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Part 4. Examining Process

Chapter 19. Liability Determination

Section 20. Batch Processing Overview

4.19.20  Batch Processing Overview

4.19.20.1  (01-01-2008)
Batch Processing Overview

  1. Batch Processing (BP) is an IRS-developed, multifunctional software application that fully automates the initiation, aging and closing of certain EITC and non-EITC cases. Using the Batch System, Correspondence Exam can process specified cases with minimal to no tax examiner involvement until a taxpayer reply is received. Because the batch system will automatically process the case through creation, statutory notice and closing, tax examiner involvement is eliminated entirely on no-reply cases. Once a taxpayer reply has been considered, the case can be reintroduced into Batch for automated aging and closing in most instances.

  2. Batch processing provides the service with four significant capabilities.

    • Audit cases can be processed without Tax Examiner involvement until taxpayer correspondence is received, unless case filters out or manual classification is required.

    • Batch will, on a weekly basis, create inventory records and case data (address and return information) for every case that has been opened on AIMS.

    • Batch Processing initiated cases can be reintroduced (returned to Batch Processing after being removed for mail response or correction) to Batch Group B0 for systemic aging and closing. If the case is a Project Code that goes through Crete 2, then a case can be manually created

    • Manually initiated cases can be introduced to Batch Group B0, after the report is created, for systemic aging and closing. If the case is a Project Code that goes through Create 2, it can be manually created and introduced in status 10 and age through Create 2.

    Within the BP system, the following actions take place automatically without human intervention.
    1. Batch Create I

    • Inventory records are created

    • RGS/work center files are created

    • Audit issues are created

    • Tax is computed

    • ICL (Initial contact letter), and reports are generated ( Letter 525, Letter 566B-EZ, Form 886H, Form 11652 , Form 4549, Form 886A-STD)

    • Audit Information Management System (AIMS) update records are generated

    • Suspended date to trigger the next action, either Create II or Stat Notice is entered in RGS


    2. Batch Create II

    • Tax is computed

    • No Reply Letter and reports are generated on cases that received a CP 75 series letter or a 566 on a Discretionary case letter as an ICL ( Letter 525, Form 886H, Form 11652, Form 4549, and Form 886A-STD)

    • AIMS update records are created

    • Suspended date to trigger the Stat Notice issuance is entered in RGS


    3. Aging

    • AMSTUS request for Stat Notice generation using either
      STN 01 program (local mailout of Stat Notice)
      STN 02 program (Consolidate Print Site mailout of Stat Notice)


    4. Batch closing

    • Form 5344 is generated

    • Closing process is run by Batch Coordinator or a designated clerk to interface with IDRS

    • Cases are archived

    Note:

    In most instances, cases in status’ 10, 22, 23, 25, 24 and 53 can be reintroduced into the batch process for automated aging and closing.

  3. Consolidated Print Strategy (CPS) – The goal of the Consolidated Print Strategy (CPS) is the migration of letters, notices and reports packages to print and mail from one of the two consolidated print sites instead of locally. The two consolidated sites are CPS East in Detroit and CPS West in Ogden. The campuses are aligned to a print site based on their location (see chart below)

    CPS East – Detroit CPS West -- Ogden
    Andover Austin
    Atlanta Fresno
    Brookhaven Kansas City
    Cincinnati Ogden
    Philadelphia  
    Memphis  

  4. How CPS works at the Batch Create Stage - Each case is systemically reviewed to determine if the individual package meets the print requirements (the individual package is within the 15 - printed page limit (3 oz.) and the required schedules are templated for CPS. If the case meets these requirements, it is marked for processing through the CPS. If the case does not meet these requirements it is marked for local mailout through print manager.
    If the ICL package is processed through CPS:

    • The ICL package will be printed and mailed by the CPS site on the 3rd Monday after the Create program is run.


    If the ICL package is not mailed through CPS:

    • The Batch Created letter and report will create in the Print Manager Program for local printing and mailing.

  5. Weekly files are received for cases selected through the Dependent Database (DDb) as well as for Recertification, Pickup Cases, AM424 file and the DAE Bridge. They are assigned to one of three groups used in batch processing:

    • B0 - Cases are assigned to this group for fully automated Batch Processing.

