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Part 4. Examining Process

Chapter 9. Examination Technical Time Reporting System

Section 1. Outline of System

4.9.1  Outline of System

4.9.1.1  (04-01-2004)
Overview

  1. This section is an outline of the technical time reporting system.

  2. This IRM contains instructions for the Examination Technical Time Reporting System which is designed for planning and monitoring time applications by technical employees in Compliance functions. Fiscal year plans are developed by computer in the Headquarters Office using historical data and selected input from Industries or Areas. After final approval, plans are incorporated in the Internal Revenue Service Operating Financial Plan. Daily records are maintained by technical employees on various return activities, operational support activities, Non Compliance Support and overhead activities.

  3. The reports covered in this handbook constitute the entire requirements and records needed for reporting time application by technical personnel assigned to Compliance functions. This also covers time reporting under ERCS (Examination Returns Control System)

  4. Data on various direct and non-direct examination activities are transmitted to the Detroit Computing Center under the SETTS (Summary Examination Time Transmission System).

4.9.1.2  (04-01-2004)
Examination Plan

  1. The annual Examination Plan is developed and approved as a corollary to the Operating Financial Plan. Most information necessary for formulating the Industries or Areas plan is available in the Headquarters Office. The Headquarters Office will request additional information from the Industries or Areas and combine it with historical data available in the Headquarters Office. A computer system generates an Examination Plan for each Industry and Director, Field Operations for LMSB and Area for SBSE as well as Industry/Area and national summaries. Plans are reviewed and if necessary, adjustments are recommended by Industry or Area. The Director, Field Operations and Territories will coordinate with their respective Industry or Area to ensure that financial plans and work plans are in agreement. Plans for LM will not be allocated below the Director, Field Operations or Area level for SBSE.

  2. After approval by the Headquarters Office, the area plan is converted to disk and transmitted to the Detroit Computing Center. Monthly comparison of Plan vs. Accomplishments for staff years is submitted to area and Headquarters Office management for monitoring purposes.

4.9.1.3  (04-30-1999)
Agent Input Document/Tax Auditor Daily

  1. The ERCS input documents are referred to as the Agent Input Document or Tax Auditor Daily. All revenue agents, tax compliance officers, revenue officer examiners, tax examiners and audit accounting aides assigned to the compliance functions use these source documents. All time expended by technical personnel is reported by activity code.

  2. The Agent input Document and Tax Auditor Daily are used to gather information required by management at all levels for time application by technical personnel. A separate report is prepared by each revenue agent, tax compliance officer, revenue officer examiner, tax examiner, and audit accounting aide for each reporting cycle or part thereof. Entries are made daily by each technical employee for the time devoted to the various Examination activities. These documents are posted to the ERCS database by the group clerk using the ERCS handbook as a guide for posting.

  3. When a reporting cycle consists of more than 25 days, two pages of the document will be used for each technical employee. Under no circumstances should data from more than one technical employee be consolidated on a given Input Document.

  4. Managers will ensure that reports are prepared for employees on leave or other absence. However, reports are not prepared for employees on "extended" leave without pay (as defined in IRM 0601, Hours of Duty and Absence and Leave Handbook, and 1273, Time and Attendance Handbook), beginning with the first day on LWOP.

4.9.1.4  (04-30-1999)
Disposition of Timesheets

  1. At the end of each reporting cycle, technical employees will forward their time reports to their manager. Technicians located away from group headquarters should transmit their reports no later than close of business on the last workday covered by the report. Where possible, technicians should pool their reports and transmit a single file to the group office to expedite the submission of reports.

  2. If possible, we encourage examiners to submit summarized time reports (i.e., net time for inventory with common activity codes).

  3. No time report having more than four pages is to be submitted for transmission to the Detroit Computing Center. Time Reports having more than four pages, should be consolidated by activity code and submitted to the SETTS Coordinator.

  4. Prepare the consolidated report by completing items 1 through 8, Part I-columns (e), (f), (g), (h), and (i) and Part Il-columns (e), (f) and (g). Page one of the consolidated report should have pages two through four totals for Total Time activity code 901, and all non-examination time shown in Part II. Make no entries for Total Time activity code 901, or Part II on pages two through four.

  5. The group manager, or designate, will review the reports for accuracy. After ensuring that all reports are complete and accurate, the group manager, or designate will be responsible for forwarding the original of the reports to either the reports clerk or a designated person in the area office.

  6. The report for each technical employee will be submitted in sufficient time to be in the hands of the reports clerk at the requested time.

  7. The reports clerk, or other designated individual, will verify receipt of all time reports for the industry or area.

  8. Timesheets should be kept by the manager for a period of 3 years. DCC will keep the transmitted file for a total of 1 year.

  9. Time Reports cannot be transmitted to the Detroit Computing Center later than the cut-off date. These reports must be retransmitted the following reporting cycle.

4.9.1.5  (04-30-1999)
Description of System

  1. A numeric code system, as described below, has been designed to provide flexibility and responsiveness to overall program analysis and to changes or expansions in Compliance programs. The codes provide a uniform system for planning and reporting time applications by Compliance technical personnel.

4.9.1.5.1  (04-30-1999)
AIMS Assignee Code (AAC)

  1. The use of specific AAC and position codes permit tabulations to be produced by functional element and by position categories, or combinations. Activities which cross functional lines or which are performed by technical employees in several different position categories can be combined or isolated as desired.

4.9.1.5.1.1  (04-30-1999)
AIMS Assignee Code

  1. A twelve digit code is used for the management structure so that returns and time applied to returns can be applied to the correct location (Business Operating Division) for management information reports. The AIMS Assignee Code is broken down into three fields.

    1. Primary Business Code - (Field 1)

    2. Secondary Business Code - (Field 2)

    3. Employee Group Code - (Field 3)

    Consists of 3 digits:  
    Digit 1 is referred to as the "AIMS BOD CODE"
    0 Not Set
    1 Wage and Investment
    2 Small Business/Self Employed
    3 Large and Mid-Sized Business
    4 Tax Exempt/Government Entity
       
    Digits 2 & 3 are referred to as:
    LMSB Industry
    SBSE Area
    W&I Area

    Consists of 5 digits:  
    Digits 1–3 are referred to as:
    LMSB Director, Field Operations
    SBSE Territory Manager
    W&I Territory Manager
       
    Digits 4–5 are referred to as:
    LMSB Territory Manager
    SBSE Reserved
    W&I Reserved

    Consists of 4 digits:  
    Digit 1 is referred to as the "Employee Type Code"
    1 Revenue Agent
    2 Tax Compliance Officer
    3 Reserved
    4 Reserved
    5 Campus
    6 Dyed Diesel Fuel Inspectors (SETTS ONLY)
    7 Tax Exempt/Government Entity
    8 Reserved
    9 Reserved
     
    Digits 2–4 are referred to as "Group Code"
    000–999 Valid

4.9.1.5.1.2  (04-30-1999)
Position Code

  1. The position code consists of three digits which identify the employee’s formal assignment regardless of the nature of duties performed. These position codes permit the tabulation of data for specific technical positions, such as engineer, international specialist, Group Manager; Territory Manager; etc.

4.9.1.5.2  (04-30-1999)
Employee Status

  1. The Employee Status is a two digit field which describes the status of an employee at the end of each cycle.

4.9.1.5.3  (04-30-1999)
Activity Codes

  1. There are several types of activity codes depending on your Operating Division. For SBSE there is Direct Compliance Examination and Non Compliance Overhead. The Direct Compliance Examination is broken down into Total Return Exam Activity, Other Compliance Activity and Direct Operational Support Activity. Total Non Compliance Overhead is the sum of Non Compliance Support Activity. Total Non Compliance Overhead is the sum of Non Compliance Support Activity, Overhead and Leave.

  2. LMSB continues to use the historical definition of Direct Examination Activity (Activity Codes less than 600) and Non Direct Examination Activity (Activity Codes greater than 600).

