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Part 4. Examining Process

Chapter 4. AIMS Processing

Section 23. Openings

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 manager's 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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