- 25.6.23.6 Statute Controls in Examination and TE/GE Groups
- 25.6.23.7 Statute Controls in Examination and TE/GE Case Closing Functions
- 25.6.23.8 Imminent Assessment Statute Cases
- Exhibit 25.6.23-1 Form 895 Instructions
- Exhibit 25.6.23-2 ERCS Form 895 Instructions
- Exhibit 25.6.23-3 Instructions for Updating the Statute on AIMS
- Exhibit 25.6.23-4 Tables 4.0 and 4.1, Returns With Statute Date Pending
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AIMS Table 4.1, Returns with Statute Date Pending, is a computer generated listing, produced monthly on AIMS, showing returns in examination groups in the area offices, having AIMS status codes 05, 06, 08–19, with statute dates that (according to AIMS) have expired or will expire within 180 days.
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AIMS Table 4.0, Returns with Statute Date Pending, is essentially the same as AIMS Table 4.1. AIMS Table 4.0 lists returns charged to functional areas in area offices other than examination groups. Tax returns in Planning and Special Programs (PSP), Technical Services (Exam), and Centralized Case Processing (CCP) appear in Table 4.0, which lists returns in AIMS statuses 00–59, except for those included in Table 4.1.
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Table SC 4.0, Returns with Statute Date Pending, is a comparable listing of returns in Examination units at the campuses. Table SC 4.0 lists cases in valid status codes within the status code range 00–59.
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EP Table 4.0, EP Returns with Statute Date Pending, is a comparable listing of returns in Employee Plans, for all status codes.
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EO Table 4.0, EO Returns with Statute Date Pending, is a comparable listing of returns in Exempt Organizations, for all status codes.
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GE Table 4.0, GE Returns with Statute Date Pending, is a comparable listing of returns in Government Entities, for all valid status codes.
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Exhibit 25.6.23–4, Tables 4.0 and 4.1, Returns With Statute Date Pending, describes the data in Tables 4.0 and 4.1.
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In area offices, the AIMS Coordinator is responsible for timely distributing Table 4.0 or Table 4.1.
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The group manager in area offices is responsible for monthly verification of data in the ERCS Pending Statute Report (or the EPIC or EOIC Statute List for Days) and in AIMS Tables 4.1 and 4.0. The manager may delegate responsibility for verifying the statute control data to other employees.
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At campuses, the employee responsible for the statute control file does the monthly Table 4.0 verification for cases with statute expiration dates within 90 days, under the supervision of an assigned manager.
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See IRM 4.4.27.6.1.4, Procedures for Working Statute Control Report, for additional information pertaining to the working of Tables 4.1 and 4.0. Also see IRM 4.7.3, ERCS – Statute of Limitations, and IRM 4.7.6.6 pertaining to ERCS Pending Statute Report and ERCS 895 Report.
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Verification of ERCS, EPIC or EOIC statute control listings and AIMS Table 4.1 and Table 4.0 data is done at least monthly by the group manager or other designated person. The following steps will be taken when working the 4.1 and 4.0 tables.
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Compare AIMS Table 4.1 or 4.0 data with data in the ERCS Pending Statute Report or the EPIC/EOIC Statute List for Days. For returns having alpha statute codes, compare to the ERCS 895 Report or the EPIC/EOIC Form 895 Statute Log. Criteria for alpha statute codes are described in Exhibit 25.6.23–3.
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By reference to the ERCS 895 Report or the EPIC/EOIC Form 895 Statute Log, ensure there is complete Form 895 information for each return on the AIMS table having a statute expiration date within 180 days.
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The ERCS Pending Statute Report and the 895 Report identify tax returns having Forms 895 issued and returned by examiners. The EPIC/EOIC Statute List for Days and the Form 895 Statute Log identify returns having Forms 895 issued and returned by TE/GE specialists. The computer generated ERCS, EPIC or EOIC reports are used to keep track of Forms 895.
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Verify that the statute expiration date shown on Form 895 (per the ERCS, EPIC or EOIC reports) and on AIMS agree and are correct.
