IRM 3.14.2 — Notice Review - Business Master File (BMF) Notice Review

# Part 3. Submission Processing

Chapter 14. Notice Review Section 2. Notice Review - Business Master File (BMF) Notice Review 3.14.2 Notice Review - Business Master File (BMF) Notice Review Manual Transmittal October 16, 2025 Purpose (1) This transmits revised IRM 3.14.2, Notice Review - Business Master File (BMF) Notice Review. Material Changes (1) IRM 3.14.2 - Removed all references to CP notices 947A, B, C and 956 as they are obsolete. (2) IRM 3.14.2.1.1 - Removed Control D stand alone and added it to NRPS as the batches are located in Control D. (3) IRM 3.14.2.1.3 - Changed title to Roles and Responsibilities per IRM 1.11.2.2.4. (4) IRM 3.14.2.1.3(1) - Changed Campus to Submission Processing Center (SPC). (5) IRM 3.14.2.1.4(1) - Restructured the sentence and added reviewing taxpayer accounts to more clearly state the program goals for Notice Review. (6) IRM 3.14.2.1.5 - Added Program Control section per IRM 1.11.2.2.4, thereby renumbering the remainder of the section. (7) IRM 3.14.2.1.5(1) - Added BEARS information to request Notice Review programs. (8) IRM 3.14.2.1.5(2) - Added information about weekly sample priority and assignment. (9) IRM 3.14.2.1.6 - Renamed the section Terms and Acronyms per IRM 1.11.2.2.4. (10) IRM 3.14.2.1.6(1) - Added link to Acronyms Database for a comprehensive list and added FTP, HQ, KCSPC, and MI to the acronym table. (11) IRM 3.14.2.1.7(1) - Removed Control D and added it in front of NRPS as the NRPS system is not a research tool but the Control D NRPS batch is a tool. (12) IRM 3.14.2.2.3(2) - Clarified interest charged on amounts paid after the date of notices and demand or 23C date. (13) IRM 3.14.2.3(1) - Added note to link to Exhibit 3.14.2-3 for Computer Paragraph notice information. IPU 25U0148 issued 01-31-2025. (14) IRM 3.14.2.4.1(7) - Added definitions and acronyms. (15) IRM 3.14.2.4.1.2(4) - Corrected print-outs to reports. (16) IRM 3.14.2.4.1.3 - Updated Figure 3.14.2-1 to identify the items on the NRPS batch header page. (17) IRM 3.14.2.4.2(1) - Added OLNR definition, deleted the word program as OLNR is now a Windows based platform, and added a note to see OLNR Access and System Information. (18) IRM 3.14.2.4.2.3 - Changed title from OLNR Access and Notice Disposition to OLNR Access and System Information for clarity. (19) IRM 3.14.2.4.2.3(1) - Defined OLNR and BEARS and added OLNR request roles in an alpha list. (20) IRM 3.14.2.4.2.3(1) a - Added OLNR User role information. (21) IRM 3.14.2.4.2.3(1) b - Added Report User role information. (22) IRM 3.14.2.4.2.3(1) c - Added QA User role information. (23) IRM 3.14.2.4.2.3(1) d - Added PowerUser role information and a caution note stating that users must have a valid BEARS request, be active in OLNR, and included the steps to activate a user. (24) IRM 3.14.2.4.2.3(2) - Added the links for OLNR at all three Notice Review locations. (25) IRM 3.14.2.5.2.1(1) - Clarified using IAT to complete the Form 2275 and removed faxing instructions. (26) IRM 3.14.2.5.2.4(2) a - Added outside correction or voiding to the table. (27) IRM 3.14.2.5.2.4(2) b - Added CC NRP97 input information. (28) IRM 3.14.2.5.3(7) e - Removed paragraph per Counsel decision that Form 8655 does not allow a request for penalty abatement. IPU 25U0241 issued 02-20-2025. (29) IRM 3.14.2.5.3.2(5) a - Added information on how to update the entity tab in OLNR; choose E. (30) IRM 3.14.2.5.3.4(2) - Clarified which tools to use when reviewing a service center address. (31) IRM 3.14.2.5.3.4(5) - Changed from must be used to is mandated for the IAT Address tool. (32) IRM 3.14.2.5.4(3) b - Changed XMIT to page up or transmit for clarity. (33) IRM 3.14.2.5.4.1 - Updated title to CC NRP97 for clarity. (34) IRM 3.14.2.5.4.1(3) - Added no other information is needed to display the response screen. (35) IRM 3.14.2.6.1.1.3(3) - Updated the caution to clearly state Notice Review tax examiners cannot act outside of the IRM list of entity changes. (36) IRM 3.14.2.6.1.1.3(4) - Moved extraneous information from caution in the paragraph above to this section for clarity. (37) IRM 3.14.2.6.1.1.3(6) b - Added if a building or suite number is missing correct the entity using the IAT Address tool. (38) IRM 3.14.2.6.1.1.3(7) - Created new paragraph for clarity to include reasons Notice Review does not change the entity. Moved previous 3.14.2.6.1.1.3(6) e, f, & h to this location. (39) IRM 3.14.2.6.1.1.4(3) - Updated note for language clarity for return due date. (40) IRM 3.14.2.6.1.1.6(2) - Removed check from an example of acceptable signatures as the signature must be accompanied by a jurat statement. (41) IRM 3.14.2.6.1.2(2) - Updated the table to "no additional action required" for clarity and changed void terminology to delete to match OLNR language. (42) IRM 3.14.2.6.1.2(3) - Removed unnecessary center column from the table. (43) IRM 3.14.2.6.1.3(3) - Simplified the caution and removed redundant information per SME request. (44) IRM 3.14.2.6.1.3(4) - Added Entity Control routing for trust name change to this item previously in (3) per SME request. (45) IRM 3.14.2.6.1.5(2) - Removed outdated Debtor Master File offset from before 1/11/1999. (46) IRM 3.14.2.6.1.5(6) - Added alpha list to explain debt liability indicators 0 and 1. (47) IRM 3.14.2.6.1.5.1(3) b - Added transfer the credit elect using the IAT Credit Transfer tool. (48) IRM 3.14.2.6.1.7(1) - Added that the NRPS data is found at the beginning of each notice in the batch. (49) IRM 3.14.2.6.1.7(2) - Added see the following sections for more information. (50) IRM 3.14.2.6.1.7.1(3) - Added common pending statuses seen in Notice Review. (51) IRM 3.14.2.6.1.7.1(5) - Added see the following sections for more information. (52) IRM 3.14.2.6.1.7.1.1 - Added section Pending (PN, RS, or UP) Adjustment Transactions. (53) IRM 3.14.2.6.1.7.1.2 - Added section Pending (PN, RS, or UP) Credit or Debit Transactions (Payments and Credit Transfers). (54) IRM 3.14.2.6.2(3) - Clarified the exception to state hold refund as needed and maintain an open control base. (55) IRM 3.14.2.6.2(4) h - Updated RECON to more clearly state it is used to get the most current data. (56) IRM 3.14.2.6.3.1(1) a - Updated to more clearly state what timeframe is current. (57) IRM 3.14.2.6.3.2(2) - Clarified the then box that the original notice will be voided and the additional notice will be selected using the LCF and then voided. (58) IRM 3.14.2.6.4.3(5) - Changed the mis numbered list and clarified the research steps. (59) IRM 3.14.2.6.4.4(1) - Removed FEMA per Counsel directive as disaster declaration is allowed without FEMA input. (60) IRM 3.14.2.6.4.4(3) a - Changed extended disaster due date to postponed disaster due date per Counsel directive. (61) IRM 3.14.2.6.4.4(5) - Added to route using Form 5101. (62) IRM 3.14.2.6.4.6(3) b - Added Exception to better explain corporate short year due dates for June. (63) IRM 3.14.2.6.4.7.1(6) a - Clarified that the current cycle notice is voided if a better address cannot be found. (64) IRM 3.14.2.6.4.8(2) - Added a note that these CP notices will not be sent after 2025. (65) IRM 3.14.2.6.4.9(1) - Added more detail and separated the information for bonds into separate bullets per Counsel suggestion. (66) IRM 3.14.2.6.4.10 - Removed specific IRC and legislative locations per SME request since employees do not research the tax law to process these cases; minimal review is required since these credits are expired. In addition the section was changed to past tense to indicate the expiration of the credits discussed. (67) IRM 3.14.2.6.4.10(1) - Removed original opening paragraph and replaced it with COVID expiration information. (68) IRM 3.14.2.6.4.10(2) - Added that OB3 legislation terminated several climate provisions enacted by IRA 2022. (69) IRM 3.14.2.6.4.10(5) - Added that OB3 legislation amended ERC for 2021 and prohibits the IRS from allowing ERC claims unless the claims were filed on or before 1-31-2024. (70) IRM 3.14.2.6.4.10.1 - Changed the section to past tense. (71) IRM 3.14.2.6.4.10.1(4) - Added Qualified Commercial Clean Vehicles credit was terminated for vehicles acquired after 9/30/2025 to the table. (72) IRM 3.14.2.6.4.10.1.1 - Changed the section to past tense. (73) IRM 3.14.2.6.4.10.1.1(1) - Updated the middle table column for clarity and to streamline the information. (74) IRM 3.14.2.6.4.10.1.2 - Changed the section to past tense. (75) IRM 3.14.2.6.4.10.1.2(1) - Updated the middle table column for clarity and to streamline the information. (76) IRM 3.14.2.6.4.10.1.3 - Changed the section to past tense. (77) IRM 3.14.2.6.4.10.2 - Changed the section to past tense. (78) IRM 3.14.2.6.4.10.3 - Changed the section to past tense. (79) IRM 3.14.2.6.4.10.3(7) - Added deferred payments and regular payments were made using the same methods. (80) IRM 3.14.2.6.4.10.3.1 - Changed the section to past tense. (81) IRM 3.14.2.6.4.10.4 - Changed the section to past tense. (82) IRM 3.14.2.6.4.11(1) - Changed IRA includes tax and climate credits to IRA is a law applicable to tax and climate credits based on Counsel feedback. (83) IRM 3.14.2.6.4.11.1(1) - Removed redundant timely filed sentence; removed credits and replaced with election and making the election instead of choosing for clarity. (84) IRM 3.14.2.6.4.11.1(3) - Clarified that taxpayers must pre-register and receive the registration number before filing with the IRS and making an EPE. (85) IRM 3.14.2.6.4.11.1(4) - Clarified the entities affected per Counsel feedback; edited one credit in the paragraph and table due to the applicable IRC. In addition, noted that Qualified Commercial Clean Vehicles was terminated by OB3 for vehicles acquired after September 30, 2025. (86) IRM 3.14.2.6.4.11.1(5) - Clarified which taxpayers (including individuals) that are non-applicable entities are also eligible to make an EPE. (87) IRM 3.14.2.6.4.11.2(1) - Clarified the treatment of EPE in regard to the due date of the return. (88) IRM 3.14.2.6.4.11.3(1) - Added more information and mirrored EPE per Counsel feedback. (89) IRM 3.14.2.6.4.11.3(2) - Added new paragraph with pre-registration statement and corrected table header which said EPE instead of TRE in error. (90) IRM 3.14.2.6.5(1) - Clarified the TCJA of 2017 and corrected to past tense. (91) IRM 3.14.2.6.5(2) - Changed to are required to report to reported since a new IRC 965 election can no longer be made. (92) IRM 3.14.2.6.5(3) - Changed "intended to be" to "is subject to". (93) IRM 3.14.2.6.5(4) - Changed "can be made" to "are allowable". (94) IRM 3.14.2.6.5(4) - Changed "could be made" to "taxpayers could make". (95) IRM 3.14.2.6.5(6) - Corrected to past tense and removed bullet list not needed for notice processing. (96) IRM 3.14.2.6.5(7) - Clarified that reporting in 2018 is different from 2017 and added citations. (97) IRM 3.14.2.6.5(7) a - Removed redundant "any tax year with liability". (98) IRM 3.14.2.6.5(8) - Moved previous paragraph (8) to the new 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (99) IRM 3.14.2.6.5(8) - Updated current paragraph previous (13) to clarify that excess remittance was applied to outstanding IRC 965 liability only in the inclusion year or the year IRC 965(i) election tax liability is assessed. (100) IRM 3.14.2.6.5(9) - Deleted previous paragraph (9) table with line locations of inclusion year as the 2017 Form data is no longer necessary. (101) IRM 3.14.2.6.5(10) - Deleted previous paragraph (10) table with line locations of inclusion year as the 2018 Form data is no longer necessary. (102) IRM 3.14.2.6.5(11) - Deleted previous paragraph (11) table with line locations of inclusion year as the 2019 Form data is no longer necessary. (103) IRM 3.14.2.6.5(12) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (104) IRM 3.14.2.6.5(14) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (105) IRM 3.14.2.6.5(15) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (106) IRM 3.14.2.6.5(16) - Moved to the new section, 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (107) IRM 3.14.2.6.5(17) - Deleted previous paragraph (17) at this location as the information is no longer needed to process returns. (108) IRM 3.14.2.6.5.1 - Added new section, Identifying IRC 965 Elections and Payments, to assist tax examiners in identifying IRC 965 case impact and moved TC 971 AC 114 Explained to section 3.14.2.6.5.2. (109) IRM 3.14.2.6.5.2(1) a - Added REQ77 to note for clarification, added an exception for IRC 965 in 2020 and corrected to past tense. (110) IRM 3.14.2.6.5.2(1) b - Removed redundant statement about TC 971 AC 114 posting only to the inclusion or triggering event year. (111) IRM 3.14.2.6.5.2(2) - Updated all citations due to section realignment and added title, IRC 965(i) Elections. (112) IRM 3.14.2.6.5.3(4) - Removed former paragraph 4 redundant data alpha list about reporting tax inclusion. (113) IRM 3.14.2.6.5.3(5) - Combined the information from the table in a paragraph stating that a Form 965-A is required for all IRC 965(i) electors each year until their liability is assessed and paid in full; added review the return and attachments when an IRC 965(i) election is made. (114) IRM 3.14.2.6.5.3(6) - Removed former paragraph 6 unnecessary line numbers for reporting tax inclusion. (115) IRM 3.14.2.6.5.3(7) - Reordered TC 971 data and clarified triggering event information. (116) IRM 3.14.2.6.5.3(9) - Deleted table that was previously at this location and moved the other information to new section 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. (117) IRM 3.14.2.6.5.3.1(3) - Changed the MISC table note to any subsequent year from the annual reporting. (118) IRM 3.14.2.6.5.3.1(4) - Deleted former paragraph 4 due to redundancy and research steps from adjustment directions. (119) IRM 3.14.2.6.5.3.1(4) - Clarified the table reference for TC 971 AC 165. (120) IRM 3.14.2.6.5.3.1(5) - Clarified the table is for verifying IRC 965(i) TC 971 AC 165 transactions. (121) IRM 3.14.2.6.5.4(1) - Removed redundant "election" from the deferral statement. (122) IRM 3.14.2.6.5.4(3) - Moved caution statement for IRC 965(i) elections that may trigger and change to an IRC 965(h) election from beneath the alpha list. (123) IRM 3.14.2.6.5.4(6) - Added IDRS to note to clarify where to identify DPC 64. (124) IRM 3.14.2.6.5.4(7) - Added "in the inclusion year only" to clarify when the -R freeze will set. (125) IRM 3.14.2.6.5.4(8) a - Removed unnecessary table with line numbers from prior year forms. (126) IRM 3.14.2.6.5.4(8) a - Changed "for" to "with" to clarify the TC 971 triggered liability. (127) IRM 3.14.2.6.5.4(8) b - Changed the note from "off of" to "on" to clarify BMF return entries. (128) IRM 3.14.2.6.5.4(8) c - Added CRN to clarify the 263. (129) IRM 3.14.2.6.5.4(8) e - Added review all possible inclusion year modules in BMFOLM. (130) IRM 3.14.2.6.5.4(9) - Added caution statement for the table data date information. (131) IRM 3.14.2.6.5.4(9) - Removed mis-numbered and redundant step list. (132) IRM 3.14.2.6.5.4(9) - Added a caution before the table stating that the table dates only applied to an original IRC 965(h) inclusion; and IRC 965(i) inclusion that triggers and the taxpayer elects an (h) at that time will have different installment dates. (133) IRM 3.14.2.6.5.4(10) - Removed CP 965 due to programming changes. (134) IRM 3.14.2.6.5.4.1(5) - Removed redundant DPC 64 statements from the table. (135) IRM 3.14.2.6.5.4.1(7) - Removed "if an adjustment is needed" to it a 971 is incorrect since a REQ77 could be confused with an account adjustment. (136) IRM 3.14.2.6.5.4.1(9) - Moved table from former (16) when the inclusion year and/or triggering event year module is in a debit balance. (137) IRM 3.14.2.6.5.4.1(10) - Clarified input for SEQ-NUM> field. (138) IRM 3.14.2.6.5.4.1(11) - Clarified that the table is for leads only. (139) IRM 3.14.2.6.5.4.1(12) - Clarified that the table is for leads only. (140) IRM 3.14.2.6.5.4.1(13) - Clarified that the table is for leads only. (141) IRM 3.14.2.6.5.4.1(15) - Deleted former paragraph (15) which contained duplicate information. (142) IRM 3.14.2.6.5.4.1(16) - Moved table from former (16) to current paragraph (9). (143) IRM 3.14.2.6.5.5 - Removed from the section CP notices 947A, 947B, 947C and 956 as they have be obsoleted and are no longer sent to taxpayers. (144) IRM 3.14.2.6.5.5(3) - Updated the second bullet to follow the adjustment procedures, added take to a lead for adjustment if needed, and if there is a remaining liability to print the notice. (145) IRM 3.14.2.6.5.5(4) - Added take to a lead for adjustment if needed. (146) IRM 3.14.2.6.5.6(7) - Added paragraph to review all possible inclusion modules to verify payment placement. (147) IRM 3.14.2.6.6.2(8) - Added see the campus directory for statute contact information. (148) IRM 3.14.2.6.6.19(1) - Per Counsel feedback removed the word federally before declared disasters. (149) IRM 3.14.2.6.7.1.5(2) b - Corrected extension capability for Form 706-NA. (150) IRM 3.14.2.6.7.1.5(2) c - Added Form 8892 extension information for Form 709 and Form 709-NA. (151) IRM 3.14.2.6.7.1.5(6) - Deleted redundant stop number and indicated Form 3465 should be attached. (152) IRM 3.14.2.6.7.2 (6) a - Clarified payment pattern is a history. (153) IRM 