Part 2. Information Technology

Chapter 2. Partnership Control System

Section 8. PCS Command Code MSCHG

2.2.8 PCS Command Code MSCHG

Manual Transmittal

October 19, 2022

Purpose

(1) This transmits revised IRM 2.2.8, Partnership Control System, PCS Command Code MSCHG.

Material Changes

(1) Program Scope and Objectives revised to add more detail.

(2) Background, Authority, Responsibilities, Program Management and Review, and Program Controls added.

(3) Related Resources updated to add reference to IRM 10.8.1.

Effect on Other Documents

IRM 2.2.8, dated December 03, 2019, is superseded.

Audience

This document provides instructions for the general use of the Partnership Control Systems display terminals in the SB/SE, Large Business and Industry (LBI), and Appeals Operating Divisions in the Campuses and Area/Industry Offices.

Effective Date

(01-01-2023)

Nancy Sieger
Chief Information Officer

2.2.8.1 (10-19-2022)

Program Scope and Objectives

  1. The Partnership Control System (PCS) is used to create, monitor and update information related to Partnership and Investor examinations.

  2. Purpose: This IRM provides instructions on how to use IDRS command code MSCHG.

  3. Audience: Campus Revenue Agents (RAs), Tax Compliance Officers (TCOs), Tax Examiners (TEs) and Clerks working pass-through entities and/or their investors linked on the PCS.

  4. Policy Owner: Chief Information Officer

  5. Program Owner: Information Technology/Application Development

  6. Primary Stakeholders: SB/SE, Large Business and Industry (LBI), and Appeals

  7. Program Goals: PCS is a database used to create an electronic linkage between pass-through entities and their underlying partners. Linking in some instances is mandatory. Linkage allows for the proper control of statutes and ensures all relevant partners are processed.

2.2.8.1.1 (01-01-2023)

Background

  1. 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.

2.2.8.1.2 (01-01-2023)

Authority

  1. 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.

2.2.8.1.3 (01-01-2023)

Responsibilities

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

    • Coordinating and Implementing PCS enhancements; and

    • Coordinating resolutions for PCS Systemic problems

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

    • Ensuring that PCS procedural changes and computer program changes are implemented and coordinated with area office and campus examination personnel; and

    • Monitoring and evaluating area office and campus examination PCS quality control procedures

  3. The campus PCS Coordinator is responsible for:

    • Identifying and resolving technical problems; and

    • Identifying and coordinating the resolution of PCS systemic problems

2.2.8.1.4 (01-01-2023)

Program Management and Review

  1. 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.

  2. 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.

2.2.8.1.5 (01-01-2023)

Program Controls

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

  2. SACS controls all the IDRS user accesses and permissions.

2.2.8.1.6 (01-01-2020)

Terms/Definitions/Acronyms

  1. List of terms and definitions used throughout this IRM section.

    PICF Partnership Information Control File
    GENDATA The Gendata Data Store is an output file from the UNISYS Real Time process
    TEFRA Tax Equity and Fiscal Responsibility Act of 1982
    TIN Taxpayer Identification Number
    MFT Code Masterfile Tax Code

2.2.8.1.7 (01-01-2023)

Related Resources

  1. IRM 4.29, Partnership Control System (PCS)

  2. IRM 4.31, Pass-Through Entity Handbook

  3. Form 8336, Partnership Control System PCS Mass Change

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

2.2.8.2 (01-01-2015)

PICF Mass Changes (Command Code MSCHG)

  1. Command Code MSCHG is used to build records and write the records to a GENDATA tape for later use by batch processing. These records will be used to effect mass changes to accounts on the PICF. The PICF record will not reflect the change until the following cycle of batch processing has been completed.

  2. The input records must all be Partnerships. The mass change done during batch processing is to the Partner records (Investors) linked to the Partnership. Mass change of Elements 3 and 4 also causes the Partnership’s Special-Project-Code or TEFRA-IND to be changed.

  3. A Mass change of Element 1 will only add the Report-Package-Date to investors that are controlled by the inputting campus. If the PN-CTF-IND = B, apply the change to investors with PBC 295, and if PN-CTF-IND = O apply the change to investors with PBC 298 or 398 only. Also when the Report-Package-Date is set, the Report-Package-Indicator will be set to a Y.

  4. The following elements may be changed by Command Code MSCHG within the limitations prescribed for each individual element.