4.9.1.5.3.1  (04-30-1999)
Direct Compliance Activities-SBSE

  1. Direct Compliance Activity is defined as Total Return Examination Activity which is the time applied directly related to a return. It applies to time spent on all returns examined, regardless of the method used in contacting the taxpayer or the place of the examination. Most Total Return Activity is self explanatory and are return related. A list of return related activity codes are listed is Exhibit 4.9.1–1. It is also time that is applied to Other Compliance Activity while not directly related to a return but related to the compliance of a return. Activity Codes 501–520 (excluding 515–518), 522–529, 545–547, 588, 592-599, 646, 720, 733-734, 812-819, 821-822 and 828 are included in Other Compliance Activity. Time also spent on Direct Operational Support which includes activity codes 617,621-623,625,631-632,641,643,644,648, and 740 are included in Direct Compliance Activity. Definitions for non return related activities can be found in Exhibit 4.9.1–2.

4.9.1.5.3.1.1  (04-01-2004)
Total Non Compliance Overhead - SBSE

  1. Non compliance examination codes have historically been activity codes above 600. However, for FY 2003 the definition changed and some activity codes greater then 600 were moved to Direct Compliance Activity. Total Non Compliance Activity is now comprised of Non Compliance Support Activity which includes activity codes 521,609,614,670-671, 690,731-732, 741-743, 811, 820, 823 and 826-827. Also included in total non compliance overhead is activity codes 575, 610, 611-613, 615, 620, 618-619, 624, 649, 660, 675, 681-684, 695, 697-699, 730, 735-739, 744-750 and 830 which are considered overhead training and leave. Please refer to Exhibit 4.9.1–1 and 4.9.1–2.

4.9.1.5.3.1.2  (04-01-2004)
Direct Examination Activity- LMSB

  1. Direct Examination Time applies to time spent on all returns examined, regardless of method used in contacting the taxpayer or the place of examination. Direct examination time includes time actually spent examining a taxpayer's records and returns, time on research or reading issuances dealing with issues involved in the return being examined, travel time incident to the examination, and time devoted to writing the report. Time spent by examiners preparing the evaluation report on informants' claims is also reported as direct examination time. Most of the first segment direct examination codes are self explanatory. A list of Direct Examination Activity Codes that have a return related to can be found in Exhibit 4.9.1-1. Definition for Direct Examination Miscellaneous Activity Codes that do not have a return are provided in Exhibit 4.9.1-2.

  2. Direct examination time includes time spent inspecting and identifying the audit potential of related employment and excise tax returns in connection with the examination of another return.

    1. If these related employment or excise tax returns are examined and a report of adjustments or no-change report is prepared, time allocable to identification and examination of the employment or excise tax return is charged to the appropriate activity code of the employment or excise tax return. This time should not be reported with the activity code of the principle return with which this examination was associated.

    2. If the related employment or excise tax return is not identified for examination, or if no report of examination is written, time spent in conjunction with the employment or excise tax return(s) should all be reported with the time charged to the principle return under its appropriate activity code.

4.9.1.5.3.2  (04-01-2004)
Non Direct Examination Activity-LMSB

  1. Non Direct Examination codes consists of three digits (600-905) and describe non examination activity such as training, leave, etc. These codes do not require a second segment code. See Exhibit 4.9.1-2 for definitions of non direct examination activity codes.

4.9.1.5.3.2.1  (04-01-2004)
Direct Compliance/Examination (1st Segment)

  1. The first segment if the Direct Compliance activity code consist of three digits. Codes 001–599 have historically been used to exclusively for direct compliance/examination activity and identifies the examination class of the examined returns.

4.9.1.5.3.2.1.1  (04-01-2004)
Direct Examination (2nd Segment)

  1. The second segment is also three digits, and is used only in combination with direct compliance/examination activity codes (001-599). The first digit if the second segment indicates program monitoring code, the second digit indicates category, and the third digit indicates special feature of the examination. Second segment codes are not used for Activity Codes 600-905.

  2. Second segment codes provide detail management data on direct compliance time, Activity Codes 001-599 are required to have second segment codes. All three positions must be completed. (see Exhibit 4.9.1–3 for a list of Second Segment Codes.

  3. Second segment codes that are required for activity codes 501-520, 522-529, 545-546, and 591–599 are not used to provide detail management data. Therefore, when entering second segment code codes for these activity codes only, an entry of 000 is required.

  4. The second segment code required for activity codes 521 or 588 can be either 000 or 040. Please see exhibit 4.9.1-2 (cont 3) for definition of activity code 575.

4.9.1.5.4  (04-01-2004)
DET Other PBC

  1. This is a three digit code that is used to identify non-CIC and CIC work performed for other Industries/Area or BODs. This code will reflect the Primary Business Code that is being supported. Valid codes for this entry will be all Primary Business Codes. For LMSB, this code will only identify work that is performed for another BOD.

    If Then Valid Entry in Column G: DET Other PBC:
    Industry 4 is Supporting SB Area 1 201
    Area 3 is supporting Area 5 205

4.9.1.6  (04-01-2004)
SETTS Overview

  1. SETTS is a system to electronically transmit validated (error free) technical time data from one LM operating Division and 16 SB Area offices to the Detroit Computing Center for inclusion Table 37, Examination Program Monitoring. SETTS is the only means of sending Examination Technical Time data to the Detroit Computing Center.

  2. Data is collected using ERCS.

4.9.1.7  (04-01-2004)
Time Reporting Using ERCS

  1. Time tracking is an integral part of the ERCS (Examination Return Control System). There are numerous validations which a record must go through prior to controls being established. Once a record is established, time can be charged to the individual years. Time can be charged by employees in field office and audit groups in quarter hour increments (.3-15 minutes .5=30 minutes and .7=45 minutes).

  2. The ERCS Functional Coordinator will check the system to ensure time has been input for all employees through the end of the cycle. Once it is determined all time has been charged, the functional coordinator creates a SETTS- File. This file must run through the ERCS program to merge SETTS-FILE with forms.txt.

  3. A general description of the time input program is contained in the ERCS Handbooks for the various types of users and a more detailed explanation in the Technical Reference Manual for both time input and creation of the SETTS- FILE

4.9.1.8  (04-01-2004)
Transmission of SETTS Data

  1. The reporting cycles for Technical Time is a 4–4-5 week cycle with the cutoff day for a reporting cycle on a Friday. The Transmission of SETTS data is to be completed by close of business the Monday following the cycle end unless it is a holiday, then the cutoff for transmission would be Tuesday. If data is not received at Detroit Computing Center following the cycle end, no technical time data for the cycle will be reflected on Table 37, Examination Program Monitoring, for that particular LMSB Industry or SBSE Area.

  2. If data is not transmitted for a particular cycle, the data will have to be merged with the following months data for inclusion to reports. Special processing must occur to transmit a prior month data with the current months data. See IRM 4.9.1.1.10.

4.9.1.9  (04-01-2004)
Correction of Data Transmitted

  1. Because of the limited time the Detroit Computing Center has for the preparation of reports it is not feasible to consider any revisions to the data as initially submitted after the cutoff date. Therefore, when a LMSB or SBSE office finds that an error was made in a report, which was transmitted to the Detroit Computing Center, the valid.txt file can be corrected and retransmitted if the error is found prior to the SETTS cut-off date. If the error is found after the cut-off date the specific data for the individual must be corrected and submitted with the next SETTS cycle. If data is transmitted with the next cycle the following must occur:

    • Unique DCN

    • DUP Employee must equal "00"

  2. However, significant errors which would erroneously reflect time for a particular Activity Code or other elements should be reported immediately to the Industry/Area office which will report to the Headquarters Office (Attention: SE:S:C:CP:CW:EMIS). Headquarters Office will determine the feasibility of error corrections on a case by case basis.

  3. To ensure accuracy in corrections, Industry/Area offices should note on the original form, the following information:

    • AIMS Assignee Code

    • Position Code

    • Hours — Increase, Decrease, Total

    • P, R, N, C, D or Q

    • Activity Code

    • Grade

    • DET Other PBC if work is support for another area.

  4. The information must be supplied to Headquarters Office for correction. Data will only be corrected for the current Fiscal Year.