    • B2 - Cases are assigned to this group only during the create process. Batch Create/Tax Computation is systemic, manual review of Reports, and local mailout of letter package

    • B1 - Cases are assigned to this group when the project code is not supported by Batch Processing or the case is opened solely from a TC 424 AIMS opening. There is no automation in Group B1. Cases are also assigned to B1 when they reject from Batch Processing during aging and filter process.


    The first step in Batch Processing is the filter process. B0 processing is suspended on all cases meeting an unresolved filter condition.
    Cases originally created in Group B0 will default to Group B2 if they encounter a filter condition.
    Cases originally created in Group B2 will remain in Group B2 even if they encounter a filter condition.

  6. The following is the list of Exam project codes that are currently processed:

    Project Code Type of Case EIC Disallowed Schedule C Disallowed
    0000
    SC 26     		Alternative Minimum Tax NO NO
    0631 Alternative Minimum Tax Test NO NO
    0027 EITC Recertification with proposed 2-year ban YES YES
    0028 EITC Recertification – Schedule C with proposed 2-year ban YES YES
    0097 Non-EITC Dup Tin Dependent claimed by more than one taxpayer NO NO
    0098 Non-EITC Dup Tin TP claimed himself and so did another NO NO
    099 Dependent Data Base YES NO
    0123 10% IRA NO NO
    0124 Self Employment Tax NO NO
    0173 Schedule C (Good Dependent) – Disallow Schedule C YES YES
    0174 Schedule C (Allow Schedule) – Disallow Dependent & EITC YES NO
    0257 Schedule C- Recertification YES YES
    0261 EIC DDb Filing Status Yes NO
    0288 Schedule C-Disallowance YES YES
    0289 EIC Non CI Issue (FS) YES NO
    0291 EIC NA (FS) NO Schedule C YES NO
    0292 EIC NA FS and Sch. C YES YES
    0093 EIC NA Sch. C Only YES YES
    0381 Employee Business Expense NO NO
    0576 EIC Cert RES A YES YES
    0577 EIC Cert RES B YES YES
    0578 EIC Pre Q/C Rel YES YES
    0579 Pre Refund Filing Status YES NO
    0580 Post Refund Filing Status YES NO
    0581 EIC Cert Res Span YES YES
    0584 QRP YES NO
    0585 Single Issue Audit/Control Group YES NO
    0586 EITC Single Issue- Post Refund YES NO
    0603 RPS Prisoners YES NO
    0621 Dependent Database – Post refund YES NO
    0622 Federal Case Registry (FCR) Study YES NO
    0623 EITC Schedule C DISALL PROFIT for Tax Year 2001 YES YES
    0624 EITC Schedule C ALLOWABLE PROFIT for Tax Year 2001 YES NO
    0629 Schedule A Contributions NO NO
    0639 Schedule A Deductions NO NO
    0652 EITC DupTin Repeater (Same child claimed by more that one person) YES NO
    0694 EITC Recertification YES NO
    0697 2 Year EITC Ban YES NO
    0698 10 Year EITC Ban YES NO

4.19.20.1.1  (01-01-2008)
B0 – Batch Create/Tax Computation

  1. The initial contact letter for Earned Income Tax Credit (EITC) is the CP75. Discretionary cases use the 566 letters as ICL. The CP75 notice family serves as both the refund delay letter as well as the Examination Initial Contact Letter. The CP75, CP75A and 566 letters address the specific issues selected for examination on the return, and include the appropriate paragraphs describing the documentation types needed to substantiate the issues under examination. No report ( Form 4549/4549EZ) is issued as part of the CP75 and CP75A or 566 letters mail out. The CP 75 family will be generated at the master file, while the 566 letter package will be generated to Create I for CPS mailing. As a result of this initial contact letter processing, the Batch Create process is broken down to two separate processes

    • Batch Create I

    • Batch Create II


    Only programs which use the CP75 family as the initial contact letter require both Create I and Create II processing.

    While the CP75 Series is used for EITC the 566 letter is used by some of the Discretionary programs, the Letter 566B-EZ , Letter 2194, Letter 1862, Letter 525with report Form 4549 or Form 4549 EZ are used as the initial contact letter on some of the other Discretionary programs. Programs using these letters for initial contact will only process through Create I.