3.14.2.6.7.2(10) - Clarified payment pattern. (154) IRM 3.14.2.6.8(4) d - Clarified in the exception note how to release Q- freeze. (155) IRM 3.14.2.6.8(4) f - Added Caution that 3 cycles must remain before transferring credits on Q- freeze. (156) IRM 3.14.2.6.8(5) b - Updated to clearly state what a zero tax return is and directed to 3.14.2.6.7.2 for more information. (157) IRM 3.14.2.6.8(5) (i) - Removed outdated information about ordering paper vouchers and using RTR for payments after 2003 and added CC EFTPS. (158) IRM 3.14.2.6.8(6) - Removed outdated information about ordering paper vouchers and check copies and added CC EFTPS definer E. (159) IRM 3.14.2.6.8(6) c - Clarified the paragraph and linked to the correct citation paragraph for -A freeze. (160) IRM 3.14.2.6.8(7) c - Added caution that at least three cycles must remain before initiating a credit transfer and what to do if less than three cycles remain; included -E freeze table. (161) IRM 3.14.2.6.8(8) - Added Caution that 3 cycles must remain before transferring credits on Q- freeze and included -Q freeze decisions table that was previously only in 3.14.2.6.7.3(9). (162) IRM 3.14.2.6.8(10) - Added Caution that 3 cycles must remain before transferring credits on Q- freeze. (163) IRM 3.14.2.6.8(11) - Removed CP from the table rows and updated the table header and updated CP 268 conversion for programming changes. (164) IRM 3.14.2.6.8(13) d - Removed IDRS field code and replaced with TC for tax examiner clarity. (165) IRM 3.14.2.6.8(15) d- Clarified the adjustment needed for incorrect or doubled withholding or credits. (166) IRM 3.14.2.6.8(16) d- Clarified when to use LCF, added which hold codes will prevent an additional notice from generating, and added the correct citation titles. (167) IRM 3.14.2.6.8(17) - Clarified posting delay reason in the table, first then box; clarified the caution to state the notice is voided in OLNR and a history item is needed in IDRS. (168) IRM 3.14.2.6.8(19) - Clarified that hold code 3 or 4 prevents another notice or CC NRP97 can intercept using LCF. (169) IRM 3.14.2.6.8(20) - Clarified if a pending TC 150 or amended return, do not release the refund, and if voiding the notice leave a history item in IDRS. (170) IRM 3.14.2.6.10.1(4) - Updated table for Failure to File electronically for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025. (171) IRM 3.14.2.6.10.1(4) - Updated table to add penalty amounts for tax returns due in 2026. (172) IRM 3.14.2.6.10.2(1) - Removed "failure to file a complete tax return" since the PRN 722 only applies to failure to file timely. (173) IRM 3.14.2.6.10.2(2) - Added TC 30X input with a PRN 722 will also generate a CP 162A. (174) IRM 3.14.2.6.10.2(9) b - Updated table for Failure to File a complete return for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025. (175) IRM 3.14.2.6.10.2(9) b - Updated the penalty to $255 after 12/31/2025. (176) IRM 3.14.2.6.10.3(3) - Added TC 30X input with a PRN 723 will also generate a CP 162B. (177) IRM 3.14.2.6.10.4(3) - Removed 2024 tax year from the CP 162E manual intervention only review as programming was not updated. IPU 25U0148 issued 01-31-2025. (178) IRM 3.14.2.6.14(1) - Clarified that CP 910 and CP 920 are Spanish versions of the CP 210 and CP 220. (179) IRM 3.14.2.6.14(2) - Added information on identifying an examination adjustment, that DP adjustments include those done in notice review and that DOC code 34 credit transfers input as ADD34 with a correspondence received date generates a CP 225. (180) IRM 3.14.2.6.14(3) - Added that NRPS selects these CPs for review due to pending transactions and provided common selection keys. (181) IRM 3.14.2.6.14(6) - Clarified that inputting incorrect adjustments and credit transfers can generate unnecessary adjustment notices; added BPI is also needed to prevent unpostable transactions. (182) IRM 3.14.2.6.14.1 - Removed paragraphs and created sections 3.14.2.6.14.2 through 3.14.2.6.14.6 due to tax examiners being unable to easily search and find the information. (183) IRM 3.14.2.6.14.2 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, clarified the review steps, and titled it CP 210 (CP 910) and CP 220 (CP 920) Review Procedures. (184) IRM 3.14.2.6.14.3 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, clarified the what generates the doc code transactions, and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Doc 47 or 54 Transactions. (185) IRM 3.14.2.6.14.4 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920 and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Credit Transactions. (186) IRM 3.14.2.6.14.5 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920 and titled it CP 210 (CP 910) and CP 220 (CP 920) With Pending Debit Transactions. (187) IRM 3.14.2.6.14.6 - Separated the section from 3.14.2.6.14.1, CP 210, CP 220, CP 910, CP 920, titled the section CP 210/ CP 220 Annual Branded Prescription Drug (BPD) Fee - Ogden Only and provided Ogden information on BPD cases that HQ should be contacted. (188) IRM 3.14.2.6.15(1) - Removed 3X5 card as TPNC 90 information is received from ERS on Form 12648. (189) IRM 3.14.2.6.15(1) b - Replaced all mention of 3X5 card with Form 12648 throughout the table and removed redundant sentence from the last box. (190) IRM 3.14.2.6.15(1) e- Added the maximum character limitation in OLNR for TPNC 90. (191) IRM 3.14.2.6.17(2) - Updated with a caution to subtract applicable FTP from FTF. IPU 25U0241 issued 02-20-2025. (192) IRM 3.14.2.6.17.3 - Updated title for clarity to Failure to File (Delinquency) Penalty Recomputation IRC 6651(a)(1) and reordered the section to clarify the steps used to calculate base FTF and FTF with overlapping FTP. IPU 25U0241 issued 02-20-2025. (193) IRM 3.14.2.6.17.3(4) - Updated table for Failure to File for dates after 12-31-2024. IPU 25U0148 issued 01-31-2025. (194) IRM 3.14.2.6.17.3(5) - Added CC INTSTD and PIFTF for review and penalty rate impact for specific account conditions. IPU 25U0241 issued 02-20-2025. (195) IRM 3.14.2.6.17.3(6) - Added note to introduce OSP FTF penalty tool. IPU 25U0241 issued 02-20-2025. (196) IRM 3.14.2.6.17.3(7) - Added the IDRS fields to identify the months delinquent to view the penalty period. IPU 25U0241 issued 02-20-2025. (197) IRM 3.14.2.6.17.3(10) - Clarified the calculation of FTF with overlapping FTP and provided an example and removed the previous incorrect 5(g) rate table from the reordered paragraph. IPU 25U0241 issued 02-20-2025. (198) IRM 3.14.2.6.17.3(11) - Updated the penalty to $525 after 12/31/2025. (199) IRM 3.14.2.6.17.3(12) - Updated to clarify that REQ54 is used to abate FTF manually. IPU 25U0241 issued 02-20-2025. (200) IRM 3.14.2.6.17.6(2) - Updated step list for clarity to alpha instead of numeric. IPU 25U0241 issued 02-20-2025. (201) IRM 3.14.2.6.17.7(1) - Changed "provides for a penalty" to "imposes a penalty in addition to tax". (202) IRM 3.14.2.6.17.7(4) a - Corrected the missing tax year. (203) IRM 3.14.2.6.18(7) - Removed confusing note to not edit CCC G on an amended return since Notice Review does not process and will not receive an amended return. (204) IRM 3.14.2.6.18(18) b - Changed Figure 3.14.2-7 name to Command Code (CC) FRM77 response screen for CC REQ77 to input a TC 971 Action Code (AC) 001. (205) IRM 3.14.2.7.1 - Updated Figure 3.14.2-8, IDRS CC NOREF Input, to include new direct deposit or paper refund indicator field. (206) IRM 3.14.2.7.1(2) - Moved previous (9) to this paragraph so tax examiners could see it above the table. (207) IRM 3.14.2.7.1(3) - Added a NOREF accelerated refund cycle chart. IPU 25U0148 issued 01-31-2025. (208) IRM 3.14.2.7.1(3) - Created new (3) by moving NOREF input and base information from controlling cases to this section as it applies directly to NOREF. (209) IRM 3.14.2.7.1(5) - Added new direct deposit information and included caution that NOREFD is no longer available. (210) IRM 3.14.2.7.1(6) - Updated the NOREF cycle chart for 2025. IPU 25U0148 issued 01-31-2025. (211) IRM 3.14.2.7.1(6) - Updated Accelerated refund chart for 2026 data. (212) IRM 3.14.2.7.1(7) - Removed all definers except NOREFM as all other definers are invalid due to programming updates; Figure 3.14.2-8, IDRS CC NOREF Input, was also updated. (213) IRM 3.14.2.7.1(9) - Updated NOREF cycle chart for 2026. (214) IRM 3.14.2.7.1(10) - Removed previous (10) as NOREFD cannot be used starting in 2026. (215) IRM 3.14.2.7.1.1 - Removed NOREFD section as it is no longer available due to programming updates. (216) IRM 3.14.2.7.1.2(1) - Corrected the Activity code column in the table to remove the abbreviation as that is already stated in the Abbreviation column. (217) IRM 3.14.2.7.2(3) - Moved NOREF data here from controlling cases as it applies to reconciling NOREF. (218) IRM 3.14.2.7.2.1(5) c - Clarified the labeling and adjustment process for turnaround cases. IPU 25U0148 issued 01-31-2025. (219) IRM 3.14.2.7.2.1(8) - Added more description to the types of erroneous refunds. (220) IRM 3.14.2.7.2.1(11) a - Removed outdated statement about the notice already being mailed. (221) IRM 3.14.2.7.2.1(12) a - Removed outdated statement about the notice already being mailed. (222) IRM 3.14.2.7.3(1) - Added control base definition. (223) IRM 3.14.2.7.3(2) - Added a control base can be generated systemically and the items that establish a control. (224) IRM 3.14.2.7.3(3) - Added a control base can be established manually and included ACTON information. (225) IRM 3.14.2.7.3(4) - Clarified that a hold notice is H in OLNR. (226) IRM 3.14.2.7.3(5) - Moved to section 3.14.2.7.1. (227) IRM 3.14.2.7.3(6) - Moved to section 3.14.2.7.1. (228) IRM 3.14.2.7.3(7) - Moved to section 3.14.2.7.2. (229) IRM 3.14.2.7.5(8) - Added new paragraph for international addresses. (230) IRM 3.14.2.7.6.3(1) - Clarified which hold code freezes the overpayment and which suppresses an adjustment notice. (231) IRM 3.14.2.7.6.3(2) - Added hold code 0 will not freeze the overpayment. (232) IRM 3.14.2.7.6.6.2(1) - Corrected ASHIP type in the note. (233) IRM 3.14.2.7.6.6.5 - Updated title and section to add series to Form 943 per Development Services Branch. (234) IRM 3.14.2.7.6.6.5(1) - Added series to Form 943 per Development Services Branch. (235) IRM 3.14.2.7.6.6.5(2) - Added series to Form 943 per Development Services Branch for IRN 119 and 185. (236) IRM 3.14.2.7.7(9) - Moved posting delay chart here from 11b as it was in the wrong place. (237) IRM 3.14.2.7.9(2) b - Updated the note to only suppress an adjustment notice when adding an extension if the penalties will recompute to zero. (238) IRM 3.14.2.7.10(2) - Changed "may send the notice" to "must send a notice per legal requirements". (239) IRM 3.14.2.7.10(5) a - Clarified the steps and decisions involved before inputting an adjustment. (240) IRM 3.14.2.7.10(5) b - Clarified that the TE must decide if an adjustment notice will or should generate. (241) IRM 3.14.2.7.10(10) - Updated the last bullet for missing offset information. (242) IRM 3.14.2.7.10.3(2) - Clarified that the LCF is used for preventing a later adjustment notice. (243) IRM 3.14.2.7.10.5(4) - Updated the history item example it exceeded ten characters. (244) IRM 3.14.2.7.10.6.17(3) - Corrected typo of 14 to correct Label 17. (245) IRM 3.14.2.8.1(1) - Removed obsolete Pub 80 and 179 and added Pub 15 (Circular E) Employer's Tax Guide. (246) IRM 3.14.2.9.3(1) a - Clarified the filing deadlines for international returns. (247) IRM 3.14.2.9.3(1) b - Added protects the right to claim deductions (different than an extension to file), per Counsel feedback. (248) IRM 3.14.2.9.3(1) c - Clarified that an extension of tile to file affects FTF but not FTP penalties; previous sentence was confusing and incorrect. (249) IRM 3.14.2.9.5 - Updated title to Withholding Tax on Foreign Partners - Form 8804, 8805, 8813, and 8288. (250) IRM 3.14.2.9.5(8) - Clarified Forms 8288 and 8288-A are filed to report and pay withholding tax due to the disposition by foreign persons of U.S. real property interests and interests in partnerships engaged in a U.S. trade or business. (251) IRM 3.14.2.9.5(9) - Added Form 8288 IRC 1446(f) information per Counsel request. (252) IRM 3.14.2.9.7(1) - Added these forms are used to report section 1446(a) withholding by PTPs on distributions of effectively connected taxable income and section 1446(f) withholding on the dispositions of interests in PTPs engaged in a U.S. trade or business per Counsel feedback. (253) IRM 3.14.2.9.10(8) - Removed paragraph due to outdated manual notice practices. (254) IRM 3.14.2.9.10(9) - Removed paragraph due to manual notice outdated practices. (255) IRM 3.14.2.9.13 - Updated title per Counsel Form 706-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States. (256) IRM 3.14.2.9.13(1) - Updated to clarify who files Form 706-NA and combined with previous paragraph two information. (257) IRM 3.14.2.9.13(2) - Updated previous paragraph 3 to clearly state the due date information. (258) IRM 3.14.2.9.13(3) - Added correct extension information for Form 706-NA. (259) IRM 3.14.2.9.13(4) - Added extension information for Form 706-NA and SB/SE delegation IRM. (260) IRM 3.14.2.9.14(1) - Removed new for 2025 from last year. (261) IRM 3.14.2.9.14(3) - Removed incorrect due date information and updated with the correct filing requirements and due dates. (262) IRM 3.14.2.9.15(1) e - Added Form 1120-F or 1120-FSC must be filed to claim the benefit of deductions or credits. (263) IRM 3.14.2.9.15(1) f - Added Form 1120-F or 1120-FSC must be filed to claim income IRC 6114; also added note that the list does not include all situations. (264) IRM 3.14.2.9.15(2) - Added or U.S. domestic law per Counsel feedback. (265) IRM 3.14.2.9.18(1) a - Added section 1446(f) per Counsel feedback. (266) IRM 3.14.2.9.19(1) - Added bullets to explain FDAP and Form 1120-F section II information. (267) IRM 3.14.2.9.19(2) - Added a bullet for Form 1120-F section I information. (268) IRM 3.14.2.9.19(3) - Removed previous paragraph 3 Section II of Form 1120-F is used to compute tax for the clearer information provided in paragraph one bullets. (269) Exhibit 3.14.2-2 - Clarified due dates for Forms 1041, 1065, and 1120. (270) Exhibit 3.14.2-4 - Updated the title to clarify the exhibit and added missing Forms 990-PF, 1040 series, 1066, 1120-POL, 3520, 3520-A, 5329, 5330, 5500, 8038-B, 8038-GC, 8038-T, 8038-TC, 8278- Civil Penalty, 8288, 8328, 8697, 8703, 8752, 8804, 8805, 8813, 8849, 8871, and 8872. (271) Exhibit 3.14.2-5 - Added information for the acronyms and added the link to the database. (272) Exhibit 3.14.2-10 - Clarified EPE information for CP 131 and updated the CP 268 conversion for programming changes. (273) Exhibit 3.14.2-12 - Image corrected to state delete extension instead of add extension. (274) Exhibit 3.14.2-14 - Updated to complete form type column for all forms and added missing forms. (275) Exhibit 3.14.2-28 - Corrected 4th payment June date from 6/16 to 6/15. (276) Exhibit 3.14.2-29 - Added clarifying information on which month the Form 2290 is due and added CP 161 processing link. (277) Exhibit 3.14.2-33 - Added MFT 74 to the exhibit has a plan number is needed for Form 5500-EZ. IPU 25U0148 issued 01-31-2025. (278) Exhibit 3.14.2-33 - Updated the entire section to include MFT 74 to match the title and information and added BMF SSN input format to the tables. (279) Editorial changes were made throughout the IRM and include: corrected spelling and grammatical errors, corrected IRM references, and replaced all instances of incorrect "mail" verbiage to "print" for notice disposition. IPU 25U0148 issued 01-31-2025. (280) Editorial changes were made throughout the IRM and include: updated all mention of the IAT Credit Transfer Tool from required to mandated verbiage, updated all mention of the IAT Address Tool from required to mandated verbiage, added use of IAT Fill Forms throughout to make form completion easier, changed Campus to Submission Processing Center (SPC) throughout, updated all TC 290 to TC 290 .00 per reviewer feedback, updated per plain language guidelines included changes from subsequent to next or another, updated paragraph layouts to match style throughout the IRM, added missing titles to forms and citations, added missing table introduction sentences, corrected spelling and grammatical errors, updated Online to OnLine (in OnLine Notice Review) for consistency throughout Notice Review programs, added Control D to NRPS batches for consistency throughout Notice Review programs, corrected spacing issues, corrected dash (-) versus double dash (--), corrected IRM references, and corrected capitalization issues. Effect on Other Documents IRM 3.14.2, Notice Review - Business Master File (BMF) Notice Review, dated October 31, 2024, effective January 1, 2025, is superseded. The following IRM Procedural Updates (IPU), BMF Notice Review Startup IPU, 25U0148, issued 01-31-2025 and Failure to File Clarifications; Form 8655 Representative Information Update, 25U0241, issued 2-20-2025 have been incorporated into this IRM. Audience Business Master File (BMF) Notice Review tax examiners primarily in Kansas City and Ogden, Submission Processing Campuses. Effective Date (01-01-2026) Scott Wallace Director, Submission Processing Taxpayer Services Division

