obÌåÓý

This Internal Revenue Manual (IRM) section provides guidance on Campus Pass-through Function (CPF) procedures related to field examinations of partnerships subject to the Centralized Partnership Audit Regime (BBA) where the assessment of taxes under Chapter 2 or 2A which are attributable to any partnership adjustment are being made under IRC 6501(c)(12).

This IRM implements procedures affecting BBA exam field support operation employees charged with providing field support for cases during the audit and post-audit processing of BBA cases where the Chapter 2 or 2A issues are being examined.

Exam field support operation (EFSO) procedures implementing the BBA regime include linkage, case building, statute procedures, and post examination processing for BBA Chapter 2 & 2A cases in conjunction with the field exam procedures regarding non-Chapter 1 tax adjustments.

Generally referred to as the "BBA Ch 2/2A CPF" , but in IRM 4.31.9, Pass-Through Entities, Centralized Partnership Audit Regime (BBA) Field Examination Procedures, BBA Ch 2/2A CPF is referred to as the Ogden PTE BBA Ch 2/2A Team.

The Centralized Partnership Audit Regime (BBA) applies only to Chapter 1, Income Tax, and will not apply to other taxes, including Chapter 2, Tax on Self-Employment Income (SECA), and Chapter 2A, Unearned Income Medicare Contribution ¨C Net Investment Income Tax (NIIT).

IRC 6501(c)(12) provides in the case of any partnership adjustment determined under the BBA regime, the period for assessment of any tax imposed on any partner under Chapter 2 or 2A which is attributable to such adjustment shall not expire before the conclusion of the BBA audit which is the date that is one year after one of two events.

Section 1101 of the Bipartisan Budget Act of 2015 (BBA) as amended by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and sections 201 through 207 of the Tax Technical Corrections Act of 2018 (TTCA) repealed Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) partnership procedures and electing large partnership provisions and replaced them with a new centralized partnership audit regime. Under TEFRA, any partnership tax, penalty, and interest adjustments were passed through to the partners.

The BBA centralized partnership audit regime generally provides for determination of adjustments, assessment, and collection of Chapter 1 tax attributable to such adjustments at the partnership level.

BBA Chapter 2/2A policies and procedures were established in the Ogden Campus in response to the partnership provisions of BBA: IRC 6241(9) and Treas. Reg. 301.6501(c)(12).

IRM 1.2.2.5.16, Delegation Order 4-19, Partnership Matters.

The director, pass-through entities practice area (PTE PA), is responsible for the policies and procedures in this IRM section.

The deputy director for field support is responsible for oversight of the field support operation program.

The program manager, field support operations, has direct oversight of campus field support operation managers and is responsible for administering the Ch 2/2A procedures in the field support operations program.

Field examination managers and campus field support operation managers are responsible for:

The BBA Chapter 2/2A coordinator works with:

BBA Chapter 2/2A coordinator responsibilities include:

The campus PCS coordinator is responsible for:

Program Reports: Each year a closure goal is established for the campus.

Program Effectiveness: The closure goal is monitored monthly to ensure the objectives are met. Investor return closures are evaluated throughout the year and the goal is adjusted as needed.

Director, LB&I pass-through entities practice area provides management oversight of the PTE BBA exam field support operation employees.

The number of one-year assessment dates are monitored to determine if the closure goal is attainable or if it needs to be adjusted.

The following table lists the commonly used terms:

The following table lists the commonly used acronyms:

The following references may be helpful:

The field examiner will request linkage for BBA partnerships with relevant partners that have Chapter 2/2A issues when there are estimated material adjustments.

A linkage package is submitted to the campus following established guidelines listed in IRM 4.31.10.3.1, BBA Chapter 2/2A Linkage Package Received. The campus needs sufficient time between linking and closing investor reports to secure the investor returns. Failure to timely link cases creates processing problems in the campus if they are controlling the investors.

The key case administrative file is set up on Report Generation Software (RGS) and includes the following documents as applicable:

All BBA Ch 2/2A investor returns in the CPF are maintained in AIMS status code 33 with a source code 64.