    Item Number Element Name
    1 REPORT-PACKAGE-DATE
    2 ONE-YEAR-ASSESS- STATUTE-DT and PN-CLOSING-CD
    3 SPECIAL-PROJECT-CD
    4 TEFRA-IND
    5 PN-CLOSING-CD

  5. When all lines 2-12 have been successfully processed, "OK" will be displayed in positions 43-44 and the message "REQUEST COMPLETED" will be displayed on line 13. For subsequent screens, if lines 2-12 contain "OK" in positions 43-44, the "OK" will be overlaid with "BY" and the line is not processed.

  6. When an error is encountered, processing will stop and asterisks "**" will be displayed in positions 43-44 of the line with the error. The line with the "**" will be re-validated, if the operator does not correct the error, the "**" will be overlaid with "DR" and processing will be continued on the next line.

  7. MSCHG will generate the following error messages which will be displayed on line 13:

    Message Condition
    1-YR-ASSMT-DT > 32 MONTHS AWAY Self explanatory.
    AREA DEADLOCKED, TRY AGAIN Self explanatory.
    AREA IS DOWN Self explanatory.
    AREA IS RESTRICTED Self explanatory.
    BAD FORMAT-CHANGE FIELD The change data is not formatted as shown in the requirements.
    CC-DEFINER NOT VALID WITH MSCHG The CC-definer is not blank or T.
    ITEM NUM MUST HAVE HYPHEN The item number must be followed by a hyphen.
    I/O ERROR. INVALID TRANSACTION Self explanatory.
    INVALID ITEM NUMBER The item number is not in the range 1–4.
    INVALID PN-CLOSING-CD The PN-CLOSING-CD is not A, B, C, D, J, N, O, or S.
    INVALID TAX PERIOD Not YYYYMM format or valid.
    INVALID TIN, F/S TIN does not have a valid configuration and/or File Source Indicator.
    LINE 2 BLANK Line 2 must have data.
    LINES 2–12 BYPASSED Lines 2–12 have "DR" or "BY" in pos. 43–44.
    MFT/TAX PERIOD INCONSISTENT MFT and Tax Period are inconsistent.
    ONLY PROJ CODE 0013 or 0015 ALLOWED AFTER YR 1990 For 1991 and subsequent, only "0000" "0013" or "0015" is a valid SPECIAL-PROJECT-CD input.
    PARTNERSHIP RECORD NOT ON PICF Self explanatory.
    PS TIN CHANGED TO nnnnnnnnnnnn PICF account is change-TIN case. Displays new edited TIN. Re-input using new TIN.
    RECOVERY IN PROGRESS Self explanatory.
    REPORT-PKG-DT CANNOT BE GREATER THAN TODAYS DATE Self explanatory
    REQUEST NOT PROCESSED INPUT ON LINES 1–12 ONLY There is data on line 13. Line 13 is reserved for messages.
    SPECIFIC TAX SHELTER PROJ CODE REQUIRED The SPECIAL-PROJECT-CD input is not a valid tax shelter project code for 1990 and prior.
    SYSTEM ERROR ON ACCESS/UPDATE PICF is down or unavailable.
    SYSTEM ERROR ON ACCESS PICF is down or unavailable.
    TIN/FS/MFT INCONSISTENT The TIN and File Source are not consistent with the MFT.
Exhibit 2.2.8-1

Command Code MSCHG

MSCHG Input Screen Format

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Record Element Description

Element Line Position Description
1 1 1–5 CC MSCHG
2 2–12 1–12 Edited Key Case TIN (Item 2)
3 2–12 14–15 Key Case MFT Code NN (Item 3)
4 2–12 17–22 Tax Period YYYYMM (Item 4)
5 2–12 31–32 Change Item Number ("1" , "2" , "3" , "4" or "5" ) (Item 5)
6 2–12 33–41 Change Value (V–V)
7 13 1–40 System-Message Line

Note: Item numbers in parenthesis refer to those on Form 8336.

Exhibit 2.2.8-2

Command Code MSCHG — Input Screen Example

MSCHG Input Screen Example

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Record Element Description

Element Line Position Description
1 1 1–5 CC "MSCHG"
2 2–12 1–12 Key Case TIN "06–1234567"
3 2–12 14–15 MFT Code "06"
4 2–12 17–22 Tax Period "199912"
5 2–12 33–41 Change Elements "3–0013"

This is an example of an input screen changing the SPECIAL-PROJECT-CODE to 0013. This will cause the SPECIAL-PROJECT-CODE of all of the Partner's (Investors) records that are linked to this Partnership as well as the Partnership record to be changed.

Note:

Tax shelter SPECIAL-PROJECT-CDs are only valid for tax periods prior to 1991. Beginning with tax period 1991, SPECIAL-PROJECT-CDs "0013" and "0015" will be the only codes which will be allowed in MSCHG.