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Notify the group manager and the examiner or specialist of any discrepancies. Annotate Table 4.1 or 4.0 (or the ERCS Pending Statute Report or EPIC/EOIC Statute List for Days) that the examiner or specialist and the manager were notified.
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The manager, with assistance from the examiner or specialist as needed, resolves discrepancies. Make a notation on the AIMS table or the ERCS/EPIC/EOIC report of all discrepancies and their resolution.
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If the AIMS Table 4.1 or 4.0 (or ERCS, EPIC or EOIC statute list) indicates there is a tax return meeting statute control criteria and it is not controlled with a Form 895, perform a special search to locate the return. Upon locating the tax return in the group, notify the responsible examiner or specialist that statute control must be established or place the return in a red file folder and hand carry it to the manager for statute determination and preparation of Form 895.
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If the ERCS Pending Statute Report, the EPIC/EOIC Statute List for Days, or the Form 895 statute control file contains information on a return which is not listed on AIMS Table 4.1 or 4.0, determine whether or not the return is physically located in the Examination unit or the EP,EO or GE unit. Secure an AMDISA print, if necessary, to help locate the return. If the return is located, ensure that the statute expiration date on AIMS (and on ERCS, EPIC or EOIC) is correct.
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If the return is not located, verify that the return has physically left the Examination unit or the EP, EO or GE unit. Secure a receipted Form 3210, Document Transmittal, acknowledging transfer of the case file to another other unit. Update AIMS/ERCS/EPIC/EOIC accordingly.
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If there has never been a record of the return in the work group, notify the manager. The manager initiates a search for the return. The manager may obtain assistance from the AIMS/ERCS Coordinator in locating the return.
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Enter any corrected statute expiration dates on AIMS (through ERCS for Examination). Once an update is input with a statute expiration date beyond 180 days from the current date, that return will not appear on the AIMS statute table. Returns with statute dates shown as "872-A" will remain on the AIMS table.
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Upon completion of the above actions, the group secretary or other designated person gives Table 4.1 or 4.0 to the group manager or other designated manager for final review.
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As per IRM Exhibit 1.15.23-1 (Cont. 6) (11-01-2002) Records Control Schedule for Tax Administration – Examination, the tables may be destroyed after 5 years plus current year, or after no further reference value, whichever is earlier; however as per IRM 4.4.27.6.1.5, Disposition of Statute Control Reports, the tables must be retained for a minimum of two years by the responsible manager.
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Statute transcripts are generated monthly at the campuses on tax modules showing credit balances, no return posted, and returns having a potential statute expiration date within 180 days. The potential expiration date is three years from the due date of the return.
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Instructions on researching statute transcripts are in IRM 25.6.13, Transcripts, and in IRM 4.4.27.7.4, Accounts Maintenance and Statute Transcripts.
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Upon verifying that a case in a campus Examination Operation has a potential expiration date within 180 days, per a statute transcript, refer the case to the Accounts Management Statute Function, see IRM 4.4.27.7.4.2.2, Statute is Imminent.
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If statute expiration is not imminent (within 180 days), ensure that the correct statute date is reflected on AIMS. If the statute date is within 180 days, then also take the actions specified in IRM 25.6.23.6.4(5), Area Office Group Statute Controls.
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When a case file under statute control is closed or transferred from an Examination or TE/GE work group, attach Form 895 to the front of the case file folder, on top of all other attachments.
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When processing of the case is completed, Form 895 is placed in the administrative case file by the case closing function.
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The following instructions apply to case closing functions in area offices, TEB Headquarters and campuses. They apply to:
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Centralized Case Processing units located at campuses
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Batch Processing or any other function closing examined cases at campuses.
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TE/GE Support and Processing (TE/GE–SP).
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TEB Headquarters as they close cases
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Statute controls will already be established on most returns having potential statute expiration dates within 180 days on cases coming into case closing functions/process. In the event controls have not been established, the following steps will be taken.