# Program Scope and Objectives

3.14.2.1 (01-01-2020) Program Scope and Objectives This section provides instructions to the Submission Processing Notice Review function for reviewing Business Master File (BMF) Computer Paragraph (CP) notices. These notices are selected for review by the Notice Review Processing System (NRPS). Note: Notices may also be mandated for review by Treasury Inspector General for Tax Administration (TIGTA), management, policy statements, etc. Purpose: This section provides BMF Notice Review personnel with instructions for reviewing CP notices that have been selected by the Notice Review Processing System (NRPS). Reviews are conducted with the goal of improving both the accuracy and quality of information the IRS sends to the taxpayers. The Notice Review process helps to ensure the information received by taxpayers is complete and correct. Audience: These procedures apply to Taxpayer Services (TS) Submission Processing (SP) Business Master File (BMF) Notice Review personnel, located primarily in Kansas City and Ogden: Supervisory Tax Examining Technician Lead Tax Examining Technician Tax Examining Technician Supervisory Clerk Lead Clerk Clerk Policy Owner: Director, Submission Processing Program Owner: Specialty Programs Branch, Post Processing Section Primary Stakeholders: Other areas that may be affected by these procedures include (but are not limited to): Accounts Management (AM) Chief Counsel Compliance Information Technology (IT) Programmers Large Business and International (LB&I) Submission Processing (SP) Tax Exempt and Government Entities (TE/GE)

# Background

3.14.2.1.1 (01-01-2026) Background Notice Review is the process where tax accounts with specific, pre-determined account activity, are selected for manual review. Most cases involve review of a generated notice, but some account conditions trigger a review to intercept and correct possible processing errors and potential erroneous refunds (example: refund transcript). This process allows tax examiners (TEs) to analyze the account and the notice to decide if the information on the notice is complete and represents the most current account information before the BMF Computer Paragraph (CP) notice is mailed to the taxpayer. Notice Review employees use the Control D Notice Review Processing System (NRPS) Package, and Integrated Data Retrieval System (IDRS) to ensure the information for each notice and account is correct. Any changes to the notices are made using the OnLine Notice Review (OLNR) system. The ultimate goal of this process is to allow the IRS the opportunity to change inaccurate information on the notice before mailing to reduce taxpayer inquiries, both written and by phone. The end result will give the taxpayer the most accurate and current tax account information available at the time of mailing. The review of refund transcripts can decrease taxpayer burden and reduce the cost to the IRS for recovery efforts of erroneous refunds.

# Authority

3.14.2.1.2 (01-01-2023) Authority The following provide authority for the instructions in this IRM: Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC). All Policy Statements are contained in IRM 1.2.1, Servicewide Policies and Authorities, Servicewide Policy Statements. All Policy Statements for Submission Processing are contained in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

# Roles and Responsibilities

3.14.2.1.3 (01-01-2026) Roles and Responsibilities The Submission Processing Center (SPC) Director is responsible for monitoring operational performance for the SPC. The Operations Manager is responsible for monitoring the performance of their assigned operation. The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties. The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

# Program Management and Review

3.14.2.1.4 (01-01-2026) Program Management and Review Program Goals: Review Computer Paragraph (CP) notices and corresponding taxpayer accounts to verify their accuracy and ensure all taxpayer notices and posted accounts are complete and correct. Program Reports: The NRPS system produces several types of reports, which can be accessed on Web Control-D. See IRM 3.14.2.4.1.2, NRPS Output Files, for more information. Program Effectiveness: The program goals are measured by using the following tools: Embedded Quality Submission Processing (EQSP) Balanced Measures Managerial Reviews Annual Review: The processes outlined in this IRM should be reviewed annually to ensure accuracy and promote consistent tax administration.

# Program Controls

3.14.2.1.5 (01-01-2026) Program Controls All tax examiners must submit requests through Business Entitlement Access Request System (BEARS) for Integrated Data Retrieval System (IDRS), Control D Web Access Server, Account Management System (AMS), and OnLine Notice Review (OLNR). These requests must be approved by management before the employee can gain access to the above systems to perform Notice Review work. Tax examiners review work from a weekly sample selected by the Notice Review Processing System which loads to the OnLine Notice Review Platform for correction. The assignment of work is performed by site personnel as directed by this manual and National Headquarters Staff. This work is reviewed by SPC Quality Review employees.

# Terms and Acronyms

3.14.2.1.6 (01-01-2026) Terms and Acronyms This table lists some Acronyms, Abbreviations and Definitions. For a full list of acronyms use the Acronyms Database. Acronyms and Abbreviations Definition AC Action Code AM Accounts Management BFS Bureau of Fiscal Services BMF Business Master File CADE Customer Accounts Data Engine CAF Centralized Authorization File CC Command Code CNM Contact Not Made COB Close of Business CP Computer Paragraph CRD Correspondence Received Date CRN Credit Reference Number DC Document Code DLN Document Locator Number DP Data Processing DPE Deemed Payment Election EFT Electronic Funds Transfer EFTPS Electronic Federal Tax Payment System EIN Employer Identification Number ELF Electronic Return Filing EPE Elective Payment Election ERS Error Resolution System ES Estimated Tax EUP Employee User Portal FTD Federal Tax Deposit FTF Failure to File FTP Failure to Pay HCTC Health Coverage Tax Credit HQ Headquarters IAT Integrated Automation Technologies IDRS Integrated Data Retrieval System IRC Internal Revenue Code IRM Internal Revenue Manual IRN Item Reference Number KCSPC Kansas City Submission Processing Center LB&I Large Business and International LCF Local Control File MEC Math Error Code or Minimum Essential Coverage MeF Modernized Electronic Filing MFT Master File Tax Code MI Manual Intervention MMDDYY Month Month Day Day Year Year NR Notice Review NRPS Notice Review Processing System OLNR OnLine Notice Review OSPC Ogden Submission Processing Center POA Power of Attorney RA Reporting Agent RAF Reporting Agent's File RDD Return Due Date RPC Return Processing Code RPD Return Processable Date RPS Remittance Processing System RTF Return Transaction File RTR Remittance Transaction Research System SERP Servicewide Electronic Research Program SSN Social Security Number TAS Taxpayer Advocate Service TBOR Taxpayer Bill of Rights TC Transaction Code TE Tax Examiner TE/GE Tax Exempt & Government Entities TIGTA Treasury Inspector General for Tax Administration TIN Taxpayer Identification Number TOP Treasury Offset Program TPNC Taxpayer Notice Code TRS Transcript Request System TS Taxpayer Services formerly Wage and Investment (WI) UPC Unpostable Code XREF Cross Reference

# Related Resources

3.14.2.1.7 (01-01-2026) Related Resources The following resources may assist in performing the work as outlined in this IRM: Servicewide Electronic Research Program (SERP) Control D Notice Review Processing System (NRPS) Batch OnLine Notice Review (OLNR) Integrated Data Retrieval System (IDRS) Employee User Portal (EUP) Remittance Transaction Research (RTR) System Account Management System (AMS)

# IRM Deviations

3.14.2.1.8 (01-01-2025) IRM Deviations Submit IRM deviations in writing following instructions from IRM 1.11.2.2.3, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

# Prioritization of Work for BMF Service Centers

3.14.2.1.9 (01-01-2025) Prioritization of Work for BMF Service Centers The goal of the Notice Review Departments is to complete their BMF selected notices by the established cutoff times. The cycle will load Friday and will close out the second Monday at 2:00 AM. If there is a possibility that the entire cycle will not be reviewed, the centers cannot extend the cycle and must prioritize the work in the following order: TPNC (sometimes referred to as Math Error Code) 90 (Key 009) Large Corp Notices (Key 006). These are worked by the Large Corp Teams but should be completed in their entirety each cycle. IRC 965 Keys (Keys 16, 50) Manual Intervention Listing. If listings are not processed within cycle, they will default to "held" inventory creating a backlog of inventory in Notice Review. Any notice selected through the LCF (Keys 82, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99). Branded Prescription Drug (BPD) and Insurance Provider Fee (IPF- repealed December 31, 2020) Notices (Key 18) Ogden only. If after the priorities listed above are completed and resources are available to continue cycle processing, then process the remaining notices in the following order: Follow any priority updates provided by Headquarters if 100% of sample cannot be completed. Refund Selection Keys (start with refund transcripts), be mindful of command code NOREF cutoff times. Balance Due Keys (start with Keys 40, 42, 43, 44, 45, 46, 47, 48, 49). CP 267 (Keys 11, 12, 34, 36, 71, 72, 83). All other selected notices not mentioned above. Notify the BMF Notice Review Headquarters (HQ) analyst if cycle review will not be completed. Provide the HQ analyst with the reason why the cycle was not completed. Note: These priorities may be modified by the HQ analyst based on organizational requirements.

# Notice Review Program Guidelines

3.14.2.2 (01-01-2024) Notice Review Program Guidelines Notice Review employs the following to achieve its goal: Quality Timeliness Interest Reduction Effectiveness Completeness

# Quality

3.14.2.2.1 (01-01-2024) Quality The Notice Review area performs reviews on the following products: Math Error Notices: These notices are generated as a result of the assignment of taxpayer notice codes (TPNCs) also known as math error codes (MECs) by ERS/Rejects. Review is conducted to ensure the return was processed correctly and the appropriate Taxpayer Notice Code/Math Error Code was assigned during processing. MEC is often used synonymously with TPNC throughout the IRM and in Notice Review training. Adjustment Notices: These notices are generated as a result of adjustments input by areas throughout the IRS. Review is conducted to ensure the adjustment was input correctly and is correctly reflected on the notice. Settlement Notices: These notices generate based upon specific conditions of issuance upon settlement/posting of the return. Review is conducted to ensure the return was processed/posted correctly and the appropriate notice was issued. Associated Notices: If a notice is selected for review, any additional notice that generated for the same taxpayer as the selected notice is reviewed for accuracy. CAF/RAF Notices: These are notices that are issued to an authorized representative. Research is performed to ensure the recipient is listed as an authorized representative for the return and tax period listed on the notice and whether or not they are authorized to receive notices. BMF Refund Transcripts: These are service center notices that contain information on pending refunds. Review is conducted to ensure the accuracy of the refund prior to issuance to minimize erroneous refunds. Notice accuracy is increased when appropriate feedback is provided to all areas that contribute to the generation of erroneous notices or refunds. An effective method must be developed to provide feedback to the responsible processing functions at a local level. Reminder: This feedback must be provided weekly during the current filing season. For the process to work, Notice Review TEs must be allowed time to assemble and provide feedback information to the team lead, who will contact the appropriate functional area. The OnLine Notice Review (OLNR) Disposition Reports can be used as a tool to identify error trends with CPs and keys that could indicate processing issues. There are two basic formats for these reports: The CP Format provides a breakdown of each selection key by CP number for a given cycle. The Key Total Format provides a breakdown of each notice by selection key for a given cycle. The Cumulative history reports show year-to-date totals for the above reports. The weekly reports only show data for those keys with current cycle activity. The history reports show data for keys that have had activity at any time during the year. The historical records are used to assist in feedback sessions with functional areas that cause the generation of notices. Provide your Headquarters Analyst a monthly list of error trends so that it can be shared with the appropriate Headquarters processing analyst. If the IRM contains inconsistencies and/or conflicting information, immediately submit this information to the HQ Analyst for resolution. Be sure to include all applicable local analysts and personnel. Caution: Do not establish local procedures without first contacting the HQ Analyst. The Servicewide Electronic Research Program (SERP) is the program used to distribute IRM changes and IRM alerts to the service centers. IRM changes are sent to the SERP Area who then posts the updated version on SERP the next business day. IRM alerts are issued for a variety of reasons and generally will not update the IRM. These include changes that affect only the current cycle. Examples can be Command Code NOREF day or time change due to Holiday processing.

# Quality Assurance Research

3.14.2.2.1.1 (01-01-2023) Quality Assurance Research The following resources are utilized to review and correct notices, transcripts and accounts for accuracy: Paper Tax Return (as appropriate) Employee User Portal (to review electronic returns) IDRS OLNR RTR IAT Control D SERP (IRM Research/Job Aids/Tools) Information common to all returns must be verified and compared to the CP notice and the information contained in IDRS and the NRPS package. Research is required to ensure that the tax return was processed correctly and accurately reflected in IDRS. The notice, IDRS or both are updated as appropriate. Some of the most common IDRS research command codes used by Notice Review can be found in IRM 3.14.2.6.2, Common Command Codes Used in Notice Review.

# Timeliness

3.14.2.2.2 (01-01-2025) Timeliness All selected notices must be reviewed, corrected and timely mailed to minimize any negative impact to the taxpayer. For Notice Review, timely means all of the following: Marking the disposition of all selected notices using the OLNR web-based application before cycle closeout. Completing all adjustments affecting refunds within one week of the transaction code (TC) 841 posting Inputting adjustment actions on all other cases by the notice 23C Date Caution: Every effort should be made to input all necessary IDRS transactions during the notice cycle.

# Interest Reduction

3.14.2.2.3 (01-01-2026) Interest Reduction To help reduce the amount of interest the IRS pays on refunds: The IRS has a 45-day interest-free period (from the later of the return due date, return received date, or the date the return was received in processable form) in which to process taxpayer refunds. By law, refunds not issued within the 45-day period (180 days for qualifying overpayments resulting from tax deducted and withheld under Chapter 3 and Chapter 4 of the Internal Revenue Code) must include credit interest. Revisions to the process are made when necessary to review and correct overpaid accounts without paying unnecessary interest. Reviewing, correcting, and mailing all notices timely allows the taxpayer the full allotted time to pay any outstanding balances. If a taxpayer pays all or part of the outstanding balance stated in the notice and demand for payment within 21 calendar days from the date of the notice and demand (10 business days for notice amounts of $100,000 or more), no interest charges will accrue after the date of the notice and demand on the amount that was paid. Interest continues to accrue on any part of the balance that was not ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ For proper guidance when reducing, computing or discussing interest, refer to IRM 20.2, Interest. BMF Refund Transcript (CP 388) is reviewed to ensure the interest being paid on applicable refunds is accurate and is corrected if necessary, prior to issuance. See IRM 3.14.2.6.12, Refund Transcripts, for more information on BMF Refund Transcripts.