    For those programs where the initial contact is the CP75 series, or the 566 the Batch Create I process will include:

    • Create Inventory Records

    • Create Program related Issue and paragraphs

    • Create History Item

    • Create AIMS update to Status 10

    • Create Suspense date 30 for EITC cases and 45 days forward for Discretionary cases for Create II (Letter 525 and report Form 4549-EZ) processing.



    When the Create 2 process runs, it will identify those cases in status 10 with the appropriate suspense date for generating the Letter 525 and report, Form 4549EZ.

    For those programs where the Letters 566 B/EZ, 2194, or 525 with report is the initial contact letter, the Create I process will:

    • Create Inventory Records

    • Create Issues and paragraphs

    • Create History Item

    • Create AIMS update to Status 22

    • Create Suspense date, 30 days for EITC cases and 45 days in the future for Discretionary casesy, for Aging to Stat Notice

    • Route the case to Group B2 for review and future processing if necessary

  2. The System will consist of four user profiles (Batch Create Examiner and Clerk, Batch Aging Clerk and Batch Closing Clerk). See chart below.

    Description Profile
    Batch Create Examiner profile, Group B0 and B2 Use this profile when interfacing ICL stage
    Batch Aging Clerk profile Group B0 Use this profile when interfacing aging/SNOD
    Batch Closing Clerk profile Group B0 Use this profile when interfacing closing
    Batch Create Clerk Group B1 Used to create the RGS

  3. Cases created in Group B0 have actions automated in the Batch Create process. These actions include:

    • Create Inventory Records

    • Create work center files with address and return information

    • Create program related issues

    • Create Batch History

    • Create Statutory Adjustment Issues

    • Compute Tax

    • Notate Case History and work papers with automated actions

    • Generate AIMS update records

    • Generate inventory and filter reports

    • Generate and save local or CPS print file for letters and reports (Letter 566B/566B-EZ, Form 4549/4549EZ, Form 886H (Various) 886A, and Form 11652 or the 566 letter package with the appropriate 886A

    • Generate inventory and filter reports

    • Send automated emails with inventory summary reports.

  4. The Filter process is run in Tennessee Computing Center (TCC) and individual tickler files are sent to the sites for processing. The cases are created using the Batch Create Examiner profile. The following RGS Case Summary Record fields are updated during the Batch Create I process:

    • Status code updated to status 10 or 22 (depending on letter stream)

    • Status date updated to the letter date of the CP75 or other ICL

    • Employee group code updated to the Employee group code from the Return Transaction File

    • Project code updated to the project code on the Return Transaction File

    • Action text updated to read ICL

    • Action date updated to batch run date

    • Type Code updated to ‘I’ to reflect Initial contact

    • Suspended date updated to the letter date plus 30 or 45 days depending on the Program requirements

    • Assignment to the Batch Create Examiner

  5. The Create II filter process is run in TCC and the RGS SA will run the Create II Tickler files.

    • Status code updated to status 22

    • Status dateupdated to the letter date (third Monday following the week the Batch program is run

    • Action text updated to Letter 525

    • Action date updated to Letter date

    • Type Code updated to ‘I’ to reflect Initial contact

    • Suspended date updated to the letter date plus 30 or 45 days depending on the Program requirements

    • Assignment to the Batch Create Examiner

      Note:

      If correspondence is received prior to the trigger date, the letter 525 will need to be deleted from print manager. In addition the AIMS update will need to be rejected from the approval screen to prevent the record from updating.

4.19.20.1.2  (01-01-2008)
Filter Criteria - Batch Create Group B0

  1. TCC runs the Batch filter process which identifies certain conditions that exist on the module and displays the filter condition on the inventory/filter reports. Based on the condition, the case may be created in Group B0 or Group B2.

  2. Cases can either

    • Reject to group B2 or B1 for correction – if the filter condition requires correction or manual processing, or

    • Remain in B0 and have the filter condition notated on a separate listing.

