Accessibility Skip to Top Navigation Skip to Main Content Home  |  Change Text Size  |  Contact IRS  |  About IRS  |  Site Map  |  Español  |  Help  

Part 4. Examining Process

Chapter 7. Examination Returns Control System (ERCS)

Section 5. Group

4.7.5  Group

4.7.5.1  (10-01-2003)
Overview

  1. This section contains information and procedures for and group managers, audit accounting aides, group secretaries, and group clerks. Group users are also individuals designated as actors — such as revenue agents, tax compliance officers, tax examiners, etc.

  2. The actual instructions for group users for ERCS can be found in the Examination Returns Control System Group Handbook. The purpose of this section is to provide policy and procedure for the use of ERCS in the group.

  3. In an effort to simplify matters, the use of the word "area" in this section can be assumed to also mean "industry" .

4.7.5.1.1  (10-01-2003)
Group User Capabilities

  1. Group users can:

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

    2. Research/display records,

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

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

    5. Print forms 895,

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

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

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

    9. Generate a document transmittal.

4.7.5.1.2  (10-01-2003)
Group User Position Codes

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

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

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

4.7.5.2  (10-01-2003)
Levels of Permissions

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

    1. READ,

    2. WRITE (update capability),

    3. FIRST LEVEL approval,

    4. SECOND LEVEL approval, and/or

    5. BACKUP approval.

4.7.5.2.1  (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.

4.7.5.2.2  (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.

  2. Group users must have WRITE permission for the AAC(s). The status code must be a group status code.

4.7.5.2.3  (10-01-2003)
Actions Requiring Approval

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

    1. Requisitions (collaterals, penalty case, 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).

  2. 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.

  3. The following changes require the group manager's approval when the input is done by a group user other than a group manager:

    1. Employee ID updates,

    2. AAC updates, and

    3. Updates to status codes 10 through 18 (10 to 12 excluded).

4.7.5.2.4  (07-31-2000)
Appearance of Changes on ERCS

  1. Changes input to ERCS are immediately reflected on all the ERCS screens. However, items being changed which require managerial approval will reflect a letter "P" , next to the item until such approval is granted. The "P" denotes " Pending" managerial approval.

    IF THE CHANGE IS: THEN:
       
    Approved the "P" is systemically removed and the AIMS change is scheduled so the proper command code will be transmitted the next time IDRS uploading is run.
       
    Disapproved the "P" is systemically removed and the values on ERCS are restored to the prior value.

4.7.5.3  (07-31-2000)
Approving/Disapproving Actions

  1. Certain actions require approval/disapproval systemically on ERCS.

4.7.5.3.1  (10-01-2003)
How to Approve/Disapprove Actions

  1. Upon logging onto ERCS, the manager will be alerted with the message, "Pending Updates and Requisitions need your approval. Use the ‘Managerial Approval’ selection to approve or disapprove." This message appears when the "Examination Main Menu" is accessed.

    1. The above message appears to first-level approvers, and their actors, only for actions requiring first-level approval and to second-level approvers, and their actors, only for actions requiring second-level approval. The message does not appear for back-up approvers.

  2. Upon selecting the "Managerial Approval " screen, the following options are available:

    1. Approve Work,

    2. Approve Work by Return,

    3. Grant Temporary Permission,

    4. Group Update/Approval Permission Report, and

    5. Return to Main Menu.

4.7.5.3.2  (10-01-2003)
Approve Work Option

  1. This option is used to bring up all the work requiring approval in the AAC for which the user has approval permissions.

  2. Approval screens are:

    1. Requisitions,

    2. Non-Masterfile Returns Being Converted to Masterfile, and

    3. Updates and/or Short Closures.

4.7.5.3.2.1  (07-31-2000)
Approving Requisitions Criteria

  1. Managerial approval is required for all AIMS requisitions, regardless of who inputs the request.

    1. If the group manager inputs the request, the second level approval user must approve it.

  2. Audit trails are written for each requisition which is master file, nonmaster file, penalty, or collateral.

  3. ERCS systemically does not allow a return to be assigned to an employee with a group manager's position code.

  4. A requisition can be resubmitted if previously requested and the manager has disapproved the request. However, managerial approval is required.