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If Form 895 is required but is not attached, notify the manager responsible for statute controls in the closing function and see IRM 25.6.23.7.1.3, Preparation/Correction of Form 895, for instructions on preparation of Form 895.
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The manager may contact the originating function for additional statute information or to give feedback about the lack of proper statute controls.
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Date stamp, showing the date of receipt in the closing function, the Form 895 which is attached to the case file folder. Write "Statute Control" on the outside of the case file, followed by the name of the tax examiner responsible for screening the case for statute controls or, in TE/GE, the name of the unit manager.
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Place a red folder around the case file if the case is not already contained in a red folder.
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Staple Form 895 to the outside of the file folder if the Form 895 is not already there.
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All returns with 120 days (180 days for TE/GE) or less remaining before the statutory period for assessment will expire (or may expire) are placed under statute controls.
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Immediately upon receipt in the case closing function, a designated tax examiner or clerk (hereinafter "statute examiner" ), screens all returns and penalty cases to identify returns with statutes expiring within 120 days.
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The statute examiner inspects all returns with tax periods ending two and a half years, or more, prior to the date received in the case closing function for potential statute expiration.
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The statute examiner verifies that the statute expiration date on Form 895 is correct, taking into account any special statute conditions, if any, and is correctly reflected on AIMS and Master File.
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If the correct statute expiration date cannot be determined with certainty, the statute examiner obtains assistance from a manager.
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At campuses, assistance may also be obtained from the Statute Function.
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The statute examiner examines consents to extend statutes to ensure the consent is prepared correctly and has appropriate, timely signatures for the taxpayer and for the Service.
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If there is no Form 895 with the case file and the statute expiration date is within 120 days, the statute examiner completes a Form 895 and attaches it to the front of the case file folder — on top of all other documents.
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All cases meeting the 120-day statute criteria must be controlled regardless of the length of time the case is going to be in the closing function.
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Line–by–line instructions for completing the current Form 895 are in Exhibit 25.6.23–1.
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As needed, the statute examiner adds or corrects Form 895 data, including the following items, and initials any additions or corrections:
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Taxpayer name
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SSN/EIN
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Return form number
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Taxable year or period
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Amount of tax deficiency and penalty
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Statute expiration date
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Plan Number (Form 5500 returns)
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Plan/RPT Number (Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, and 8038 returns, Information Return for Tax-Exempt Private Activity Bond Issues
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Any correction to the statute expiration date on Form 895 must be compared with the Master File ASED and AIMS ASED to ensure they all agree.
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Statute controls are centralized in a single location.
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The statute control file consists of:
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Form 895 control file
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ERCS Pending Statute Report or
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EPIC/EOIC Statute List for Days and
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AIMS Table 4.0.
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The Centralized Case Processing Manager or the individual TE/GE Program Manager designates a manager to have primary responsibility for maintenance of the statute control file. Actual maintenance of the file may be assigned to clerical personnel. This procedure does not relieve other managers and employees of their responsibilities to protect statutes within their respective areas.
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An employee having possession of a tax return in the closing function notifies the person maintaining the statute control file of any action or development affecting the statute.
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Copies of Form 895 in the open section of the control file are filed in order by statute expiration date. Forms 895 showing restricted Forms 872–A are placed in the front of the open section of the file.
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Multiple Forms 895 having the same expiration date are filed in order by SSN/EIN.
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The open section of the Form 895 file is monitored weekly. See IRM 25.6.23.7.3, 30-Day Statute Search, below for action to be taken on cases with statute expiration dates within 30 days.
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Upon verifying that assessment has been made (AIMS Status 90, transaction code 300; Form 3552, Prompt Assessment Billing Assembly), move the control copy of Form 895 along with any documentation from the open section to the closed section of the file.
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Maintain the closed section of the file by month closed in order by SSN/EIN.
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Purge closed controls after 90 days and destroy them in accordance with IRM 1.15.23 or IRM 1.15.24, Records Control Schedule for Tax Administration for Examination and for TE/GE, respectively.