The CPF will use the following AIMS employee group codes (EGCs) to control BBA Ch 2/2A inventory:

The BBA Ch 2/2A CPF will establish virtual case files to store case related documents.

The key case administrative file will hold the documents described in IRM 4.31.10.3.2, Linkage.

The BBA Ch 2/2A investor file will hold the investor return, adjustment documents, amended returns, Schedule K-1 from the direct link and any correspondence with the taxpayer. The Schedule K-1 is matched to the investor return.

Standard Partner Language (SPL) linked investors may transfer into the BBA Ch 2/2A CPF when the only remaining investor issue relates to BBA Ch 2/2A linkages. If the BBA Ch 2/2A linked investor also has an ILSC linkage, the investor will be controlled by the ILSC CPF. Prior to transfer, the BBA Ch 2/2A coordinator will be contacted to verify the investor case can transfer to the BBA Ch 2/2A CPF.

Field Drafted Language (FDL) linked investors may transfer into the BBA Ch 2/2A CPF when the field examiner provides a partner-specific Form 886-A, Explanation of Items, with Field Drafted Language (FDL), and the only remaining investor issue relates to BBA Ch 2/2A linkage. If the BBA Ch 2/2A linked investor also has an ILSC linkage, the investor will be controlled by the ILSC CPF. Prior to transfer, the BBA Ch 2/2A coordinator will be contacted to verify the investor case can transfer to the BBA Ch 2/2A CPF.

Investors transferred to the CPF without approval will be returned to the originator for proper case handling.

Returns are transferred to the CPF in EGC 5417 due to AIMS programming for status code 33 cases. Upon receiving the AIMS database for approved cases, the PCS coordinator will update the EGC 5417 to EGC 5717. Cases that are not approved for transfer will be returned to the field group for suspense. Review IRM 4.4.33, AIMS Procedures and Processing Instructions, Transfers, before accepting the return into inventory. When the AIMS is transferred, the documents submitted to the CPF should include, but are not limited to:

The PCS coordinator will monitor AIMS records in EGC 5717 to ensure the return information is received timely. If not received within 30 days, the return either needs to be located, or the AIMS will be updated back to the field group EGC by the PCS coordinator.

When the return information is received, the EGC should be updated to the appropriate 57XX employee group code.

Before closing the case to the TSPC for transfer to the CPF, the field examiner must update the partner¡¯s statute to alpha code AF (or RR until AF is available) if the partner¡¯s statute is within 210 days of expiration.

Incoming investor returns are reviewed by the PCS coordinator:

All required documents may be forwarded to the campus via e-mail if the case file is electronic.

Requests for AIMS controls, tax returns or other documents from an area field group will be sent to the PCS coordinator using Form 15277, AIMS Database Transfer Request Campus Pass-Through Function (CPF).

The PCS coordinator should ensure Form 15277, AIMS Database Transfer Request Campus Pass-Through Function (CPF), has the proper information and is signed by the manager.

Any requested returns or documents can be attached to the Form 15277. If any original paper documents are requested, they should be mailed to the area field group. The PCS coordinator will email the Form 15277 to the requestor with a cc to the manager after marking the completed action and signing the bottom of the form.

Any returns transferred with no PICF code should be sent with an AIMS freeze code 6, if the CPF needs the return again.

The AIMS will be transferred to the group using CC AMSOC. AIMS will update the status to transfer status 07 and transfer EGC 1998/2998.

The PCS coordinator will ensure the AIMS data base is updated from the transfer EGC to the group¡¯s status, PBC, Secondary Business Code (SBC), and EGC codes, and the correct statute date.

The BBA Ch 2/2A coordinator should review the Form 15277 to verify the linkages and ensure statute implications are considered.

A Form 895 is prepared for each relevant partner. Form 895 is included in the case file. A statute control record, such as a TXMOD control, may be used instead of the Form 895. Use of the statute control record should be notated on the history sheet. See IRM 25.6.23, Statute of Limitations, Examination Process-Assessment Statute of Limitations Controls.

Technical Services will submit a preliminary package to the BBA Ch 2/2A CPF after issuance of the NOPPA.