  3. For filter conditions see LEM 4.19.1 section 4.19.20.1.2.

4.19.20.1.3  (01-01-2007)
B1 Batch Create Only

  1. Cases in B1 inventory have limited actions automated and require manual initiation. The following actions take place during B1 Create:

    • Creation of inventory records

    • Creation of work center files with address and return information

  2. Many of the manually initiated project codes can be introduced into Batch Group B0 to take advantage of the automated Stat Notice and closing functions.
    If all of the following conditions apply the non-batch started project code can successfully be introduced to Group B0:

    1. The report and initial contact letter (ICL) has been created and mailed to the taxpayer and

    2. The case does not contain a filter condition, as outlined in LEM 4.19.1 section 4.19.20.1.4, that would cause the case to reject at the stat notice or closing stage and

    3. The case is correctly updated on RGS and AIMS.

    Caution:

    If you identify project codes that could potentially be introduced to Group B0 it is suggested that you first test a few cases at the aging and closing stages to be sure that the letters and reports are accurate before you move a large quantity of inventory into the automated Group B0.

4.19.20.1.4  (01-01-2007)
B2 Batch Create/Tax Computation/Manual Review of Reports

  1. During the Batch Create processes, cases meeting certain filter conditions will be created in Group B2. These cases will appear on an inventory/filter listing, on the CEAS UPD (Unattended Case Processing) website, with literals identifying all filter conditions that caused the case to be created in Group B2. Beginning in CY 07 cases no longer reject to Group B1, during the create process, for a filter condition; rather they will be created in Group B2 with all included B2 automation.

  2. Cases filtered from the Create I process fall into two categories: Project codes with a CP75 or 566 letter as the ICL and a Status code update to 10, or Project codes with reports and a Status code update to 22.

    Project codes where the CP 75 or 566 letter are generated will have an AMSTU update to Status 10. The update will need to be interfaced with AIMS. There are no reports generated on these cases, but the 566 letter will have packages that should be reviewed for accuracy.

  3. All other Cases will have the ICL and report systemically generated. An AIMS update to status 22 will be sent to the Need Approval Screen. Reports need to be reviewed aided by the literals on the filter listing.

    1. Upon review, if the report is correct the letter will be printed and mailed locally. The Batch Coordinator will continue with the AIMS interface to update the status. If the case has no potential rejects, it may be reintroduced to B0 to continue batch processing.

    2. If the report is incorrect, it must be assigned to an examiner who will take the following steps:

      1 Delete the incorrect report and letter from the Case Files Documents folder and
      2 Revise the report and save as a .pdf in the Case Files Documents folder and
      3 Print and mail the letter and
      4 Ensure that the mailout date matches the pending Aims update (If it does not match, the Batch coordinator must delete the pending update so the examiner can create the correct one) and
      5 Forward the case to group B0 if has no potential rejects.

  4. Cases filtered from the Create II Process to Group B2 will have the ICL and report systemically generated. These cases are the second phase of the CP 75 or the 566 letter process. Tax examiners must review the reports from each Group B2 case, aided by the literals on the filter listing.

    If a determination is made to mail the batch created letter and report, the letter is generated locally using the print manager function. The RGS Coordinator should place the original package in the case file document folder. If it is determined the original package will not be mailed, the case needs to be corrected. The Tax Examiner will prepare the letter and report and save the pdf files to the Case File Documents so that they can be accessed in CEAS. If there are no reject conditions, the case may be reintroduced to the batch process.

  5. Cases meeting any of the established filter conditions will be filtered from Group B0 Batch Create to Group B2 and the condition will be displayed on the filter/inventory listing. The filter/inventory listing will display the literal of all filters encountered. Therefore, a case may have several literals. All of them must be corrected before a case is reintroduced to batch processing.

  6. The Batch filter process will also get information from CFOL. These cases are created in Group B0.

4.19.20.1.5  (01-01-2007)
Status Updates - Creating the Generalized IDRS Interface (GII) Process

  1. During The Batch Create I process, for cases receiving an ICL, in Groups B0 and B2 an AIMS request is generated in RGS to update AIMS to status 10. After the Batch Create process is completed, the GII process must be run to update AIMS. Coordination between the Batch Coordinator and the local System Administrator is necessary to reduce problems with the batch process.

    • Do Not run the GII process for status 10 updates while the Batch Create process is running.

    • Do Notrun the GII process for the status 10 updates on the same day as the status 10 date.

    • Do Notrun the GII before the AIMS database goes to full display, or the request will be rejected.