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The following procedures will be followed when 30 days or less remain on the statute:
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The statute examiner photocopies the pertinent Form 895 or generates a list of statute imminent cases.
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The statute examiner gives the photocopies or list to the manager or supervisor of the case closing function and to the responsible tax examiner or special search clerk.
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If the statute is otherwise protected, the person who verifies such information annotates the statute control record accordingly, initials the entry and returns it to the statute examiner.
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If a return cannot be located after a special search, see IRM 25.6.23.7.6.4, Search for Missing Returns, below, the statute examiner initiates action to develop information and make a quick assessment.
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The statute examiner inputs an AIMS freeze code (freeze code " 1" ) using command code AMFRZ to prevent case closure. This will enable a tax examiner to abate any duplicate assessment that may occur.
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The statute expiration date will be changed upon receipt of:
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A properly executed statute extension or
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A termination of a statute extension.
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The following procedures will be followed when updating Form 895.
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Locate the case file having Form 895 attached. Pull the control file copy of Form 895.
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Enter the new statute expiration date in Item 7 (5 on ERCS version) of Form 895.
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Write the consent form number, date received, and the name of the examiner in Item 9 (7 on ERCS version).
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The employee making the update initials Form 895 next to the revised statute date.
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The manager or supervisor approving the update initials Form 895 next to the revised statute date.
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Return the case file, with the updated Form 895 attached, to the assigned tax examiner for closing.
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File Part 1 of Form 895 under the revised statute expiration date.
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Write the consent form number, date received, and name of the examiner in Item 9 (7 on ERCS version) of Form 895.
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Then attach the consent form to the back of the first page of the return. If the consent covers multiple years, the original will be attached to the back of the first page of the tax return for the latest year and photocopies will be attached to the back of the first page of the tax return(s) for the earlier years.
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Whenever a change or correction in the statute expiration date is determined, the person identifying such change initiates action to enter the revised statute date through AIMS/ERCS/EPIC/EOIC. Form 5348 — Examination Update, Form 5595 — TE/GE Update, are used to update the statute date on AIMS.
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Instructions for preparing Form 5595 are in IRM Exhibit 4.5.1–13, Instructions for Preparing Form 5595, TE/GE Update.
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AIMS Table 4.0, Table SC 4.0, EP Table 4.0, EO Table 4.0 and GE Table 4.0 are computer/electronically generated listings which reflect returns with statute dates that either have expired or are due to expire within 180 days.
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See IRM 25.6.23.6.9, AIMS Tables 4.1, SC 4.0, EP 4.0, EO 4.0 and GE 4.0, for the return status codes listed in Table 4.0.
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See Exhibit 25.6.23–4, Tables 4.0 and 4.1, Returns With Statute Date Pending.
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The statute examiner or a designated manager is responsible for generating Table 4.0 data.
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Additional responsibilities of the statute examiner and managers are explained in IRM 25.6.23.7.6.3, Verifying AIMS Table 4.0 Data With the Statute Control File, and IRM 25.6.23.7.6.4, Search for Missing Returns.
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Each month a designated person (the statute examiner or manager) reviews and reconciles AIMS Table 4.0 data with the ERCS/EPIC/EOIC statute control data or with Form 895 statute control files for all returns having statute expiration dates shown to be within the next 120 days (90 days for campus cases and 180 days for TE/GE cases).
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Also see IRM 4.4.27.6.1.4, Procedures for Working Statute Control Report, for information pertaining to the working of Table 4.0.
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The designated person will do the following.
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Identify all returns having statutes expiring within 120 days (90 days for campus cases and 180 days for TE/GE cases). First verify data for returns having statute dates within 30 days; then verify remaining returns in priority order (60 days, then 90, then 120 days, etc.).
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Locate all returns appearing on Table 4.0 for the first time. Returns showing on Table 4.0 as repeats do not have to be physically located if previous tables show the return was located and the statute date has not changed. Place an "R" in front of the taxpayer name to indicate that the return has been located.