# Effectiveness

3.14.2.2.4 (01-01-2023) Effectiveness The review of Math Error notices helps to identify those notices that historically have high error rates. It also provides valuable feedback that is used to refine selection criteria. The review of adjustment notices helps to identify and correct erroneous adjustments to ensure the accuracy of the module and the notice. The review of settlement notices allows the Notice Review area to identify deficiencies in programming changes to ensure that all notices are generated in accordance with established conditions of issuance. The review of CAF/RAF and manual intervention notices ensures that only authorized representatives receive a copy of the notice to prevent unauthorized disclosure. The review of BMF Refund Transcripts ensure the accuracy of refunds and interest paid on refunds (as applicable) prior to issuance. Refund Transcript selection criteria can be modified to address and combat fraud, schemes, etc. to prevent erroneous refunds. The LCF can be utilized to select notices based on specific criteria to ensure accuracy with regard to the implementation of new legislative changes and/or the creation of new notices, etc.

# Completeness

3.14.2.2.5 (01-01-2023) Completeness Generally, you must review the entire tax return, and all tax modules related to a notice or transcript selected for review by utilizing the NRPS Package and IDRS. The review can include, but is not limited to the review of items below: Entity Module(s) Outstanding Credit Balance Modules Cross-reference Taxpayer Identification Numbers (TINs) Related Names Freeze Conditions See IRM 3.14.2.6, General Review Procedures, for additional guidance. The ultimate goal of Notice Review is to verify the accuracy of the information contained in all notices selected for review before mailing. All changes made to the taxpayer's account must be correct and completed before the cycle close out (there are some exceptions).

# Computer Paragraph (CP) Notices

3.14.2.3 (01-31-2025) Computer Paragraph (CP) Notices A CP notice is a computer-generated message resulting from: A tax examiner entering taxpayer notice codes (TPNCs) on a return A Master File analysis of a taxpayer's account Certain transactions posting to an account Note: BMF Notices and Refund Transcript list can be found in Exhibit 3.14.2-3, BMF Notices and Refund Transcripts Table. Notices can generate to: Request information or payment from a taxpayer Educate a taxpayer Clarify an issue (i.e., explain a Math Error identified on their tax return) Most notices contain the following information: Taxpayer's name Address Taxpayer Identification Number (TIN) Tax period Tax form A computer generated message Note: An EIN, SSN, ITIN or IRSN can be used for Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests. An IRSN will have a W following the number and an SSN or ITIN will have a V following the number. An SSN will be used for Forms 706 and 709. Valid SSNs will be input with a V following the number and invalid SSNs will be input with a W following the number. Three types of notices worked in Notice Review are: Settlement Information Campus Settlement Notices tell the taxpayer of payments due, interest and/or penalties due, math errors, or adjustments the SPC has made to the taxpayer's account. The three types of settlement notices reviewed by Notice Review are: Math Error Notices generate when a tax return, containing a math error, posts to the Master File. Error Resolution normally identifies the math errors. The tax module may include math, clerical, or credit errors. Non-Math Error Balance Due Notices generate when a return, with no math error, posts to the Master File. The tax module may include tax, credits, penalties, interest, or a combination of all four. The CP 161 is the balance due notice for all BMF forms (Spanish CP 861). Adjustment Notices generate when certain types of Data Processing (DP) or Examination adjustments post to an account. All adjustments made in Notice Review are Data Processing adjustments. Reminder: All types of Settlement Notices are subject to review. Information Notices generate when information needs to be sent to a taxpayer. Notice Review selects Informational type notices that explain credit elect and the offsetting of money to other balance due tax modules within the account. These notices are referred to as Associated Notices. Campus Notices generate to notify the SPC, Territory Office, or Area Office of a condition that needs further action to bring the taxpayer's Master File account into current status. This category includes Refund Transcripts, which are the only Campus notices reviewed in Notice Review. Note: For a description of all notices, see Document 6209 Section 9. To view an exhibit of a notice, refer to the Servicewide Notice Information Program.

# Notice Review Processing System (NRPS) and OnLine Notice Review (OLNR)

3.14.2.4 (01-01-2024) Notice Review Processing System (NRPS) and OnLine Notice Review (OLNR) The Notice Review Processing System (NRPS) selects settlement notices, adjustment notices, associated notices and refund transcripts for review by analyzing data from the following sources: CP Notice Records: NRPS also uses this information to print a copy of selected notices for the review. Entity and Tax Modules: NRPS uses the Transcript Request System (TRS) to obtain data. This information is sent to each SPC exclusively for NRPS processing. NRPS prints this information in transcript format as part of the NRPS package. Return Transaction File (RTF): NRPS extracts RTF data records for each selectable settlement notice. NRPS packages also contain printouts of this information. Pending Transactions: NRPS uses data from transactions that have not yet posted at the SPC as part of the selection criteria for certain keys. See table below for Pending Transaction Sources and Possible Pending Transactions. Pending Transaction Sources Possible Pending Transactions Enterprise Computing Center at Martinsburg (ECC-MTB) Resequence File Adjustments (TC 29X/30X) Unidentified Remittance Files (URF) Extensions (TC 460) Tape Edit Program (TEP) (pipeline and corrected unpostable files) Merge Transactions (TCs 001, 011, and 04X) Generalized Unpostable Framework (GUF) and Current Cycle ECC-MTB Unpostable Files Credit Transfers [Document Codes (DC) 24, 34, 48, or 58 transactions] Excess Collection (XSC) File Credit Transfers [Document Codes (DC) 24, 34, 48, or 58 transactions] Generalized Mainline Framework (GMF) Error File All other significant (non-zero) transactions Reject File Rejected transactions The OnLine Notice Review (OLNR) System allows Tax Examiners to review notice elements, determine notice disposition, and retype notices online. OLNR is used in conjunction with NRPS. It does not replace the need to review the NRPS package for each notice. Selected taxpayer notices are not printed until after the NRPS batches have been reviewed and OLNR goes through its weekly closeout process (term used for end-of-cycle processing that controls notice printing). This allows the system to avoid printing notices that should be voided and also allows full editing capabilities in case a notice needs correction prior to mailing. Notices that are not reviewed before cycle closeout will automatically default to the NR (Not Reviewed) disposition and after cycle closeout will be printed and mailed to the taxpayer. This default provides a more correct notice accuracy rate, since only notices that are reviewed in a given cycle are compiled into notice accuracy numbers for reporting.

# Notice Selection Process

3.14.2.4.1 (01-01-2026) Notice Selection Process Notices are selected by NRPS based on established selection criteria. These criteria are divided into categories. Each category contains a list of Keys that have been assigned specific selection criteria. The categories were established to separate notice types and help establish a priority of review. Notices are selected in category order as follows: Category A: Special Handling Required Category B: High Priority Selection-Local Selection Category C: Federal Tax Deposit (FTD) Rollover Category D: Balance Due and Even Balance Notices Category E: Overpaid Notices Category F: Adjustment Notices Category G: Refund Transcripts Category H: Low Priority Local Selection Category I: Balance Due Low Priority Within each category the notice is analyzed in sequence by selection priority. Once a notice meets the criteria for a key within a category, the remaining selection keys in that category are bypassed and the analysis continues through the remaining categories. If the notice meets selection criteria in another category, it is assigned a secondary selection key; all remaining categories are bypassed, and analysis stops. Analysis is limited to one primary and one secondary selection key. The selection process continues from category to category in alphabetical order. When completed, the process will result in one of the following conditions: All selection criteria were applied to the notice, but the notice was not selected for review. The notice was selected for review meeting only one selection criteria. The notice was selected for review meeting two selection criteria. The NRPS selection criteria is only applied to selectable notices and transcripts. The selection criteria are divided into categories containing similar conditions or notice types. Each category is assigned a priority based on the importance of the selection criteria within the category. Each selection criteria are assigned a two-digit numerical selection key and a numerical priority. The selection criteria are applied against the notice in ascending priority order until either the notice is selected for review or the selection criteria for the category is exhausted. If the notice is selected for review, the remaining selection criteria for the category is not applied against the notice. Note: A numerical group number is assigned during the selection analysis and is used to sort and batch the NRPS packages. The group number is decided by the priority of the review and is used to associate similar selections together. The selection process requires the following: Entity and Tax Modules: The Transcript Request System provides Master File data for use in the analysis process. This data is separated from other Master File data, then shipped to each SPC for use by NRPS processing and displayed in transcript format as part of the NRPS package. Transcribed Tax Return Data: an RTF data record is extracted for each settlement notice subject to NRPS selection. This data is used in the selection process and included in the NRPS package for selected notices. The selection process requires in-house transactions-certain transactions which have not posted to the Master File by the notice cycle are required by NRPS processing, they include: Adjustments (TC 29X) (TC 30X) Credit Transfers (Document Codes 24, 34, 48, and 58) Merge Transactions (TCs 001, 011, 04X) Extensions of Time to File (TC 460) Any transactions with non-zero transaction amounts The transactions listed above are extracted from the following files: ECC-MTB Resequence, RSQ Unpostables (current cycle at ECC-MTB and GUF) Tape Edit Processing, TEP,(all pipeline transactions) Unidentified Remittance File, URF Excess Collections, XSF GUF Error Rejects (transaction failed SPC validity check) FTD File All selected notices are displayed in the Control D NRPS package. The Control D NRPS package will include all current cycle notices, selected/associated notices and/or refund transcripts. A contents sheet will be included with each package, and will provide the following information: Selection Key and literal key description Pending transactions Documents requested Selected notice Other (non-selected) notices A Control D NRPS batch consists of the following: NRPS Batching Sheet: Identifies the beginning of each batch NRPS Packages: 1 to 20 notices per batch NRPS Selection List: A list of the notices contained within the batch Manual Intervention List, this list will show, in notice sequence number order, all notices that were not selected for review but require manual intervention for any of the following conditions: Central Authorization File (CAF) Mismatch: Central Authorization File name/address information to be added. Reporting Agent File (RAF) Mismatch: Reporting Agent File name/address information to be added for Form 940, Form 941, Form 944, and Form 945. Both CAF and RAF Mismatch (MM): Central Authorization File name/address information to be added and Reporting Agent File name/address information to be added for Form 940, Form 941, Form 944, and Form 945. Service Center Mismatch Address File (SC): address information needs to be reviewed and verified. Control D NRPS Batch Control Sheet: Contains a line for each batch (Notice Review copy) or a line for each batch with a document request (Files copy). It is also used as an assignment control document.

# NRPS Selection Keys

3.14.2.4.1.1 (01-01-2024) NRPS Selection Keys For specific information on NRPS Selection Keys, see Exhibit 3.14.2-5. Note: For detailed information on the Local Control File, see IRM 2.4.45, Command Code NRP97. For detailed information on the Notice Review Processing system, see Program Requirement Package (PRP) 160 Section 54. Valid percentages for Local Control File: 1%, 10%, 25%, 33%, 50%, 75%, and 100%.

# NRPS Output Files

3.14.2.4.1.2 (01-01-2026) NRPS Output Files After NRPS completes the selection process, it combines all of the selection information into NRPS Batches. A NRPS Batch consists of the following: NRPS Batching Sheet NRPS Packages NRPS Selection List NRPS are viewed using Control D. See BMF Job Aid 2533-701 for additional information on NRPS. NRPS produces several additional types of output: NRPS Batch Control Sheet NRPS Document Charge-Out NRPS Batch Return Request List Manual Intervention List NRPS Selection Report NRPS Non-package Selection List NRPS Duplicate Selection List NRPS Associated Notice Listing Note: A description of each of these is in IRM 3.14.2.4.1.6, Other NRPS Output. All of the above reports generate from the following Listing of Output Files in the table below: Control D Job Name Control D Report Name Description NRP1310* NRP1310 CHARGEOUTS Files Chargeouts NRP1320* BATXXXX Notice Review tax examiner Batches by 4-digit number NRP1330* BMF CP-267 VOID LIST, BMF SELECT LIST DUPL, BMF BATCH CNTL SHEET, BMF SELECT REF TRANS, BMF MANUAL INV LIST, BMF SEL NOTICE LIST, BMF PAYMNT ASSOC LIST, BMF CP-207L SEL LIST 267 Void List, NRPS Selection List, Batch Control Sign out, Manual Intervention List, BMF Selected Notices List, Payment list and CP 207 list NRP1420* BMF NRPS SELECT LIST NRPS Selected and Associated Report PRTNRP* NRP9841* Local Control File records PRTNOR* NOR0142* Refund Intercept

# NRPS Batch Sheet

3.14.2.4.1.3 (01-01-2026) NRPS Batch Sheet The Batch Sheet is the first sheet of each batch. It contains the following information: Batch Number: Batch numbers are four digits. Batches will start with preceding zeros with the batch numbers getting larger throughout the sample. Example: Batch 001, Batch 0501, Batch 8001, etc. Sort Group: The number assigned to indicate priority sorting of selected notices see IRM 3.14.2.4.1, Notice Selection Process, for more information. Batch Type: Types are special, miscellaneous, overpaid, or balance due. Cycle Information: A six-digit cycle number which contains the year and cycle. See figure below for the information contained in the first or header page of a Control D NRPS Batch. Figure 3.14.2-1 NRPS BatchThe graphic is the first page of a Control D NRPS Batch of Notice Review work. It contains left to right at the very top the Batch Number, the Sort Group, the type of batch - whether overpaid or balance due, the Batch cycle which should be current cycle, and the type of Masterfile - BMF. In the middle of the page BMF NRPS BATCH SEPARATOR SHEET is printed in dot font. Near the bottom of the page each case in the batch is listed by CP, DLN, Primary Selection Key, Secondary Key if present and the total number of CPs in the batch. Please click here for the text description of the image.

# NRPS Packages

3.14.2.4.1.4 (01-01-2024) NRPS Packages NRPS packages contain various types of information needed to review each selected CP Notice or Refund Transcript. Each batch may contain up to 20 selected notices. Note: Packages for overpayment notices must be viewed online first. Most packages contain only one notice. However, the NRPS Package will contain all Selectable or Associated CP Notices that generate in the current cycle for a taxpayer if one or more is selected for review. Each NRPS package contains the following: Package Contents Page is the first page of each Control D NRPS Package. This page contains the information in the table below: NRPS Package Contents: A list of all Selected or Associated CP Notices or Refund Transcripts in the package with CP number and Document Locator Number (DLN) The Selection Key Number along with a brief description of the Key A list of pending transactions A list of requested vouchers and documents Manual Intervention Indicators Online Notice Information: Depending on the CP number of the selected notice, this may either be a duplicate of the live notice, or a shortened version. The shortened version displays only the notice record information, such as dollar amounts and TPNC numbers, as opposed to Taxpayer Bill of Rights language and TPNC explanations. Entity Transcript: This displays the entity information for the notice Taxpayer Identification Number (TIN). Tax Module Transcript (optional): This displays the tax module transactions for the notice TIN. Transcribed Posted Return Data: This displays transcribed return fields for selected Settlement Notices 813 List: This list displays only for Remittance Processing System (RPS) Discrepancy cases.

# NRPS Selection List

3.14.2.4.1.5 (01-01-2024) NRPS Selection List This list is the last page of each batch. It shows the following information for each Selected CP Notice in the batch: Count (item number on the list) Sequence Number DLN CP Number Primary Selection Key Secondary Selection Key

# Other NRPS Output

3.14.2.4.1.6 (01-01-2024) Other NRPS Output NRPS produces two different (but related) Batch Control Sheets. The Notice Review copy has one line for each batch, showing the number of Selected and Associated CPs and Document Requests in each batch. The Files Function copy has a line for each batch, showing the number of Document Charge-outs in each batch. The NRPS Document Charge-out provides information that the Files Function needs to pull documents for Notice Review to use in reviewing CP Notices. The NRPS Batch Return Request List is a cover sheet that separates the Document Charge-outs by batch and contains a line for each charge-out. The Manual Intervention List provides a list (in notice sequence number order) of all notices that were not selected for review but may require manual intervention. See IRM 3.14.2.5.3 (Manual Intervention CAF/RAF/MM/SC) for additional information and procedures. The NRPS Selection Report contains various statistical data including the number of CPs selected. This report is sorted by CP Number and Selection Key. See Exhibit 3.14.2-6 (BMF NRPS Selection Report-NRP1420).

# OLNR Information

3.14.2.4.2 (01-01-2026) OLNR Information OnLine Notice Review (OLNR) was developed to eliminate manual correction of physical notices. Before OLNR, Notice Review clerks were required to pull paper notices and retype or use sticker labels to update the notice. Note: See IRM 3.14.2.4.2.3, OLNR Access and System Information, for access request information. OLNR allows users to easily monitor and track production of notice inventory. OLNR allows access to disposition reports that provide year-to-date information and allow managerial users to track patterns in notice changes.

# OLNR Retype Capabilities

3.14.2.4.2.1 (01-01-2024) OLNR Retype Capabilities OLNR allows users to edit most notice fields so that notices can be retyped to reflect current account data in IDRS. Some specific OLNR retype capabilities are: the ability to correct entity on selected and associated notices. the ability to correct data fields on most selected notices including penalties and interest fields. the ability to add, change or delete MECs/TPNCs using a drop-down list. the ability to add a label to applicable notices. the ability to correct or void entity fields on manual intervention notices. the ability to correct or void the entity on CAF/RAF copies of notices or void the entire notice (even if the primary notice is mailed). the ability to convert one CP to another CP. the ability to void an unnecessary notice so the taxpayer does not receive it. For specific information on how to utilize the OLNR program, refer to the BMF Notice Review Job Aid 2533-701.