    1. A disapproved requisition is immediately updated to status 90 on ERCS, and

    2. A special record type entitled, " DISAPPROVED" is set for the disapproved requisition on ERCS.

  5. A requisition which has been disapproved may be requisitioned again.

    1. As mentioned above, managerial approval is required for all AIMS requisitions, and

    2. The individual inputting the requisition will be warned that a prior requisition was disapproved.

  6. A requisition, previously disapproved, cannot be requisitioned as a collateral return without intervention by the ERCS Functional Coordinator.

  7. Time cannot be charged to a disapproved requisition.

    1. Before disapproving a requisition, which previously had time charged to the return, all time must be removed and charged to another year or activity code.

4.7.5.3.3  (07-31-2000)
Approve Work By Return Option

  1. This option is used to bring up all work needing approval for specific returns.

4.7.5.3.4  (07-31-2000)
Grant Temporary Permission Option

  1. This option is used by a permanent group manager to delegate permissions.

    1. The group manager can only grant temporary permission for the type of permission that the manager himself/herself has.

4.7.5.4  (07-31-2000)
Frequency of Approving Work

  1. Each group manager must determine, based on workload and need, the frequency of logging on to ERCS to approve work.

4.7.5.5  (07-31-2000)
Paper Approval vs. Electronic Approval

  1. At this time, electronic approval of changes and updates on ERCS has not eliminated the requirement to manually approve the following paper forms:

    1. Form 5345, Examination Request Master File,

    2. Form 5346, Examination Information Report,

    3. Form 5347, Examination Multiple Request Master File,

    4. Form 5348, Examination Update,

    5. Form 5349, Examination Correction Request,

    6. Form 5351, Examination Non-Examined Closings,

    7. Form 5354, Examination Request Non-Master File, and

    8. Form 5546, Examination Return Charge-Out.

4.7.5.5.1  (07-31-2000)
When to Approve

  1. With the exception of statute updates via form 5348, the group manager may manually sign the above-mentioned form either before or after the data is input to ERCS.

4.7.5.5.1.1  (07-31-2000)
Statute Updates

  1. Statute updates MUST be manually approved PRIOR to input to ERCS.

4.7.5.6  (10-01-2003)
Delegation of Permission to Approve

  1. The group manager can delegate temporary approval authority to:

    1. Another manager, and

    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 the group manager or acting group manager occurs. The request should be made by the territory manager via e-mail, memorandum, or paper form 5081, etc. (documentation to be determined locally).

4.7.5.6.1  (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 only, and

    2. ERCS systemically blocks acting managers from having the ability to approve/disapprove actions to their own assigned inventory.

4.7.5.6.1.1  (07-31-2000)
Approval of Acting Manager's Work

  1. In imminent situations when an action of the acting group manager 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 group manager temporary read and approval permission.

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

4.7.5.6.2  (10-01-2003)
Number of Acting Managers

  1. The number of technical employees, delegated to act in a particular AAC, should be the minimum number possible to ensure the smooth operation of the group.