Exhibit 4.9.1-1  (04-01-2004)
Direct Examination/Compliance Activity Codes—Column (f) Parts I Form 4502

First Segment Codes (Digits One through Three)  
   
Individual — Forms 1040, 1040A, 1040NR, 1040PR, 1040SS, and 1040 with Form 2555
1040A, TPI Under $25,000 530
Non 1040A, TPI Under $25,000 531
TPI $25,000 Under $50,000 532
TPI $50,000 under $100,000 533
TPI $100,000 and Over 534
C–TPI Under $25,000 535
C–TPI $25,000 Under $100,000 536
C–TPI $100,000 and Over 537
F–TPI Under $100,000 538
F–TPI $100,000 and Over 539
   
Fiduciary Form 1041 (MFT 05 & Non MFT 21)
   
Fiduciary Non Automatic 495
Fiduciary Automatic 496
   
Partnership Form 1065  
   
Forms 1065–B (Taxable) 473
Returns Processed Before 1988 (Nontaxable) 480
Gross Receipts Under $100,000 — 10 or Less Partners (Nontaxable) 481
Gross Receipts $100,000 and Over — 10 or Less Partners (Nontaxable) 482
11 or More Partners (Nontaxable) 483
   
Miscellaneous Forms  
   
Limited Liability Corporation (Nontaxable) 484
Form 8804 (Taxable) 488
REMIC (Nontaxable) 489
Form 990C Less than $10 million (Taxable) 490
Form 990C $10 million and greater (Taxable) 491
Form 990C Less than $10 million IRC 521 Status (Taxable) 492
Form 990c $10 million and Greater IRC 521 status (Taxable) 493
FIRPTA (Taxable) 499
   
Corporation (Assets) Forms 1120, 1120L, 1120M, and 1120PH
   
No Balance Sheet 203
Under $250,000 209
$250,000 Under $1,000,000 213
$1,000,000 Under $5,000,000 215
$5,000,000 Under $10,000,000 217
$10,000,000 Under $50,000,000 219
$50,000,000 Under $100,000,000 221
$100,000,000 Under $250,000,000 223
$250,000,000 and Over 225
   
Corporate (Assets) — Form 1120S (Taxable)
   
Form 1120S Taxable 202
   
Form 1120S (Nontaxable)  
   
Nontaxable Processed Prior to 1/1/91 287
Assets Under $200,000 (Nontaxable processed after 1/1/91) 288
Assets $200,000 Under $10,000,000 (nontaxable processed after 1/1/91) 289
Assets $10,000,000 and Over (Nontaxable processed after 1/1/91) 290
   
Form 1120 DISC — (Nontaxable)
   
Form 1120 DISC/1120IC DISC 224
   
Form 1120F  
   
1120 FSC 241
Under $50,000,000 259
$50,000,000 Under $250,000,000 263
$250,000,000 and Over 265
   
Estate Tax (Gross Estate)  
   
Under $1,000,000 415
$1,000,000 Under $5,000,000 417
$5,000,000 and Over 419
706A—Additional Estate Tax 420
706GS(B), 706GS (D), 706GS (T) 421
   
Gift Tax (Total Gifts)  
   
Under $600,000 435
$600,000 Under $1,000,000 437
$1,000,000 and Over 439
   
Employment Tax  
   
Form 945 463
Form 940 464
Form 941 465
Form 942 466
Form 943 467
Form CT–1 468
Form CT–2 469
Form 1042 (Revenue Agent Only) 470
Form 1040PR 471
Form 1040SS 472
   
Excise (Type of Tax) — Form 720 (Products and Commodities)
IRC 444 FY Election Tax Period 011
Aviation Fuel—Gasoline 014
Petroleum—Import 016
Imported Chemical Substance 017
Oil Spill—Domestic Petroleum — Prior to 7/1/93 018
Imported Products Containing ODC 019
Floor Stock — Ozone Depleting Chemicals 020
Oil Spill—Import Petroleum — Prior to 7/1/93 021
Transportation of Persons by Water 029
Petroleum—Domestic 053
Chemicals 054
Floor Stock—Tires 057
Gasoline Sold to make Gasohol 058
Gasohol 059
   
Excise (Type of Tax) — Form 720 (Products and Commodities) (Cont)
   
Diesel 060
Special Motor Fuel 061
Gasoline 062
Fuel—Inland Waterways 064
Floor Stock—Gasoline 065
Tires 066
Floor Stock—Gasohol 067
Aviation Fuel—Special Fuel other than Gasoline 069
Diesel Fuel for use in Train & Busses 070
Dyed Diesel Fuel—used in trains 071
Floor Stock—Gas to make Gasohol 072
Gasoline Sold to make Gasohol 7.7% 073
Gasoline Sold to make Gasohol 5.7% 074
Gasohol 7.7% 075
Gasohol 5.7% 076
L.U.S.T. Taxes—Aviation Fuel 077
Dyed Diesel Fuel—Busses Only 078
Special Motor Fuel—Alcohol Blend 079
Unidentified Z/C Code — to be Reclassified 080
Floor Stock—Diesel 085
Floor Stock—SMF Alcohol 086
Floor Stock—Aviation 087
Floor Stock Diesel 24.4c 1/1/94 088
Ozone Depleting Chemicals 098
Compressed Natural Gas 101
   
Form 720 (Facilities and Services)
   
Telephone Services 022
Transportation of Persons by Air 026
Use of International Air Travel Facilities 027
Transportation of Property by Air 028
Policies Issued by Foreign Insurers 030
Obligations to Register 031
   
Form 720 (Manufacturers)  
Pistols and Revolvers 032
Truck/Bus Chassis and Bodies 033
Underground Coal Mines ($ per ton) 036
Underground Coal Mines (2% of Sale Price) 037
Surface Coal Mines ($ per ton) 038
Surface Coal Mines (2% of Sale Price) 039
Automobile Gas Guzzlers (Fuel Economy) 040
Fishing Equipment 041
Trolling Motors 042
Bows/Arrows and Crossbows 044
Firearms 046
Cartridges and Shells 049
Alcohol (Sold as but not used as fuel) 051
Floor Stock—Vaccines 089
Aviation Fuel (Other) 1997 095
Vaccines (After 8/5/97) 097
Arrow Parts 102
   
Form 11C—(Gambling, Waging) 197
Form 730 198
   
Luxury Tax  
   
Luxury 10% Tax—Airplanes $250,000 090
Luxury 10% Tax—Boats $100,000 091
Luxury 10% Tax—Cars—$30,000 092
Luxury 10% Tax—Furs $10,000 093
Luxury 10% Tax—Jewelry $10,000 094
   
Other Excise Forms  
   
Expired/Repealed 099
Form 2290—Highway Use Tax 196
   
Miscellaneous Direct Examination — (Form 4502 Only)
   
Return Preparer —Negligent Preparation Penalty—Section 6694(a) 501
Return Preparer — Willful AttemptTo Understate Tax Penalty — Section 6694(b) 502
Return Preparer — Endorsing or NegotiatingTax Refund Check by Preparer 503
Return Preparer—Disclosure Penalties —Section 6695(a) to (e) 504
Return Preparer — Injunctions Section 7407 505
Information Return Penalty Case 506
Pricing Issues 507
Economist Studies 508
Form 8300 Compliance Check 509
SS8 (Information for use in determining whether a worker is an employee for Federal Employment Taxes and Income Tax Withholding) 510
Technical Guidance 511
COBRA 512
CIC–EO 513
Record Maintenance Agreements Under Section 6038A 514
Diesel- Terminal Inspection 515
Diesel- Fleets & Truck Stop Inspection 516
Diesel- On Road Inspection 517
Diesel All Other Dyed Fuel Inspection 518
IRP Compliance Check 519
Unmatched Information Return Follow-up 520
Excise Compliance 521
Return Preparer Multi Functional Monitoring Team 522
CIC—Chief Counsel 523
Return Preparer EITC 524
Prefiling Agreement 525
Prefiling Technical Guidance 526
Industry Issue Resolution 527
Comprehensive Case Resolution 528
Corporate Tax Shelter 529
Money Services Businesses (Reserved) 545
Fraud Development 546
Compliance Outreach 575
Registry and Exemptions 588
QMS Only- OIC 589
QMS Only- Abatement Interest 590
Title 31 Compliance Checks 591
Narcotics/Information Gathering Projects No Return Examined 592
TEFRA—Promoter Penalty 593
TEFRA—Aiding & Abetting Penalty 594
TEFRA—Tip Income 595
Joint Committee Survey 596
SEP—Non Case 597
CIC Pre & Post Conference Meetings 598
Industry Specialist Program 599

Exhibit 4.9.1-2  (04-01-2004)
Definitions of Miscellaneous Examination Activity Codes (Direct and Non Direct)

The following list of activity codes are used to report Direct Examination Activity but a return is not related.
   