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Compare Column 1 data on Table 4.0 with the same data on the ERCS/EPIC/EOIC statute controls or on Form 895, Item 1.
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Compare the statute date in Column 8 of Table 4.0 with the date on the ERCS/EPIC/EOIC statute controls or on Form 895, Item 7 or 5, as well as contents of case file such as consent form, Form 3198, etc.
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Reconcile any differences between Table 4.0 and ERCS/EPIC/EOIC, Forms 895 or contents of case file.
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Note any explanations, including resolution actions, in the " Comments" column of Table 4.0 or on the ERCS/EPIC/EOIC statute control record.
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If necessary, update the AIMS/ERCS/EPIC/ EOIC data bases to show the correct statute expiration date information.
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If the statute will expire within 60 days or less and the AIMS/ERCS/EPIC/EOIC record shows the case is open, request a quick assessment. See IRM 4.4.25, Quick Assessments.
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If the ERCS/EPIC/EOIC record or Form 895 statute controls show the case is closed, verify closure through: AMDISA on AIMS (Status 90); a transcript of the tax module showing Examination or TE/GE case closure (posting of transaction code 300 or 301); and/or information noted on Form 895.
Note:
Annotate Table 4.0 showing the date the return was closed and the method (terminal, quick assessment, etc). If not previously done, update the AIMS/ERCS/EPIC/EOIC data bases.
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If an extension was received, annotate the form number and the new statute expiration date on Table 4.0. If not previously done, update AIMS/ERCS/EPIC/EOIC with the extended date.
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If a case appears on Table 4.0 and a corresponding Form 895 is not located in the open or closed section of the statute control file, research AIMS for the most recent data to locate the return. If there is no information on AIMS, perform additional research. See IRM 25.6.23.7.6.4, Search for Missing Returns.
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If the information on AIMS Table 4.0 is consistent with data in the ERCS/ EPIC/ EOIC or the Form 895 statute control record, place a check mark next to statute date, or in the "Comments" column, on Table 4.0.
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If the case has been closed, place a "C" next to the taxpayer name, or in the Comments column, on Table 4.0. Indicate the date and method of closure in the Comments column.
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If a case cannot be located in the case closing function, indicate "no record" or "NR" in the " Comments" column of Table 4.0 and search for the missing return. See IRM 25.6.23.7.6.4, Search for Missing Returns.
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If a return listed on Table 4.0 was ordered but not received, place an "O" in front of the taxpayer name. If the return was requested two months or more prior to the date of the listing, make a follow-up request for the return. Enter the date of the follow-up in the "Comments " column.
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If a case on the listing has been transferred, place a " T" next to the case name or in the "Comments" column. Indicate where it was transferred and the date transferred in the " Comments" column of Table 4.0.
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After AIMS Table 4.0 information has been verified against the ERCS/EPIC/EOIC or the Form 895 statute control records, and Table 4.0 shows cases that have been closed, transferred or erroneously charged to the case closing function, the manager or supervisor having overall responsibility for Table 4.0 determines where the case is located. If the case is still open in the area office or campus, notify the manager having physical possession of the case of the early statute expiration date. The manager having physical possession of the case outside the case closing function reviews the case file and takes necessary action to protect the statute and update the AIMS and ERCS/EPIC/EOIC data bases.
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After reconciling all items on Table 4.0 and making appropriate notations, the manager or supervisor responsible for the statute control file signs and dates Table 4.0.
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As per IRM Exhibit 1.15.23-1 (Cont. 6) (11-01-2002) Records Control Schedule for Tax Administration – Examination, the tables may be destroyed after 5 years plus current year, or after no further reference value, whichever is earlier; however as per IRM 4.4.27.6.1.5, Disposition of Statute Control Reports, the tables must be retained for a minimum of two years by the responsible manager.
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Procedures for conducting a missing return search are as follows:
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If a return on Table 4.0 cannot be located in the case closing function, perform additional research.