4.7.5.6.3  (07-31-2000)
Length of Delegation

  1. Temporary approval authority should be delegated for the shortest possible period.

  2. Temporary approval authority should be revoked when it is not needed.

  3. Temporary permissions will systemically be revoked at the end of the last day of the delegation period.

4.7.5.6.4  (10-01-2003)
Type of Permissions Delegated

  1. Technical employees, delegated as acting group managers, should be granted the following permissions for the specific AAC:

    • READ

    • FIRST LEVEL approval

4.7.5.6.5  (10-01-2003)
Briefing the Acting Manager

  1. Each time a group manager delegates temporary approval authority to a technical employee, the group manager should:

    1. Ensure the employee is familiar with the OL5081 approval process and security rules (https://ol5081.enterprise.irs.gov:8443/pls/ol5081/ol5081_rules),

    2. Review the prohibitions against approving any actions to his/her inventory via ERCS or otherwise,

    3. Ensure the employee is familiar with the ERCS approval process and review any updates to ERCS that may have occurred since the employee was last delegated approval authority, and

    4. Ensure the employee's logon/password to the computer where ERCS is located has not expired (the login is locked after 45 days of nonuse and dropped after 90 days).

4.7.5.7  (10-01-2003)
ERCS in the Group

  1. ERCS automates inventory control and time reporting processes previously performed manually by group managers, secretaries, and technical employees.

  2. Changes made at the group level on ERCS are forwarded to other systems; i.e., AIMS and SETTS. This eliminates the need to input information to multiple systems, increasing accuracy and reducing time required for multiple input.

  3. ERCS data can be used to produced a variety of reports as well as custom reports to meet the needs of management.

4.7.5.7.1  (10-01-2003)
Role and Responsibilities of the Technical Employee

  1. Technical employees in the group initiate many actions that affect the ERCS database. Technical employees are revenue agents, tax compliance officers, tax examiners, etc., assigned an inventory of cases.

  2. Responsibilities of technical employees include, but are not limited to:

    1. Timely submitting request documents, most commonly forms 5345 to secure control of prior, subsequent, and related returns,

    2. Timely submitting forms 5348 to update the status of returns to 17 or 18 or to update the statute of limitations,

    3. Submitting updates to project codes, related case indicator codes or tracking codes, following local procedures,

    4. Maintaining, as part of the case file, required documentation/forms,

    5. Submitting time reports (form 4502/4605) on a regular basis in order to meet deadlines set by Headquarters,

    6. Submitting time reports (form 4502/4605) whenever a case is closing from the group posting all time charges through the closing date, and

    7. Reviewing ERCS inventory reports on a periodic basis, following local procedures, to assure the data is accurate and all records are accurate and properly controlled.

  3. Technical employees may request available management reports for cases in their inventory as a tool for workload management.

4.7.5.7.2  (10-01-2003)
Role and Responsibilities of the Secretary/Group Clerk

  1. The secretary/group clerk has primary responsibility for accurately and timely inputting data into ERCS.

  2. The secretary/group clerk, should read, understand, and follow the OL5081 security rules (https://ol5081.enterprise.irs.gov:8443/pls/ol5081/ol5081_rules). Specific security concerns should be directed to the manager or the area ERCS Functional Coordinator.

  3. A secretary/group clerk, who is a new user, should receive training on ERCS. Generally, the area ERCS Functional Coordinator would provide the initial training. This training can be supplemented by on-the-job instructor training done by existing users in the new user's area.

  4. The secretary/group clerk should have access to the ERCS Group Handbook, this section of the IRM, and IRM 4.4, AIMS/Processing Handbook.

  5. Responsibilities of the secretary/group clerk include, but are not limited to:

    1. Accurately inputting changes to ERCS on a daily basis,

    2. Returning update documents to the technical employee for association with the case file,

    3. Assuring statute updates have received management approval PRIOR to inputting to ERCS,

    4. Promptly reviewing and resolving ERCS-AIMS requisitions and update rejects when the message "There are ERCS-AIMS Uploading results to check" appears on the Examination Main Menu,

    5. Reviewing and resolving AIMS Error Reports on a weekly basis, following local procedures,

    6. Reconciling the Overage Requisition Report, at least monthly, to verify that ERCS-AIMS upload and reject problems are resolved,

    7. Entering time reports (form 4502/4605) on a regular basis following local procedures,

    8. Assuring that all case time has been properly posted to a technical employee's time report (form 4502/4605) prior to closing the case,

