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Part 4. Examining Process

Chapter 7. Examination Returns Control System (ERCS)

Section 1. Overview

4.7.1  Overview

4.7.1.1  (10-01-2003)
Introduction

  1. This section provides an overview of the Examination Returns Control System (ERCS), which is an automated inventory management system. It is used for controlling tax returns and technical time charges from the time returns arrive in the operating division until they are closed on the Audit Information Management System (AIMS). Through the use of an interactive menu-driven program, records can be requested, assigned/reassigned, updated, and closed in a database.

  2. ERCS is utilized by employees in SB/SE and LMSB. Future users include employees in W&I as well as TEGE.

  3. ERCS permits managers to assign returns in process and monitor direct examination time.

  4. ERCS can be used to control work that is not controlled on AIMS, such as preparer penalties, Taxpayer Advocate cases, certain non-return Direct Examination Codes, etc.

  5. ERCS has action and purge codes to allow Tax Compliance Officer (TCO) Managers and TCO's to better schedule inventories by identifying the next action and the date the action will occur on every return.

  6. ERCS provides managers of groups, as well as managers in Case Processing Support (ESP), PSP Support (PSP), and Technical Services (QMS), with numerous reports to monitor inventory. ERCS assists managers track statute information, manage inventory by group or examiner, monitor time applied, conduct workload reviews, and determine what type of cases need to be requested. ERCS produces and controls Form 895, Notice of Statute Expiration, thus organizing statute controls to supplement AIMS Tables 4.0/4.1. Section 6, Reports, of this handbook, describes the various inventory, time analysis, monitoring, count, statute expiration, and office audit reports.

  7. ERCS downloads data and reconciles it with the AIMS database weekly. ERCS uploads return requests and updates to AIMS on a daily basis, eliminating duplicate key entries. ERCS contains many fields in addition to those on AIMS to provide expanded management capabilities.

  8. ERCS allows monitoring of staffing through the capture of Form 4502, Examination Technical Time Report, and Form 4606, Daily Activity Record, data. The data is rolled up via the Summary Examination Time Transmission System (SETTS) to the Detroit Computing Center (DCC).

  9. ERCS contains the Statistical Sampling Inventory Validation Listing (SSIVL). The SSIVL program takes a download of the AIMS database and converts it into an Access database. Area AIMS Coordinators have the capability to generate 100% validation lists, validation lists using a sampling technique, and numerous inventory reports for each of their areas.

  10. The ERCS International download program extracts information from the ERCS database for all returns with international features. The output is provided weekly to the Director, Compliance.

  11. Data is exchanged between ERCS and the Midwest Automated Compliance System (MACS). Data regarding returns selected for Examination using MACS is uploaded to ERCS, eliminating dual input of requisitions. Data regarding returns under examination is downloaded to MACS, eliminating the need for classifiers to spend time on returns already being examined.

  12. Programmers located in the Charlotte Development Center (CDC) maintain ERCS. Modernization, Information Technology and Security Services (MITS) administrators maintain computers.

4.7.1.2  (07-31-2000)
History

  1. ERCS was initiated in 1983 as a district automation project in the former Greensboro District. In 1984, ERCS was implemented in the first Examination group in Charlotte, North Carolina.

  2. Final ERCS implementation Servicewide occurred in 1999.

4.7.1.3  (10-01-2003)
Hardware Technology

  1. ERCS operates on a SUN minicomputer using the SUN UNIX operating system. The SUN is located in the Tennessee Computing Center in Memphis, Tennessee. This system houses the databases for all the operating divisions using ERCS.

4.7.1.3.1  (10-01-2003)
Hardware Maintenance Support

  1. ERCS runs under the UNIX operating system. MITS system administrators are skilled in the use and administration of the SUN UNIX operating system.

  2. ERCS runs under the Informix database management system. MITS database administrators are skilled in the use and administration of Informix database management.

  3. Security responsibilities of the system administrators include controlling access to ERCS as well as adding/deleting users to/from ERCS.

  4. The support of the system administrators and database administrators is essential. In addition to providing hardware and systems administration, the system administrators install new programs, make backups, and monitor and tune the system.

4.7.1.4  (10-01-2003)
Software Technology

  1. The ERCS software is Informix-On Line V9.2.

  2. ERCS was designed to use local files to allow the program versatility. Each SB/SE area and LMSB has its own set of local files.

4.7.1.4.1  (10-01-2003)
Software Maintenance Support

  1. Programming skills are required for error corrections and enhancements.

  2. Programmers require C, SQL, Informix, and Oracle skills.

  3. The programmers responsible for maintaining ERCS are located in Charlotte, North Carolina. The programmers are Headquarters, MITS employees.

4.7.1.5  (07-31-2000)
ERCS Hotline

  1. The ERCS Hotline is supported by the ERCS staff Monday through Friday between the hours of 8:30 a.m. through 4:30 p.m. EST.

4.7.1.5.1  (07-31-2000)
Purpose

  1. The purpose of the Hotline is to provide the ERCS Functional Coordinators support in answering users' questions and resolving problems.

