Changes to an exempt organization account on the EO/BMF are reported to TE/GE Division on the AIMS Weekly Update Report. Use the information provided to update corresponding case files and to take whatever course of action is required. The report should be kept in the case file to minimize later research. See Exhibit 4.5.5-2. for an explanation of the codes on the report.

The AIMS Weekly Update Report is sorted by these groupings:

The AIMS Error Register is produced by the OSC monthly to identify all error conditions which could adversely affect the accuracy of statistical reports and historical records. The Ogden Campus Computer Program ARP’s were created to subject monthly report records to separate validity and consistency checks as a double check on AIMS. ARP 1940 produces the monthly AIMS Extract Error Register which is separated by inventory, accomplishment and non-examined errors. They prevent the closing of an opened account and the extraction of both open and closed account information used as input to reports produced by the DCC.

Error registers reflect cases excluded from AIMS reports, which are generated at the OSC, due to the presence of the error condition indicated. Corrective action for these errors should be initiated by EO personnel. It is imperative that all corrective actions be completed before the next monthly extraction cycle to ensure that the corrected items are updated and included in reports. Up to five error conditions can be identified for a single account. All identified error(s) must be corrected before the error indicator can be removed from an account. Error conditions fall into two categories:

An account corrected through the IDRS terminal before the next reports extraction cycle will not reappear on the AIMS Error Register unless another error condition is identified. An account not corrected until after the reports extraction cycle will reappear, however, it is not necessary to re-correct the error(s) unless the account continues to appear on the register. Failure to correct error condition(s) will result in one of the following situations:

The AIMS Duplicate Records Report (ADRR) is a weekly computer printed listing identifying employer accounts current under AIMS control that have been received again from the BMF. Proper use of the information in this report is essential to ensure appropriate disposition of the tax return.

Returns are listed in the ADRR by employer identification number (EIN). Each item contains (reading from left to right) the file source, MFT, tax period, and organization’s name, together with Taxpayer Information File (TIF) information and opening information from BMF. TIF information includes the current EGC, status code, source code and the AO code to which the return is assigned. Opening record information includes the EGC, source code, special project code, and message code of the duplicate request.

Frequently the ADRR contains a critical examination issue other than that which originated the AIMS control. Analysis of each item listed is necessary to determine appropriate action. Upon receipt of the ADRR, analyze each item to determine what, if any, follow-up action is required.

Each item will contain one of the following message codes.

OSC has available a utility program which will generate a listing of skeletal accounts which have been on the database over 60 days. This listing will serve as a tool to monitor accounts which have not become full AIMS cases because they were opened with a push code or there is a systemic problem. The listing will provide the EIN, tax/plan period, MFT/employee plan number, name control/check digit, EGC, AO, creation date, push code, and project code. The listings can be generated on an as needed basis determined by local management with the concurrence of the Manager, EO Programs and Review.

EO Area Managers are responsible for the accuracy and completeness of records on the AIMS database. EO Area Managers must ensure that the AIMS database is updated to reflect current status, EGC and other update data for all returns sampled or appearing on an inventory validation listing. See IRM 4.5.5.6. TE/GE AIMS Inventory Validations, for procedures on conducting a validation.

EO/AIMS inventory reports provide information which enables an area office to monitor its inventory efficiently to meet its current year EO Field Examinations Plan. The reports provide information on the status of various examinations in process. For specific information on a report, refer to Document 6585.

EO/AIMS accomplishment reports provide information on returns examined and are used to monitor the EO Examination Plan and special project programs. The reports provide information on the disposal of the various examinations. For specific information on a report, refer to Document 6585.

EO/AIMS TRAC Reports provide analysis of EO examination closures. The reports provide information on the disposal of the various examinations for use by Headquarters. For specific information on a report, refer to Document 6585.

Table 4.0, Returns with Statute Date Pending, is a computer generated listing, produced monthly by the OSC for Indian Tribal Governments (ITG), Tax Exempt Bonds (TEB), and Federal State and Local Governments (FSLG), from AIMS data showing returns in all status codes where:

The AIMS Coordinator is responsible for receiving, distributing and following up with the OSC on Table 4.0. Each month a list of all the returns on which the statute of limitations will expire or has expired, is sent to the function charged with the returns by the AIMS Coordinator. Although the responsibility for this report rests with the Group Manager, the Management Assistant has certain duties connected with this report.