    The GII should be run on the Friday following the Batch Create process for the Batch Create status 10 updates.

  2. During the Batch Create process, for cases receiving a report as first contact, in Groups B0 and B2, an AIMS request is generated in RGS to update AIMS to Status 22. After the Batch Create process is completed, the GII process must be run to update AIMS. Coordination between the Batch Coordinator and the local System Administrator is necessary to reduce problems with the batch process.

    • Do Not run the GII process for status 22 updates while the Batch Create process is running.

    • Do Not run the GII process for the status 22 updates on the same day as the status 22 date.

    • Do Not run the GII before the AIMS database goes to full display, or the request will be rejected.

    The GII should be run on the Monday following the Batch Create process for the Batch Create status 22 updates.

    Note:

    If the case is removed/rejected from the CPS transmission you should remove the pending update (shown with a "P" on the RGS record) before the interface is done. This will prevent AIMS from being updated incorrectly.

4.19.20.1.6  (01-01-2007)
Aging

  1. The Batch Aging process takes place in Group B0 and accomplishes the following actions:

    • Identifies Group B0 inventory in status 22, 23, or 25, where the suspense dates is ready to age to status 24. The aging program searches for all cases that are prior to and 8 days forward from the day the aging program is run.

    • Searches inventory for cases in status 53 (previously rejected from batch, status 24)

    • Creates warning lists.

    • Filters cases to Group B1 if a filter condition is met and the case is ready to age.

    • Creates filter reject lists for cases in Group B1

    • Automates aging from status 22, 23, 25 or 53 to 24

    • Generates AMSTUS (Status 24) AIMS update record

    • Generates print job and saves copy of Form 4549 and Form 886A in the case file documents folder

    • Generates Batch AMSTUS Inventory Reports

    • Generates the AMSTUS request for Stat Notice generation through the STN 01

    • Identifies and "marks" cases that will process through STN 02

    • Requests Stat Notice generation through STN 01 for cases not going to CPS (STN information explanations below) Requests Stat Notice generation through STN 02 to the CPS site

    Note:

    If the case is removed/rejected from the CPS transmission you should remove the pending update (shown with a "P" on the RGS record) before the interface is done. This will prevent AIMS from being updated incorrectly.

    Note:

    Once the case is reintroduced into Group B0 the aging program will recognize status 53 and it will be picked up for aging to status 24 the next time it is run.

  2. How CPS works at the Aging (Statutory Notice) stage: When the Batch Aging filters (STN Filter program) are run the program identifies the usual "filter reject conditions" and moves the case to Group B1 for TE action. It also reviews each case to determine if the individual package meets the requirements for inclusion in CPS. If the case meets the CPS requirements the case is marked for processing through the STN 02 process. If either of the conditions is not met the case will not be processed through CPS and the case is processed through the STN 01 process.

    If the Statutory Notice package is processed through STN 02/CPS:
    1 The Batch Created letter and report will be printed and mailed by the CPS site.
    2 The Stat Notice and report package will be printed and mailed by the CPS site on the 3rd Monday after the Aging is program is run.
    3 The RGS and AIMS status date will be the 3rd Monday date.
    If the Statutory Notice package is generated through STN 01:
    1 A Stat Notice file will print locally (based on SLA) and the report will be created in the Print Manager Program for local printing and mailing.
    2 The Stat Notice will be dated for the following Friday after the Aging program is run.
    3 The RGS and AIMS status date will be the following Friday date.

  3. The following RGS Case Summary Record fields are updated during the Batch Aging process:

    1 Status Code to 24 (if additional 2 digits of the status code are present on status 22, they will also display on status 24)
    2 Status Date to the date of the 90 Day Letter
    3 For STN 01 cases – Action text updated to AutoStat
    4 For STN 02 cases – Action text updated to AutoStat NPS
    5 Action Date to batch run date
    6 Suspended date to the letter date plus 105/165

  4. The Batch Aging program provides a copy of the report for the Stat Notice mail out package in one of two ways.

    Extracted:
    The report for Batch Aging will be extracted if the following conditions apply.
    1 If the original report was created by Batch, and
    2 the "RAR_mmddhhmmss.pdf" is present in the Case File Doc folder, and
    3 the Tax Comp run date/time is earlier than date/time of the " RAR_mmddhhmmss.pdf" , and
    4 the status on the RGS Case Summary record is not 23XX,
    5 then a copy of the report will be extracted from the original Batch created PDF file.


