PSP plays a vital part in the examination process by:

This IRM provides an overview of the ERCS responsibilities PSP employees should understand and apply in the performance of their duties.

The Audit Information Management System (AIMS)/ERCS Staff, although part of PSP, has separate duties which are discussed in IRM 4.7.10, AIMS/ERCS Staff.

Users, employees with ERCS access, must be aware of the potential for Unauthorized Access of Taxpayer Accounts (UNAX) violations from the use of ERCS. Data from ERCS should be accessed only for IRS business purposes. Users should promptly retrieve ERCS reports from printers or fax machines in order to prevent unintentional disclosure. Audit trails are created and subject to review for all user accesses of taxpayer data. For more information about UNAX, see IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance and Requirements.

IRM 1.4.1, Management Roles and Responsibilities.

Every PSP employee needs to know what ERCS can do to help them do their job. This includes using ERCS to establish and maintain inventory in order to have reliable data for reports in which to monitor programs and priorities.

TMs are responsible for the selection of cases and delivery of inventory and ensuring Exam Plan goals are met.

Responsibilities of the TM regarding ERCS include, but are not limited to:

Section Chiefs are responsible for PSP operations which includes ensuring appropriate internal controls are established and maintained; and the goals, policies, and directives of the Headquarters (HQ) Office as well as the area are followed.

Responsibilities of the Section Chief regarding ERCS include, but are not limited to:

Responsibilities of Program Coordinators regarding ERCS include, but are not limited to:

Responsibilities of the Tax Examiners, Audit Accounting Aides, and Administrative Support Staff is based upon the grade level and the position description of the employee. These responsibilities regarding ERCS include, but are not limited to:

Reports are available that allow management to monitor inventory, statutes, closures, time input, and employee records. See IRM 4.7.6, Reports, for more information.

ERCS creates audit trails for selected changes to returns, employee records, and permission records. A special audit trail is also created when users enter a taxpayer identification number (TIN) or a taxpayer name on ERCS. See IRM 4.7.2, Security, for more information. IRM 4.7.2.3.4, Audit Trails, has a list of the changes in ERCS that produce an audit trail.

There are security checks within ERCS to ensure unauthorized users do not access programs and authorized users are kept within the boundaries of their permissions. These checks are performed automatically and silently each time a user attempts to access ERCS. The user has no ability to prevent the checks. For more information about permissions in ERCS, see IRM 4.7.2.3.2, Permissions.

See Exhibit 4.7.4-1, Acronyms and Definitions, for acronyms used in this IRM.

For questions regarding ERCS security and instructions for gaining access to ERCS refer to IRM 4.7.2, Security.

For general responsibilities of the section chief, refer to IRM 1.4.1, Management Roles and Responsibilities.

Instructions for navigating the ERCS programs at the PSP user level can be found in the ERCS PSP Handbook.

For questions regarding PSP operations see IRM 4.1, Planning and Special Programs.

AIMS is the system of records for SB/SE, LB&I, Appeals, W&I, and TE/GE. It contains accomplishment information for returns in the Examination stream. PSP utilizes AIMS to obtain information such as:

AIMS records are established by:

The main differences between AIMS data and ERCS data are:

For more information regarding AIMS see IRM 4.4, Audit Information Management System (AIMS) - Validity and Consistency.

SSIVL is a system which allows AIMS data to be downloaded by Business Operating Division (BOD), Area, function, etc. and used to generate inventory reports.

The SSIVL data is AIMS data with the addition of the three employee identification (ID) fields from ERCS (Group or PSP, Centralized Case Processing (CCP) and Review). Up-to-date AIMS data is sent to the ERCS server each weekend.

AIMS Assignee Code (AAC) information recorded in ERCS is used to identify the support area responsible for returns listed on the area's SSIVL. Data is extracted by support area and sent to a server at the Detroit Computing Center for each area. The A/E staff imports the SSIVL data into a Microsoft Access database.

