part4-49

4.4.23 
Openings

4.4.23.1 
(02-08-1999)
Overview

  1. This section contains information on opening returns
    on AIMS. Most returns that enter Examination are already established on AIMS.

  2. For returns that are picked up by Examination,
    AIMS must be established as soon as it is determined that the return will
    be examined.

  3. Failure to establish a return promptly can delay
    closing and will make management reports and inventory validations inaccurate.

  4. Returns requisitioned for reference or information
    purposes must be established on AIMS.

4.4.23.2 
(02-08-1999)
Managerial Approval

  1. Each request must be approved by the requester’s
    immediate manager before it is forwarded for terminal input.

  2. The manager must ensure the return or control
    is needed and the correct source code is used.

  3. A request for a return made by a manager, except
    the PSP Support Manager must be approved by that managers immediate supervisor.

  4. The PSP Support Manager, Classification, or Technical
    Support Staff may assign approval responsibility to a technical staff member.
    Facsimile stamps may be used with proper control.

4.4.23.2.1 
(02-08-1999)
Form 6149

  1. The ADP Focal Point for the area will sign and
    enter the date of approval.

4.4.23.3 
(02-08-1999)
Establishment Process

  1. The establishment process is dependent on whether
    the account is being established on:

    • Master File (MF)

    • Non-Master File (NMF)

    • Partnership Control System (PCS)

4.4.23.3.1 
(02-08-1999)
Master File

  1. Before the TC 424 is sent to Master File, the
    TIN and Name Control are validated against the NAP to ensure that the TIN
    exists at Master File and that the Name Control matches the TIN. If it does
    not match you will receive a terminal reject.

  2. If it does match, the TC 424 is sent to Master
    File. Another check is performed and if all the data matches and a return
    has been filed, Master File sends an opening record back to AIMS with additional
    information such as activity code, statute date, delinquent return indicator,
    etc. If a return has not been filed and a Push Code is present, the TC 424
    will remain at Master File and an opening record will be generated when a
    return posts. After AIMS receives the opening record, the data base becomes
    fully established and AIMS sends a TC 420 back to Master File.

  3. If a TC 424 posts to a tax period that is in TDI
    Status 03, a TC 595 will automatically be generated.

4.4.23.3.1.1 
(02-08-1999)
IMF

  1. Before the TC 424 is sent to Master File, the
    NAP is accessed to ensure that there is a Name Line and Tax Module present
    at Master File. If there is not, you will receive a terminal reject. If a
    push code is used, the tax module part of the check is bypassed.

4.4.23.3.1.2 
(05-01-2003)
BMF

  1. BMF records are scheduled to also run through the NAP process starting
    January 2004.

4.4.23.3.2 
(02-08-1999)
Non-Master File

  1. The input of a Non-Master File establishment immediately
    establishes a full record on AIMS and generates a Form 5546 and labels if
    requested.

  2. In order to have the DLN on the Form 5546 when
    it is generated, the DLN from the transcript must be entered in Item 58 on
    Form 5349 at the same time the Form 5354, CC AMNON is
    entered.

4.4.23.3.2.1 
(02-08-1999)
Reasons for NMF

  1. Following are some reasons why accounts are established
    NMF:

    1. The taxpayer does not have a TIN

    2. Since the Master File establishment will remain
      a skeletal record until a return posts, sometimes NMF AIMS
      controls are used which will cause the records to appear on IVL’s
      and statute tables.

    3. Accounts that cannot be established on master file
      AIMS because of a master file reject.

      Example:

      Duplicate SSN’s assigned to two different taxpayers, or name control
      discrepancies.

  2. Master File returns should be established on NMF
    only for temporary control.

4.4.23.3.2.2 
(05-01-2003)
Form 1040NR for a Form 1041 Return

  1. Form 1040NR can be filed for a trust. The only way to open these on
    AIMS is to treat it as a Form 1041 using a Form 1041 MFT and activity code.

4.4.23.3.3 
(02-08-1999)
PCS

  1. When establishing a flow-through entity and/or
    related investor returns, see IRM 4.31.1, Flow-Through Entity Multi-Functional
    Handbook.

4.4.23.4 
(02-08-1999)
Establishment Rejects

  1. The openings requests can reject immediately upon
    input or when attempting to post to Master File.

4.4.23.4.1 
(02-08-1999)
Terminal Rejects

  1. The request can reject at the terminal for a variety
    of reasons. The error message should be printed, attached to the request and
    returned to the originator for correction. IRM 2.8 contains explanations of
    the error messages.

4.4.23.4.2 
(02-08-1999)
Master File Rejects

  1. The openings request can also reject when attempting
    to post at Master File. These type of rejects will appear on the TC424 reject
    register. See IRM 4.4.27, Reports for explanations of the reject register.