507 — Pricing Issues Time applied by revenue agents and specialists while considering IRC Section 482 pricing Advance Determination Ruling (ADR) requests received from the Headquarters Office. This time will not be allocated to the examination of the taxpayer’s tax return, whether or not such return is concurrently under examination.
508 — Economist Studies Time applied while working on management directed studies, of particular industries, other than those conducted under the direction of an Industry Specialist on matters related to the Industry Specialist Program. Time charged to this code will require that the Economist prepare an industry study report, that will be separate from any case.
509 — Form 8300 Compliance Time expended in performing Form 8300 Program activities, including form 8300 Compliance reviews. Primarily used by SBSE Anti Money Laundering examines. This activity code is not to be used for time expended as part of required filing (package Audits) Checks during an income tax examination.
510— SS–8 The SS–8 (Information for Use in Determining Whether a Worker is an Employee for Federal Employment Taxes and Income Tax Withholding) Coordinator will charge time spent in connection with SS–8.
511 — Technical Guidance Support time provided by industry facilitators/experts to examiners that is not charged to a specific return.
512 — COBRA (Consolidated Omnibus Budget Reconciliation Act) provides that employers shall offer continuing health care coverage to employees and their dependents when the employee leaves the job, except when employee is discharged for gross misconduct. Employees denied coverage may file a complaint with IRS. In response to these complaints, the Service conducts an examination of employer to determine compliance.
513 — CIC–EO Used by employees of Examination that are requested to assist the Tax Exempt/Government Entities (TE/GE) in the conduct of an Employee Plans or Exempt Organization taxpayer examination.
514 - Specialist Consultations or Informal Assistance This activity code is to be used by Specialist to reflect limited amounts of time expended on consultations or informal assistance with open, active cases in LMSB, SB/SE, or any other Operating Division. This would include time spent determining whether or not formal referral is warranted on a specific case as well as time spent on special projects related to a group of cases. Once it has been determined that a significant amount of time will be expended, time should be charged to the specific case(s).
   