# OLNR Notice Conversion

3.14.2.4.2.2 (01-01-2024) OLNR Notice Conversion The OLNR system allows the user to convert one CP notice type to another, when account actions/adjustments require a different type of notice be sent to the taxpayer. See Exhibit 3.14.2-10, Reference Chart for Retyping BMF Notices in OLNR, for more information on what notice retypes or conversions can be performed. Example: An incorrectly transcribed return identified during review of the notice needs an adjustment to the account on IDRS. If the review and adjustment results in the removal of all math errors but the taxpayer account will still have a balance due, the original notice must be converted from a math error notice to a non-math error, balance due notice (CP 161/ Spanish CP 861 if applicable). Most field values from the original notice will be transferred into the conversion notice, where they can then be adjusted by the examiner, if necessary. If any IDRS adjustment actions will be reflected in the converted notice, use the appropriate adjustment hold code to prevent unnecessary adjustment notices. When converting from an overpaid to a balance due notice you will need to input the correct pay by date. Refer to the posting cycle chart in the BMF Notice Review Job Aid 2533-701.

# OLNR Access and System Information

3.14.2.4.2.3 (01-01-2026) OLNR Access and System Information OnLine Notice Review (OLNR) must be requested in Business Entitlement Access Request System (BEARS). Access must be requested by role. Available roles are: OLNRUsers: Uses the OLNR system to edit and correct notices. OLNR Tax Examiners belong in this group. Allows the ability to search and edit both BMF and IMF notices. This group cannot unlock, or update batches locked by another user. ReportUsers: Uses the OLNR WebManager to view reports, identify unfinished work, and generate reports. Allows use of the OLNR application to search both BMF and IMF notices in read-only mode. QAUsers: Uses the OLNR WebManager to search for specific batches, dispositions and audit data to perform quality review work. Allows the use of the OLNR application to edit both BMF and IMF notices if needed. This group cannot unlock, or update batches locked by another user. PowerUsers and OLNRSAs: Uses OLNR and OLNR WebManager to search batches, dispositions and audit data; update dispositions; view reports, identify unfinished work, deactivate or reactivate users, generate reports, and unlock/reopen batches. This access is designed for OLNR System Administrators, Analysts, Managers, and Team Leads. Caution: Users who do not access OLNR for 120 days will become inactive in the system. This is not the same as BEARS access. Users must have a valid BEARS request approved and be active in OLNR. PowerUsers and OLNRSAs can reactivate users by accessing the ADMIN drop-down menu in OLNR and clicking UserInfo. On the display screen, input the SEID of the user who needs to be reactivated. Click the box in the IsActive column on the same line as the SEID. This process is the same for deactivating a previous employee, however the box should be unchecked. Once access has been approved navigate to OLNR with the correct site link. Refer to the OLNR section of the BMF Notice Review Job Aid 2533-701 for more information. OLNR access links by site: Austin OLNR Kansas City OLNR Ogden OLNR Once the correct OLNR link has been accessed, choose the BMF inventory. Then locate the correct batch to be worked using the search box. Enter the batch in the box and hit enter on your keyboard. Open the correct batch by mouse clicking on the number displayed. The Notice Disposition screen will then appear on the screen. It contains all of the sequence numbers for the selected batch. As each case in the batch is reviewed, the user selects the disposition code for the desired notice action. The OLNR Notice Disposition Program sends the selected disposition codes to the mainframe. The disposition data is used to compile the Notice Disposition Report. The disposition code entered for each notice will determine how the notice will be handled by the back-end printing programs.

# OLNR Notice Disposition Codes

3.14.2.4.2.4 (01-01-2025) OLNR Notice Disposition Codes Available notice disposition codes in alpha order are: E: Entity-Only Notice Change. The notice is completely correct except for a name or address issue. See IRM 3.14.2.7.10.4, Entity Only Disposition, for more information. H: Hold Notice - The notice will not be mailed in the current cycle. This disposition must be approved by Headquarters with the exception of a quality error. See IRM 3.14.2.7.10.7, Holding Notices, for more information. L: Label Notice - Informational labels will be added to the top of the notice. Follow IRM 3.14.2.7.10.6, Labeling Notices, for when to label. P: Print Notice - The notice matches account data, and the taxpayer needs the information. See IRM 3.14.2.7.10.2, Printing Notices, for more information. R: Retype Notice - When the notice needs to be changed to match current account conditions or multiple actions must be taken such as Entity and Label. See IRM 3.14.2.7.10.5, Retyping Notices, for retype criteria. V: Void Notice - The taxpayer should not receive a notice. These notices are removed from the print file and will never be received by the taxpayer. See IRM 3.14.2.7.10.3, Voiding Notices, for voiding notices. If a refund is intercepted/ deleted /stopped then the correct notice disposition above should be used in conjunction with "I" . Example: During review of the notice and account a misapplied payment is found. The refund should be stopped and the misapplied payment transferred out of the module, however, the taxpayer still needs the notice for another issue. Choose RI as the OLNR notice disposition to make the appropriate notice changes.

# OLNR Quality Review and Held Notices

3.14.2.4.2.5 (01-01-2025) OLNR Quality Review and Held Notices Every effort must be made to review, correct, and select disposition of notices in the current cycle to minimize negative impact to the taxpayer. Do not use "H" disposition in OLNR to hold notices past cycle without Headquarter analyst approval. Exception: If quality review of a notice results in a tax examiner error, the quality review unit should mark the notice disposition as" H" to allow for review and correction of the error. The notice must be corrected by the TE or production team in the cycle the notice generated. The OLNR system has programming limitations which can cause notices to "fall out" as a systemic held when the cycle closes out. Manual Intervention notices are also systemically held if not worked. On Mondays, (except Monday holiday weeks then Tuesday) a lead needs to research and resolve the systemically held notice and make sure the notice disposition is marked and any interest and penalties updated. If the TE or production team disagree with the quality review error, the production team has two business days to rebut the error. If the error is being rebutted, the production team must notify Headquarters analysts if the notice will be held past cycle close out. If the held notice disposition is allowed by HQ, notices should be worked as soon as the necessary information or document(s) are received to minimize any further delay to the taxpayer and possible additional accrual of penalties and/or interest. If a Balance Due notice is held beyond cycle (with approval), change the pay-by date to be consistent with the pay-by date of balance due notices generating in the cycle the held notice is being released. Recalculate the interest, penalties, and any other applicable fields. When inputting a disposition of "H" you must put a control status of B on the module and enter a STAUP for 8 weeks. When releasing the hold, reduce the STAUP to the appropriate number of weeks so that a collection notice is mailed to the taxpayer in the appropriate timeframe.

# Clerical Procedures

3.14.2.5 (01-01-2016) Clerical Procedures This section describes the clerical procedures performed during the Notice Review process.

# Clerical Function

3.14.2.5.1 (01-01-2024) Clerical Function The clerical function provides a wide variety of services critical to the NRPS system. These services, outlined in this section and in IRM 3.14.2.5.2, Clerical Function Priorities, assist Notice Review TEs (and other customers) in providing accurate information to the taxpayer. The clerical support staff: Orders and sorts tax returns Distributes NRPS packages and related documents to the TEs Corrects erroneous, and undeliverable notices Stops refunds Resolves CAF, RAF, MM, and SC mismatches on notices that generate on the Manual Intervention List

# Clerical Function Priorities

3.14.2.5.2 (01-01-2016) Clerical Function Priorities This subsection contains instructions dealing with clerical function priorities. It includes instructions for associating tax returns and payment vouchers, reviewing priority, intercepting requests from other areas, notice corrections, and releasing notices to Receipt and Control.

# Associating Documents from Files

3.14.2.5.2.1 (01-01-2026) Associating Documents from Files When a return is needed to review a notice and/or transcript, request the document(s) needed using Form 2275, Records Request, Charge and Recharge and route to Files per SPC directions. Use IAT Tool Fill Forms to make the request easier. Note: If Efax is being utilized then, input "Notice Review NRPS Document Request" in the subject line when sending the Efax to Files. Contact your local Planning and Analysis (P&A) analyst to identify the preferred method of communication with your Files site. All necessary documents (adjustment documents and tax returns) are associated with each batch before releasing to TEs. All NRPS batch sheets that do not need documents are routed directly to Notice Review.

# Additional LCF Selection

3.14.2.5.2.2 (01-01-2025) Additional LCF Selection Error Resolution System (ERS) may request that Notice Review select and correct a specific notice. ERS tax examiner must prepare Form 3465, Adjustment Request and send it with the return to Notice Review. Local Control File (LCF) Key 091 should be input by a Notice Review lead or clerk to select the notice for review by DLN (NRP97D). See IRM 3.14.2.5.4.1, NRP97 Input Information. Notice Review Clerical Support will associate the return and Form 3465 with the NRPS batch and release the case to be worked by a tax examiner.

# Priority of Review

3.14.2.5.2.3 (01-01-2023) Priority of Review The Clerical Support Unit will distribute the work in the order indicated below: Refer to IRM 3.14.2.1.9, Prioritization of Work for BMF Service Centers, for additional information. Selected Overpayment Notices and Refund Transcripts -tax examiners must complete this review before the pre-determined cut-off of CC NOREF (4:00 PM Eastern Time, Thursday). Local management must decide the disposition of overpayment notices not reviewed by the cut-off. In doing so, consider prior cycle error rates of the individual CP Notices and selection keys. Caution: Treat notices selected by BMF Key 52 as overpayment notices because the current cycle refund is the reason for the review. Selected Balance Due Notices.

# Intercept Requests from Other Areas

3.14.2.5.2.4 (01-01-2026) Intercept Requests from Other Areas It is not the responsibility of Notice Review to stop refunds at the request of another area. If a request is received, inform the requestor that they should contact their own area to have the refund stopped. If the requestor indicates that they do not have access to IDRS or do not have CC NOREF in their profile, they should contact their area to address this issue. Other functions may request that an incorrect notice be corrected or stopped. However, it has to be a selectable notice, and the request has to be received in Notice Review within established deadline cut off times. See the table below for the deadlines for requesting a notice for correcting or voiding: If the request is for Then the Request Must Be Received By A current cycle notice Close of Business (COB) Thursday before the 23C Date of the notice. A next cycle notice The request must be received by 12:00 PM Thursday (local time) before the notice cycle. Notice Review Clerical Team uses Command Code NRP97 (Local Control File) to select the notice. See IRM 3.14.2.5.4.1, CC NRP97 Input Information, for instructions. Note: Tell other functions that the notice request deadline is Thursday 12:00 PM local time per LCF local procedures.

# Manual Intervention CAF/RAF/MM/SC

3.14.2.5.3 (02-20-2025) Manual Intervention CAF/RAF/MM/SC Manual intervention may be required on selected and non-selected notices. Note: All notices on the Manual Intervention List (Batches 9XXX) and in regular NRPS review batches must be closed or they will be systemically held by OLNR. The notices generated on the Manual Intervention List do not meet NRPS selection criteria, however, it has been decided that they do require some sort of manual review and correction. Manual intervention conditions are as follows: Central Authorization File (CAF) mismatch. Reporting Agent's File (RAF) mismatch. Both CAF and RAF (multiple) mismatch issues (MM). Service Center (SC) address mismatch. If the notice is not selected by NRPS, the notice (and the manual intervention condition) appears on the Manual Intervention List. These appear in batches beginning in the 9000 series (9XXX) in OLNR. Manual Intervention batches 96XX are worked by Large Corporation employees only. The list shows one line for each notice, sorted by notice sequence number. Maximum of 25 to a batch. If the notice is also selected by NRPS, the manual intervention information will be on the Package Contents page of the NRPS Package/Control D. If a manual intervention condition is present, the tax examiner must resolve it in addition to resolving the potential notice issue during the review. The clerical staff is only responsible for resolving the notices that generate on the Manual Intervention Listing. The Centralized Authorization File (CAF) is a computerized system of records which houses authorization information from both powers of attorney and tax information authorizations. The CAF system contains several types of records, among them taxpayer and representative records, tax modules and authorizations. For more information see IRM 21.3.7, Processing Third Party Authorizations onto the Centralized Authorization File (CAF). Authorizations recorded on the CAF are generally submitted on: Form 2848, Power of Attorney and Declaration of Representative Form 706, U.S. Estate Tax Return Form 8821, Tax Information Authorization Oral Tax Information Authorization (OTIA), paperless Form 8821 Form 8655, Reporting Agent Authorization, is used to authorize a designated agent to assist an employer in making required tax deposits and tax information filings to federal, state, and local governments. For more information refer to IRM 21.3.9, Processing Reporting Agents File Authorizations. The Form 8655 allows a reporting agent the authorities listed below: File and sign certain tax returns filed electronically. Prepare FTDs and submit FTD information electronically. Receive duplicate copies of official notices, correspondence, transcripts or other information with respect to the electronic returns filed by the agent. Receive duplicate copies of official notices, correspondence, transcripts, filing frequency information or other information with respect to the FTDs submitted electronically by the agent. Service Center Manual Intervention resolutions are required when the address is missing fields (example 00000 for the ZIP code) or the input fields do not match the United States Postal Service verified address.

# Processing Notices with a Central Authorization File (CAF) Mismatch

3.14.2.5.3.1 (03-16-2023) Processing Notices with a Central Authorization File (CAF) Mismatch The CAF copy of the notices should generate with the representative's name and address on the notice. If the CAF copy is missing this information, it is considered a CAF mismatch condition and will be notated on the Notice List. NRPS will compile all CAF mismatch notices and include them on the Manual Intervention Listing. A literal will print out on the list indicating the CAF mismatch by notice sequence number and CP number. Research a CAF mismatch on CC CFINK with taxpayer's TIN, and the specific MFT and tax period of the notice module. Review CFINK fields carefully to decide if the representative is authorized to receive notices. Caution: Make sure CAF STATUS on CFINK is GOOD STANDING before updating CAF notice information. Only representatives in GOOD STANDING and listed as YES for notice should receive notices. If a representative is found in good standing and yes for notice receipt, update CC CFINK with the CAF number(example XXXX-XXXXXR) overlaying the EIN and transmit to view the representative's address. Repeat for each listed representative who is eligible to receive a notice. See below for the CFINK Representative Decision Table: If Then YES is present in the CC CFINK NOTICE field The representative is authorized to receive notices. Use the CAF Status Decision table below to verify the representative should receive a notice. Type the name and address of each representative(s) on the notice tab and send the notice. NO is present in the CC CFINK NOTICE field. The representative is not authorized to receive notices. Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. Check the CAF status line for any of the following words: Undeliverable, Suspended, Deceased, Disbarred, Retired or Good Standing. If present, follow the instructions in the CAF Status Decision table below: If Then The word Undeliverable is present on the CAF status line; The representative is no longer authorized, or the mail is undeliverable. Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. The words Disbarred, Suspended, Retired or Deceased is present on the CAF status line; The representative is no longer authorized. Delete the CAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. The words Good Standing are present on the CAF status line; The representative is authorized. Type a % then input the representative's name on the Sort Name Line in OLNR and include the representative's address, city, and state on the appropriate lines under the CAF Mismatch Tab. Note: More than one representative may be authorized to receive notices. Repeat the steps above for each representative. Note: If the name of the second representative is the same or similar to the first representative, and the address is identical, do not use the second representative. Delete the second CAF copy if applicable. If the representative for the CAF is the same representative for the RAF, delete the RAF copy. If RECORD NOT FOUND for the taxpayer on the CAF file, the representative is not authorized. Delete the representative notice copy. Note: For more information regarding notice disposition for representative notices, see, IRM 3.14.2.6.1.2, Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF).