The Management Assistant should compare the organization names on Table 4.0 to the names in the Statute Control File. An update must be prepared for those cases where the Statute Control File shows statute dates later than the report shows. The Management Assistant should bring the discrepancy (between the Statute Control File date and the report date) to the attention of the responsible Examiner/Specialist and Group Manager. Table 4.0 should be annotated to show the Examiner/Specialist and Group Manager have been notified. If a Statute Control File does not exist, but the organization’s name is listed on Table 4.0, the Management Assistant should locate the case and do the following:

Table 4.0 should be given to the Group Manager after the Management Assistant duties have been performed so that the Group Manager can perform the monthly review of statute control. To work the report correctly, the Group Manager must ensure the following tasks are performed prior to receipt of the following months report:

To update the database:

If the correct date is actually earlier than the date on the AIMS database, follow the procedures below to correct an incorrect Statute of Limitations Date:

The AIMS database must be updated for the statute date because:

A form that does not process through the terminal is returned to the originating function for correction. If the reject is due to an erroneous or missing name control, this entry is corrected in RED by the Group Clerk in the originating function and returned for input. When there are items that must be corrected by the Examiner/Specialist, the form is returned to the Examiner/Specialist for perfection. When the form has been corrected and is returned to terminal input, the Group Clerk indicates the date returned in the block marked "Cor" , when available.

The TC 424 Reject Register is produced by the OSC weekly for ITG, FSLG and TEB, and is distributed to each GE AO, to identify AIMS requisitions that could not be honored. When a request for AIMS establishment is input via the terminal, a TC 424 is processed to the Master File (MF). If the TC 424 is a reject, e.g., does not match MF information, the account is not established on the AIMS file. The rejected accounts are listed alphabetically by Organization Code for cases assigned to groups in the area offices.

The first line on each rejected item contains information from the MF highlighting the error condition encountered and as much other information as available. The second line of information contains information from the AIMS database at the time the rejected item was received.

The Reject Code is comprised of four digits. The first 3-digits are the Unpostable Code (UPC) and the fourth digit is the Reason Code (RC). All reject codes can be found in Document 6209, ADP and IDRS Information. Also refer to IRM 4.4.35, Resolving Unpostables. or contact the AIMS Coordinator. See Exhibit 4.5.5-1. for a listing of the most frequent TC 424 reject codes and the action indicated.

Changes to an Government Entities (ITG, FSLG or TEB) account on the IMF or BMF are reported to GE Division on the AIMS Weekly Update Report. Use the information provided to update corresponding case files and to take whatever course of action is required. The report should be kept in the case file to minimize later research. See Exhibit 4.5.5-2. for an explanation of the codes.

The AIMS Weekly Update Report is sorted by these groupings:

This report is an inventory report which is broken down to the Primary Business Code and Employee Group Code. It contains the Taxpayer's Name, EIN/SSN, Report Number (Report Number applies to TEB Form 8038 Series Return and Form 8328 only), Tax Period, Form Number, Source Code, Status Code and Status Code Date.

OSC has available a utility program which will generate a listing of skeletal accounts which have been on the database over 60 days. This listing serves as a tool to monitor accounts which have not become full AIMS cases because they were opened with a push code or there is a systemic problem. The listing will provide the EIN, tax period, report/plan period, MFT/employee plan number, name control/check digit, EGC, AO, creation date, push code, and project code. The listings can then be generated on an as needed basis, determined by local management, with the concurrence of the Manager, OPR.

GE Area Managers are responsible for the accuracy and completeness of records on the AIMS database. GE Area Managers must ensure that the AIMS database is updated to reflect current status, EGC and other update data for all returns sampled or appearing on an inventory validation listing. See IRM 4.5.5.6. TE/GE AIMS Inventory Validations, for procedures on conducting a validation.

GE/AIMS inventory reports provide information which enables an area to monitor its inventory efficiently to meet its current year GE Implementation Plan for FSLG, ITG and TEB. The reports provide information on the status of various examinations in process. For specific information on a report, refer to Document 11307.

GE/AIMS Report 50.1 - EO Inventory of Returns by Status - All Returns

GE/AIMS accomplishment reports provide information on returns examined and are used to monitor the GE Implementation Plan and special project programs. The reports provide information on the disposal of the various examinations. For specific information on a report, refer to Document 11307.

Each TE/GE function (Manager, Planning and Programs, Classification, Mandatory Review, Special Review, Exam Closing Functions and the AIMS Coordinators) is responsible for the accuracy of AIMS.

The person responsible for the accuracy of the AIMS database ensures that the validations are conducted on schedule and that the database is corrected for all returns included in the validation. All inconsistencies must be resolved.

The term "organization" refers to any group or function that is validating its inventory. Validation lists are generated by the Ogden Campus Computer Branch. Regular and special validation listings are requested on Form 8127, TE/GE Request for AIMS Inventory Validation Listing. Form 8127 must identify the format, parameters and sort of the requested listing.