    9. Printing and distributing reports as requested by management,

    10. Periodically reconciling the AIMS IVL with ERCS, following local procedures,

    11. Printing and distributing forms 895 as requested by management,

    12. Controlling the return of forms 895 through the Statute Expiration Reports file on ERCS,

    13. Reconciling AIMS 4.1 Table with ERCS data within five days of receipt of the AIMS table, and

    14. Promptly informing management of rejects or other ERCS problems that are unresolved or that need management action.

4.7.5.7.3  (07-31-2000)
Role and Responsibilities of the Group Manager

  1. The group manager has overall responsibility for group operations including ensuring that appropriate internal controls are established and maintained; and the goals, policies, and directives of the Headquarters Office as well as the area/industry are followed.

  2. ERCS is a tool that can assist group managers in fulfilling their responsibilities by simplifying and consolidating data entry and providing flexible, timely reports for monitoring group operations.

  3. ERCS responsibilities of the group manager include, but are not limited to:

    1. Security,

    2. Training and employee development, and

    3. Monitoring the effective utilization of resources.

4.7.5.7.3.1  (10-01-2003)
Security Responsibilities

  1. As part of his/her security responsibilities, the group manager should ensure:

    1. Employees with access to ERCS read, understand, and follow the OL5081 security rules (https://ol5081.enterprise.irs.gov:8443/pls/ol5081/ol5081_rules),

    2. Requests for access to more than one ERCS database is substantiated by a business need and is truly needed and appropriate,

    3. Documentation/forms required to effect changes to ERCS are authorized and maintained,

    4. Technical employees, with inventory, routinely do not have WRITE permission. WRITE permission compromises separation of duty,

    5. Particular care is exercised in the approval/disapproval of changes when technical employees, with inventory, must have WRITE permission. The acting manager should brief the group manager concerning any actions made to ERCS while acting,

    6. Temporary ERCS approval authority is granted for the shortest possible time and revoked when no longer needed,

    7. ERCS security rules are discussed with all employees as part of the annual computer security briefing,

    8. Approvals are timely processed, and

    9. All ERCS generated reports that are requested or maintained comply with Policy Statement 1204 and RRA 98.

4.7.5.7.3.2  (07-31-2000)
Training/Employee Development Responsibilities

  1. Training/employee development responsibilities of the group manager include, but are not limited to:

    1. Ensuring secretaries/group clerks receive adequate ERCS training. Generally new users receive initial training from the area ERCS Functional Coordinator supplemented with on-the-job instructor training from an experienced ERCS user,

    2. Ensuring ERCS update information is provided to, and discussed with, secretaries/group clerks and other users within the group,

    3. Providing meaningful feedback on ERCS responsibilities and performance as part of the secretary/group clerk's workload review and annual performance appraisal process,

    4. Ensuring appropriate resources, included in the ERCS Group Handbook and IRM sections, are available to the group, and

    5. Ensuring technical employees are aware of their ERCS/AIMS responsibilities.

4.7.5.7.3.3  (10-01-2003)
Utilization of Resources Responsibilities

  1. Utilization of resources responsibilities of the group manager include, but are not limited to:

    1. Familiarizing themselves with ERCS and the available group reports,

    2. Reviewing ERCS data regularly to ensure the accuracy of data elements,

    3. Utilizing ERCS reports to identify and monitor priority and overage cases,

    4. Weekly ensuring the In-Transit report is generated to ensure returns are timely being received in Case Processing Support,

    5. Ensuring ERCS statute listings are monthly reconciled with AIMS Table 4.1,

    6. Ensuring ERCS inventory listings are, at least annually, reconciled to the AIMS IVL and physical returns,

    7. Ensuring rejects and other problems are resolved, and

    8. Ensuring time (form 4502/4605) information is entered accurately and by the deadline set by Headquarters.


More Internal Revenue Manual