For Example: IDRS Master File research. Checking for related returns. Contacting the Examination or TE/GE group. Requesting the return from files. -
The missing return may have been erroneously attached to a related return.
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If research indicates a related return has been examined and closed within the past nine months, requisition the return from files to see if the missing return is attached.
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If the missing return is not located after additional research, provide the AIMS/ERCS analyst with the research information and request assistance in locating the return. If the return still cannot be located, gather enough information to make a protective manual assessment. See IRM 4.4.25, Quick Assessments.
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When a protective assessment is made, input an AIMS freeze code (freeze code "1" ) using command code AMFRZ to prevent case closure. This will allow an examiner to abate any duplicate or erroneous assessment.
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At local option, a copy of the completed AIMS Table 4.0 may be provided to the AIMS/ERCS analyst, whether or not there are missing returns.
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Imminent assessment statute cases require special handling and it is imperative that examiners and managers allow adequate time from case closing until the statute expiration date for the necessary case review, case processing and deficiency assessment.
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When submitting a case to Centralized Case Processing or Technical Services, as applicable, the following minimum amounts of time should be remaining on the assessment statute of limitations to allow for the case to be processed in the normal course of business:
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Agreed (Non-TEFRA) cases - at least 4 months
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Unagreed (Non-TEFRA) cases to Appeals or for issuance of Statutory Notice of Deficiency - at least 6 months at the time the case is received in Appeals or in Technical Services for issuance of the Statutory Notice of Deficiency
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Agreed TEFRA key entity - at least 12 months
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Unagreed TEFRA key entity to Appeals or for issuance of Final Partnership Administrative Adjustment (FPAA) or Final S Corporation Administrative Adjustment (FSAA) - at least 8 months at the time the case is received in Appeals or Technical Services for issuance of the FPAA or FSAA
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In addition to the other procedures (red jacket, Form 895, Form 3198, Special Handling Notice for Examination Case Processing) for flagging imminent assessment statute cases, when a case includes a tax period that has less than 90 days remaining on the assessment statute of limitations at the time of closing from the group, the following actions are required:
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The case will be discussed by the group/team manager with his/her immediate manager and the case activity record will be documented to note that the discussion with the immediate manager has taken place concerning the circumstances surrounding the imminent statute agreed or no-change case. For unagreed imminent statute cases, the Form 4665, Report Transmittal, (for TCO cases Administrative Lead Sheet 105) should be documented to note the discussion of the imminent statute case with the second-level manager.
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The group/team manager in possession of the imminent assessment statute case will contact the appropriate manager in either Centralized Case Processing or Technical Services, depending on which organizational component will be receiving the case, to advise of the imminent statute case requiring special handling and whether or not the case requires Area Counsel review of any proposed statutory notice of deficiency (SNOD) as required by IRM 4.14.1.7.1, Mandatory Area Counsel Review Criteria. If Area Counsel review is required, a special handling notice should be attached to the case file and annotated with the remark: Area Counsel Review of Proposed SNOD Required.
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The case file is to be delivered to Centralized Case Processing or Technical Services, as applicable, by the most practical method (either hand delivery or by overnight mail/delivery service) and the group/team manager is to follow-up with the receiving unit's manager to ensure receipt of the case.
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If the imminent statute case requires issuance of a Notice of Deficiency (or FPAA or FSAA) then the case examiner will be made available for preparation of the notice, depending upon the needs of the Technical Services staff.
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For TEFRA cases, the steps enumerated in IRM 25.6.23.8.2, Non-TEFRA Cases With Less Than 90 Days to ASED, are to be followed, except that for TEFRA flow-through entity cases, a case is considered to meet the requirements for the imminent statute case processing procedures of IRM 25.6.23.8.2 if the TEFRA entity has less than 240 days remaining on the statute of limitations.