  2. Users experiencing ERCS problems are to seek assistance from their ERCS Functional Coordinator. In situations when the ERCS Functional Coordinator is unable to assist the user, the ERCS Functional Coordinator can call the Hotline for help.

4.7.1.5.2  (10-01-2003)
Hotline Summary

  1. Questions and problems reported to the Hotline are summarized weekly and can be accessed via the web at: http://orion.grb.ser.irs.gov/PROJECTS/EXAM/DOCS/exam.html.

4.7.1.6  (10-01-2003)
Sources of Information

  1. Following is a list of current user handbooks:

    • Examination Returns Control System ESP Handbook

    • Examination Returns Control System Group Handbook

    • Examination Returns Control System PSP Handbook

    • Examination Returns Control System Review Handbook

    • Examination Returns Control System Territory Handbook

    • Examination Returns Control System Technical Reference Manual

  2. The above-named handbooks can be accessed via the web at: http://orion.grb.ser.irs.gov/PROJECTS/EXAM/DOCS/ERCS_DOCS/exam_cvr.html.

4.7.1.6.1  (10-01-2003)
ERCS Functional Coordinator

  1. Chapter 10 contains general responsibilities of the ERCS Functional Coordinator. Users should seek assistance from the ERCS Functional Coordinator. Questions or problems that the ERCS Functional Coordinator is unable to answer will be referred to the CDC ERCS Hotline, described above, by the ERCS Functional Coordinator.

  2. The ERCS Functional Coordinator is the liaison between users and the MITS staff. Responsibilities of the ERCS Functional Coordinator include:

    1. Provide training to new users,

    2. Provide training to users when changes are made to ERCS,

    3. Answer user questions and resolve problems,

    4. Assist in the installation of new versions,

    5. Ensure the successful upload of ERCS-to-AIMS updates, and

    6. Ensure successful monthly SETTS transmission.

4.7.1.6.2  (10-01-2003)
IRM 4.4, AIMS/Processing Handbook

  1. As ERCS downloads data and reconciles with the AIMS database, IRM 4.4, AIMS/Processing Handbook, is a valuable source of information.

4.7.1.6.3  (10-01-2003)
IRM 2.8, Audit Information Management System (AIMS) Handbook

  1. IRM 2.8, Audit Information Management System (AIMS) Handbook, provides instructions for the use of AIMS display terminals.

4.7.1.6.4  (10-01-2003)
Planning and Special Programs (PSP) Website

  1. The PSP website contains a wealth of information and can be accessed via the web at: http://psp.web.irs.gov/.

    1. The website has information concerning both ERCS as well as AIMS and is updated as the need arises to communicate information and changes.

4.7.1.6.5  (10-01-2003)
Analyst

  1. SB/SE Headquarters is staffed with an analyst assigned ERCS as a program. The ERCS Functional Coordinator can provide the name and number of the analyst.

4.7.1.7  (10-01-2003)
ERCS Users

  1. Users are divided into the following eight types:

    • ADMIN (ERCS FC's and MITS employees)

    • TERRITORY (Territory Managers)

    • GROUP (SB/SE and LMSB field groups and SB/SE office groups)

    • PSP (Planning and Special Procedures)

    • ESP (Case Processing)

    • RVW (Review / Technical Services)

    • DFO (Directors of Field Operations - LMSB)

    • AREA/IND (Area and Industry Directors)

4.7.1.7.1  (10-01-2003)
ADMIN Users

  1. ADMIN users, or the ERCS Functional Coordinator and back-up, are responsible for:

    1. Installing new programs,

    2. Running batch programs,

    3. SETTS processing,

    4. Uploading ERCS-to-AIMS updates, and

    5. Running archive programs.

4.7.1.7.2  (10-01-2003)
TERRITORY, DFO, and AREA/IND

  1. These users are area and industry directors, Directors of Field Operations, and territory managers, along with their respective staff and secretaries.

  2. These users can:

    1. Generate reports,

    2. Research/display records,

    3. Update employee information for employees in their AIMS assignee code(s) (AAC), and

    4. Input SETTS time for their users.

  3. These users cannot:

    1. Request tax returns on ERCS,

    2. Update tax returns or return information on ERCS, nor

    3. Close tax returns on ERCS.

  4. These users can generally utilize position codes 101, 130, 131, 201, 202, and 400.

4.7.1.7.3  (10-01-2003)
Group Users

  1. Group users are group managers, audit accounting aides, group secretaries, and group clerks. Group users are also individuals designated actors such as revenue agents, tax compliance officers, tax examiners, etc.

  2. Group users can:

    1. Generate reports for the AAC which they have permission,

    2. Research/display records,

    3. Add records for the AAC which they have permission,

    4. Update records for the AAC which they have permission,

    5. Print forms 895,

    6. Close records for the AAC which they have permission,

    7. Update employee information for employees in their authorized AAC,

    8. Input SETTS time for employees in their authorized AAC, and

    9. Generate a document transmittal.

  3. Field group users generally utilize position codes 110 – 115, 119 – 121, 124, 127, 151, 155, 170, 180, and 199.

  4. Tax compliance office group users generally utilize position codes 210, 213, 220, and 299.

  5. Field and tax compliance office group users may also utilize position code 301, 327, and 400.

4.7.1.7.4  (10-01-2003)
PSP Users

  1. PSP users are PSP Support Managers, and staff and secretaries. PSP users are also individuals designated as coordinators which may consist of revenue agents, tax compliance officers, etc.