The AIMS freeze code H will remain until a closing package is received.

The TSPC will submit the following documents when the NOPPA is issued:

Appeals will submit a preliminary package to the BBA Ch 2/2A CPF when a BBA Partnership moves to the Ogden BBA Operations after the issuance of the NOPPA. The AIMS freeze code H will remain until a closing package is received.

The ATT AO will submit the following documents, as applicable, when the BBA partnership is transferred to the Ogden BBA Operations:

All documents submitted with the preliminary package will be reviewed by a revenue agent reviewer to ensure complete and accurate information is available for investor report writing. Discrepancies should be resolved with the originating area, Technical Services or Appeals, as soon as possible. The preliminary package will be stored electronically and is utilized for build out purposes.

When Form 4605-A, Examination Changes - Partnerships, Fiduciaries, S Corporations, and Interest Charge Domestic International Sales Corporations, submitted with a preliminary package, shows no changes and the BBA partnership Chapter 1 reflects changes, the BBA Ch 2/2A issue may no longer be relevant or the field agent may have chosen to no change the BBA Ch 2/2A issue. In this instance the BBA Ch 2/2A CPF may process a BBA Ch 2/2A no change closing package after the BBA partnership NOPPA is issued. After the NOPPA is issued, the BBA Ch 2/2A no change determination submitted with the preliminary package will not change and there is no need to continue to hold investor linkages open. The investor linkages can close no change and BBA partnership AIMS freeze code H can be released.

All documents submitted with the closing package will be reviewed by a revenue agent reviewer to ensure complete and accurate information is available for investor report writing. Discrepancies should be resolved with the originating area, Technical Services, ATT, or the Ogden BBA Operations, as soon as possible.

The packages will be recorded in an electronic logbook when received.

Review Form 15372, BBA Chapter 2/2A RAR Package Check Sheet, when the package is received from Technical Services, Appeals, or the BBA Operations.

Review the report writing information (Form 4605-A, Form 886-S, and Form 886-A) to ensure it is complete and accurate.

The BBA Ch 2/2A coordinator will check PCS to verify investors are properly linked.

If corrections are needed with a closing package, the CPF will contact the originating function, either Technical Services, Appeals, or BBA Operations.

Approved packages will have a BBA one-year date (OYD) posted on PCS (see IRM 4.31.10.7.3, One-Year Assessment Dates) and the AIMS freeze code H will be released. The closing package will be stored electronically on RGS/CEAS.

In general, letters should be issued to the investors within 30 days, but no later than 60 days after the package is assigned to a report writer, or in the case of a no change package within 30 days after the package is assigned to a tax examiner.

A one-year date (OYD) is a statute expiration date posted on PCS that affects a taxpayer¡¯s account as a result of a BBA partnership examination with Chapter 2/2A pass-through adjustments for the taxpayer.

IRC 6501(c)(12) provides in the case of any partnership adjustment determined under the BBA regime, the period for assessment of any tax imposed on a partner under Chapter 2 or 2A which is attributable to such adjustment shall not expire before the conclusion of the BBA audit which is the date that is one year after one of two events.

If the FPA is waived, either by signing Form 14792 or Form 14726 the partners¡¯ statute remains open ended for BBA Chapter Ch 2/2A tax assessments.

Use the date the waiver was countersigned to compute a OYD for monitoring purposes.

When the FPA defaults or a court decision becomes final, we have a true one-year date. As a matter of practice, the campus will subtract one day from the true one-year date when the one-year date is entered on PCS. This is done to help ensure the assessments are made prior to the expiration date.

Closing package OYDs are computed as following:

The PCS coordinator will input the closing package OYD on PCS and release the AIMS freeze code H when applicable.

The PCS coordinator will assist the field in processing Form 8339 to resolve linkages for field-controlled investors with a OYD. Form 8339 should show 22222222 to resolve the linkage, since field-controlled investors do not have the T indicator.

The BBA Ch 2/2A Team will resolve the linkage for outside investors.