4.4.23.4.2.1 
(02-08-1999)
Retention Register

  1. Older tax periods that are on the retention register
    should be brought up to active status before Accounts establishing the record
    on AIMS. They can be established if they are on retention but there is a significant
    delay.

  2. Usually, if an account has been moved to retention,
    the AM424 will reject at the terminal unless a push code is used. If research
    shows the reason for the reject is because the account is on retention, the
    following steps must be taken before the AM424 is reinput.

4.4.23.4.2.1.1 
(02-08-1999)
IMF Returns

  1. If IMFOLT shows that the account is on retention:

    1. Input an IMFOLB — The accounts are brought
      back from retention during week-end processing so check each Monday to see
      if they are now active. If two Mondays have passed and the account is still
      not active, report the problem to your IDRS Support Staff in the Campus.

    2. After the account is in active status, reinput the
      AM424.

4.4.23.4.2.1.2 
(02-08-1999)
BMF Returns

  1. If BMFOLT shows that the account is on retention:

    1. Reinput the AM424 with a push code; it will cause
      the TC 424 to reject and sets the Retention Register Indicator. Examination
      Operatins in the Campus is responsible for preparing the paper work to have
      the account brought back.

    2. Prepare the paper work to have the account brought
      back following the instructions in the Reports Chapter. After it is in active
      status, reinput the AM424.

4.4.23.5 
(05-01-2003)
Forms to Use

  1. All forms must be reviewed to ensure that they
    are complete and accurate. CC INOLE should be accessed
    to verify entity information to prevent a reject.

  2. When establishing returns on AIMS:

    If the
    return is to
    be controlled as:     		THEN use:
    Form

    		 Command
    Code
    Information
    Report     		5346 CC AM424
    Master
    File (MF)     		5345 or
    5347     		CC AM424
    Non-Master
    File (NMF)     		5354 CC AMNON
    Partnership
    Control System (PCS)     		8338,
    8340, 8341     		CC TSLOD
    Record
    Retention
    Agreement (RRA)     		6149 CC AM424R

4.4.23.5.1 
(02-08-1999)
Form 5345

  1. Form 5345 will be used to request all Master File
    returns. This form permits as many as 5 returns to be established for the
    same taxpayer when all items are the same with the exception of the tax period,
    activity code or amount claimed.

4.4.23.5.2 
(02-08-1999)
Form 5346

  1. A Form 5346, Examination Information Report, is
    prepared when an issue is discovered that has an impact on a return not yet
    filed; not yet under examination, or under another area’s jurisdiction.

  2. The examiner initiates a Form 5346.

  3. If the information report is for a future file
    year, the Form 5346 is input using Push Code 039 and Source Code 60, which
    will hold the skeletal record on AIMS for 26 months. If the return is filed
    within the 26 months, it will automatically kick out for examination. If an
    AM424 is input with Source Code 60 but without a Push Code 039, a TC 424 is
    not sent to Master File. If at a later date the return is selected for examination,
    the literal
    “Information Report Available”
    will be printed
    on the F5546.

4.4.23.5.2.1 
(02-08-1999)
Forward To:

  1. The Case Processing Support Manager or PSP Support
    Manager for one of the following actions.

4.4.23.5.2.1.1 
(02-08-1999)
Orders and Screens Return

  1. Orders and screens return or CFOL print.

    1. Assigns to group

    2. Surveys return using DC 99

4.4.23.5.2.1.2 
(02-08-1999)
Inputs to Intercept File

  1. Inputs to Intercept File by using AM424 without
    a Push Code.

    1. If it is determined that information may be valuable
      later, complete the Form 5346 and forward it to the Chief, Classification
      Section at the Campus.

    2. If the return does come into Examination through
      other channels, a special message that an information report is available
      is printed on the Form 5546, Examination Return Charge-Out (Form 5546).

    3. This report should be associated with the return
      by notifying the PSP Support Manager to secure the information report.

4.4.23.5.2.1.3 
(02-08-1999)
Rejects and Returns Report

  1. Rejects and returns report to originator due to:

    1. information incomplete

    2. information inaccurate

    3. information not worthy of further action

4.4.23.5.2.2 
(02-08-1999)
Additional Information

  1. See
    “Return Selection and Assignment
    Handbook”
    for additional information.

4.4.23.5.3 
(05-01-2003)
Form 5347

  1. Form 5347 is used to request up to 25 Master File
    Returns when the source, primary business code, employee group code, secondary
    business code, MFT, status code, return-request indicator, project code, aging
    reason code, and push code and/or statute date being input are the same.