515 — Terminal Inspections Represents time charged to inspections of Fuel Terminals.
516 — Fleets and Truck Stop Inspection Represents time charged to inspections of Fleets, Truckstops, Fuel Wholesale Distributors, and Fuel Retail establishments.
517 — On Road Inspections Represents time charged to On-Road Inspections.
518 — All other Dyed Fuel Inspections Represents time charged to all other types of fuel inspections (end users of fuel).
519 — IRP Compliance Check This initiative includes Backup Withholding Compliance Checks as well as other information reporting compliance checks including: State and Federal Agency Compliance and locally developed compliance projects.
520 — Unmatchable Information Return Follow-Up Information returns that have dropped out of the IRP pipeline because they were unmatchable to Social Security or IRS TIN records and could not be perfected by IRS. Use UIRF data to make payor and payee contacts to decrease the number of unmatchable documents.
521 — Excise Compliance Used by Excise Tax Analyst, Dyed Fuel Compliance Officers to identify compliance activities which are not return related, such as ISP meetings, meetings with industry representatives and outreach and education programs in the excise tax area.
522 — Return Preparer Multi-Functional Monitoring Team Used by revenue agents and tax auditors when participating on area multi-functional teams established for performing suitability and monitoring checks on return preparer. Use this code for planning, meetings, visitations and other activities as part of the team.
523 — CIC Chief Counsel Used by CIC examiners to assist Chief Counsel, Regional Counsel or Division Counsel attorneys on cases under Counsels jurisdiction. Generally these are case that had previously been closed out of Examination and are being prepared for litigation or trial or are being litigated or tried.
524 - Return Preparer EITC Non-return direct examination time applied in developing penalty cases against return preparers involved in preparing fraudulent or negligent EITC return will charge time to this activity code.
525 - Pre-filing Agreement Time applied by revenue agents and specialists in obtaining agreements on cases accepted in the Pre-Filing Agreement Program. This includes time spent on reviewing the requests, development of the facts and issues, coordination with other functions, conferences, preparing the closing agreement, and evaluating the program. time will be charged to this activity code but it will be linked to the case in ERCS. Time is not charged to the case currently under examination.
526 - Pre-filing Technical Guidance Time spent by revenue agents and specialist in providing Pre-Filing Technical Guidance to taxpayers not part of the Pre Filing Program. Time will be charged to this activity code but it will be linked to the case on ERCS. Time is not charged to the case currently under examination.
527 - Industry Resolution Time spent by revenue agents and specialist in finding solutions to issues under the Industry Issue Resolution Program. This includes time spent on reviewing industry requests, developing the facts and issues, drafting and clearing the resolution and evaluating the program.
528- Comprehensive Case Resolution Time applied by revenue agents and specialists to resolve all open issues on all open years under the Comprehensive Case Resolution Program. This includes time spent by examiners and specialist in reviewing the request, planning, developing the facts and issues, drafting reports and closing agreements and evaluating the program. Once the taxpayers request has been approved for the comprehensive case resolution program time should be charged to the taxpayers return currently under examination as the examination of the return continues. Time to other cycles should be charged to this activity code that will be linked to the ERCS case.
529 - Corporate Tax Shelters Time applied by revenue agents and specialist in developing information with respect to a tax shelter promotion or an investigation. This does not include time spent on the examination of corporations and individuals that participate in the corporate tax shelter transactions and the promoters of those transactions. Charges of time related to the examination of a return containing a tax shelter issue should be charged to the case, not this activity code. This code is exclusively for developing information from leads.
545 - Money Services Businesses Reserved- Not to be used
546 - Fraud Development Use this code when Fraud Refferral Specialist or field examiners provide assistance is developing Fraud Potential.
575 — Compliance Outreach This codes is used by technical personnel on outreach activities which promote compliance. Additional guidelines for this activity codes follows. This activity code requires a specific entry for the fourth digit which will identify specific type of tax entity or activity. The fifth and sixth digits will define the specific market segment impacted.
  Valid entries for the forth digit are as follows:
    1 — Wage and Investment
    2 — Small Business, Self-employed, Supplemental Income Operating Division (SB/SE/SI)
    3 — Large & Mid Size Business
    4 — Tax Exempt
    5 — Employment
    6 — Estate & Gift
    7 — Trust
    8 — World Class Customer Service
    9 — Alternative Treatment Revenue (ATR) Projects
    0 — Audit Techniques Guide (ATG) Writing & Coordination
  Items 1 thru 7 above are for outreach activities that pertain to specific groups of taxpayers and are not part of an approved ATR project. Item 8 is for activities engaged in by examiners to assist individual taxpayers in situations outside the realm of an examination, including Problem Solving Days. Item 9 will be used for time spent on outreach activities pertaining to approved ATR Projects. Item 0 will include the non-case time spent during the IGP/CIP phase of an ATG assignment, as well as time spent on writing, reviewing, editing, revising and coordinating additional reviews with other IRS functional groups, industry groups, the area and/or Headquarters Office.
  Valid entries for the fifth & sixth digits are as follows:
    08 — Farm Business
    09 — Construction (Building Trade Contractors)
    10 — Construction (All Other)
    11 — Manufacturing
    12 — Mining & Minerals
    13 — Agricultural Services (Forestry)
    15 — Wholesale Trade
    16 — Retail Trade (Direct Sales to households/Individuals/etc.)
    17 — Retail Trade (Audit Dealers/Service Stations/Boat Dealers)
    18 — Retail Trade (Food/Beverage/Eating/Drinking Places)
    19 — Retail Trade (Apparel/Accessories/Furniture/General Merchandise)
    20 — Retail Trade (All Other)
    21 — Fire (Real Estate)
    22 — Fire (All Other)
    23 — Transportation & Utilities (Air/Bus/Taxi/Passenger)
    24 — Transportation & Utilities (All Other)
    25 — Services (Amusement/Recreation)
    26 — Services (Medical/Health)
    28 — Services (Business/Personal)
    29 — Services (Other)
    89 — Services (Miscellaneous)
    99 — Non Market Segment
  This code should not be used for MSSP activities that are unrelated to an MSSP ATG Project or if the activity is not an outreach in nature.
588 — Registry with Exemptions Time spent on coordination and follow-ups conducted in relation to the registration program (Form 637).
591- Title 31 Compliance Checks   Time expended in performing Title 31 (Bank Secrecy Act) Program Activities including Title 31 (BSA) Complaince Examinations. Primarily used by SBSE Anti Money Laundering examiners. This code is not to be used for time expended as part of the required filing package audit checks during an income tax examination.
592 — Narcotic/Information Gathering Projects Time spent on an approved Information Gathering or Narcotic Project where there is no tax return. This time is not allocated to the tax return.
593 — Promoter Penalty Time spent by examiners and area coordinators for gathering information and developing Tax Shelter Registration, IRC 6700 (Penalty for Promoting Abusive Tax Shelters), IRC 7408 (Injunction), and Pre-Filing Notification Cases.
594 — Penalty for Aiding and Abetting Under-Statement of Tax Time expended by examiners on IRC 6701 (Penalty for Aiding and Abetting Understatement of Tax Liability).
595 — TEFRA — TIP Income The analysis of Form 8027 as part of the TEFRA Tip Income Study. This is the Congressionally mandated Headquarters Office Study and is not to be confused with Area operational tip income projects.
596 — Joint Committee Survey Time spent for the survey of all Joint Committee cases. A Joint Committee case is identified on AIMS by Project Code 077.
597 — SEP Non-Case Time spent on a specific SEP program or project other than time directly applicable to assigned returns. It includes time spent by project coordinators, Group Managers and examiners on such matters as: advising United States Attorneys. Strike Force Attorneys and other regarding the civil tax potential of proposed projects or investigations; evaluating civil tax potential of information obtained by Criminal Investigation from grand jury actions and other sources; developing the Examination portion of project plans; and attending IRS Strike Force or other meetings concerning program priorities, progress or objectives.
598 — CIC Pre and Post Conference Meeting Time applied while holding pre and post conference discussions with Appeals with respect to an examination cycle previously closed by Examination and now controlled by Appeals. The preconference serves as a form for discussing issues, the taxpayer’s protest, the examination team’s written rebuttal to the protest and the anticipation of problems and concerns. The post-conference is to discuss the settlement reached in Appeals and its impact on the subsequent examinations as well as to identify issues susceptible to Examination settlement authority.
599 — Industry Specialist Program (ISP) Time applied by the Industry Specialization Program Coordinators (ISPC) while working on matters identified as pertaining to the Industry Specialization Program (ISP). This will include time spent working with area revenue agents on industry cases and issues involving the National Industry Specialists, National Issue Specialists or other area coordinators.
609 — Compliance 2000 Time spent on non-examination work performed on an approved Compliance 2000 prototype.
610 — Indirect Time spent on technical duties that cannot be charged to a specific case or activity. Generally, this includes group meetings, reading procedural/technical material, preparing and attending technical/procedural conferences, forms, committee, record smanagement, preparing time reports/travel vouchers, general housekeeping (e.g., moving ordering supplies and surveying space) and Email/VMS. Group managers will not charge time to this code.
611 — ADP Coordination Time devoted to liaison and coordination of procedures involving flow of work between area and service center. This item includes "trouble shooting" activities for Examination functions. Other trouble shooting activities are reported under Code 826. Coordination of classification matters is reported under Code 624.
612 — Inventory or AIMS Time spent taking physical inventory of returns on hand or supplying necessary data to convert manual inventories to computerized perpetual inventories.
613 — RGS Coordination Time spent on RGS Coordination and non-case related usage of the system by RGS Coordinators, RGS Support Technicians or their designated representatives. This includes trouble shooting activities for Examination personnel. Any application development which is not related to a current case must be approved by the group manager.
    (a) All case related RGS time spent by examiners will be charged to the activity code of the specific return.
    (b) All RGS training as specified in the course instructions will be charged to training, other (683).
614 — Freedom of Information Privacy/Act Time spent processing requests under FOIA and the Privacy Act.
615 — Survey Time devoted to survey of returns after assignment, and claims for refund in which no contact has been made with the taxpayer. This includes time spent in processing (screening) questionnaires, inquiry letters, etc., related to Forms 990 (Return of Organization Exempt from Income Tax). Time spent on claims surveyed at service centers is reported as Classification—Adjustments under Code 622.
616 Reserved
617 — Project Coordination Time used by project coordinators to coordinate their specific projects. These include TCMP, tax shelter, DATC and other coordinators referred to in the IRM. This code is not to be used for the activities of coordinators of projects which are not established under IRM instructions or for RGS Coordination.
618 — CIC Case Management Time of CIC case manager in planning, developing and supervising the examination of a CIC case. This code will reflect the actual time expenditure and will not be influenced by the position code.
619 — Group Management Time devoted to management duties by group managers or persons acting in such capacity. This includes time devoted to surveys before assignment, attending meetings (except training) at territory and area levels, preparation and analysis of statistical reports, etc. Time spent in other activities will be entered on the appropriate line. Members of cadres under the Management Careers Program assigned as assistant to group managers will also charge their time to this code in a similar manner.
620 — Quality Initiative Program (QIP) All Quality Improvement Projects and related activities time expended by managers and examiners will be recorded as non-examination time.
621 — Classification of Returns Time spent on classification of returns. This includes time spent on screening Discriminate Function returns, time spent by engineering and valuation revenue agents classifying returns involving engineering issues, and orientation sessions for classifiers.
622 — Classification Adjustments Time devoted to classification of taxpayer requests for adjustments (both formal and informal) and related returns. Included in this item are classification of claims for refund, amended taxable returns, applications for tentative refunds, and other items showing an adjustment (increase or decrease) in tax liability. Formal requests for adjustments include Forms 843, 1040X, 1120X, 1045 and 1139.
623 — Classification/ Other Time expended on all other classification activities such as processing and reviewing Forms 3449 (Referral Report), SSA–7000 (Notice of Determination of Self-employment Income), SSA–7010 Investigation Information Item), 966 (Corporate Dissolution or Liquidation) and similar items.
624 — Classification Management Time of classification personnel devoted to management functions such as planning, programming, and supervising the classification activity at areas and service centers. This includes conducting orientation sessions for classifiers, reviews of returns classified, closed case reviews and evaluation of classifiers. The Chief, Classification Section PSP and the PSP Support Manager will use this code except for staff assignments other than classification.
625 - Classification ADDS    
631 — ESS/ESU Tax Shelter Time expended on tax shelter cases by ESS personnel.
632 — ESS/ESU — Other Time expended on cases other than tax shelter cases by ESS personnel.
641 — Quality Assurance Case Review Time expended by reviewers reviewing reports of examination for compliance with the auditing standards. This includes time spent determining the accuracy of procedural and case management practices of an examination. Time expended by reviewers preparing, completing, reviewing, controlling or processing special reports, forms, or other functions associated with a return under review. Examples include jeopardy assessments, TCMP and DATC check sheets, approval of language for restricted consents, closing agreements, inadequate records, joint committee reports, reopening requests, and restricted interest computations. Also included is time spent on research and preparation of reviewers’ reports.
643 — Quality Assurance — Notice of Deficiency — 90 Day Time expended by reviewers in preparing, reviewing, and signing notices of deficiency. This does include coordination of the 90-day letters with other Service functions, such as Case Processing Support and Counsel. This includes time spent by reviewers answering telephone and letter inquiries from taxpayers regarding 90-day letters.
644 — Quality Assurance Coordinator Time spent by reviewers interrelating with examination activities affecting a particular program for which the Quality Assurance Staff has primary program responsibility for the division. Examples include Fraud, Informants Communications and Rewards, Technical Coordination, and Suspense. This item includes coordination, control, reporting, and management of the program. Also included is time expended by reviewers in furnishing formal and informal technical advice and assistance to Service personnel; gathering, processing, writing, reviewing, coordinating, and otherwise preparing material for technical or procedural publication or issuance; researching, gathering, processing, meeting, discussing, organizing, writing, reviewing, or otherwise assisting management with management studies and assignments. Examples include review digests, analysis of reviewers reports, internal management documents, and territory, area, or national publication. Time expended by reviewers furnishing information to, corresponding, working, or coordinating with other divisions, areas, Headquarters Office, or other agencies on projects, programs, assignments, returns, reports, requests for information, and similar duties. This item does not include coordination of 30 and 90-day letters.
646 — 30-Day Letter Activities Time spent by reviewers preparing, reviewing, and following-up on 30-day letters. This includes time spent screening protests for adequacy. Quality Assurance staffs in prime areas will perform the protest screening for streamlined areas.
648 — Quality Assurance — Abatement of Interest Time expended by reviewers to coordinate or work claims with respect to IRC Section 6404, Abatement of Interest.
649 — Quality Assurance Management Time devoted to management duties as a Quality Assurance manager including persons acting in such capacities.
650 — Tax Examiner Time applied by Tax Examiners on Non return related work.
660 — General Management Time applied to management by technical personnel assigned permanently or acting in the following positions:
    •  Territory Manager (LM only)
    •  Quality Assurance Management, Chief Technical Support
    •  Section Chief, PSP (Classification)
    •  Other supervisory or staff personnel who cannot be identified with a specific group.
  NOTE: This item also includes time spent by non-supervisory personnel and group managers participating with field territory manager in team meetings to resolve management problems. For example, members of a task force appointed to consider solutions to problems identified by an attitude survey would charge their time in this item. Also to be included in this item are members of cadres under the Management Careers Program who are assigned to assist any of the positions listed above.
670 — Technical Refferals Compliance technical employees working technical paper (refferrals) from the Wage and Investment functions which require special expertise, outside the scope of the Wage & Investment program (e.g., such as Estate and Gift taxes).Time spent by Examination technical personnel servicing taxpayers in the following areas.
     