Complete Form 8339, PCS Change, to resolve the linkage with 22222222. When a tier is linked to a pass-through entity that has an open linkage to another BBA partnership, the Form 8339 would include element 05-T to remove the 2¡¯s.

The field, Appeals and BSC controlled investors will receive notification of the no change closing package from the BBA Ch 2/2A CPF.

The BBA Ch 2/2A Team will not send a no change letter to an outside investor when working a no change closing package when the case is forwarded to Appeals.

The BBA Ch 2/2A Team will send a copy of the key case or tier report change package with a memo providing report writing guidance by email to:

The memo must be acknowledged by the recipient.

Update the report package received indicator code on PCS to an R (for the field) or A (for Appeals) once the memo is acknowledged.

If the investor is in the BSC CPF, the BBA Ch 2/2A coordinator will coordinate with BSC to provide processing guidance.

If the investor is in AIMS status 2X-5X, contact the BBA Ch 2/2A coordinator for assistance.

When the tier is also a key case, coordinate with the field examiner on the report preparation.

Consider the timing of the investor adjustments if a SNOD is needed.

Investors below the tier waiting for the tier report will be held in suspense until the tier report is written.

Verify the investor linkages are complete per the build out. See IRM 4.31.10.3.1.3, Build Out.

The Technical Team report writer prepares the report and saves the tier report package to RGS/CEAS.

The tier report package consists of:

The tier report is not sent to the entity and is only used to prepare the investor reports

Complete Form 8339. When the tier is linked to a pass-through entity that has an open linkage to another BBA partnership, the Form 8339 would include element 05-T to remove the 1¡¯s.

Prepare Form 5344 but do not add the disposal code because that will depend on the investor closure type. The Form 5344 should stay with the case file until the tier entity is ready to close after investor actions are determined.

The tier entity will remain open until investor actions are complete for this key case. Form 8339 and Form 5344 will be kept with the case file until closure.

Update the AIMS to EGC 5767, Tier Report Written ¨C Prepare Investors.

The BBA Ch 2/2A Team will receive a tier report package from the Technical Team.

Verify the tier report package is uploaded to RGS/CEAS. For field-controlled tiers, package information will be provided by the BBA Ch 2/2A coordinator.

Update the report package received indicator on PCS to Y using CC TSCHG on the tier investors.

Pull all CPF controlled investors to prepare for report writing. Associate a copy of the tier report package to each investor file. For taxable investors not in the CPF, see IRM 4.31.10.9.1, Outside Taxable Investors - Change Package.

Assign the investors to a report writer within 30 days of the BBA Ch 2/2A Team receiving the tier report package.

Prior to the assignment of a taxable investor file to a report writer the following actions should be taken:

Prior to the assignment of a tier investor file to a report writer the following actions should be taken:

For field-controlled tiers, the BBA Ch 2/2A Team will receive report writing guidance from the BBA Ch 2/2A coordinator.

Update the tier file of the tier report package to EGC 5768, Post Tier Report Writing Suspense.

The BBA Ch 2/2A Team will monitor the tier report package to determine when the linkage for all tier investors has been resolved. The linkage is resolved when the investor has:

When the last tier investor linkage is resolved the tier can be closed. See IRM 4.31.10.11.5, Tier Full Closure.

If the tier is linked to another open key case, see IRM 4.31.10.11.6, Tier Partial Closure.

The tier can fully close when the tier has no open BBA Chapter 2/2A or ILSC linkages and all tier investor linkages have been resolved.

Input Form 8339, PCS Change.

Determine the disposal code for the tier and update the Form 5344, Examination Closing Record. The disposal code (DC) will depend on the type of investor closure:

Submit the tier to the closing team for final closure.

If the tier has any open linkages remaining, input Form 8339, PCS Change, and determine the tier partial action:

In general, each linked investor return with an assessment of Chapter 2/2A taxes must have a report written disclosing the results of the examination of the pass-through return to which the investor is linked.

The CPF must secure signed agreements from each investor.

One or more of the investors may choose to dispute the proposed Chapter 2/2A adjustments of the pass-through entity.

The report provides the investor the opportunity to agree or appeal the adjustment.

Note the investor case file, and update AIMS to EGC 572X.