    Regenerated:
    The report for Batch Aging will be regenerated based on the Forms/Schedules that are present in the Reports/Tax Computation screen for the following situations:
    1 The Batch Created PDF file "RAR_mmddhhmmss.pdf" is not present in the Case File Documents folder - or,
    2 The status on the RGS Case Summary record is 23XX (this is regardless of whether the Batch Created PDF file is present or not) - or,
    3 The Batch Created PDF file "RAR_mmddhhmmss.pdf" is present in the Case File Documents folder, but the Tax Comp run date/time is later than the date/time on the Batch created PDF file.

    If the additional 2 digits of the status code are present at the time of the Batch AMSTUS Aging process, it will update the status in RGS to 2498, or 2499 respectively.

    Note:

    XX99 should not be used prior to the issuance of the Statutory Notice of Deficiency. The Technique Code 7 means Undeliverable Stat Notice.

    Caution:

    If the case is being updated to status 2598 (reply - report not revised) and the report was previously revised and in status 23, then the PDF file in the Case File Documents folder must be deleted. Also, delete the FDF file from the Case File Documents folder.

  5. Warning lists will be generated for cases in Group B0 in statuses 22, 23 or 25 with a Suspend Date within 24 days from the current date. The listing will display the number of days in status 22, 23, or 25, and if there is a filter condition present. Cases with filter conditions should be reviewed and resolved within two weeks of the running of the AMSTUS process.

  6. Once the taxpayer’s reply has been considered the case will be reintroduced to Group B0 for aging.

    • For the case to age correctly information on AIMS and RGS must match. Therefore it is strongly recommended that all AIMS updates be done through the AMSTU function within RGS.

    Update Batch initiated and Non-Batch initiated cases on AIMS and RGS by

    1 Updating the Status code to 2398 or 2598 with the Status date (letter date)
    2 Inputting the Suspend date
    3 Updating the Action text (local procedures)
    4 Updating the Employee Group Code - (EGC) to the one established for Group B0

    Reminder:

    The Suspend date controls when a case ages to its next status. Care should be taken to ensure your are inputting the correct suspended date. Failure to do so will result in the next action, Letter or closing, occurring either prematurely or belatedly.

    The case will remain in Group B0 unless a reply is received. If no reply is received, the case will age automatically to status 24.

  7. The AMSTUS command code will be generated for each case in Group B0 in status 22, 23, or 25, where the suspense date indicates that the case is ready to age to status 24. The aging program searches for all suspense dates prior to and 8 days forward from the day the aging program is runs.

    • The filter program searches the TIF and CFOL for each case for conditions that would require a tax examiner to take additional action.

      If the filter condition cannot be resolved (i.e., EGC TC 290, Z Freeze) the Batch program will not automate the Stat Notice and non-batch procedures should be used to issue the Stat Notice.

    • Cases with a filter condition will automatically be reassigned to Group B1.

4.19.20.1.7  (01-01-2008)
Closing

  1. The closing filter program searches the TIF and CFOL for each case in Group B0, Status 24 or 24XX with a suspended date prior to and 1 day forward from the day the aging program runs.

  2. Warning lists, detailing those cases which meet batch closing filters, are generated two weeks before for cases in Group B0 and in status 24 or 24XX with a suspended date within 24 days from the day the closing filter program runs. The listing displays the number of days in status 24 and lists any filter conditions present.

    1. Many of these filter conditions can be corrected prior to the suspended date and the case reintroduced to Batch Processing to close when the suspended date is reached.

    2. If the filter condition cannot be corrected, the case must be removed from Batch Processing and closed manually.

    Note:

    If you use the warning list to identify cases that require manual closing, care must be taken to ensure that the case is not closed

  3. An AMCLS command will be generated for each case in Status 24 and 24XX where the suspended date indicates that the case is ready to close. The case status is updated to 51XX in CEAS/RGS only. AIMS will not be updated to status 51.

