The MACS User Guide is a desk reference for all MACS users covering the following:

The User Guide is produced and periodically updated by MDC.

The MACS System Guide is an Official Use Only document for the system administrator and the security officer. The System Guide provides information about:

The System Guide is produced and periodically updated by MDC.

A profile is a summary of one or more significant filing characteristics of a population of returns. It is limited to the information contained in the MACS database.

MACS can profile actual return filings of areas and compliance services to analyze the makeup of their populations. Understanding the characteristics of a filing population can improve the processes of allocating resources, developing outreach activities and identifying filing trends.

The National MACS Database, located at MDC, can profile on a multi-area or national level.

Some examples of profiling are:

MACS is used to assist in the classification of returns. Since it typically contains three years of filings, it is possible to view a three-year comparison of the taxpayer. The multi-year comparison gives the classifier a better financial overview of the taxpayer, improving the selection process.

When classifying original business returns, MACS can be used to view the shareholders’ or partners’ returns at the same time.

MACS has the ability to identify returns containing specific issues. The MACS system allows for up to 100 filter lines and 10 computed fields. See IRM Section 4.3.4.5.4, Filter Comparisons Available for more information. Some examples of issue identification using MACS filters are as follows:

A Compliance Initiative Project (CIP) is required for all MACS identified projects. The exception is for returns identified only by the same elements as a DIF order (activity code, POD and PIA code) and which are above the locally defined DIF cutoff score. See IRM procedures for Compliance Initiative Projects for more information.

The MACS system provides a facsimile print of a taxpayer’s return in a one- or three-year format. The information on the MACS return contains the original information transcribed when the return was filed. It also includes additional information such as a Cash T, date of birth for the primary taxpayer, DIF score, market segment, prior audit indicators and other information from the Masterfile.

The above information is useful in pre-audit analysis, when requesting a subsequent or related return, or to verify whipsaw issues, etc.

ADDAPT is a MACS inventory and delivery program that groups business returns by market segment and DIF score order. Returns must be viewed and classified in descending DIF score order. See IRM Section 4.3.6.3.4, Alternative DIF Delivery and Processing Tool.

Subsets and extracts are smaller segments of MACS, available only from the National MACS Database at MDC. They may be requested in either hard copy or electronic format. Electronic subsets and extracts are uncompressed and can be manipulated using commercial software.

A subset is MACS data meeting all of the following criteria:

An extract is MACS data meeting any of the following criteria:

Electronic extracts must reside on a computer system that has C2 security.

Matcher is a program that allows an external list of TIN’s (IMF or BMF) to be compared against the MACS database for both primary and secondary TIN’s. Its primary function is to identify nonfilers.

A MACS Research Request form must be completed by the requester, authorized by the requester’s manager and forwarded to the PSPArea Support/Compliance Services Exam Operation.

A MACS Research Request form must be completed by the requester, authorized by the requestor's manager and forwarded through appropriate channels to the PSP Territory Manager-East/West/Compliance Services Exam Operations. Approval may be locally delegated to the PSPArea Support Manager/Compliance Services Exam Operation Program Manager.

A MACS subset must be requested by the, PSP Area Support Manager/Compliance Center Exam Operation, by completing the MACS Subset Request form (Exhibit 4.3.6–1, MACS Subset Request). For complete procedures, see IRM Section 4.3.6.3, Subsets and Extracts.

MACS extract requests originating in Compliance/Compliance Services will be routed through the territory manager to the area director for preliminary approval, then forwarded to Small Business/Self Employed, Compliance Policy, Attn: Centralized Workload Selection and Delivery for final approval. SEE IRM 4.3.6.3

MACS extract requests originating in Headquarters or functions other Compliance/Compliance Services will be routed through their chief, territory manager, etc., to the director, deputy commissioner, etc., for preliminary approval, then forwarded to Small Business/Self Employed, Compliance Policy, Attn: Centralized Workload Selection and Delivery for final approval. SEE IRM 4.3.6.3.

Each MACS site houses only return information for the local area or compliance services area. If there is a need for information from another area, a request may be made to that MACS site. Before making an outside request, ensure that there are no reasonable means for securing the information locally. To make a request for MACS data outside the local area, the requester must submit a research request form to the local PSP/Compliance Services Exam Operation following the procedures in IRM Section 4.3.4.3, Research Request Procedures of this handbook. The local MACS coordinator will then forward the request to the outside area/compliance services where it will be processed and returned to the local PSP/Compliance Services Exam Operation for distribution to the requester. All data will be provided in hard copy only.

Requests from federal/state agencies, whether for electronic or hard copy data, will be treated as extract requests from the Office of Government Liaison and Disclosure. Extract procedures in Section 6.3.2.2, Requests from Headquarters and Functions other than Compliance/Compliance Services in this handbook, will be followed. For electronic data, the requesting agency must provide a written statement that the system to be used to house the data meets C2 security requirements.

When a request is submitted from a federal/state agency, the receiver of the request (generally the FedState Coordinator or the Disclosure Officer) will forward it to the Liaison Disclosure Officer to ensure that "need and use" requirements have been met by the state tax agency. The Disclosure Officer will then submit an extract request according to the procedures contained in IRM Section 4.3.6.3.3.2.

After the request is filled by MDC, the data will be sent through the appropriate System Control Point (SCP) to the Disclosure Officer for review and distribution to the federal/state agency.