# Processing Notices with a Reporting Agents File (RAF) Mismatch

3.14.2.5.3.2 (01-01-2026) Processing Notices with a Reporting Agents File (RAF) Mismatch The RAF contains information about the authorizations that taxpayers give to their reporting agents for employment tax modules. The authorization allows reporting agents to file Forms 940, 940(sp), 941, 941(sp), 941-SS, 941-NMI, 943, 943(sp), 944, 945, 1042 or CT-1 for the taxpayer. The authorization also allows for reporting agents to make payments or deposits for Forms 940, 941, 943, 944, 945, 720, 1041, 1042, 1120 and/or CT-1. Reporting Agents File (RAF) notices are similar to CAF notices, in that a copy of the notice will generate to the taxpayer, and a copy will generate to the Reporting Agent. The RAF copy of the notice should generate with the representative's name and address on the notice. If the RAF copy is missing any or all of this information, it is considered a RAF mismatch condition and will be identified on the Manual Intervention Listing with the literal RAF MIS. Use CC RFINK to obtain authorization information regarding the reporting agent. When CC RFINK is input with the Taxpayer EIN only, a list of MFTs and beginning tax period for the taxpayer will be displayed along with the reporting agent's name, EIN and authorization information. Delete the RAF notice copy in OLNR if all representative tax periods (column TAXPRD) are after the notice tax period. When CC RFINK is input with the Taxpayer EIN only, the last column on the response screen is the Notice/Action/Payment (NAP) column. This column contains three fields which provide representative information: The first field in the NAP column is the Notice Indicator. The Notice Indicator identifies whether the reporting agent is authorized to receive copies of notices with a Y for yes or an N for no. See the table below for a description of the values available for the Notice Indicator. Caution: The Notice indicator and Action indicator must be reviewed before taking action in OLNR. If RFINK NAP Notice Indicator is: Then Y The reporting agent is authorized to receive notices N The reporting agent is not authorized to receive notices The second field in the NAP column is the Action Indicator field. The Action Indicator field identifies the status of the representative. Note: See the table below for a description of the values available for the Action Indicator. If RFINK NAP Action indicator is Then A - Add Representative has been added and is allowed to receive a notice if the Notice indicator is also yes. D - Delete Representative has been deleted and is not allowed to receive a notice for that tax period regardless of the Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. E - End Dated Representation has ended but a notice may still be sent if the tax period is before the end date period and the Notice indicator is also yes. I - Inactive Representative status is not active and is not allowed to receive a notice for that tax period regardless of the Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. R - Revoked Representative status has been revoked and is not allowed to receive a notice regardless of the tax period or Notice indicator. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. U - Undeliverable Previous representative notices have been returned as undeliverable. Do not send a notice. Delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. The third field in the NAP is the Payment Indicator Field. The Payment Indicator identifies whether the reporting agent is authorized to make payments/deposits. This field does not have impact on notices. Note: See the table below for a description of the values available for the Payment Indicator: If Then P is present The reporting agent is authorized to make payments and/or deposits. Blank The reporting agent is authorized to sign and file returns but not authorized to make payments and/or deposits. Note: Electronic Federal Tax Payment System (EFTPS) modules will have a payment indicator of P. Note: See IRM 2.3.16-4, Command Code RFINK - Output Format, for more information. If a representative is found, after transmitting CC RFINK with the notice EIN, without a definer, verify the starting tax period. If the notice tax period and MFT are identified as having a representative, verify the Notice Indicator and Action Indicator have statuses allowing representative notices per paragraph 4 above. If the Notice Indicator and Action Indicator statuses allow notices, input RFINK definer R and type or copy and paste the reporting agent's EIN over the taxpayer EIN and transmit to receive detailed information which contains the representative mailing address. See the table below for notice disposition. If Then CC RFINK shows a Notice Indicator Y , the tax period on the notice is within the range of beginning and ending tax periods, and the Action Indicator allows a notice Choose E disposition in OLNR and type the name and address of each representative(s) on the CAF/RAF entity tab to send the notice. CC RFINK shows a Notice Indicator N or the tax period is not within date range, or the Action Indicator does not allow a notice Choose E disposition in OLNR delete the RAF notice using the Delete CAF/RAF check box on the CAF/RAF entity tab in OLNR. Note: If the representative for the CAF is the same representative for the RAF, void the RAF copy. For more information regarding notice disposition for representatives see, IRM 3.14.2.6.1.2, Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF).

# Processing Manual Intervention Notices with CAF and RAF Mismatch (MM)

3.14.2.5.3.3 (01-01-2024) Processing Manual Intervention Notices with CAF and RAF Mismatch (MM) Research the CAF Mismatch using IRM 3.14.2.5.3.1, Processing Notices with a Central Authorization File (CAF) Mismatch. Research the RAF Mismatch using IRM 3.14.2.5.3.2, Processing Notices with a Reporting Agents File (RAF) Mismatch. Update all OLNR entity tabs as necessary.

# Processing Manual Intervention Notices with an Address Mismatch (Service Center Issues-SC)

3.14.2.5.3.4 (01-01-2026) Processing Manual Intervention Notices with an Address Mismatch (Service Center Issues-SC) Service Center Manual Intervention cases require careful review of the full address due to possible missing fields (example: 00000 for the ZIP code) or state and ZIP code mismatch conditions verified against United States Postal Service ZIP Code Lookup. Use all available research tools including CCs FINDE, NAMEE, and the IAT Name and Address tools. Once a full address is identified, use the USPS ZIP code look up tool to verify the found address against Postal Service standards. Update the OLNR entity tab with the new/corrected address. Update the address in IDRS. For more information see IRM 3.14.2.7.5, Entity Adjustments. Note: The Integrated Automation Technologies (IAT) Address tool is mandated to be used by the centers to make address changes in IDRS.

# NRPS Local Control File

3.14.2.5.4 (01-01-2026) NRPS Local Control File The NRPS Local Control File (LCF) processing is designed to allow each SPC the option to obtain additional notices for review. BMF has a priority option that when exercised, moves the analysis for the selection from Category H to the second highest Category B. The Local Control File priority option does not override the Category A selection criteria. There are three selection systems that update and maintain the NRPS Local Control File Database. NRP97: is used by Notice Review to display, add, change, and delete records on the Local Control File Database. Program NRP97 is updated using IDRS Command Code NRP97. NRP97 Local Control File consists of ten NRPS record types. Each record type may be updated using command code NRP97 with a unique identifier. For more information, see IRM 3.14.2.5.4.1, NRP97 Input Information, and IRM 2.4.45, Command Code NRP97. Note: Percentages valid on Command Code NRP97 (Local Control File) are: 1%, 10%, 25%, 33%, 50%, 75%, and 100%. NRP98: is a batch processing program executed by operations each Friday. This program creates Local Control File tapes for input into the weekly NRPS processing. Local control reports are produced detailing the contents of the Local Control File. These reports are intended to be reviewed by Notice Review before the input of the Local Control tape files into the weekly National Account System (NAS) program. NRP98 is run on Saturday AM before running NRP11. NRP99: is a batch processing program executed by Operations after the completion of the weekly NRPS processing. This program deletes records from the Local Control Data Base as a result of the NRPS processing, or when a TIN or DLN record has remained on the Data Base for six weeks. Local Control reports are produced by this processing. These reports show which records were deleted and why they were deleted and detail the records remaining on the Data Base. Data Retention: Records will only be deleted from the NRPS Local Control Data Base under the following circumstances: EIN (except Large Corporation), ERS DLN and Full DLN records are automatically deleted when selected for review or after six weeks if not selected. Any record may be manually deleted by selecting the appropriate Option from the Option Menu, keying in enough information to identify the record. Then use the X to select the Delete action and hit page up or transmit key. Data change: Any existing local control record may be altered as desired. To use this capability: Select the appropriate Option from the Option Menu. Enter enough information to identify the record. Alter the record as desired and use X to select the change action. Hit the XMIT key to save the changes. Selection Keys: The following is a list of the Selection Keys assigned when a notice is selected for review by Local Control: 06: Large Corporation selection 90: EIN Selection 91: ERS DLN selection 92: CP number Selection 93: Balance Due Amount Selection 94: Full or Partial DLN Selection 95: Penalty Code Selection Substitute Keys: Selection Keys 85, 86, 87, 88, 89, and 99 are reserved for use as Substitute Selection Keys. Substitute Keys can only be used to replace Selection Keys 90 through 96. Large corporation, TPNC, Exception Override and normal criteria selections do not have substitute keys. Do not input NRPS command code NRP97 to update records in between the weekly runs NRP98 and NRP99. However, you can use them for research during this period. If any records have been updated in between these two runs, these updated records will not appear on the NRPS Data Base after NRP99 run. This restriction will ensure continuity in the data base throughout the weekend NRPS runs.

# CC NRP97 Input Information

3.14.2.5.4.1 (01-01-2026) CC NRP97 Input Information IDRS Command Code (CC) NRP97 is used by Notice Review to add, change and delete records on the Local Control File (LCF). This command code is only used for future cycles. It does not impact the current cycle already loaded for NRPS and OLNR. Caution: NRP97 requests must be input before 12:00 PM (local time) on Thursdays before the new cycle file is run. The NRP97 command code is generally available on Fridays before 9:59 AM ET but will not capture any notices for the new cycle loading on Friday. It will only work for future cycles. Several areas throughout this IRM refer to adding items to the LCF. Data input using NRP97 adds specific types of files or notices to the LCF. NRPS will use the data to select any notices that meet the NRP97 input criteria and include them in future cycles. Note: Use the information in this section and IRM 2.4.45, Command Code NRP97, for specific input information. Notice Review leads, managers, and clerks use NRP97 to add, delete, and change priority review per HQ direction. Notice Review tax examiners use NRP97 to intercept a next cycle notice the taxpayer should not receive that could not be stopped from generating. Once chosen for selection using the LCF the notice will be voided. Follow specific guidelines for when to update the LCF (using CC NRP97) throughout the IRM. These actions are in addition to correct disposition of the current cycle notice in OLNR. Caution: If a notice being selected via NRP97 input should not be voided, contact your lead to ensure the correct notice disposition is used in OLNR in the future cycle. This is a rare occurrence. Input CC NRP97 in the upper left corner and transmit. No other information is needed for NRP97 input to display the response screen. The NRP97 response screen displays with the heading NRPS LOCAL CONTROL FILE BASIC OPTIONS. The following table lists the identifier choices which appear on the BASIC OPTIONS menu screen and can be used to display, add, change, or delete a file in the LCF. Identifier Record Type T SSN/EIN D DLN M MFT/PERCENTAGE C CP NUMBER/PERCENTAGE L LARGE CORPORATION N TPNC OR TPNC GROUP/PERCENTAGE B BALANCE DUE AMOUNT A ADJ REASON CODE/PERCENTAGE I MISCELLANEOUS IMF/BMF OPTIONS E EMPLOYMENT CODE/AMOUNT Click directly behind the indicator letter (list above) for the file type being updated and transmit. A new response screen will display. The layout of the new response screen depends on the indicator letter chosen. Tax examiners will generally use indicator option "T" to update the LCF by TIN. Caution: The following steps are for NRP97T input only. Other NRP97 indicator options will have different input requirements. When intercepting a future notice using T to update the LCF by TIN, on the response screen, choose "B" for a BMF TIN. In the next field "return charge out wanted" , only choose "Y" if the case involves a paper return, the return is currently located in Notice Review and the return will be retained until the notice is selected by NRPS. The next field is SSN or EIN. Enter SSN or EIN as pertains. Only one entry is permitted at a time. The number input is all that is needed the dashes are prepopulated and the number input will fill the fields as necessary. The next field is Substitute NRPS Key. Though this is an optional field HQ prefers input of 90 - EIN Selection, when inputting NRP97T. This allows for leads and clerks to find these notices in the next cycle to make sure OLNR is updated correctly. See IRM 3.14.2.5.4, NRPS Local Control File, for more available NRP97 selection keys. Field MFT is valid only for BMF input and while optional, it is best to complete this field so only the necessary notice module is impacted. Tax period is valid only for BMF input and while optional, it is best to complete this field so only the necessary notice module is impacted. Retention should never be set to "Y" by tax examiners. This requires a manual removal of the TIN from the LCF at a later date. Priority should always be set to "Y" to ensure the capture of notices for the chosen TIN. Print Package "Y " includes the entry in printed NRPS files. Default is allowed unless otherwise directed per local guidelines. Once all the above data has been input, finalize the addition to the LCF by inputting an "X" to the right of the field ADD and transmitting. The menu completion options at the bottom of each indicator response screen are DISPLAY, CHANGE, ADD, and DELETE. Completing all necessary data on the response screen will allow you to choose any of these actions. There are two other menu options provided at the bottom of all identifier input response screens. The OPTION-MENU is used to return to Basic Options. The NRP97 response screen menu. The EXIT TAP option is used to clear the entire screen and continue to input another command code if desired, or to sign off the IDRS terminal. To choose these options input an "X " on the line to the right of the menu option and transmit. No other field input is required to use these two options.

# General Review Procedures

3.14.2.6 (01-01-2025) General Review Procedures The following section contains procedures Notice Review tax examiners should follow when reviewing notices and transcripts. TEs must verify the accuracy of the information on the notice and taxpayer account. Compare the tax return (if available) or transcribed data in IDRS (if return is unavailable) using IDRS research command codes, to the information in the Control D NRPS Package and IDRS posted account data (TXMOD/BMFOLT) to ensure the notice and account are correct. Research utilizing all necessary command codes (e.g., TXMODA, BRTVU, TRDBV) should be performed to verify notice and account accuracy. See IRM 3.14.2.6.2 Common Command Codes Used in Notice Review, for more information. The notice module may contain multiple issues. All issues must be resolved before marking notice disposition. Refer to all appropriate sections of IRM 3.14.2 to ensure proper analysis and resolution of notice issue(s). All related tax modules and associated notices must be reviewed and resolved, as applicable, when the primary notice and corresponding account is resolved. No additional count is permitted for associated notices and/or modules resolved in association with the notice module. At the beginning of each cycle, NRPS provides a charge out sheet (based on the assigned selection key) to Files for returns that may be needed for review. However, the selection key is not always an indication that a return should be ordered from Files. The return is not always necessary when reviewing certain keys and notices. However, a paper filed return must be requested in the following instances: Appropriate IDRS research has been performed using all available command codes, but account actions and notice disposition are inconclusive. Caution: You are permitted to access only those tax modules required to accomplish your official duties. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by the IDRS security violation message, "Unauthorized Access to This Account". If you receive this message, input an H Disposition to hold the notice and forward the case (e.g., BMF tax return, copy of IDRS transcript or NRPS quick print) to your manager. Managers will notify the local Planning and Analysis Staff, who will scan the case and send the encrypted information to the≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once access has been granted, the case can be worked following applicable procedures. Reminder: E-file (ELF) returns can be reviewed using BRTVU or TRDBV. Some Forms 941, 943, 944, and 945 (depending on DLN) can be reviewed using the Employee User Portal (EUP) to access Modernized e-File (MeF) and viewing the Return Request Display. In addition, starting in 2023 scanned paper 940 and 941 returns received from Lockbox locations, will be viewable in MeF and can be identified with Filing Location Codes (first two digits of the DLN) 40, 42 (KCSPC) and 91 (OSPC). A math error notice with a balance due of $250,000 or more or an overpayment of $100,000 or more, see IRM 3.14.2.6.7.1 Reviewing Return Math Errors, for specific information. The return is generally needed when reviewing Key 54. See IRM 3.14.2.6.15, Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33, 52, 54, 55, 90 and 91, for complete instructions. If the paper return is needed and was not requested via a NRPS charge-out (described above), request the return using CC ESTAB. If unable to secure the document from files via ESTAB, initiate a special search request, using Form 2275, Records Request, Charge and Recharge. Use IAT Tool Fill Forms to make the request easier. Mark the notice disposition in OLNR H to hold as approved by Headquarters. See IRM 3.14.2.7.10.7, Holding Notices, for complete information. After research has been performed and necessary actions identified, see IRM 3.14.2.7, Case Resolution, for specific information on account and notice actions. Use the appropriate CC (TERUP, NOREFD, etc.) to reverse actions that may have been performed in error. Be mindful of specific time frames associated with reversing actions. History Items are required when taking action on the notice module. If the notice module is not available on CC TXMOD (dummy module not on the TIF), a history item is not necessary. Do not create a module (CC MFREQ) just to leave a history item. If research indicates an open and active control base in A status on IDRS on the notice module, take the following actions: Contact the employee identified on the open and active control base prior to taking any action on the account. Exception: Do not initiate contact if the open control is assigned to a clerical unit. Clerical units are often identified by all zeroes in the last 5 digits of the employee number (i.e., XXXXX00000), although numbers other than zero may also be used. Caution: Certain Freeze Codes require contact regardless of status code on the module. For a listing of these Freeze Codes, refer to IRM 3.14.2.6.6 titled, Reviewing Notices with Freeze Codes. After two attempts to contact the employee with the open control (phone or email) and no response is received within two days after contact is initiated, take the appropriate action to resolve the account and notice. Note: When taking an action on a module with an open case control, place the employee with the open control in "B" status (using CC ACTON), input the necessary account updates, then place the employee back in "A" status (also using CC ACTON). To ensure consistency and adherence to the processing procedures contained in IRM 3.14.2, do not establish local procedures without first contacting the Headquarters analyst. To maintain the accuracy of IRM 3.14.2, corrections and change requests can be sent to the IRM author or program owner in several ways. See IRM 1.11.6.5, Providing Feedback About an IRM Section - Outside of Clearance, for further details. Note: Before submitting corrections and/or change requests for IRM 3.14.2 via the SERP Feedback Application, consult the lead or manager for assistance to verify if the request for an IRM change or correction is valid. The following information and instructions attempt to address situations that are encountered most often when reviewing notices. These instructions cannot address every possible situation and/or issue encountered. They are to be used in conjunction with all the information contained in IRM 3.14.2 and classroom training. When in doubt, contact your team lead or manager.

# Verifying Return and Account Information

3.14.2.6.1 (01-01-2025) Verifying Return and Account Information The following subsections list specific information that needs to be reviewed for each notice and the corresponding account. You are permitted to access only those tax modules required to accomplish your official duties. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by the IDRS security violation message, "Unauthorized Access to This Account". If you receive this message, input an H Disposition to hold the notice and forward the case (e.g., BMF tax return, copy of IDRS transcript or NRPS quick print) to your manager. Managers will notify the local Planning and Analysis Staff, who will scan the case and send the encrypted information to the≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ account mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to 5 business days). Once access has been granted, the case can be worked following applicable procedures.