  2. Form 5347 cannot be used to request returns with
    Source Code 45 (Reference and Information Returns) and Source Code 60 (Examination
    Information Report). These returns must be requisitioned using Form 5345 and
    Form 5346, Examination Information Report, respectively.

4.4.23.5.4 
(02-08-1999)
Form 5354

  1. Form 5354 is used to establish Non-Master File
    returns on AIMS.

4.4.23.5.5 
(02-08-1999)
Form 6149

  1. Form 6149, is used by area/industry offices to
    establish or delete the TIN on the AIMS file for taxpayers who have signed
    ADP record retention agreements with the Service.

  2. Each requester will submit Form 6149 to the person
    in the area who is designated as the ADP Focal Point who will sign and date
    it.

4.4.23.5.6 
(02-08-1999)
Forms 8338, 8340, 8341

  1. For establishing returns using the PCS refer to
    IRM 4.29.1.

4.4.23.6 
(02-08-1999)
Preparation of Forms

  1. The following entries are listed in alpha order.

4.4.23.6.1 
(02-08-1999)
Activity Code

  1. Required entry. Estimate the activity code.

4.4.23.6.1.1 
(02-08-1999)
MF Only

  1. When the record comes down from master file (excluding
    accounts that went to retention and SFR’s), the correct activity code
    will overlay the one input.

4.4.23.6.1.2 
(02-08-1999)
NMF Only

  1. Enter the correct activity code.

4.4.23.6.2 
(02-08-1999)
Aging Reason Code

  1. Enter aging reason code if applicable. Employee
    Group Code must be 1XXX for Aging Reason Code 04.

4.4.23.6.3 
(05-01-2003)
Claim Amount

  1. If there is a claim involved, enter the amount
    of the claim (dollars only) . See IRM 4.4.4, Claims for more information.
    Amount should be entered in the left most position and do not enter cents.
    For example; a claim for $9,122.45 would be entered C9122.

4.4.23.6.4 
(02-08-1999)
Primary Business Code

  1. Enter the primary business code of the area/industry
    to which the return is to be delivered.

4.4.23.6.5 
(02-08-1999)
Establish/Delete Form 6149 Only

  1. Check
    “establish”
    if you are
    establishing a Record Retention Agreement or
    “delete”
    if
    you are deleting a Record Retention Agreement.

4.4.23.6.6 
(02-08-1999)
Follow-Up Action

  1. The group secretary notates additional action
    taken to obtain the return, such as resubmission of the request, correction
    of TC424 reject, or contact made to the function or group already charged
    with the return.

4.4.23.6.7 
(02-08-1999)
Form Number

  1. Enter tax return form number.

4.4.23.6.8 
(02-08-1999)
MFT Code

  1. Enter two-digit Master File Tax Code (MFT). See
    IRM 4.4.1 for a list of valid MFT codes.

4.4.23.6.9 
(02-08-1999)
Managerial Approval

  1. See IRM 4.4.23.2.

4.4.23.6.10 
(02-08-1999)
Multiple Tax Periods

  1. If multiple returns (Tax Years) need to be requested
    for the same taxpayer, that is, the same source code, employee group code,
    MFT, status code, EIN or SSN, enter the additional tax periods (YYYYMM), activity
    codes, and claim amounts.

4.4.23.6.11 
(02-08-1999)
Name

  1. Enter complete name of taxpayer. For individual
    returns, last name will appear first, followed by a comma, then first name
    and middle initial, if any. For other than individual returns, enter taxpayer’s
    name as it should appear on the return.

4.4.23.6.12 
(05-01-2003)
Name Control/Check Digit

  1. Enter the check digit. If the check digit is not
    available, the name control should be used.

  2. When name control is input, the computer will compare and search for
    a similar record on AIMS for the same taxpayer. If the two Name Control fields
    do not match, a message is displayed. The terminal operator may then change
    the input Name Control to the one displayed in the message, and re-transmit
    the screen, or if the operator is sure that the current input Name Control
    is correct, the operator enters
    “AA”
    in positions 46-47
    of the entry line, re-transmits the screen, and the computer will bypass this
    Name Control check. As many as 11 tax periods for a single taxpayer may be
    input on one screen (Line 13 is reserved for operational messages). After
    input of CC AM424 with one taxpayer and multiple tax periods, if no errors
    are encountered, the entire screen will be displayed back, and the literal
    “OK”
    will appear in positions 46-47, lines 2-12, and the message
    on line 13.

4.4.23.6.13 
(02-08-1999)
NMF Code — NMF Only

  1. Enter two-digit Non-Master File Tax Code (NMFT).
    See IRM 4.4.1 for a list of valid NMFT codes.

4.4.23.6.14 
(02-08-1999)
Employee Group Code

  1. Enter the requester’s four-digit employee
    group code. This is used by Files in the campus to route the return.


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