  2. PSP users can:

    1. Generate reports,

    2. Research/display records,

    3. Update records for the AAC which they have permission,

    4. Print forms 895,

    5. Close records for the AAC which they have permission,

    6. Update employee information for employees in their authorized AAC,

    7. Input SETTS time for PSP employees in their authorized AAC, and

    8. Generate a document transmittal.

  3. PSP users generally utilize position codes 110, 122, 125, 131, 210, 222, 225, 231, 301, 327, and 400.

4.7.1.7.5  (10-01-2003)
ESP Users

  1. ESP users are Case Processing Support Managers, staff, and secretaries.

  2. ESP users can:

    1. Generate reports,

    2. Research/display records,

    3. Update records,

    4. Print forms 895,

    5. Close records for the status code which they have permission,

    6. Update employee information for employees in their AAC, and

    7. Generate a document transmittal.

  3. ESP users generally utilize position codes 302 – 310 and 400.

4.7.1.7.6  (10-01-2003)
QMS Users

  1. QMS users are Technical Services Managers, staff, and secretaries. QMS users are also individuals designated as reviewers who may be revenue agents, tax compliance officers, etc.

  2. QMS users can:

    1. Generate reports for records,

    2. Research/display records,

    3. Update records,

    4. Print forms 895,

    5. Close records for the status code which they have permission,

    6. Update employee information for employees in their authorized AAC,

    7. Input SETTS time for employees in their AAC, and

    8. Generate a document transmittal.

  3. QMS users generally utilize position codes 103, 106, 118, 206, 218, 301, and 400.

4.7.1.8  (10-01-2003)
ERCS Permissions

  1. Permission to access/change the ERCS database is determined by two database files — "accs" and "perm" .

    1. The "accs" file controls access to ERCS menus according to the user type (Group, PSP, ESP, etc.).

    2. The "perm" file controls access to particular territories and AAC's, as well as the access type (read only, read/write, read/approve, etc.).

  2. Levels of access that may be granted to ERCS users are:

    • READ,

    • WRITE (update capability),

    • FIRST LEVEL approval,

    • SECOND LEVEL approval, and/or

    • BACKUP (backup approval).

  3. Users are added to the database tables by the ERCS Functional Coordinator or back-up.

4.7.1.8.1  (10-01-2003)
Permission to Update Employee Records

  1. The user may add or update any employee record if the employee is assigned to an AAC in which the user has WRITE permission.

4.7.1.8.2  (10-01-2003)
Permission to Add/Update Return Information

  1. Permission to add or update return information is determined by the AAC and status codes on the return.

    1. Group and PSP users must have WRITE permission for both the AAC and status codes to change return information.

    2. Case Processing and Technical Services users must have WRITE permission for the status code to update return information.

4.7.1.8.3  (10-01-2003)
Permission to Approve

  1. Certain changes to the ERCS database require approval.

  2. The following changes, that will result in AIMS being updated, require the manager's approval on ERCS:

    1. Requisitions (collaterals, penalty cases and no-return DET cases are excluded) (CC AM424),

    2. Non-master controls (CC AMNON),

    3. Statute of limitations updates (CC AMSTU), and

    4. Short closures (CC AMSOC).

  3. If any of the above AIMS updates are input by a group manager, ERCS will require approval by a second level approver. The second level approver is generally the territory manager of the group manager.

  4. In addition, the following changes require the manager's approval when the input is done by an individual other than a manager:

    1. AAC code updates input by a group user, and

    2. Updates from group status codes to non-group status codes.

4.7.1.8.4  (10-01-2003)
Delegation of Permission to Approve

  1. The manager can delegate temporary approval authority to:

    1. Another manager, or

    2. A technical employee; i.e., revenue agent, tax compliance officer, etc.

  2. The ERCS Functional Coordinator or back-up can grant temporary approval authority if an unplanned absence of a manager occurs. The request should be made by the territory manager via e-mail, memorandum, paper form 5081, etc. (documentation to be determined locally).

4.7.1.8.5  (10-01-2003)
Capabilities of Acting Managers

  1. To reduce the risk of fraud or abuse of taxpayer rights, individuals delegated to act, who are assigned an inventory of cases:

    1. Should be granted temporary read and approval permission for only the AAC he/she is delegated to act, and

    2. Should NEVER approve/disapprove actions on cases in their own assigned inventory. ERCS systemically blocks acting managers from having the ability to approve/disapprove actions to their own assigned inventory.

  2. In imminent situations when an action of the acting group manager described in (1) above requires approval, the territory manager should approve the action.

    1. If the territory manager is unavailable to approve the action, the acting group manager should request the ERCS Functional Coordinator or back-up grant another manager temporary read and approval permission.

  3. The territory manager should only be delegated read and approval permissions for the groups in his/her OWN territory.


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