4.7.8. Centralized Case Processing

(1) This IRM section provides information and discusses procedures for staff in Centralized Case Processing (CCP).

(2) Purpose: To provide guidance needed to properly code and close examination cases

(3) Audience: SB/SE and LB&I managers, tax examiners, and clerical staff in CCP.

(4) Program Owner: SB/SE Director, Technology Solutions.

(5) Primary Stakeholders: LB&I.

(1) In order to access ERCS and run ERCS programs, a user must have:

• Met the prerequisites outlined in IRM 4.7.2.2.1, Meeting the Prerequisites.

• An approved BEARS request for a CCP ERCS application. Refer to IRM 4.7.2, Security, for details.

• A valid login for the ERCS server.

• An ERCS employee record containing the user's login name.

• Permission records.

(1) ERCS operates on the principle that users should only change data on returns under the user's control. Consequently, a CCP user may change information only on returns in CCP status codes within the AACs in which the user has permission. Throughout ERCS, error messages appear when a user attempts to update returns for AACs or status codes for which the user does not have permission.

(2) Because of the potential for Section 1204 violations, reports generated in CCP that contain any Record of Tax Enforcement (ROTER) information are to be shared only at the manager level or higher. For more information about ROTER, see the Section 1204 website. IRM 1.5, Managing Statistics in a Balanced Measurement System Handbook, provides further guidelines for the appropriate use of statistics by managers and employees.

(3) Per IRS security requirements, IT employees are not permitted to have access to taxpayer data. No IT employee should be approved for ERCS access and any user transferred or detailed to an IT position must submit a Remove Access request to have all permission records removed.

(4) Users in CCP must be aware of the potential for Unauthorized Access of Taxpayer Accounts (UNAX) violations from the use of ERCS. As with Integrated Data Retrieval System (IDRS) and AIMS, data from ERCS should be accessed only for IRS business purposes. No attempt should be made to access the user's own social security number (SSN) or that of a spouse. If the user's personal SSN or that of a spouse is entered, an employee audit access message is created of a possible breach of security. An employee audit access message is also created if a user attempts to view or update an employee audit return that the user does not have permission to update.

(1) Updates to returns in CCP requiring managerial approval are approved by a CCP manager. Types of updates by users in CCP that require approval are:

• Changes to the statute of limitations

• Non-examined closures of returns generating a Command Code (CC) AMSOC

  Note: Examined and non-examined closures of returns in CCP are input on AIMS bypassing ERCS. During the weekly AIMS to ERCS processing, the ERCS returns are closed.

(2) Updates to returns on ERCS requiring approval are not sent to AIMS until they are approved.

(3) Disapproval of updates causes the items to revert to their prior value. Returns pending approval by a CCP manager cannot be transferred or closed on ERCS. ERCS does not create a "reject" list or otherwise mark disapproved updates.

(4) Although returns should be in Status Code 51 on ERCS and AIMS, cases may be received in CCP even though they are still pending managerial approval in the group for the transfer. Returns in transit to CCP can be monitored using the "In Transit Report" or by generating the "Suspense Report" for Suspense Type 498. Both reports are on the Inventory Reports menu.

(5) Updates pending managerial approval, show a "p" next to the value on the screens in the Correct or Display Records program.

(1) Work flow in CCP begins with receipt and control into CCP and ends with case closures.

(2) After receipt in CCP, the Form 3210, Document Transmittal, should be acknowledged electronically on ERCS within 5 days, and the Form 3198, Special Handling Notice for Examination Case Processing, analyzed for case assignment.

(3) Cases should be updated out of Status Code 51 within 30 days of the status date.

(4) The ERCS record is checked to verify it is controlled on AIMS, if AIMS control is required.

(5) The statute should be checked and updated as necessary on the ERCS record.

(6) The following values should be verified and updated as necessary on the ERCS record:

• Status code

• Type suspense

• Action date

• CCP employee ID

• Date in CCP

• Program number

(7) Returns are selected for sample review on ERCS as they are updated out of Status Code 51. If a return is selected for sample review, the sample selection sheet should be printed and attached to the front of the case file.

(1) ERCS uses a combination of AIMS and ERCS codes for inventory control and employee records. The following codes are defined on ERCS only. More information about these codes may be found in the Codes chapter of the ERCS CCP Handbook, or in Exhibit 4.7.8-1, Exhibit 4.7.8-2, or Exhibit 4.7.8-3.

• Suspense type and action date

• Reject reason

• CCP employee ID

• Date in and date out of CCP

• Program numbers

• CCP AACs

• CCP position codes

• ERCS penalty Master File Tax (MFT) codes

(1) For a complete listing of ERCS reports available for CCP users, refer to the ERCS CCP Handbook.

(2) IRM 4.7.6, Reports, contains detailed descriptions, as well as, recommended uses and frequency of generating reports available through ERCS.

(1) Program numbers are used in CCP to classify types of work. The only association between the program number and any other ERCS codes (such as status code, suspense type or number of days in suspense) is by user association. ERCS does not enforce consistency between the program number and the other values listed in the chart below. More information for reports containing these codes may be found in IRM Exhibit 4.7.6-5, Reports with Codes:

(2)

(1) ERCS reject reasons are associated with returns sent back to the group from CCP. When the group sends the return back to CCP, the reject reason is removed from the return. More information for reports containing these codes may be found in IRM Exhibit 4.7.6-5, Reports with Codes:

(1) The table below lists the valid position codes used in ERCS for CCP employee records.

(1) The PCC determines the ownership and location of unassigned returns in CCP.