This exhibit provides instruction for preparation of the manually prepared version of Form 895. Exhibit 25.6.23–2 provides instruction for preparation of the ERCS, EPIC and EOIC versions of Form 895.
| #1. (a) | Name and Address of Taxpayer. An AIMS address label may be used. |
| #1. (b) | Taxpayer Identification Number. Enter SSN or EIN if not on a label used in 1. (a). Return Form Number. Enter as "1040" , "1120" , for example. Taxable Year or Period. Enter as "200312" , "200309 " , for example. Enter only one tax year on Form 895. Up to four quarterly Form 941 tax periods for the same calendar year may be on one Form 895. Enter as "200303, 200306, 200309, 200312" , for example. |
| #1. (c) | Employee Charged with Return. Enter the name of the examiner or TE/GE specialist to whom the return is assigned as of the date Form 895 is initiated. Signature (employee charged with return), the examiner or TE/GE specialist to whom the return is assigned and date this item upon verifying or completing Items I through 9. |
| #2. |
Notification Date. Enter the date Form 895 is initially given to the assigned employee. |
| #3. |
Group Number. Enter the number of the group where the return is assigned as of the date Form 895 is initiated. |
| #5. |
Date Return Filed or Due (whichever is later). Enter the filing date, but not earlier than the return due date. Information on determining a return filing date is in IRM 25.6.2.4.4, Statute of Limitations Chart for Tax Returns. |
| #7. |
Expiration Date. Enter the correct assessment statute expiration date based on the date the tax return was filed. The employee charged with the return and the responsible manager put their initials and date next to the expiration date. Any update to the statute expiration date, including alpha code designations, must be entered in item #7 with the employee and manager initials and date. If a tax return has more than one statute expiration date, enter the earliest date in Item 7 and describe other expiration dates in Item 9. |
| #8. |
Appropriate Blank to be checked by individual charged with return, check the applicable blank. |
| #9 |
Remarks. State information pertinent to the statute determination which is not evident elsewhere on Form 895. |
This exhibit provides instruction for the ERCS, EPIC and EOIC versions of Form 895. Exhibit 25.6.23-1 provides instruction for preparation of the manually prepared version of Form 895.
| #1. (a) | Name and Address of Taxpayer. An AIMS address label may be used. |
| #1. (b) | Taxpayer Identification. TIN: Enter the SSN or EIN of the taxpayer. MFT: Enter the Master File Tax code. Tax Period: Enter as "200312" , "200309" , for example. Enter only one tax year on Form 895. Up to four quarterly Form 941 tax periods for the same calendar year may be on one Form 895. Enter as "200303, 200306, 200309, 200312" , for example. Form Number: Enter as "1040" , "1120" , for example. |
| #1. (c) | Employee Charged with Return. Enter the name of the examiner or TE/GE specialist to whom the return is assigned as of the date Form 895 is initiated. |
| On the signature line the examiner or TE/GE specialist to whom the return is assigned signs and dates this item upon verifying or completing Items 1 through 7. | |
| #2. | Notification Date. Enter the date Form 895 is initially given to the assigned employee. |
| #3. | Group Number. Enter the number of the group where the return is assigned as of the date Form 895 is initiated. |
| #4. | Date Return Filed or Due (whichever is later). Enter the filing date, but not earlier than the return due date. Information on determining a return filing date is in IRM 25.6.2. |
| #5. | Expiration Date. Enter the correct assessment statute expiration date, based on the date the tax return was filed. ERCS will initially generate the statute expiration date which is on AIMS. The employee charged with the return and the responsible manager put their initials and date next to the expiration date. Any update to the statute expiration date, including alpha code designations, must be entered in Item 5 with employee and manager initials and dates. Alpha code instructions are in Exhibit 25.6.23–3. |
| If a tax return has more than one statute expiration date, enter the earliest date in Item 5 and describe other expiration dates in Item 7. | |
| #6. | Appropriate Blank to be Checked by Individual Charged with Return. Check the applicable blank. |
| #7. | Remarks. State information pertinent to the statute determination which is not evident elsewhere on Form 895. |
(1) In Examination, Form 5348, Examination Update, is used to update statute of limitation information on AIMS. Form 5348 may be used to request statute updates on ERCS, the Examination Returns Control System. Statute updates on ERCS will automatically update the same data on AIMS. See IRM 4.4.34, Updating/Correcting AIMS Data Base, and IRM 4.7.3, Examination Returns Control System (ERCS) - Statute of Limitations.