Reasonable time frames should be assigned by the person responsible for the completion of the validation. Begin an inventory validation within two workdays of receiving the requested Inventory Validation Listing (IVL). Validating EP, EO or GE functions should complete the actions described in See IRM 4.5.5.6.1.5. and forward to the approving Group Manager for review within 15 working days. Documentation of corrections is given to the Area Manager for review and approval.

The approving Area Manager will forward the annotated IVL and all approved corrections, updates, research and closing requests to the AIMS Coordinator for review and concurrence. The AIMS Coordinator will forward the annotated IVL and requests to the applicable TE/GE Exam Closing Function for terminal input within 10 workdays of completing the validation. All actions required for a validation must be completed no later than 25 calendar days by the person responsible for the coordination of the validation, not counting the two days after receipt of the IVL from the Ogden Campus.

Recommendations:

Validation coordinators must ensure prompt distribution of the inventory validation lists to the affected areas.

Use Form 8127, TE/GE Request for Inventory Validation Listing, to order an IVL. See Exhibit 4.5.5-3. for instructions on preparing Form 8127. To order an IVL for EP, EO, or GE prepare a separate Form 8127. Make all IVL requests approximately four weeks in advance of the required date to allow time for processing.

Forward the completed Form 8127 to the lDRS User Support Staff. Attn: AIMS Coordinator, in the Ogden Campus where the information provided will be converted to input for the IVL program. Form 8127 need only be completed once for a periodic request. The IVL will be generated at the time intervals requested until the lDRS User Support Staff in the Ogden Campus is notified that the listings are no longer needed.

Prepare a separate Form 8127 for each special purpose IVL needed during the fiscal year. Each special purpose IVL will be generated only once.

To conduct an inventory validation, compare the physical returns and the control cards (or the automated control system) with the information on the IVL. For accounts verified as being in inventory, certain items printed on the IVL can be corrected or updated by writing the corrections in red on the IVL in the comments section of each account in need of corrective or update action. Coordinate the format of these instructions with the Closing Function for terminal input . All updates and corrections must be input by the date specified by the person responsible for the validation.

To make other updates or corrections, refer to IRM 4.5.1, TE/GE AIMS Processing, for instructions on preparing:

To close accounts, refer to IRM 4.5.2, TE/GE Examined and Non-Examined Closures for instructions on preparing:

The following subsections describe how to compute the error rate, acceptable error rate levels and revalidation scheduling.

Validations must be conducted once each year without regard to system problems. They serve several purposes beyond computing error rates and should be done even when error rates are difficult to compute. Validations identify the error rates in key data used in budgets, planning, and legislative decisions. They also play an important role in assuring the integrity of our tax system. Finally, they identify AIMS training needs.

Validations should be planned at the time of the year when inventories are at a low point to simplify logistics. Emphasis should be placed on physical verification of returns to ensure accurately detecting any lost returns. If employees believe they can avoid detection of a lost return during the validation process, someone may be tempted to conduct a corrupt, illegal act involving tax returns or examinations, confident that he or she can avoid detection.

Validation errors should be promptly resolved. Normally, all errors should be resolved within 30 days of their identification as errors (on the IVL listing). If the error notation on the IVL listing for that specific return is not dated, no date later than the date of the physical inventory will be used.

The AIMS Coordinator or other designated person will compute the error rates by EP, EO or GE group/function, office and AO and will issue a formal, written memorandum within 30 work days of the physical inventory verification portion of a validation. The report will contain the following information:

AIMS training should be considered for all personnel handling returns in those offices with error rates exceeding 5%. Documented AIMS training of key personnel must be conducted in those offices with error rates exceeding 10%.

As a result of extensive open inventory the AO may modify their method of AIMS validation. Rather than validating AIMS on a one time annual basis, the validation period can be spread out over the fiscal year. A schedule should be established whereby all groups, functions and status codes are identified for validation. Once identified, a validation schedule should be established so that a portion of the annual validation would be accomplished each month. This method will allow the data base to be validated on a continuing basis and meet the annual requirement provisions. Problems will be identified and shared immediately, rather than once a year. Staff requirements to perform the validation will be spread over the fiscal year. Other major advantages to this method are the continuing purification of the database and timely identification of problems for correction, thus making the system more reliable and useful for the AO. Based on the significance of Management Information Reports (MIR’s) as tools for management to monitor work plan progress and as a tool to assist in developing the annual work plan, accurate data must be available to ensure resources are allocated to areas of non-compliance. The validation process will assist in this objective.