     
     
     
  • Technical referrals from the (old term Taxpayer Service Program. Need to update term here) which Assistance require special expertise only when they are not within the scope of the (such as estate and gift taxes). See Taxpayer Education and Assistance, IRM 22.1, for clarification of responsibilities of the Taxpayer Service Program.
  • Participating in and preparing material for radio, television and other public appearances.
  • Preparing news and technical releases or providing assistance on such items.
  • Providing assistance on taxpayer education programs such as Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), Small Business Programs: Workshops and YBTK (Your Business Tax Kit), individual tax education: workshops, and practitioner institutes, and school programs: fundamentals of tax preparation and understanding taxes.
  Time spent by Examination technical personnel furnishing service within the scope of the (old terminology. Need to update term here.)will be entered in ''Details to old terminology. Need to update term here.)(code 811).
671– --Taxpayer Advocate Service   Applies to:
(a) Full or part time Tax payer Advocate Service (TAS) liasion will use this code for time spent controlling cases, making assignments, analyzing trends, reviewing cases, or coordinating cases referred by the TAS.., . (See IRM 13.1, Taxpayer Advocate Case Procedures.)).
    (b) Charge case work time spent on a TAS, Form12412, Operation Assistance Request case which is not a return presently open to Examination to Activity Code 671.
    (c) Charge time spent examining a return which was referred by a TAS on Form 12412 to the activity code of the specific return. Also charge time spent completing theForm 12412, to the activity code of the return.
    (d) Charge formal details to the Taxpayer Advocate Service to Activity Code 826, Details Out—All Other.
675 - Compliance Outreach   This code is used primarily by management, but can also be used by technical personnel, who are engaged in outreach activities. (See definition for Activity Code 575.)
   