The A/E staff generates IVLs from the SSIVL data periodically and distributes the IVLs to PSP and the examination groups supported by the area. This also includes the annual 100 percent AIMS IVL.

Time is input into ERCS for employees required to account for time spent on their daily activities. Refer to IRM 4.7.4.5 (8) for the PSP employees required to input time on ERCS.

At the end of each reporting cycle the time is extracted from ERCS, validated, and transmitted to the SETTS server located in Martinsburg Computing Center. There the data is pulled for inclusion on Table 37, Examination Program Monitoring and sent to the AIMS Computer Information System (A-CIS). Refer to IRM 4.9.1, Outline of System, for more information on Table 37.

PSP uses CDE to classify SB/SE returns, establish the AIMS database, and deliver returns to the field. Once a return is selected, CDE sends a requisition to establish the return on AIMS in a PSP CDE EGC. Over the following weekend during AIMS to ERCS processing, the AIMS record is added to ERCS if it has not been previously added.

When the AIMS record is fully established, a CDE user assigns the return to the examination group on CDE which sends a status code, status date, SBC and EGC update to AIMS.

Over the following weekend during AIMS to ERCS processing, the AIMS AAC for the examination group overwrites the PSP CDE AAC, as well as the status code and status date, on ERCS. It is critical the AAC on ERCS be established as a PSP CDE EGC so this process will work. Otherwise the return will appear on the ERCS AAC Difference Report. See Exhibit 4.7.4-2 for a list of PSP standardized CDE EGCs with descriptions.

At the end of each time reporting cycle (this corresponds with the SETTS cycles), data from AIMS and SETTS is extracted and loaded into A-CIS.

A-CIS has four database tables:

The time information from ERCS is by employee per day and per activity or return. The SETTS database contains a summary of time information extracted from ERCS. The summary information includes the employee's time per specific codes such as activity, source, project, etc. It does not include time per return. For more information about the SETTS data, refer to IRM 4.9.1, Outline of System.

While the data in ERCS is constantly changing, the data in A-CIS is unchanging. So if current information is needed or if time per return information is needed, ERCS is the system to use. If statistics from a prior month are needed or if the summary time information is needed, then A-CIS is the system to use.

A-CIS data is available to HQ analysts and upper level management for their specific area or practice area to create reports and to monitor time data against the Exam Plan. In LB&I the data is also available to TMs and above.

Monitoring the statute of limitations is essential to prevent possible loss of revenue to the Treasury. See IRM 4.7.3, Statute of Limitations, for information regarding the establishment of and requirements for control of the statute date for returns on ERCS. See IRM 25.6.23, Examination Process-Assessment Statute of Limitations Controls for responsibilities and procedures in controlling statutes and descriptions of statute alpha codes. PSP's responsibilities for statute controls include but are not limited to the following:

The following forms and reports are used to monitor statutes. Refer to the ERCS PSP Handbook for more information about the ERCS reports.

Form 895 is generated by PSP when a return has an alpha code or when the numeric statute is within the area's set number of days (usually 210 for PSP) from expiration. Program coordinators and their section chief must complete Form 895 to document they have verified the statute on the return.

The Pending Statute Report from the Statute Expiration Reports menu allows PSP the flexibility to look at statutes based on a specific program (when run by AAC) or for all programs within the area (when run by PBC and the SBC of 87700). The user has the option to include statuses outside of PSP, and statutes expiring within a number of days. There are a variety of sort options available as well as the option to include irregular statutes on the report. This report does not list expired or alpha code statutes.

The Pending Statute Report from the Territory Reports menu gives a snapshot of the number of returns expiring within 210 days with an optional inventory listing of returns with expired statutes and statutes expiring within 30 days. It may be generated by the area PBC or by a specific territory SBC.

The 895 Report should be run with the Pending Statute Report. It lists returns with alpha codes, expired statutes, and returns that have a Form 895. It can be used to check the Form 895 issued and returned dates have been updated on ERCS.

