part7-19

7.13.6 
Inventory Control Subsystems

7.13.6.1 
(03-01-2006)
Overview

  1. The EP/EO Determination System (EDS) Inventory Control Subsystem (ICS)
    tracks employee plans determination letter applications from transcription
    through closing.

    1. lCS replaces the EP/EO Application Control System (EACS) as the inventory
      control system for determination letter requests.

    2. EACS continues to exist in the service centers but is now referred to
      as the Masterfile Pipeline System (MPS).

    3. MPS functions as the link between EDS and the Employee Plans Master File
      (EPMF) in Martinsburg, West Virginia.

  2. An entity is electronically transferred to the master file for each
    case closed on ICS with closing codes 00, 01, 02, 04, 06, and 09. Employee
    Plans (EP) entities are transferred to EPMF.

  3. Use IDRS terminals to access the master files for research and to update
    or correct unrestricted fields on the master file, when necessary.

  4. Access to ICS is available to each employee (whether clerical, technical
    or managerial) based on the permissions set (profile) for that employee.

  5. The Transmittal Sheet (Form 8326), may be printed after the case has
    been transcribed. This Transmittal Sheet has a case chronology section. The
    Transmittal Sheet can be printed multiple times and, although not necessary
    or recommended, the duplicate copy of this document can be folded and used
    as a control card.

  6. Programs are available on the EDS to print labels for the administrative
    file and for mailing. These labels may be printed from a terminal.

  7. Management Information Reports (MIRs) previously generated by Detroit
    Computing Center are being produced (with modifications) by the Rulings and
    Agreements office based on data from EDS through the service centers. Through
    future enhancements, these reports will be produced locally.

    1. MIRs previously generated by the service centers and newly developed MIRs
      are now generated in the Area offices from EDS inventory control.

    2. In addition, Area offices are able to develop local reports or to generated
      local reports by executing structured query language (SQL) queries. MIRs
      are discussed, in detail, in IRM 7.13.9,
      Management Information Systems.

7.13.6.2 
(04-15-2003)
Status/Action Codes

  1. Update the status/action codes each time the case is moved from one
    location, process, or specialist. The status/action code for tracking EP cases
    are as follow:

    1. 31 — (In Review) This status is automatically generated on EDS for
      cases selected for sample, mandatory, or manager review.

    2. 32 — (Returned on Review Memo) This code will be used by the Quality
      Assurance Staff (QAS) to update the record from Code 31 before a case file
      is returned to the specialist with a Reviewer’s Memorandum for additional
      consideration.

    3. 33 — (Returned from Review) This code will be used by QAS to update
      the record of a case that is being returned to the group without a Reviewer’s
      Memorandum.

    4. 34 — (In Counsel for Approval) This code will be used by the QAS
      to update the record of any case that must be sent to Counsel for Approval
      before the letter is issued and the case closed. Cases included in this category
      are final adverse letter prepared when the applicant fails to appeal a proposed
      adverse letter, favorable letter prepared based on Tax Court findings and
      final adverse letter prepared based on Technical Advice.

    5. 35 — (30-Day Letter Mailed by QAS) This code will be used by the
      group manager or specialist to update the record when the proposed adverse
      letter is mailed.

    6. 37 — (Suspense in the Group) This code will be issued by the specialist
      or group clerk to update the record of any case placed in suspense at the
      group level.

    7. 38 — (Suspense in QAS) This code will be used by the QAS to update
      the record of any case placed in suspense at the QAS level.

    8. 39 — (Suspense in Technical Screening) This code will be used to
      update the record of any case placed in suspense at the technical screening
      level.

    9. 40 — (Proposed Adverse Determination) This code will be used by
      the specialist to update the case record when a proposed adverse determination
      letter is prepared and ready for managerial review. The specialist must also
      enter all closing data, except the 02 Closing Code, before releasing the case
      for managerial approval. The Closing Code 02 will be entered by QAS, when
      appropriate.

    10. 41 — (Proposed Technical Advice) This code will be used by the specialist
      to update the case record when technical advice request is prepared and ready
      for managerial review, approval and transmission to Review Staff.

    11. 50 — (New Case Establishment) This code is automatically generated
      by lCS when a case is entered on DTS.

    12. 51 — (Awaiting Assignment After Technical Screening) This code is
      used to update the record of cases identified for assignment by technical
      screeners.

    13. 52 — (Case Assignment) This code is used to update the case record
      when the case is assigned to a specialist or reviewer.

    14. 53 — (Returned to Specialist by Manager) The case record is updated
      with this code by the manager or group clerk when a case is to be returned
      to the specialist.