The BBA Ch 2/2A CPF will follow the strategic limits outlined in IRM 4.31.6.10.2, ILSC Report Writing Assessment Cases.

The BBA Ch 2/2A CPF will use RGS to calculate the assessment amount of self-employment tax (SE Tax) and net investment income tax (NIIT) applicable to the investor. RGS will also be used to prepare reports necessary to send to the investor.

Reports with adjustments to self-employment tax prepared by the BBA Ch 2/2A report writer will not include the self-employment tax deduction (statutory-SE AGI adjustment). The investor report will only reflect the tax change for self-employment tax. The Form 886-A prepared and sent to the investor will include the supporting income information used to calculate the self-employment income tax

Reports with adjustments to net investment income tax (NIIT) will only show an adjustment to NIIT. The Form 886-A prepared and sent to the investor will include the supporting income information used to calculate NIIT.

When the BBA partnership exam results in a net negative adjustment, no Chapter 2/2A pass-through adjustment will be processed at the investor level. A net negative adjustment is reported by the BBA partnership in the adjustment year and any resulting change to Chapter 2/2A will be reflected on the partner adjustment year Schedule K-1.

If the IU is agreed and it is determined we will not make Chapter 2/2A adjustments, BBA Chapter 2/2A CPF will need an agreed no change package to close the linkage. A no change report is not prepared for a net negative adjustment. See IRM 4.31.10.8, No Change Closing Package Procedures.

Upon assignment, the report writer should check the case file to ensure it includes the following items:

If any of these items are not present in the investor case file, the report writer must secure the information necessary for the preparation of the examination report. Depending on the one-year assessment date, this may require returning the case file to another unit to secure the necessary information.

The report writer must verify that the OYD is correct. See IRM 4.31.10.7.3, One-Year Assessment Dates.

The investor¡¯s return file with the closing package or tier package will be assigned to a report writer to prepare an adjustment report.

The report writer must verify the investor statute date and statute control using local procedures, as well as the one-year assessment date.

The report writer will complete Form 4700-T, CPF Pass-Through Investor Workpapers, on all cases to reflect the investor¡¯s applicable adjustment from the pass-through entity. The report writer will maintain Form 886-S or Form 886-X, the key case report package or tier report package and any other documents received from the key case examination with the Form 4700-T as part of the workpapers.

The investor return will normally be adjusted to reflect the amount shown on the Form 886-S or Form 886-X.

The examiner will prepare Letter 5694, Investor No Adjustment, to issue to the taxpayer if the assessment amount from the key case results in no adjustment to the investor.

The report writer will input and generate Form 4549 for the proposed tax. For each POA, prepare a copy of Form 4549. The Form 4549 must include the name, telephone number and the unique identifying number of the person to contact.

The Form 4549 should list each issue and the EIN of the pass-through entity that had the adjustment.

The report writer will send a Letter 525-D, 30-Day Letter Related to Pass-through Entity Examination, Form 872-L, Consent to Extend the Time to Assess Certain Taxes Attributable to Partnership Items, and two copies of Form 4549, Report of Income Tax Examination Changes, to the investor to secure agreement to the pass-through issue(s). Report writers should always consider IRC 6404(g) and input a TC 971 with action code 064 whenever applicable.

The statute date on Form 872-L should be extended to 18 months past the date of the 30-day letter. This will allow processing time to ensure sufficient time on the statute if the taxpayer submits a protest in response to the 30-day letter

The case file will be suspended for 45 days awaiting response from the taxpayer. If the taxpayer does not respond, issue a statutory notice within 30 days unless there are adjustments pending from another pass-through examination.

Generally, the 30-day letter will act as notification for purposes of IRC 6404(g).

When there is less than 90 days left on the investor¡¯s IRC 6501(c)(12) One-Year Statute Date (OYD), the CPF should immediately issue a statutory notice of deficiency.

Letter 929, Transmittal to Taxpayer of Copy of Signed Consent, will be used to transmit the countersigned Form 872-L, Consent to Extend the Time to Assess Certain Taxes Attributable to Partnership Items, to the taxpayer.