681 Training — Recruit — Classroom Training Classroom time (including pre-classroom and related travel time) applied by instructors and students needed to get examiners up to the working level for that position (e.g., Revenue Agent Phases I, II, III, IV; Tax Auditor Phases I, II, III; Engineer Revenue Agent Training; Estate and Gift Tax Law for Attorneys; Income Tax Law for Estate Tax Attorneys).
682 — Training — Recruit On the Job On the job time (including related travel time) applied to courses referred to in 681 above (e.g., Revenue Agent Phases I, II, III, IV; Tax Auditor Phases I, II, III; Engineer Revenue Agent Training; Estate and Gift Tax Law for Attorneys; Income Tax Law for Estate Tax Attorneys). Includes all instructor OJT time for these courses; includes student OJT time for these courses only during formal OJT workshops. Examination time (including related travel time) applied by students during OJT is charged to cases using direct examination activity codes.
683 — Training — Other Time (including related travel time) applied by instructors and students to approved training, except recruit training reported under activity codes 681 and 682, CPE training reported under activity code 684; and training for details to Taxpayer Service reported under activity code 811.
684 — Training — Continuing Professional Education — (CPE) Time (including related travel time) applied by instructors and students for CPE training.
690 — Engineering and Valuation Time of engineering revenue agents devoted to engineering and valuation work that is not in connection with the examination of a specific tax return. Engineering and valuation time devoted to a specific return charged to the agent’s own area will be entered as direct examination time.
695 — Information and Collateral Reports Applies to time of technical personnel devoted to information reports which do not involve a specific tax return. It also applies to time spent by Revenue agents in participating areas to protect the Government interest in tax liabilities arising from special events such as rock music festivals, championship boxing promotions, and other entertainment or sports events. Only time which cannot be charged to a specific return is reported under this code.
697 — System Administration Computer audit specialists and computer systems analysts designated as systems administrators will use this code to report time spent on the following duties; installing system software, providing user assistance or technical support, performing security related tasks resolving equipment problems and troubleshooting
698 — Computer Audit Specialist ADP Projects Time of computer audit specialists revenue agents, and computer systems analysts devoted to computer application work that is not in connection with the examination of a specific tax return. Computer Audit Specialists will also use this code for time spent on all area office approved ADP projects which are not case related. Area approval must be obtained on Form 5320, Computer Examination Application Report, for all non-case related applications.
699 — Computer Audit Specialist — CAS ADP Evaluations Computer audit specialists will use this code to report time spent on all ADP evaluations performed when the taxpayer’s return is not currently under examination.
720 — Offer in Compromise Time spent by technical personnel in the examination, quality assurance and disposition of offers in compromise.
730 — Administrative Duties Time of technical personnel devoted to non-technical duties. The time reported in this item pertains to non-technical duties such as combined federal campaign, savings bonds, forms committees, records management, preparation of time reports, travel vouchers, general housekeeping such as moving, ordering supplies, and surveying space, administrative representative for the Area Director, and employee participation in attitude surveys. Also report the time of technical personnel engaged in personnel investigations, interviewing applicants, and time expended on assignments for the Office of Personnel Management or the old terminology here. Needs updating of the area office. The time of technical personnel acting as Executive Secretary or as members of the Office of Personnel Management Panel, as Secretary or as members of the Incentive Awards Committee and Performance Rating Committee is included. Administrative time spent by designated union representatives as provided for in the union contract will be charged to this code.
731 - Recruit New Hire   Examination employees who participate in recruiting new hires should charge time to this activity code. This code is also used when visiting college campuses, preparing for visits, and any activity directly related to the recruitment of new hires.
732- Innocent Spouse   Time charged by reviewers (Revenue Agents and Tax Compliance Offices) located in the Technical Services in the SBSE area should charge there time to this activity when performing the streamline review process for innocent spouse cases. The term reviewing is used in the traditional since i.e., reviews that take place outside the group.
733- Details to LMSB   Time applied to technicians detailed to assist or management assigned to act for the large and Mid Size Business (LMSB) Operating Division.
734 - Details to SBSE   Time applied by technicians detailed to assist or management assigned to act for the Small business Self Employed (SBSE) Operating Division.
740 - Group Management Case Review   Used for Activities directly related to taxpayers' cases that is performed by managers. Activity Code 619 will continue to be used for the traditional management activities within the group. This code will not include activities already chargeable to other current time codes such as Compliance Outreach, Leave, etc. Activity Code 740 time shall not be included as part of time charge by examiners to a case. Examples of where managers would charge time to this activity code include: pre assignment case reviews and case surveys, meetings/discussing/reviewing cases with revenue agents, tax compliance officers, or tax examiners; meeting/discussing cases with other IRS representatives (appeal Officer, Special Agent), and other governmental or third party representatives; meeting/discussing cases with taxpayer or their representatives, on-site visits with taxpayers and examiners, post closing case review and researching of issues on taxpayers cases.
741 - R-Mail   Technical employees temporarily assigned or formally detailed to work R-Mail.
742 - E-Mail   Technical employees temporarily assigned or formally detailed to work ETLA.l
743 - VITA   Technical employees providing support on Taxpayer Education Programs, such as Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), Small Business Programs; Workshops, YBTK (Your Business Tax Kit), Individual tax education; workshops, and practitioners institutes, and school programs; fundamentals of tax preparation and understanding taxes.
744 - Disaster Assistance Program   Time Devoted to Disaster Assistance and Emergency Relief Programs such as assisting taxpayers at FEMA Disaster Recovery Centers assisting affected taxpayers with the preparation of amended returns, etc.
811 - Detail to Examination technical personnel assigned or formally detailed to the Taxpayer Service Program, who require to complete Form 5311, comment: old term needs updatingField Assistance Activity Report, will also report time on daily timesheet, under this code. An assignment or formal detail to the Taxpayer Service Program:
  (a) Examination employees formally detailed to the comment: old term needs updating Program and performing old term; Taxpayer Service, need to use updated term possibility Field A]ssistance...duties in the old term; Taxpayer Service, need to use updated term possibility Field Assistance...area. This may include assisting walk-in taxpayers or taxpayer telephone inquiries.
  (b) Examination employees in small posts of duty who perform duties, such as walk-in or telephone, when the employee is not available.
  (c) Examination employees specifically assigned to be technical back-up employees for , located either in the old term need to update. Possibly Field Assistance area or in the Examination area. This includes responding to taxpayers who have been referred from either walk-ins or telephone calls. These referrals are technical in nature on subjects clearly within the scope of the old term. need to update. , but which cannot be responded to by front-line Old term, need to update to ne term. employees because of lack of expertise. Editorial Comment: This IRM 6810 has been obsolete since 1996. Suggest updating the reference. See IRM 21.3.4. This document provides program direction for all employees and managers delivering assistance in Field Assistance (FA) Taxpayer Assistance Centers (TACs).
  (d) Formal old terminology, needs updating training time for instructor and participating technical personnel.
812 - Detail to Collection Time of technical personnel detailed to Collection for activities including participating in the primary area’s actions to protect the Government’s interest in tax liabilities arising from special events such as rock music festivals, championship boxing promotions, and other entertainment or sports events.
814 — Detail to Employee Plan/Exempt Organization Time of technical personnel detailed to assist Employee Plans or Exempt Organizations
815- Detail to CI and Grand Jury Time of technical personnel detailed to the Criminal Investigation function, and who are assigned to a grand jury investigation which does not involve narcotics related activities or participation in the Drug Enforcement Task Force Program.
816 — Detail to Grand Jury/Drug Enforcement Task Force Case Applies to the time expended by technical personnel detailed to Criminal Investigation function and who are assigned to a grand jury initiated under the Drug Enforcement Task Force Program.
817 - Detail to Grand Jury/Narcotics Related/Other Time expended by technical personnel detailed to the Criminal Investigation function and who are assigned to a grand jury investigation which involves narcotics-related activities, but does not involve participation in the Drug Enforcement Task Force Program.
820 — Detail to Exam/Service Center Time of technical personnel while assisting campus Examination on classification or other aspects of campus programs. Time applied to classification of area office programs is charged to activity codes 621–624.
821 — Detail to Trial Assistance Time applied to the preparation of cases for trial, including expert witness time and time applied to cases located in fraud suspense; applies only when the return is not assigned to an examination group. Also, time spent on trial assistance on a return charged to an examination group is charged to the activity code of the return.
822 — Detail to Appeals Time of technical personnel detailed to assist Appeals. If additional information is requested from Appeals and the case is not returned, time is to be charged to this activity code.
823 — Detail to Headquarters Office Time of technical personnel detailed to assist the Headquarters Office.
824 Reserved Time of technical personnel detailed to assist the Industry/Area office.
826 — Detail to All Other Time of technical personnel assigned to details other than those enumerated from Codes 811–824 & 827–828.
827 — Details to Disclosure Time applied by technicians assisting the Disclosure Officer. Technicians who are appointed part time Disclosure Officers will file this form is obsolete as of 05/25/2001 using this code for time applications to that function. Technicians who are assigned on a part time basis to assist a full time Disclosure Officer will use this code for time applications to Disclosure. Full time Disclosure Officers will not prepare This form is obsolete Examination personnel not detailed as a part time Disclosure Officer or not detailed to assist a full time Disclosure Officer will not use this code. Any time applications by non-detailed technical personnel will use Codes 613 and 614 as defined above.
828 — Detail to Tax Return Preparers Program Time spent prior to assignment of returns for examination, such as activity in obtaining lists of preparer’s clients returns, assisting Criminal Investigation in identifying suspect preparers, time spent with special agents during interviews and obtaining witness affidavits, and examination coordinators time spent managing the program. Time spent on classification is not to be charged to this Activity Code.
830 — Leave All leave granted to technical personnel including sick leave, compensatory time (including religious compensatory time) military leave, administrative leave, and other leave. Employees in the Washington, DC, area will consider Inauguration Day as Administrative Leave and accordingly count it a workday.
831 — LWOP Leave without pay other than "extended" leave without pay as defined in I Incorrect citation IRM00601 and 1273 are no longer available. These IRMs have been restructured (see earlier comment) , beginning with the first day of LWOP.
840 — Details In (Negative Figure) This code is a negative figure used by technical personnel for time worked in excess of normal work hours except time worked under an alternate work schedule. Such time is also reported under the appropriate Activity code.
860 — Alternate Work Schedule (AWS) This code is either a plus or minus figure used by technical personnel as follows:
  • time accumulated under an alternate work schedule will be charged as a negative figure in column (d).
  • time taken that has been accumulated under an alternate work schedule will be charged as a positive figure in column (d).
  • the net figure (positive or negative) will be entered in column (e).
901 — Total Direct Examination Time Total of all time entered in Part I, Column (e).
903 — Total Time Total time charged to all activities during the reporting cycle.
905 — Total Time Accounted For Total time (Code 903) less details in (Code 840) and plus or minus AWS (Code 860). This figure can not be greater than the number of work days in the reporting cycle multiplied by 8.

Exhibit 4.9.1-3  (04-01-2004)
Direct Examination/ Compliance Activity Codes — Second Segment Codes

Second Segment Codes

Program Monitoring (Fourth Digit)
   
0 Activity Codes 501–529 545–546, 588,591–599
1 Frivolous Filer/Nonfiler
2 CIC and Support
3 DIF/DIF Related
4 Fraud/Enforcement
5 Local Studies
6 Service Center Contacts/IRP
7 Shelters
8 NRP/ Compliance Studies
9 Training
   
