by the Examiner/Specialist, the form is returned to the Examiner/Specialist for perfection. When the form has been corrected and is returned to terminal input, the group clerk indicates the date returned in the block marked Cor, when available.

Changes to a Government Entities (ITG, FSLG or TEB) account on the IMF or BMF are reported to GE Division on the AIMS Weekly Update Report. Use the information provided to update corresponding case files and to take whatever course of action is required. The report should be kept with the paper case file or scanned into RCCMS for electronic files to minimize later research. See Exhibit 4.5.5-2. for an explanation of the codes.

The AIMS Weekly Update Report is sorted by these groupings:

This report is an inventory report which is broken down to the Primary Business Code and Employee Group Code. It contains the Taxpayer's Name, EIN/SSN, Report Number (Report Number applies to TEB Form 8038 Series Return and Form 8328 only), Tax Period, Form Number, Source Code, Status Code and Status Code Date.

OSC has available a utility program which will generate a listing of skeletal accounts which have been on the database over 60 days. This listing serves as a tool to monitor accounts which have not become full AIMS cases because they were opened with a push code or there is a systemic problem. The listing will provide the EIN, tax period, report/plan period, MFT/employee plan number, name control/check digit, EGC, AO, creation date, push code, and project code. The listings can then be generated on an as needed basis, determined by local management, with the concurrence of the Manager, OPR.

GE Area Managers are responsible for the accuracy and completeness of records on the AIMS database. GE Area Managers must ensure that the AIMS database is updated to reflect current status, EGC and other update data for all returns sampled or appearing on an inventory validation listing. IRM 4.5.5.7 TE/GE AIMS Inventory Validations, for procedures on conducting a validation.

GE/AIMS inventory reports provide information which enables an area to monitor its inventory efficiently to meet its current year GE Implementation Plan for FSLG, ITG and TEB. The reports provide information on the status of various examinations in process. For specific information on a report, refer to Document 11308.

GE/AIMS Report 50.1 - EO Inventory of Returns by Status - All Returns

GE/AIMS accomplishment reports provide information on returns examined and are used to monitor the GE Implementation Plan and special project programs. The reports provide information on the disposal of the various examinations. For specific information on a report, refer to Document 11308.

Each TE/GE function (Manager, Planning and Programs, Classification, Mandatory Review, Special Review, Exam Closing Functions and the AIMS Coordinators) is responsible for the accuracy of AIMS/RCCMS.

The person responsible for the accuracy of the AIMS/RCCMS database ensures that the validations are conducted on schedule and that the database is corrected for all returns included in the validation. All inconsistencies must be resolved.

Reasonable time frames should be assigned by the person responsible for the completion of the validation. Begin an inventory validation within two workdays of receiving the requested Inventory Validation Listing (IVL). Validating EP, EO or GE functions should complete the actions described in IRM 4.5.5.7.1.5 and forward to the approving Group Manager for review within 15 working days. Documentation of corrections is given to the Area Manager for review and approval.

The approving Area Manager will forward the annotated IVL and all approved corrections, updates, research and closing requests to the AIMS Coordinator/Systems Analyst for review and concurrence. The AIMS Coordinator will forward the annotated IVL and requests to the applicable TE/GE Exam Closing Function for terminal input within 10 workdays of completing the validation. All actions required for a validation must be completed no later than 25 calendar days by the person responsible for the coordination of the validation, not counting the two days after receipt of the IVL from the IVL Coordinator.

Recommendations:

Validation coordinators must ensure prompt distribution of the inventory validation lists to the affected areas.

TE/GE Request through Tax Analysts for Inventory Validation Listing, is supplied to AIMS Coordinator. You may request a combined IVL list (AIMS/RCCMS) through Planning Tax Analyst via email.

If all groups are receiving combined AIMS/RCCMS discrepancies regularly every month there is no need to request a separate listing unless it is wanted “off-cycle” then combined SSIVL/RCCMS listing can be pulled during month on request. Generated from Planning by Tax Analysts for all TE/GE groups are provided an AIMS/RCCMS excel spreadsheet two days prior to start of validation.

Make all IVL request approximately four weeks in advance of the required date to allow time for processing.

To conduct an inventory validation, compare the physical returns and the RCCMS (or the automated control system) with the information on the IVL. For accounts verified as being in inventory, certain items printed on the IVL can be corrected or updated by writing the corrections in red on the IVL in the comments section of each account in need of corrective or update action. Coordinate the format of these instructions with the Closing Function for terminal input. All updates and corrections must be input by the date specified by the person responsible for the validation.

To make other updates or corrections, refer to IRM 4.5.1, TE/GE AIMS Processing, for instructions on preparing:

To close accounts, refer to IRM 4.5.2, TE/GE Examined and Non-Examined Closures for instructions on preparing:

The following subsections describe how to compute the error rate, acceptable error rate levels and revalidation scheduling.

Validations must be conducted once each year without regard to system problems. They serve several purposes beyond computing error rates and should be done even when error rates are difficult to compute. Validations identify the error rates in key data used in budgets, planning, and legislative decisions. They also play an important role in assuring the integrity of our tax system. Finally, they identify AIMS training needs.

Validations should be planned at the time of the year when inventories are at a low point to simplify logistics. Emphasis should be placed on physical verification of returns to ensure accurately detecting any lost returns. If employees believe they can avoid detection of a lost return during the validation process, someone may be tempted to conduct a corrupt, illegal act involving tax returns or examinations, confident that he or she can avoid detection.

Validation errors should be promptly resolved. Normally, all errors should be resolved within 30 days of their identification as errors (on the IVL listing). If the error notation on the IVL listing for that specific return is not dated, no date later than the date of the physical inventory will be used.

The AIMS Coordinator or other designated person will compute the error rates by EP, EO or GE group/function, office and AO and will issue a formal, written memorandum within 30 work days of the physical inventory verification portion of a validation. The report will contain the following information:

AIMS training should be considered for all personnel handling returns in those offices with error rates exceeding 5%. Documented AIMS training of key personnel must be conducted in those offices with error rates exceeding 10%.

As a result of extensive open inventory the AO may modify their method of AIMS validation. Rather than validating AIMS on a one time annual basis, the validation period can be spread out over the fiscal year. A schedule should be established whereby all groups, functions and status codes are identified for validation. Once identified, a validation schedule should be established so that a portion of the annual validation would be accomplished each month. This method will allow the data base to be validated on a continuing basis and meet the annual requirement provisions. Problems will be identified and shared immediately, rather than once a year. Staff requirements to perform the validation will be spread over the fiscal year. Other major advantages to this method are the continuing purification of the database and timely identification of problems for correction, thus making the system more reliable and useful for the AO. Based on the significance of Management Information Reports (MIR’s) as tools for management to monitor work plan progress and as a tool to assist in developing the annual work plan, accurate data must be available to ensure resources are allocated to areas of non-compliance. The validation process will assist in this objective.