If there is no response to the 30-day letter the report writer will research for other open ILSC or BBA Chapter 2/2A linkages. Generally, only one Statutory Notice of Deficiency (SNOD) may be issued to a taxpayer for a given tax year. See IRC 6212(c) The following table shows what actions to be complete based upon case status:

Once the SNOD is issued, the case file will be suspended for 105 days awaiting a response from the taxpayer. See IRM 4.31.10.7.3.1, Updating the OYD when Issuing Notices of Deficiency, for determining the new OYD after issuing a statutory notice of deficiency. Also refer to IRM 4.8.9.22.1, Updating the Assessment Statute Expiration Date.

If an agreement to pass-through issues is received, assessments must be made as soon as possible after the agreement is received. The OYD must be recalculated based on the Statutory Notice of Deficiency.

Prepare and input Form 8339 to enter the amount of the assessment. Box 11, Change(s), will be completed with Item 5, (the investor one-year date field) with 11111111, assessment amount and time. The investor case will not be allowed to close without this.

If the case is to be fully closed, meaning all ILSC and BBA Chapter 2/2A linkages were addressed, the case is prepared for final closure. If there is an open TEFRA linkage complete a partial adjustment and send the case to TEFRA suspense to await additional packages. (See Form 5344 procedures at IRM 4.31.10.13, Investor Closing Procedures.)

In some instances, a statutory notice is sent because the taxpayer refused to sign a Form 872-L, Consent to Extend the Time to Assess Certain Taxes Attributable to Partnership Adjustments. If a Form 872-L is received after the statutory notice is issued, and the taxpayer was given plenty of time to extend their statute or file a protest, then the statutory notice should not be rescinded. The taxpayer¡¯s only option will be to file a petition. These determinations will be a judgement call made on a case by case review by the BBA Chapter 2/2A coordinator or manager.

Special attention must be given to certain entry items on Form 5344, Examination Closing Record.

CC TSCLS: Check this block when an investor return is linked on PCS. Complete this portion only at the time of final closing.

Item 8 - Agreement Date (partial or final closings): Enter the earliest received date as reflected on the signed Form 4549, Report of Income Tax Examination Changes. The date the agreement was received is required to be entered on agreed deficiency cases if the disposal code is 03, 04, or 09 and Item 12 contains an increase in tax and the MFT is 02, 05, 30, 51 or 52. If no agreement is signed, but the taxpayer full pays the deficiency prior to the issuance of a Statutory Notice, the case will be considered agreed and closed DC 04 as of the date of payment. See IRM 4.19.13.30, Campus Exam Closing Actions.

Item 13 - Disposal Code: Cases closed no change should use disposal code 01 or 02. The adjustment amount on the Form 5344, Examination Closing Record, should be left blank and will show $0 upon completion. Cases closed agreed will generally use disposal codes 03 or 04. The adjustment amount on the Form 5344, Examination Closing Record, requires an entry other than zero. If you have a situation where the adjustments made to the entity net to zero, enter $1. After issuance of a 90-day letter, use disposal codes 09 or 10. Refer to IRM 4.31.10.13.1(2). The following table shows when to use different disposal codes:

Item 14 - Statute Extended to Date (partial or final closings): See IRM 4.38.1.7.3.1.23 paragraph 3, Item 14: Statute Extended to. Use care to ensure the correct information is shown on AIMS as there are various situations that can exist on BBA Ch 2/2A closures. To compute the ASED after a notice of deficiency, refer to IRM 4.8.9.22.1, Updating the Assessment Statute Expiration Date. The following table shows which statute date to use for different closure types:

Item 28 - Examiner's Time (final closing only): Enter the technical time spent processing the return. This will include the report writing time. If prior partial closures were processed, the entry will be the total of all technical time spent on the case by the area and/or the CPF. Local procedures must be developed to record the cumulative time applied to each return by the CPF technical employees. Form 5344 will record all time applied (except the 631 or 632 below the line time) by technical employees, whether in the area or in the CPF.

Item 30 - Examination Technique (final closing only): See IRM 4.4, Audit Information Management System (AIMS) - Validity and Consistency.