Program Monitoring Code 0 Activity Codes 501–529,575, 588, 591–599 are the only activity codes that will accept "0" in the fourth position of the activity code.
Program Monitoring Code 1 Frivolous Filer/Nonfiler Project Codes 301–350
Program Monitoring Code 2 CIC Used with Special Feature Codes 1 (CIC Case — Primary Area Examination) or 3 (CIC Case — Support Area Examination) to identify time expended in the Coordinated Examination Program (CIC).
Program Monitoring Code 3 DIF/DIF Related Identifies direct examination time spent on returns on AIMS with Source Codes 02, 05, or 10.
Program Monitoring Code 4 Fraud Enforcement Identifies direct examination time spent on returns identified as Fraud or SEP. Category Code "0" cannot be used with the Program Monitoring Code. These returns are identified on AIMS with Source Codes 88 or 90 or Special Project Codes 001, 002, 003, 004, 005, 006, 095, 096, 135, 146, 147, or 149.
Program Monitoring Code 5 Local Source Identifies direct examination time spent on returns identified on AIMS with Source Codes 01, 20 (without Project Code 158) 30, 31, 32, 40, 45, 46, 49, 50, 60, 62, 64, 70, 73, or 77 or Special Project Codes 131, 175–200, 500–575, or 700–799.
Program Monitoring Code 6 Service Center Contact/IRP Identifies direct examination time spent on returns identified on AIMS with Source Codes 03, 04, 06, 08, 11, 14, 26, 48, or 85.
Program Monitoring Code 7 Tax Shelters Identifies direct examination time spent on returns identified as Tax Shelters as identified on AIMS with Source Codes 17, 23, 35 or 39 or Special Project Codes 013, 015, 101, 102, 103, 104, 106, 107, 109, 114, 118, 121, or 122.
Program Monitoring Code 8 National Reserve Project Identifies direct examination time spent on NRP returns or returns that are identified for a national compliance study. These returns are identified on AIMS with Source Codes 80, or 91. This code must be used with Special Feature Codes 2 or 8.
Program Monitoring Code 9 Training Identifies direct examination time spent on training returns as identified on AIMS with Special Project Code 204. This code cannot be used with Special Feature Codes 1 or 3.
   
NOTE: Source Codes 12, 24, 25, 44 or 65 are used with Nonfiler Returns and are reported under the definition for Category Code 8.
  Category (Fifth Digit)
   
0 No Category
1 Fraud, Regular
2 All SEP
3 Joint Committee
4 Fed State Motor Fuel Project (FHWA)
5 Non-DEA Class 1 Violators
6 DEA Class 1 Violators
7 Compliance Research/Strategies
8 Non-Filer
9 Claims
   
Category Code 0 No Category Used on all cases not covered by categories 1 thru 9 as defined below.
Category Code 1 Fraud, Regular Identifies time spent while temporarily working on a fraud case as well as when regularly assigned to fraud work. When fraud develops during a regular examination, fraud time is determined from the time the examiner suspends the examination and participates in a joint investigation with the Criminal Investigation function. If a joint investigation is terminated but the examiner continues independent examination applying fraud techniques to the civil aspects of the case, such time is reported as fraud time to the extent the case retains a fraud status. All time developing the criminal or civil aspects of a case will be charged to Category Code 1, whether joint investigations are initiated or referrals are declined. Fraud time may also be determined when a "civil referral" has been submitted to and evaluated by Criminal Investigation Division and the case continues to retain its fraud status. If the category changes (fraud to non-fraud, or vice versa) all time applied during the month is charged to the last category assigned. (Category Code 1 is not used for any SEP examinations.)
Category Code 2 All SEP (SEP–1) — A taxpayer identified by the Field Territory Manager or Area Director, as being engaged in organized criminal activities; notorious or powerful with respect to local criminal activities; receiving substantial income from illegal activities as a principal, a major subordinate, or an important aide or abettor; or infiltrating legitimate business through illegal means or through loaning or investing therein the proceeds from illegal activities. Do not include taxpayers who meet the definitions of Categories 3, 5, or 6.
  (SEP–2) Taxpayers engaged in an occupation requiring registration as one who is engaged in receiving wagers.
  (SEP–3) If the Department of Justice (DOJ) attorney advises the Service that the CI investigation is authorized for inclusion in the DOJ Strike Force, CI and Examination will promptly reclassify the case as SEP–3. Otherwise, the case shall continue to be classified as SEP–1.
  (SEP–4) Includes any person who, while not meeting the criteria of SEP–1, SEP–2 or SEP–3, is reasonably believed to be receiving substantial income from an illegal activity that is separate and apart from the alleged tax violations, such as corruption in government, welfare fraud or commercial bribery.
Category Code 3 Joint Committee Identifies direct Examination time spent on Joint Committee returns. These returns are identified on AIMS with Project Code 077.
Category Code 4 Fed State Motor Fuel Project (FHWA) Identifies all primary and related project cases and all other cases that result from leads generated by project cases.
Category Code 5 Non DEA Class 1 Violators Used for all narcotic examinations except those examinations identified as Drug Enforcement Task Force Cases. Category Code 5 may only be used with Special Feature Codes 0, 4 or 5.
Category Code 6 DEA Class 1 Violators Designates any Examination which is included in the Drug Enforcement Task Force Program. Category Code 6 may only be used with Special Feature Codes 0, 4 or 5.
Category Code 7 Compliance Research/Strategies These returns have been identified as National Research Projects by Chief, Research and are identified on AIMS with Project Code 674 or 675.
Category Code 8 Nonfiler Identifies all nonfiler cases. These returns are identified on AIMS with Source Codes 12, 24, 25, 44 or 65 or Special Project Codes 149, 150, 154, 156, 437, 438, 449, 655 or 669. Category Code 8 may only be used with Program Monitoring Codes 4 or 6.
Category Code 9 Claims Identifies time spent by examiners on returns with a dollar or more in the amount claim field on AIMS. If Category Code is "9" then the Protection of Revenue Base (P of RB) field must equal "P," or "R" .
   
  Special Feature (Sixth Digit)
   
0 No Feature
1 CIC Case — Primary Area Examination
2 NRP
3 CIC/Non CIC Case — Support Examination
4 Narcotics Case — Termination
5 Narcotic Case — Jeopardy Assessment
6 Innocent Spouse
7 Tax Shelters
8 Compliance Studies
9 Foreign Controlled Corporation
   
Special Feature Code 0 No Feature Used to report examination time on all cases not covered by Special Feature Codes 1 thru 9 as defined below.
Special Feature Code 1 & 3 (CIC/ Case — Primary Examination) and 3 (NonCIC Case — Support Examination) identify the time expended in the Coordinated Industry Case (CIC) program. Special Feature Code 1 must be used with Program Monitoring Code 2. However, since support can be given without the case being CIC, Special Feature Code of 3 is not required to have a program Monitoring Code of 2. The following definitions of terms determine the use of Special Feature Code 1 or 3.
  1 — A CIC case is a taxpayer together with effectively controlled entities (regardless of percentage of ownership) whose organizational structure, geographical dispersion, or other examination problems warrant application of CIC case management procedures, especially those involving inter Industry/Area Coordination. Foundations, trusts, and all forms of business entities effectively controlled by the primary taxpayer are component parts of a CIC case.
  2 — Primary area is the area in which the entire examination is managed.
  3 — Support area is an industry/area providing support for a team member or members to participate with the primary area in planning and executing a team examination. A case does not have to be CIC or controlled by a team for it to be considered support.
  4 — The following example illustrates the entry found in the SETTS file when a revenue agent examined corporations with assets of 275,000,000.00. The examination involves fraud and is an examination in a primary area under CIC.
       
    a — Examination Class — 225
    b — Program Monitoring — 2
    c — Category Code — 1
    d — Special Feature Code — 1
       
Special Feature Code 2 NRP Identifies direct examination time on returns selected for NRP. These returns are identified on AIMS with source codes 80 and 91.
Special Feature Code 4 Narcotics Case — Termination Examination time on all narcotic termination cases. Special Feature Code 4 may only be used with Category Codes 5 and 6.
Special Feature Code 5 Narcotics Case — Jeopardy Assessment Examination time on all narcotic jeopardy assessments. Special Feature Code 5 may only be used with Category Codes 5 and 6.
Special Feature Code 6 Innocent Spouse To be used when an Innocent Spouse return has been secured. The time change should be charged to the Activity Code of the return with xx6 as the second segment.
Special Feature Code 7 Tax Shelters Report tax shelter cases.
Special Feature Code 8 Compliance Studies These returns have been identified as National Research Projects by Chief, Research and are identified on AIMS with Project Codes 674 or 675.
Special Feature Code 9 Foreign Controlled Corporation Applies to time charged by International Specialist to returns which have International Features. This code must be used with Position Code 115.
       
       
       
       
       
       
       
       
       

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