    Data received from CFOL Set indicator in Batch Close temporary database
    TC 810-3 on the account Set TC 810-IND = Y
    For Project Code 576, 577, and 581 cases - Get the DLN of the TC 150 Set DLN of TC 150
    For Project Code 576, 577, and 581 cases - Get RPC code 4 Set RPC code 4 in Batch Close temporary database

  4. If a case is still in B0 when the case is ready to close and it has a filter condition that prevents automated closure, the case will move to group B1 at the end of the process. A tax examiner must review, research, and address the filter conditions and close the case manually.

  5. The following fields are updated on the RGS Case Summary Record during the Batch Closing process:

    • Status Code = 51 changes to status 90 when the interface is done.

    • Status date = batch run date

    • Action text = Auto Close

    • Action date = batch run date

    • Historical Data = .1 (1/10) time added to the Exam time to reflect the default time.

  6. The four digit status on the RGS Case Summary Record at the time of closing will determine the Disposal Code and the Technique Code that will generate on Form 5344, Examination Closing Record.

  7. Form 5344 - Cases that have no filter condition will have Form 5344 automatically prepared and validated. The Disposal Code and the Technique Code that will generate is based on the RGS Summary Record Status.

    Status Disposal Code Technique Code
    24 10 6
    24 - telephone response 10 8
    2498 response 10 2
    2499 undeliverable 13 7
    2497 Unclaimed/refused 10 6

  8. Updating the RGS Case Summary Record with an additional 2 digits will generate the correct disposal code and technique code for the Batch Closing process.

  9. Once the case is closed

    • The case will automatically archive

    • A CICS (Closing Information Cover Sheet) is generated and printed by the Print Manager Program and forwarded to files

    The requirements for sending closed cases to files using the CICS is different for cases that went through STN 01 versus STN 02. See 4.19.21 90-Day Clerical Procedures for disposition information.

4.19.20.1.7.1  (01-01-2007)
Taxpayer Correspondence received prior tothe issuance of the Statutory Notice of Deficiency Non-CPS

  1. If taxpayer correspondence is received for cases in Batch Group B0, and the case status is 10, 22, 23, or 25:

    1. Reassign case from Group B0 to the Correspondence Group

    2. After the case is received in the Correspondence Group, make the following updates to RGS and AIMS using the GII process, and reassign the case to an examiner:

    Update Value
    Status code 54, 55, 57
    Status date Leave blank
    Correspondence received date Received date of taxpayer response
    Action text Local decision
    Employee Group Code Correspondence Group Code

    Note:

    Follow general Examination program guidelines and procedures when evaluating taxpayer correspondence.

  2. If, after evaluation of the taxpayer correspondence, the examination remains open, the case can be reintroduced to batch processing for aging. Review the taxpayers account for filter conditions. If there is a filter condition present, do not reassign the case to Group B0.

    Note:

    If there is a penalty assessed on the case and the penalty has been calculated within RGS, the case can be reassigned to Group B0 for the automate Aging/AMSTUS process; the Batch/Aging/AMSTUS process will recognize the correct penalty to input on the Statutory Notice of Deficiency.

  3. Update RGS and AIMS using the GII process as follows:

    Update Value
    Status code 2398 (revised report) or 2598 (report not revised)
    Status date Date of letter for status 2398. Leave blank for status 25
    Suspend date See Taxpayer Responses in IRM 4.19.13.9
    Action text Description of action taken
    Employee Group Code Group B0 Employee Group Code

4.19.20.1.7.2  (01-01-2008)
Taxpayer correspondence received after the issuance of the Statutory Notice of Deficiency Non-CPS

  1. If taxpayer correspondence is received for cases in Batch Group B0, after the Stat Notice is issued,

    1 Reassign the case from Group B0 to the Correspondence Group.
    2 Make the following updates to RGS and AIMS using the GII process

    Update Update Value
    Status code Update to status 2498 (in RGS Only) if Taxpayer correspondence received while case in status 24
    Status code Update to status 2497 (in RGS Only) if 90 Day letter returned "Unclaimed" or "Refused"
    Status code Update to status 2499 (in RGS Only) if 90 Day letter is returned "Undeliverable" and no new address can be secured
    Correspondence Earliest IRS received date of the taxpayers correspondence Received Date
    Action text Description of action taken
    Employee Group Code Correspondence Group Code

    Note:

    Updating the RGS Case Summary Record with an additional 2 digits will generate the correct disposal code and technique code for the Batch Closing process. The cases will remain in group B0 but MUST have the proper status code on RGS to close with the correct Technique and Disposal Code information on Form 5344.