Item 31 - Examiners Grade (final closing only): Enter the grade of the examiner that corresponds to the employee group code entered in item 29.

Item 38-40 Block Number: If the case meets the requirements for electronic closure, use block number 40X.

Item 408 - Related Return Alpha Code: Enter P. Items 405-407 should be blank unless using RGS, then only item 405 is entered. This applies to carryback and carryover years as well.

Item 411 - Payment Code (final closing only): The payment code indicates if there is a payment or partial payment on the account. The codes are in the following table (IRM 4.38.1.7.3.1.55.1, Valid Codes):

Item 412 - Installment Agreement Code (final closing only); Indicates if the taxpayer has an installment agreement. See IRM 4.38.1.7.3.1.56, Item 412: Installment Agreement Code.

In an instance where a partner must be fully closed after a prior partial assessment, and the final linkage is a no change, that partner needs to be closed using the disposal code of the most recent partial closure.

After completion of the required reports, Form 4549 and closing documents, Form 5344 and Form 8339 (if return is linked on PCS), the report writer should prepare the case for processing by administrative support personnel. The CPF will maintain either a paper file or an RGS/CEAS electronic file. The case file should contain the following documents:

The report writer will indicate on the history sheet or RGS case history what letters should be issued or any additional actions that may be required. The history sheet will also indicate the appropriate closing action. The report writer is responsible for instructing administrative support and closing operators of the appropriate actions required based on the type of closure.

If AIMS page 2, displays "RET-NOT-REQ" and there are no original documents that must be returned to files the investor case can be closed paperless, providing all required documents are stored in the RGS case file. Use blocking number 40X.

If AIMS page 2, displays "RETURN REQUESTED" and all required documents are stored in the paper or RGS case file. Transmit Form 13181, Examination Report Generation Software (RGS) Closing Information Cover Sheet, to files in place of paper file documents and close with block number 08X or 38X. Any original documents that must be returned to files can be attached to the Form 13181. All other documents, that are copies of documents found in the RGS file, may be destroyed.

For cases closed no change (DC 02) through RGS or the Generalized IDRS Interface (GII), the cases will include the following (efforts should be made to discard any unneeded or duplicative items):

A partial adjustment will be made when there is another open linkage.

If the open linkage is a BBA Chapter 2/2A linkage, the case will need to remain in BBA Ch 2/2A suspense.

If the open linkage is an ILSC linkage, the case will need to be transferred to ILSC Suspense.

When there are multiple open linkages and one is an open ILSC Linkage, the case must stay in ILSC suspense, so the statute remains protected.

Each CPF will use PCS and AIMS reports to monitor linked returns. Specific information is provided on PCS reports in IRM 4.29, Pass-Through Control System. The CPF personnel should use the Handbook if they have questions about PCS generated reports. Information on AIMS reports is provided in IRM 4.4.27, Reports.

Cases in status code 33, EGC 57XX, will be included on CPF PCS reports. These criteria, although not all will be used for every report, are also used to determine CPF staffing levels and for specific measurements.

BBA Chapter 2/2A related partner returns that are controlled in the field or in Appeals, will not be in the CPF physical inventory.

SSIVL. See IRM 4.4.16.7, Other Inventory Monitoring Tools.

AIMS 4.0 Statute Control Report is a monthly report with documentation requirements that is to be maintained for three years. See IRM 4.4.27.5.1.1, Procedures for Working Statute Control Report and IRM 25.6.23.5.6, Campus Statute Controls ¨C Corr Exam and CPF.

CCA 42-43 IDRS Overage Report (ORCAS) age listings.

Accomplishments for CPF closures where the report writing was done in the campus will be closed in employee group code 57XX according to the designated breakouts.

Inventory validations must be completed as outlined in IRM 4.4.16.3, Inventory Validation Listing (IVL).

Consider the accuracy of PCS linkages, any other database records, and statutes.

Ensure AIMS and other aspects of the case is correct. AIMS may be correct, but all PCS linkages may be closed and the case is no longer needed in inventory. Identify and clean up the inventory.