The Statute Override Report is generated from the AIMS Error Report menu. It lists returns where the AIMS statute has overwritten the ERCS statute.

The AIMS-ERCS Statute Report from the Statute Expiration Reports menu lists returns where the AIMS and ERCS statutes are different. Returns with specific statute issues, such as alpha code "ZZ" , are also included on the report.

The AIMS Table 4.0 is distributed monthly by the A/E staff. It lists AIMS returns with statute dates that have expired or will expire within 180 days or the number of days required under local procedures.

For detailed information regarding ERCS statute reports see IRM 4.7.6, Reports.

PSP must ensure there is sufficient inventory available to fill return orders for the groups according to set Exam Plan criteria. Inventory no longer needed should be closed appropriately.

Inventory comes into PSP from the campus and other areas in EGCs 1998 and 2998. The physical inventory should be compared with the ERCS Alpha IVL to identify cases that have been received and should be updated out of these EGCs. Any returns not received within 21 days should be researched.

PSP is responsible for transferring returns to other areas. ERCS should be used to initiate the transfer out of area. Once the transfer is approved, ERCS will update AIMS. When AIMS and ERCS are updated the case file can be mailed.

Updates to returns should be input on ERCS as soon as changes are known. Since the group can claim a return from PSP and apply time to it before PSP transfers control of the return to the group, the codes on the return need to be accurate when time is applied. Once time is extracted for the national reports and tables it cannot be corrected. Corrections may be made on ERCS, but the corrections are not sent forward.

Updates to the following codes can be made on multiple returns on ERCS. Each TIN must be entered and the tax period selected before the updates are made. Refer to the Correct or Display Records chapter of the ERCS PSP Handbook for more information:

Program coordinators are generally responsible for one or more programs (e.g., Abusive Transactions Technical Issues (ATTI), Compliance Initiative Projects (CIP), and Identity Theft). More information about the specific programs can be found in IRM 4.1.1, Planning, Monitoring, and Coordination. For contact information on specific programs refer to the Area and Campus Program Contacts list under the Who Do I Contact page of the Contacts chapter in the ERCS book.

Project and tracking codes enable PSP to categorize returns within a specific program or project and to aid in monitoring returns as they move through the examination stream. Both codes have local and national ranges. The national project and tracking codes can be located under the ERCS Code Listings page of the Codes and Procedures chapter of the ERCS book. See Project Code - National for SB/SE nationally defined project codes, and Tracking Codes for a list of nationally defined tracking codes. The LB&I Project and Tracking Codes document contains codes used by LB&I, including Withholding, Exchange, and International Individual Compliance (WEIIC).

Local project codes are in the ranges of 0175-0200, 0500-0575 and 0700-0799. Local tracking codes are in the range of 0001 to 3999. These are defined by the section chief or the program coordinator. When a new local project or tracking code is needed it should be coordinated with the A/E staff. PSP can validate new local tracking codes and print reports of available tracking codes from the Maintain Tracking Codes menu. The A/E staff validates new local project codes. A list of the available local project codes can be obtained from the A/E staff or by selecting to print the two local project code files from the ERCS Print Menu option on the Login Menu.

PSP is responsible for updating or removing, if necessary, tracking codes on returns in all status codes less than 80. Group and TS users can enter a tracking code, but they cannot update or remove it.

Refer to the Codes chapter of the ERCS PSP Handbook for more information about these codes.

When a return is under examination, an examiner may need to pick-up the prior or subsequent tax period as part of the audit package. If the related pick-up is in PSP, under certain conditions the return can be claimed (brought into the group's inventory) on ERCS. To claim a return from PSP into a group's inventory, the return must be unassigned and in Status Code 08 or below. A group user can claim a return from PSP by updating the SBC and EGC to group codes or by applying time to the return.