    1. Reassign the case to an examiner

      Reminder:

      Follow general Examination program guidelines and procedures when evaluating taxpayer correspondence

  2. Since the case has already aged through batch processing (status 24), the correct Suspend date should already be present. Verify that the Suspend date is correct before reassigning the case to Group B0. The suspend date will control when the case is aged to close (status 51).

    • Reassign case to group B0

    The case will remain in group B0 until a reply is received or the case systemically ages to default.

4.19.20.1.7.3  (01-01-2007)
Taxpayer Correspondence received prior to the issuance of the Statutory Notice of Deficiency CPS generated mailing

  1. If taxpayer correspondence is received for cases in Batch Group B0 that are scheduled to go to the Consolidated Print Site after the case has been updated to status 24 on AIMS but prior to the transmission of the file to the CPS.

    1. Reassign case from Group B0 to B2

    2. Manually back the status down to Status 53 on AIMS and update RGS to status 53

    3. Delete the record in the Print Manager program to prevent it being transmitted to CPS (coordination with the Batch Coordinator is required)

    4. Make the following updates to RGS and AIMS using the GII process:

    Update Update Value
    Status code Update to status 54, 55, 57
    Correspondence Received Date Received date of the taxpayers correspondence
    Action text Description of action taken
    Employee Group Code Correspondence Group EGC being assigned the case

4.19.20.1.7.4  (01-01-2007)
Taxpayer correspondence received after the issuance of the Statutory Notice of Deficiency CPS generated mailing

  1. If correspondence is received subsequent to the transmission of the file to CPS, the Stat Notice cannot be deleted

    1. Reassign the case from Group B0 to B2.

    2. The following updates to RGS and AIMS using the GII process:

    Update Update Value
    Status code Update to status 2498 (in RGS Only)
    Correspondence Received Date on RGS and AIMS Received date of the taxpayers correspondence
    Action text Description of action taken
    Employee Group Code Correspondence Group EGC being assigned the case

  2. Once the file has been transmitted to CPS the Statutory Notice of Deficiency will be considered as mailed even if the letter carries a future date.
    All correspondence received will be:

    • Held until the letter date of the Stat Notice

    • Worked on a priority basis based on the date of the Stat Notice

    • Worked within 5 days of the Stat Notice date

4.19.20.1.8  (01-01-2007)
Reports

  1. Various Batch Summary reports are generated during the Batch Create, Aging, and Closing processes. Automated emails are sent to those individuals designated to receive the Batch Summary reports. The System Administrator provides the email information for each designee. Refer to Batch Processing User Guide Revision, Part IV, Print Manager for report listings and instructions for viewing and printing the filter and inventory reports.

4.19.20.1.9  (01-01-2008)
Reviews

  1. Sites will conduct Mandatory Review of Batch cases, using CESS Team created review sheets, as follows:

    New RGS Program releases and new functionality
      10% of the Create 1 cases produced for every project code where morethan50 cases were selected to be worked in the first cycle of the new release.
      100% of the Create 1 cases produced for every project code where fewerthan50 cases were selected to be worked in the first cycle of the new release.
      10% of the Create 2, Aging and Closing processes
    Weekly reviews
      Five Cases – per project code – per cycle in which and automated report is generated in Group B0
      100% review of cases routed to Group B2

    Note:

    All cases for review will be randomly selected from those available. The maximum volume of review of Create 1 is five hundred cases. If significant problems are encountered, additional review may be needed.

      Review will be performed by the batch team leader or person(s) designated by the batch team leader.
      Certification of the reviews will be provided to the Operations Manager. The Operations Managers will retain a record of the certification.

  2. When performing the output review, all of the following will be considered:

    • Letter, Report, all variations of 886, and any schedules

    • Entity Information

    • Tax computation

    • Applicable issues addressed

    • Appropriate explanation given for each issue adjusted

    Figure 4.19.20-1
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    CPS Flow Chart


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