    15. 54 — (Transferred to Appeals) QAS will update the case record with
      this code before transferring a case to Appeals.

    16. 55 — (Awaiting Closing Approval) This code removes the case from
      the specialist’s inventory and places at the managerial level. It is
      generated automatically by lCS when the specialist updates the case record
      with any closing code.

    17. 56 — (Technical Advice Request-Suspense) QAS will update the case
      record with this code when the technical advice request is ready to be mailed
      to the Washington D.C. Office (Code 41 must be previously entered by specialist.)

    18. 58 — (Workload Transfer) This code is used to update the case record
      for cases transferred to another Area Office or Washington D.C. Office for
      development.

    19. 60 — (Open & Technical Screening).

    20. 62 — (Assigned & Technical Screening). This code is used to
      update the case record to a technical screener.

    21. 75 — Unassigned Inventory

  2. The following status codes will automatically update to status 55 when
    entered:

    1. 40 (Proposed Adverse Determination)

    2. 41 (Proposed Technical Advice)

    3. 00 (Approved — Issue Only)

    4. 01 (Approved — Fully Worked)

    5. 02 (Final Adverse Determination)

    6. 03 (Returned Incomplete)

    7. 04 (Withdrawn by Taxpayer)

    8. 05 (Returned Substantially Deficient)

    9. 06 (Closed on Merit without Contact)

    10. 07 (Form 5310CA Referral Generated)

    11. 08 (Forms 5310-A/4471B Accepted As Filed)

    12. 09 (Closed on Merit With Contact)

    13. 30 (Correction Disposal)

  3. The code for unassigned inventory is 75.

    1. Code 51 (awaiting assignment after technical screening), is made available
      primarily for Area offices who wish to track cycle time for the technical
      screening function, but its use is not mandatory.

    2. However to facilitate research during periods of high inventory, the Area
      office should consider using code 51 for cases that have been technically
      screened but not closed on merit or assigned to a specialist.

  4. Ideally, all cases that are not closed on merit should be assigned to
    a specialist. This may not be practical or possible during periods of high
    inventory.

    1. Case assignment requires the entry of a specialist number; therefore,
      if the Area offices prefer to keep unassigned inventory at the group level
      rather than at the technical screening level as discussed in (2), above, a
      ‘dummy’ specialist number can be established for each group and
      used for this purpose.

7.13.6.3 
(04-15-2003)
Case Tracking

  1. Cases transcribed in DTS are automatically placed in status 50 (area
    office receipt). Cases not eligible for technical screening (Forms 4461, 4461–A,
    and 4461–B) should be assigned to a specialist.

    1. To assign several cases access the Multiple Assignment Screen to update
      status.

    2. Cases may be individually updated through the Query/Update KDO Master
      File Screen.

    3. All other cases are physically transported to the technical screening
      area but no status update is made on lCS.

  2. To produce meaningful determination cycle tables on lCS, it is important
    to update lCS when the case is physically removed from the technical screening
    area.

    1. The use of a dummy specialist number for unassigned group inventory will
      reduce the number of entries required at the technical screening level to
      update cases for assignment.

    2. Although not necessary, the case grade for EP cases (which is determined
      by the technical screeners) can be entered at the same time.

    3. lCS does not require an entry in the EP case grade field until the case
      is closed.

  3. Cases meeting the conditions for merit closure can be updated for closing
    at any time but ICS will prevent EP cases from closing before the required
    60-day hold period.

  4. The Multiple Assignment Screen can be used at the group level to assign
    several cases to one specialist or the cases can be individually assigned
    through the Update Master Record Screen.

  5. Cases placed in suspense must be updated with the appropriate suspense
    code.

  6. Each action and update (e.g., assigning cases, creating letters or correcting
    entity information) entered on EDS creates a case history record reflecting
    the information entered into the system and the identity of the employee who
    entered the information.

    1. This case history can be displayed on the Update Master Record Screen
      by depressing a function key.

    2. The history record can be printed (see the EDS Users Manual for printing
      instruction).

  7. Exhibits 7.13.6–1, 7.13.6–2, 7.13.6–3, and 7.13.6–4
    are guides for entering status and action updates on master records on ICS.
    Complete instructions for updating lCS records are contained in IRM 7.13.7, Moving Cases through the Inventory Control
    Subsystem.

Exhibit 7.13.6-1 
(04-15-2003)
Technical Screening & Initial Assignment

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Exhibit 7.13.6-2 
(04-15-2003)
Manager Case Assignment & Approval

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Exhibit 7.13.6-3 
(04-15-2003)
EP Specialist Updates on ICS

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Exhibit 7.13.6-4 
(04-15-2003)
Reviewer Updates on ICS

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