Claimed returns from PSP will show in the new group on ERCS but AIMS will remain in the PSP AAC. When a PSP user logs into ERCS, and there are claimed returns, the message "There are claimed returns to transfer. Use Transfer, Close, Establish" is displayed on the bottom of the Main Menu. PSP users can print a list of claimed returns using the option Transfer Claimed Returns under the Transfer, Close, Establish Control menu.

If claimed returns are not transferred within the week they are claimed they will appear on the group’s AAC Difference Report the following week. Therefore, claimed returns should be transferred when the message is displayed alerting PSP users returns have been claimed, as recommended in IRM 4.7.6-2, ERCS Reports.

Once on the group’s AAC Difference Report action is required from PSP to resolve the AAC difference. The Transfer Claimed Returns option is used to monitor claimed returns and to transfer PSP control to the group. When control is transferred, the return drops from the AAC Difference Report and the Transfer Claimed Returns report. If the case file cannot be located or there is some other reason why control should not be released to the group, PSP must contact the group to update ERCS back to the original PSP AAC.

For more information about claiming returns from PSP and the menu option Transfer Claimed Returns, refer to the Transfer, Close, and Establish chapter of the ERCS PSP Handbook.

PSP can now receive Claims electronically. In order to survey an electronic claim the Electronic Case EGC flag must be turned on for specific PSP Claims EGCs.

The PSP section chief or coordinator will provide the local A/E staff with a list of EGCs to have to flag turned on.

When reviewing Claims if the PSP coordinator finds the claim has already been paid, DC 33 cannot be used to close the Claim. Follow Area procedures for closing Claims that have been paid.

Only selected actions on ERCS require managerial approval. Some updates require approval no matter who the user is. Some updates do not require approval if they are input by a manager. If the following actions are performed by the administrative support staff, TEs, or AAAs the actions should be approved by a user with first level approval permissions. If the actions marked with an asterisk (*) are performed by a program coordinator or section chief, a user with second level approval must approve the action. Actions that require approval are:

If a statute is updated incorrectly and is still pending managerial approval, it can be changed back to the original statute which will remove the managerial approval record. The user can then update the return with the correct statute which will create a new managerial approval record.

Although a requisition cannot be reversed by the user, if data was input incorrectly on a requisition, the data can be corrected prior to the manager approving the requisition.

Transfers to another area or practice area on returns controlled on AIMS cannot be reversed prior to manager approval. If input in error, the user should alert the manager to disapprove the transfer.

Non-examined closures to Status Code 90 generating an update to AIMS cannot be reversed by the user. If input in error, the user should alert the manager to disapprove the closure.

When the Managerial Approval option is run and an AAC is selected, all the returns matching the AAC and pending approval are locked. This prevents another user with approval permission for that AAC from accessing the same returns on the approval screen. The returns are unlocked when the user completes the actions and returns to the menu screen.

Updates requiring approval are grouped by the following categories:

When approving a requisition, the user should ensure the information on the approval screen is correct. If any of the information is incorrect, the approver should skip the return and take the necessary steps to correct the information. Then the requisition can be approved.

When approving a Non-master File to Master File conversion, a Master File requisition is forwarded to AIMS. The examiner should complete Form 10904 and forward it to the A/E staff to close the Non-master File AIMS record with DC 28.

When a Non-master File to Master File conversion is disapproved, the Non-master File record is restored to the previous values.

When requisitions, statute changes, transfers to another area, or Status Code 90 closures impacting AIMS are approved, AIMS is updated when the daily ERCS to AIMS uploads are run.

When a statute update, transfer to another area or Status Code 90 closure impacting AIMS is disapproved, the change is reversed back to the previous value.

A section chief, or program coordinator with permanent first level approval permissions, can grant temporary permission for any AAC to which they have first level approval, to another user through the option Grant Temporary Permission providing the following requirements are met:

Permissions should only be delegated to a user for the length of time the permission is needed, not to exceed 30 days.