(2) In EP, EO and GE Form 5595, TE/GE Update, is used to generate statute of limitation information on AIMS. Form 5595 may be used to generate statute updates on EPIC, Employee Plans Inventory Control, and EOIC, Exempt Organization Inventory Control. EPIC and EOIC updates will not automatically update AIMS.
(3) An extended or corrected statute expiration date is entered in this format: MMDDYYYY, representing two digits each for the month and day and four digits for the year. For example: 04152006.
Once a statute update has been input on AIMS and the statute expiration date is more than 180 days from the date AIMS Table 4.0 or 4.1 is generated, the return will no longer appear on the table.
(4) When an open-ended consent has been secured, for example, Form 872-A, Special Consent to Extend the Time to Assess Tax, enter "872-A " in the ASED field. When a Form 872–IA, Special Consent to Extend the Time to Assess Tax As Well As Tax Attributable to Items of a Partnership, has been secured, enter "872-IA."
This entry does not remove the return from AIMS Table 4.0 or 4.1. The "872-A" or "872-IA" designation will appear on the table indicating an open-ended consent has been secured.
Where a restricted consent to extend the statute is accepted, ensure that all deficiencies other than those covered by the extension are assessed (partial assessment) before the statute is updated, on AIMS and on ERCS/EPIC/EOIC, to the extended expiration date. Statute consent code "R" must be input to AIMS if a restricted consent agreement is entered into with the taxpayer. For guidelines for restricted consents, see IRM 25.6.22.8, Restricted Consents..
Updating ASED upon Issuance by Area Office of a Statutory
Notice of Deficiency or Notice of Final Partnership Administrative Adjustments
(FPAA)
When a statutory notice of deficiency is issued the Technical
Services' issuing office will update the ASED on returns with a calendar date
ASED to include the minimum number of days the period for assessment is suspended
from running (90 or 150 days if the notice is addressed to a person outside
the United States plus 60 days for a total of 150 or 210 days) in order to
reflect the best information available with respect to the statute of limitations
at the time the notice of deficiency is issued. Should the updated ASED change,
for example, as a result of an agreement by the taxpayer to the deficiency,
then the ASED would be updated again to reflect the new information.
When
an FPAA is issued, the Technical Services' issuing office will update the
ASED of the TEFRA entity to include the minimum number of days the Tax Matters
Partner (TMP) or other partners have to petition the Tax Court, District Court
or Claims Court (90 days for TMP plus 60 days (after 90th day) for other partners
for a total of 150 days as per IRC § 6226) plus one year as per IRC §
6229 to reflect the best information available with respect to the statute
of limitations at the time the FPAA is issued.
Alpha Codes
A two-digit alphabetic code designating
a special statute situation may be entered in the day (DD) position of the
statute date on AIMS, ERCS, EPIC and EOIC. For example, if FF is entered for
a reference return and the actual statute expiration date is 04152006, the
statute date will be entered on AIMS as 04FF2006.
An alpha code on the
AIMS statute data base does not remove the return from AIMS Table 4.0 or 4.1.
It creates a message indicating that special conditions exist which affect
the statute expiration date. Also, it should be noted that the ASED is updated
on AIMS as the result of entering an alpha code but the ASED is not updated
at Master File.
| ALPHA CODES | |
|---|---|
| Code | Description |
| AA | Claim for Refund/Credit Only Issue |
| AB | Assessment Statute of Limitations Waived by Properly Executed Closing Agreement |
| BB | Loss Carryback – § 6501(h) |
| CC | Joint Investigation |
| DD | Credit Carryback – § 6501(j) |
| EE | No Return Filed – § 6501(c)(3) |
| FF | Reference |