# Account Information

3.14.2.6.1.1 (07-07-2023) Account Information Verify the following items for each selected notice: Employer Identification Number Document Locator Number Name Address Return Received Date Tax period Signature(s) for refund returns only Taxpayer correspondence (if applicable) Payments and credits Discovered remittance (if applicable) Dishonored payments and bad check penalties Offsets $100 million refunds Pending transactions Slipped blocks and mixed data blocks

# Employer Identification Number (EIN)

3.14.2.6.1.1.1 (01-01-2025) Employer Identification Number (EIN) Compare the EIN on the return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) to the notice quick print. The majority of business returns require an EIN to file. However, Form 8288, Form 706, and Form 709 usually require an SSN followed by a one letter code. If the SSN is valid the one letter code is V. If the SSN is invalid the one letter code is W. Example: XXX-XX-XXXXV for a valid SSN and XXX-XX-XXXXW for an invalid SSN. Follow the steps below if you have reason to believe the EIN may have been changed. It may be necessary to use CC BMFOL if the account is for an EIN that is not available on CC TXMOD. Use CC ENMOD to find the latest entity information on a taxpayer. Research the return, AMS and EUP, if available to determine the correct EIN. Use CC FINDS/FINDE to obtain the taxpayer's EIN and for a possible name change. If there is an EIN discrepancy, the case must be routed to the Entity Control Unit. Follow the steps below before routing: In OLNR, mark notice with "H" and notify the lead. Request the return if not available. Make a copy of the NRPS quick print notice and the return entity section. Route the copies to the Entity Control Unit per local procedures, including a request to review and update entity. When Entity returns confirmation of the update, mark the notice disposition in OLNR. If Entity Control identifies an issue with the EIN and a reprocess is needed, see IRM 3.14.2.6.18, Reprocessing Returns. Caution: If the case has a refund, see IRM 3.14.2.7.5, Entity Adjustments, for complete IDRS actions before routing to Entity.

# Document Locator Numbers (DLN)

3.14.2.6.1.1.2 (01-01-2016) Document Locator Numbers (DLN) Always verify the DLN on your return with the DLN on the notice or NRPS package to ensure that you are reviewing the proper document. If the DLNs do not match, follow local procedures to request the correct document.

# Name and Address

3.14.2.6.1.1.3 (01-01-2026) Name and Address Compare the name on the tax return (if the return is available or available for viewing on EUP), to the name on the notice or entity part of the Transcript. See (5) below for address review. If the name on the paper return is illegible, check the signature, return envelope or other attachments to determine the taxpayer's correct name. If the name on the notice is different from the return, check IDRS CC INOLE for the correct Master File name information using the EIN. If the name on the notice is incorrect, see (3) below to determine if Notice Review is allowed to correct the error. Caution: Never update or request an update to a prior year name line with current processing year information. Notice Review tax examiners are only allowed to correct the following name errors: misspelling e.g., Coporation instead of Corporation , typographical error (e.g., 2424 instead of 2442), or extra characters (e.g., extraneous %) in the first name line or continuation of first name line (IDRS field CONT-OF-PRIM-NM) Caution: An error will be charged if name changes other than those listed above are initiated by a Notice Review employee. Note: See IRM 3.14.2.7.5, Entity Adjustments, for specific correction or routing information. Because of the nature of the BMF tax account, all other name errors must be routed to the Entity Control function. This includes taxpayers requesting a Trust name change. See IRM 3.14.2.7.5, Entity Adjustments, for information on required actions and routing directions. Compare the address on the tax return if available (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) with the notice or refund transcript address. The notice must match the return. If the address is illegible, check the return and all attachments for clarification. If the notice and return addresses do not match use the United States Postal Service (USPS)USPS ZIP code lookup, to verify street, city, state and ZIP code. The address must be changed in the following instances: Note: See IRM 3.14.2.7.5, Entity Adjustments, for specific information before making an address correction. If the notice contains an incorrect or misspelled street suffix. Even though USPS can deliver by street name alone in most cases, all street suffixes (e.g., Avenue, Boulevard, Circle, Drive, Road, Street etc., or their acceptable abbreviations) must be correct on the notice, regardless of where the error originates. If the notice has incorrect or missing building (bldg)/trailer/apartment number/suite/room, correct the information or add the missing information using the IAT Address Tool. If the return or notice contains both a PO Box number and a numbered street address, put the PO Box in the street address field and the street address in the location address field on ENMOD. Correct the address on OLNR to the PO Box. If a number is shown as part of the city, it must be spelled out. See examples in the Guide to Changing City table below. Address on Notice Corrected to Notice 29 PALMS TWENTY NINE PALMS 1000 OAKS ONE THOUSAND OAKS Correct obviously misspelled cities and incorrect abbreviations. If you have any questions about valid abbreviations refer to IRM 3.24.38.3.4.14.8, Street Address. Use the USPS ZIP code lookup to determine the correct spelling or abbreviation of an address. Note: Use of the USPS website is not required on every notice, only when there is doubt as to the validity of the notice address or abbreviations of the address on the notice. An address change is not required if: If North, South, East or West, (or N, S, E or W) is shown at the beginning of the city name, but is missing on the notice. No IDRS change is necessary; correct the entity in OLNR. A city or town name (that is too long) that has been abbreviated for lack of space (13 characters). FT (Fort) and ST (Street) is used. These are allowable abbreviations and do not need to be spelled out. The FINALIST program is standardization software used by USPS to ensure addresses are valid and correct. FINALIST knows if building numbers are valid and is used to ensure the IRS's outgoing mail, notices, tax packages, etc., comply with the USPS address standards. An address that is entered into IDRS and does not meet the USPS standards will not update or post with the input address. The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to 13. FINALIST will also abbreviate street names if over 13 characters. However, a list of abbreviations used by FINALIST is not available. Note: Abbreviated street or city names are acceptable regardless of the FINALIST program or Pipeline processing. Do not change. Allow the abbreviation. Example: PENNSYLVANIA AVE posts as PENN AVE; WASHINGTON DR posts as WA DR. Use the following to determine if an address change requested by the taxpayer is allowed: Never change an address to an "in care of " unless the request is signed by the taxpayer or authorized representative. Change the address if signed correspondence is received from the taxpayer with the street address lined through and a new address written in. If the return has a response written on it, accept the information as coming from the taxpayer. Process the change even if the return is not signed. If a photocopy is received without an original signature, do not change the account address. Requests for changes of address from Certified Public Accountants (CPAs), attorneys, etc., will be honored only if there is a valid Power of Attorney on file. Use IDRS CC CFINK to check for Power of Attorney status. When notices are printed with LOCAL as the address. The following instructions must be followed: Use CC ENMOD to find the latest entity information for the taxpayer. Input a CC FINDS/FINDE to obtain the taxpayer's most current address information. If neither procedure above gives a current address to use, then verify the ZIP code using the USPS ZIP code lookup website. If the ZIP code is accurate, change the address to GENERAL DELIVERY. See IRM 3.14.2.7.5, Entity Adjustments, for specific information about making an address correction. Caution: Never print a notice with LOCAL as the address. If the notice contains % or C/O name on the address line, add to the "In Care Of" line and delete from the address line. If the notice contains an address in the "In Care Of" name line that is identical to the address line, delete the address on the "In Care Of" line. See IRM 3.14.2.7.5, Entity Adjustments, for specific information about making an address correction.

# Service Center Addresses

3.14.2.6.1.1.3.1 (01-01-2025) Service Center Addresses Selected notices may contain a Service Center address. When the notice has a Service Center Address, follow the instructions below. Research the module. If there are identity theft (IDT) Indicators on the notice module, do not change the address. Note: RIVO updates an address to a Service Center address when working certain IDT cases. For more information on these types of cases see, IRM 25.23.9.6, Business Master File (BMF) Identity Theft Tracking Indicators. If RIVO updated the address to a Service Center address, then RIVO is the area that should update that address. Do not update the address if there is a Service Center address with identity theft indicators. ID Theft Indicators (RIVO markers) will appear on CC ENMOD, TXMOD, BMFOLT, or UPTIN. The BMF indicators of ID Theft are: TC 971 AC 522 with any of the MISC fields listed in IRM 25.23.9-1, Transaction Code (TC) 971 Action Code (AC) 5XX- MISC Codes. TC 971 AC 524 with multiple MISC field possibilities. See IRM 25.3.9-1, Transaction Code (TC) 971 Action Code (AC) 5XX- MISC Codes, for more information. When a TC 971 AC 524 is present the EIN has been locked due RIVO involvement on an ID Theft case. Another indicator is an ENMOD control base assigned to 1481400000. UPC 341 reason code 1 or 2. on any year. This unpostable code is for unposted returns or unposted payments due to the posting of a TC 971 AC 524. If ID Theft indicators are found on the module, input an "H" disposition for the notice and refer the case to the lead who will contact HQ for additional guidance. If there are no ID Theft (IDT) Indicators on the notice module, use the following research methods to locate the correct address and update the notice and IDRS module accordingly: Use CC ENMOD to find the latest entity information for the taxpayer. Research the return, AMS and EUP, if available to determine the correct address. Use CC FINDS/FINDE to obtain the taxpayer's current address information. If the current address is found, see IRM 3.14.2.7.5, Entity Adjustments, for specific information for correcting an address.

# Return Received Date

3.14.2.6.1.1.4 (01-01-2026) Return Received Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Due to an Executive directive, every return received must retain the envelope and carry the stamped IRS Received Date as the return received date. The DUE/RCVD DATE field in the NRPS package also shows the received date. If there is a question about the received date because the return was not stamped, decide the correct received date in the following priority: Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Earliest postmark date on envelope Taxpayer signature date Julian control date minus 10 days in the DLN Current date minus 10 days IRC 7503 provides that, in the case where the due date for filing or paying falls on a Saturday, Sunday, or legal holiday, the return or payment is considered to have been timely filed or made on the due date if it is mailed on the next succeeding day which is not a Saturday, Sunday, or legal holiday. "Legal holiday" means any legal holiday in the District of Columbia, or any State. The Failure to File (FTF) penalty is the only penalty that should be adjusted manually for Return Received Date recomputation issues. Interest should not be adjusted manually. When the FTF is adjusted manually the computer will adjust the interest. (See IRM 3.14.2.6.17.1, Penalties and Interest.)

# Tax Period

3.14.2.6.1.1.5 (01-01-2023) Tax Period For Business Returns, the type of return filed can have varied period/year endings. They are: Calendar Year: These are for a consecutive 12-month period ending on December 31. The tax period for this type of return is in the format CCYYMM. The acronym CCYYMM stands for the Century (CC), the Year (YY). the Month (MM). Each acronym is represented in 2-digit format, so it would appear on Business Returns as 202312. Fiscal Year: These are for a consecutive 12-month period ending on the last day of a month other than December. Example: A return with a tax period ending January 31, 2023, would indicate a tax period of 202301. Short Year: These are for a consecutive period of fewer than 12 months. (See IRM 3.14.2.6.4.6 Short Period Returns.) Quarterly: These returns are filed 4 times a year (within a consecutive 12-month period beginning January 1, and ending December 31) Example: A first quarter return (January - March 31) would indicate a tax period of 202303 in format CCYYMM; second quarter, (April - June 30) would indicate a tax period of 202306 in format CCYYMM, etc. Compare the year on the tax return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP) to the tax period on the notice or on the NRPS Package Contents Page. Look for cross-outs and changes to the tax period part of the return. Note: Taxpayers often file their returns using the incorrect year tax forms. Fiscal year returns are indicated at the top of the tax return. If the return is posted to the wrong tax period, reprocess the return to the correct tax period. (See IRM 3.14.2.6.18 Reprocessing Returns.)

# Signatures

3.14.2.6.1.1.6 (01-01-2026) Signatures Tax returns are legal documents and must have a signature on a paper return. Exception: The following are processed without taxpayer signatures: Returns prepared by IRS under IRC 6020(b), referred to as Substitute for Returns or SFRs, must be signed by a revenue agent or officer. However, the revenue officer's (RO) electronic signature or typed signature is a valid signature. Note: If the taxpayer signs the SFR it becomes the return of the taxpayer under IRC 6020(a). Dummy returns filed by IRS. A blank return with a CP 139 attached (e.g., notification that Form 941 or Form 940 may no longer be required because four consecutive 941 tax years were received with no liability. Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter. Re-entry returns originally filed electronically (MeF). The presence of E-File printouts or Tax Return Print (TRPRT) may identify these returns as in lieu of an actual return. A signature must be on the paper return or appropriate pin indicating an electronic signature on an electronically filed return. If the original return was received in pipeline processing without a signature, code and edit or ERS will correspond with the taxpayer. The full return is not sent back to the taxpayer. Instead, the taxpayer receives a letter containing a jurat that the taxpayer is signing the correspondence in place of the return under penalties of perjury, which the taxpayer then sends back to the IRS. Tax return preparers may use a signature stamp to facilitate signing large numbers of returns; see facsimile signature, below. Taxpayers, however, must continue to sign paper returns with original signature. Internal Revenue Procedure 2005-39 outlines the use of facsimile signatures (fax) by corporate officers or duly authorized agents when filing certain employment tax returns or certain information returns. The Revenue Procedure includes the following tax forms: Form 94X series including but not limited to Form 940, Employer's Annual Unemployment (FUTA) Tax Return; Form 941, Employer's QUARTERLY Federal Tax Return; Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, Employer's ANNUAL Federal Tax Return, and Form 945, Annual return of Withheld Federal Income Tax. Form 1042, Annual Withholding Information Return for U.S. Source of Foreign Persons. Form 8027, Employer's Annual Information Return of Tip Income Allocated Tips. Form CT-1, Employer's Annual Railroad Retirement Tax Return. Note: Any variant of the above (e.g., Form 941-SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands 2023 and prior). The facsimile signature may be in the form of a rubber stamp, mechanical device or computer software program. The corporate officer or authorized agent is responsible for ensuring their facsimile signature is affixed to return. For more detailed information, please refer to IRM 21.3.4.3.7, Use of Fax for Taxpayer Submissions. If an electronic signature is in question see IRM 10.10.1, IRS Electronic Signature (e-Signature) Program, for specific guidelines. If the signature is missing on a tax return requesting a refund and the tax module contains a Computer Condition Code (CCC) 3 or E in IDRS, process the notice module as if the tax return was signed. If CCC 3 or E are not present review the return attachments and ENMOD to verify a letter has been sent to the taxpayer requesting a signature. If indication of a signature request letter cannot be found, stop the refund and send a 143C letter requesting a signature. Follow procedures in IRM 3.14.2.7.11, Signature Request Letter Process.

# Taxpayer Correspondence Attached to Return

3.14.2.6.1.1.7 (01-01-2024) Taxpayer Correspondence Attached to Return If taxpayer correspondence is discovered attached to the return, review it and follow through as necessary. Follow Policy Statement P-21-3 (formerly Action 61) requirements if more than 25 days have elapsed from the date the return was received. If the correspondence is requesting action to be taken on the notice module, see the Correspondence Decision Table below. If Then The action can be taken Take the necessary action. Retype the notice as appropriate. Update the History on IDRS, indicating CORRW/RTN as the first History Item. Then input the notice disposition with the second History Item. Mailing of the notice within cycle will satisfy Policy Statement P-21-3 (formerly Action 61) requirement. The action cannot be taken Photocopy the tax return and the original letter. Attach the photocopy of the letter to the original tax return. Route the original letter with a copy of the tax return to Accounts Management. (Write photocopy on the copy of the tax return.) An Interim letter is required if more than 25 days have elapsed from the return received date. Update the account History to indicate action(s) taken. If the taxpayer is requesting an Installment Agreement or indicates an inability to pay and there is no indication the letter was forwarded to Collections: Copy the letter and attach the copy to the return. Notate the original letter was sent to Collections. Route the original letter to Collections. Make sure the taxpayer's name, address, and EIN is indicated on the correspondence. Input a CC STAUP for 9 cycles. An Interim letter is required if more than 25 days have elapsed from the return received date. Update the account History to indicate action(s) taken. Route Reasonable Cause requests to Accounts Management. If the account is in balance due status, input CC STAUP for 9 cycles. An Interim letter is required if more than 25 days have elapsed from the return received date. Update the account History to indicate action(s) taken. The table below can be used as a guide to determine reasonable cause. Examples of Reasonable Cause Death, serious illness, or injury of the taxpayer or their immediate family Unavoidable absence of the taxpayer Destruction by fire or other casualty of the taxpayer's place of business or records Delay due to erroneous information from an Internal Revenue Service employee. See IRM 20.1.1.3.2.2.5, Erroneous Advice or Reliance, regarding the conditions for reasonable cause. Delays caused by, or related to, civil disturbances outside of the taxpayer's control Timely requested forms not received timely Advice or aid sought in preparing returns from Internal Revenue Service representative on or before the due date, but through no fault of the taxpayer, they were unable to see a representative Taxpayer is unable to determine the amount of deposits or tax due for reasons beyond the taxpayer's control Taxpayer does not have access to their records Events beyond the control of the taxpayer. For example, the Post Office shredded the taxpayer's return, a bank substantiates the taxpayer's claim that the delay was caused by the bank, etc. Taxpayer relies upon their accountant, and reasonable cause for the accountant's failure can be established While inability to pay is not reasonable cause forlate filing, lack of funds is reasonable cause for failure to pay only when it is shown that the taxpayer was unable to pay despite their exercise of ordinary business care and prudence. (Make this determination using the information available in the taxpayer's statement.) If correspondence indicates missing information that was not added when the tax return was processed, or requests assistance in computing tax or credits that is beyond the scope of Notice Review: Void the notice. Route to Accounts Management. Make sure the taxpayer's name, address, and EIN is indicated on the correspondence. Input CC STAUP for 9 cycles if the account is in balance due status. An Interim letter is required if more than 25 days have elapsed from the return received date. Update the account History to indicate action(s) taken. If the correspondence is referencing a tax module(s) other than the notice module: Check IDRS for an open control base. See IDRS Open Control Base Decision Table below. If Then There is an open control base Route the original letter to the tax examiner who has the case controlled. Indicate correspondence attached to original return on routing document. There is no open control base, and the requested action has not been taken Input CC STAUP for 9 cycles. Route case to Accounts Management. Indicate correspondence attached to original return on routing document. The guidelines for Policy Statement P-21-3 (formerly Action 61) are established to ensure the taxpayer receives an accurate, professional and timely response to correspondence submitted to the IRS. In Notice Review, we will be responsible for sending interim responses to correspondence attached to original tax returns when it is decided the action requested has not been taken. If it can be decided the action requested has been taken, the mailing of the notice will satisfy our responsibility for the requirement.

# Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF)

3.14.2.6.1.2 (01-01-2026) Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF) If Manual Intervention conditions on the notice module are identified on the NRPS contents page, use the following to determine notice resolution and disposition: If the notice generates with the representative's name and address in the entity, manual intervention will indicate match. If the notice generates with the representative's name and address blank, manual intervention will indicate mismatch Manual intervention may indicate any combination of CAF Match, CAF Mismatch, RAF Match, or RAF Mismatch. Use CCs CFINK and RFINK on IDRS to decide notice disposition for CAF/RAF mismatch and locate an authorized representative's name and address. Note: For more complete instructions for reviewing CAF/RAF notices please refer to ,IRM 3.14.2.5.3, Manual Intervention CAF/RAF/MM/SC , IRM 3.14.2.5.3.1, Processing Notices with a Central Authorization File (CAF) Mismatch and/or IRM 3.14.2.5.3.2, Processing Notices with a Reporting Agents File (RAF) Mismatch. For notice disposition when a valid Authorized Representative is not located, refer to the Invalid Representative Disposition Table below. If And disposition of original CP is Then NO is present on CFINK or NO is present on RFINK Print Select OLNR disposition E (Entity) and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. NO is present on CFINK or NO is present on RFINK Label Select OLNR disposition R (Retype) and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu. NO is present on CFINK or NO is present on RFINK Retype Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. NO is present on CFINK or NO is present on RFINK Void No additional action is required. Disbarred, Suspended or Deceased is indicated Print Select OLNR disposition E and delete the CAF or RAF Entity copy. Disbarred, Suspended or Deceased is indicated Label Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu. Disbarred, Suspended or Deceased is indicated Retype Select OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Disbarred, Suspended or Deceased is indicated Void No additional action is required. If the representative address is undeliverable Print Select OLNR disposition E and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. If the representative address is undeliverable Label Mark OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. Then select the appropriate label from the Label Drop Down Menu. If the representative address is undeliverable Retype Mark OLNR disposition R and delete the CAF or RAF Entity copy by checking the box located on the Entity Tab Screen. If the representative address is undeliverable Void No additional action is required for the CAF or RAF copy. All versions of the notice will be voided. For notice disposition when an authorized representative's address is located, refer to the CAF/RAF Notice Disposition table below. Disposition of Original CP CAF/RAF Mismatch Additional Action Required PRINT Select the OLNR disposition E. Add the CFINK or the RFINK address information to the CAF or RAF Entity Copy on the OLNR server. VOID None RETYPE Select OLNR disposition R. Add the CFINK or the RFINK address information to the CAF or RAF Entity copy on the OLNR server. LABEL Select OLNR disposition R. Add the CFINK or the RFINK address information to the CAF or RAF Entity copy on the OLNR server. Select the appropriate label.

# Additional Review Requirements

3.14.2.6.1.3 (01-01-2023) Additional Review Requirements After completing the General Review procedures located in IRM 3.14.2.6, General Review Procedures, including all subsections, continue with the following instructions as appropriate: Math Error Condition: IRM 3.14.2.6.7 CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze: IRM 3.14.2.6.8 CP 161 (CP 861 Spanish) Balance Due Notice - Non-Math Error: IRM 3.14.2.6.9 CP 162 Failure to File Electronic Partnership Return: IRM 3.14.2.6.10.1 Reviewing Notices with Remittance Processing System (RPS) Indicators (Key 02): IRM 3.14.2.6.11 Refund Transcripts: IRM 3.14.2.6.12 Required Payment or Refund Under Section 7519 - Form 8752: IRM 3.14.2.6.13 Adjustment Notices: IRM 3.14.2.6.14 Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33,52, 54, 55, and 91: IRM 3.14.2.6.15 CP 173 - ES Penalty: IRM 3.14.2.6.16

# Payments and Credits

3.14.2.6.1.4 (01-01-2016) Payments and Credits This subsection contains instructions dealing with payments and credits. It includes information on discovered remittance, dishonored payments, Bad Check Penalties and Bank Adjustments.

# Discovered Remittance

3.14.2.6.1.4.1 (01-01-2016) Discovered Remittance When reviewing tax returns, especially Non-Math Error Balance Due notices, thoroughly search all attachments (including envelopes) for payments. Use the following procedures to process a discovered remittance: Prepare Form 3244 (Payment Voucher) in duplicate. Attach the carbon copy to the front of the tax return under the Entity section. Use CC ACTON to input a history item of DISCREMIT on IDRS. Input CC STAUP for 8 cycles on all balance due modules. Void, retype, or label the original notice as required. Prepare Form 4287 - Record of Discovered Remittance. Give remittance and the original copy of Form 3244 to team lead.

# Dishonored Payments and Bad Check Penalties

3.14.2.6.1.4.2 (01-01-2023) Dishonored Payments and Bad Check Penalties A penalty is imposed on dishonored checks or other forms of payment that are returned from a financial institution unpaid. Bad checks penalty associated with the dishonored payment will be identified on Master File and IDRS as a TC 280 (manually computed and assessed penalty) or TC 286 (systemically computed and generated penalty). If a Dishonored Payment transaction (TCs 611, 641, 651, 661, 671, 681, or 691) and penalty (TC 280 or 286) are pending on the notice module: Delete any refund resulting from the dishonored/bad check. If the refund was deleted, wait for the TC 841 to post. Input CC STAUP for 6 cycles if a balance due remains. Retype the notice to include the Dishonored Payment Penalty (Notice Penalty Code 04). Update the balance due, refund amount, or credits on the notice using CC COMPA and CC INTST. Note: Use CC COMPA to update the module because CC INTST will not be accurate until the TC 280 or 286 posts. Issue a manual refund for large dollar refunds if it can be done within the 45 day period, if the taxpayer is still entitled to a refund despite the dishonored payment/bad check. For additional information, see IRM 20.1.10.7, IRC 6657 - Bad Checks (Dishonored Checks or Other Forms of Payment).

# Bank Adjustments

3.14.2.6.1.4.3 (01-05-2016) Bank Adjustments There may be instances when payments are encoded incorrectly on a taxpayer's account. If an obvious encoding error is discovered, refer to the Bank Adjustments Decision Table below. If And Then The payment can be located on Remittance Transaction Research (RTR) system The amount of the check matches the amount posted to the account No further research is needed. Resolve the notice issue. The payment can be located on RTR The amount of the check does not match the amount posted to the account This may be an encoding error. Print a copy of the check from RTR and follow the directions in the boxes below. Math error notice and the notice module is overpaid, and a refund is scheduled to be released The payment is less than what the taxpayer is claiming 1. Allow the refund. 2. Print the notice. 3. Contact the Payment Correction Team (at the SP site that processed the payment) for resolution. Math error notice and the notice module is overpaid, and a refund is scheduled to be released The payment is more than what the taxpayer is claiming Note: If the verified payments total $5,000.00 or more, issue a manual refund for the corrected refund amount. Void the notice, leave a history and follow Item 4 in next box. 1. Intercept the refund using CC NOREF via the IAT tool. 2. Use Refund Deletion code 99. 3. Close your control base. 4. Contact the Payment Correction Team (at the SP site that processed the payment) for resolution. The notice is a non-math error notice Notice is balance due Void notice. Leave History Item Input CC STAUP for 9 cycles. Contact the Payment Correction Team at the SP site that processed the payment) for resolution. Notice is a non-math error notice Notice is credit or even balance Void notice. leave History Item. Intercept Refund and/or freeze credit on module. Note: When working CP 267 or CP 210, if there is a bank adjustment, the credit must be frozen, or refund intercepted so the bank adjustment can be done prior to the credit being erroneously refunded. Contact the Payment Correction Team at the SP site that processed the payment) for resolution. The notice is a math error notice with a balance due The notice has EFTPS payment(s) Print the notice. Contact the Ogden Payment Correction Team at 801-620-7801 for resolution.

# Offsets

3.14.2.6.1.5 (01-01-2026) Offsets Internal Revenue Code IRC 6402 (a) allows the IRS to offset payments against tax liability. Internal Revenue Code IRC 6402 (c)-(f) require a taxpayer's overpayment be applied to any outstanding non-tax debts including child support, federal agency non-tax debt, state income tax obligations or certain unemployment compensation debts owed to a state. Offsets under IRC 6402 (c)-(f) must be made prior to crediting the overpayment to a future tax (credit elect) or allowing a refund. This application of a tax overpayment is called a refund offset. Refund offsets to child support, federal agency non-tax debts, state income tax obligations and unemployment compensation debt are handled by the Bureau of the Fiscal Service (BFS) through the Treasury Offset Program (TOP). This occurs after a refund is certified by Internal Revenue Service (IRS) for payment by BFS, but before the refund check is issued or direct deposit is transferred to the taxpayer's bank account. For additional information see IRM 21.4.6, Refund Offset Research, Reversals, and Injured Spouse Processing. There are two types of refund offsets: Tax offset, Treasury Offset Program (TOP) offset, effective 01/11/1999 and after A tax overpayment must offset to an outstanding federal tax debt before it offsets to non-tax debts or is applied to a credit elect. The priority of offsets within TOP are: Office of Child Support Enforcement: Temporary Assistance to Needy Families (TANF) (payments to the state) and/or Non-Temporary Assistance to Needy Families (non-TANF) (payments to the custodial parent through the state) Federal Agencies State income tax obligations Unemployment compensation Command Code (CC) INOLE contains debt liability indicators based on information received from BFS. BFS debt records are updated daily; however, IRS CC INOLE is only updated weekly. Therefore, CC INOLE may not have the most current debt information. The indicators are used to identify an IRS freeze or tax debt, TOP non-tax debt, or both. These indicators are shared with Electronic Return Originators (EROs) on the Electronic Filing (ELF) acknowledgement file, and used by the EROs to determine whether to approve a Refund Anticipation Loan (RAL) The indicators are the letters: N, I, F, B. For a complete explanation of each code refer to IRM 21.4.6.4, Refund Offset Research. CC TXMOD also contains debt liability indicator, found directly below the TC 846. The indicator is set at the time the TC 846 is generated on the module and is shown as: DMFLIAB-> 1 or DMF-LIAB-IND>0. If the indicator on CC TXMOD is a 0, the debt indicator on CC INOLE will be an N or an I. If the CC TXMOD debt liability indicator is a 1 the debt liability indicator on CC INOLE will be an F or B. Offsets occur when credit is moved between different tax modules and/or taxpayer accounts. Credits can be moved manually, or are computer generated. Note: Money should not be moved manually with offset or lump sum transaction code if the Refund Statute Expiration Date (RSED) has expired. However, a payment can be moved if it was made less than 2 years before the claim was filed. Caution: All existing modules with a balance due≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡must be satisfied before inputting a manual refund or manually transferring a credit elect.

# Credit Elect - TC 830 / TC 710 and TC 836 / TC 716

3.14.2.6.1.5.1 (01-01-2026) Credit Elect - TC 830 / TC 710 and TC 836 / TC 716 Review the return to decide if the taxpayer requested that all or part of their overpayment be applied to the next tax period. Caution: If any balance due module contains an -E Freeze, do not manually offset credit to satisfy the module. When the request is transcribed properly from a current period return, the computer will automatically offset the credit (TC 836/716) if it is available. Caution: If credit elect is $ .99 or less the amount will not be automatically offset by the computer. In this instance the tax examiners do not have to manually transfer the credit. If the full amount of the credit is not available when the return posted: For Form 990-PF, Form 990-T, Form 1041, Form 1120, and Form 1120-C, the computer continues to offset as more credit becomes available until the full credit elect amount is satisfied. This capability only exists up to one year after the original tax period ending date. Example: Up to December 31, 2021 for a 202012 tax return. For Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form CT-1, and Form 1042 the computer will not offset additional credit elect after the return posting cycle. A manual credit elect transfer must be input for additional offsets on these modules. (Input CC ADD48 on IDRS using the IAT Credit Transfer Tool and TC 830/TC 710.) The following notices pertain specifically to credit elect situations: CP 147 - will only generate on an income tax return. It is issued when additional credit(s) become available and are computer offset. CP 145 - must be pulled and associated with the case when adjusting an account if the credit elect will be affected. Forms 940, 941, 943, Form 944, and 945: When the refund box is checked, Integrated Submission and Remittance Processing (ISRP) System or Data Input System (DIS) will input a Refund Indicator, which generates the Computer Condition Code S at posting. When neither box is checked or the Applied to Next Return box is checked, the refund indicator is not input, Computer Condition Code E generates at posting, and the overpayment is applied to the next return (credit elect). Follow the instructions below: Verify that the entries match the Computer Condition Code posted to the notice module. If there is an overpayment on the account that will refund, and any of the following occur, apply the credit elect using (6) below: • Neither of the boxes are checked. • The return is not available. • The Computer Condition Code E is present on the notice module. If the Data Transcriber did not properly transcribe the credit elect request and the credit is refunding: Delete the refund. Use CC ADD48 to manually transfer the credit elect amount as a TC 830/TC 710. Be sure to use posting delay codes to allow time for the TC 841 to post to the module before the TC 830 posting. For Form 941 and Form 944, if the taxpayer entered the credit elect or total FTD credits on the Advanced Earned Income Credit line in error and an erroneous TC 766 credit is present, delete the refund. Adjust the TC 766, using CC REQ54 on IDRS. Manually transfer the claimed credit elect if not already offset by the computer. Master File will not automatically offset requests for credit elect on prior year income tax returns and/or additional requests on all non-income tax returns. Use CC BMFOL to review the next period. Manually input credit elects on all prior year returns. Caution: Never transfer credit elect from a module with an expired RSED. Transfer claimed credit elect directly to a module separated by more than one tax period (e.g., 20XX03 to 20XX09), if all of the modules in between claim the same credit elect, are settled modules, and no penalties or interest will abate. Use the correct dates and an Override Code "2" on the Doc Code 48 transfer. All other offsets (TC 826 or 896) have priority over a credit elect offset. Only reverse one of these offsets in favor of a credit elect when a TC 826 offsets to the next period, and penalties and interest will decrease if a timely credit elect posts. Refer to the Credit Elect and Credit Offset Decision Table below. If Then The next tax period has a balance due Stop the refund. The credit elect will cause penalties and interest assessed on the next period to partially or fully abate Retype the settlement notice or Void the CP 145. Taxpayer claimed the credit on the next tax period and the credit elect field on the next module has an amount Manually offset the credit elect. Otherwise Allow the refund. When increasing tax or reversing credits on the notice module, reverse all or part of a notice cycle credit elect to cover the debit. Input CC ADC48 using TC 832/712 on IDRS. Delete any current cycle refund on the next module. Reverse the offset using a posting delay code to allow time for the TC 841 to post before the TC 712. Do not reverse a credit elect that was offset in a different cycle from the notice cycle. Example: If the notice generated in cycle 20XX15 and the TC 836 posted in cycle 20XX08, do not reverse the TC 836. Retype the original notice to include the CP 145 information. If a notice cannot be mailed take no action. If the credit elect from the prior year module (TC 716) was intended for another account, use CC ADD48 to transfer the credit with a TC 712/TC 710: Use the TC 716 date as the TC 712 date. Use the date the credit was originally available as the TC 710 date. Reverse a TC 826 offset if there is a pending manual credit transfer. When manually transferring credit elect, input TC 830/TC 710: If all payments or credits are timely ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, use the due date of the return as the 830/TC 710 date. Otherwise, use the date of the credit creating the overpayment as the TC 830/TC 710 date. In the case of a tax decrease (TC 291/295), use the due date of the return or latest payment date. Exception: For Form 1120 with a tax period ending in 06, the TC 830/836 date is the RDD plus one month. For example: on a 20XX06 return the due date is 101520XX and the TC 830/836 date is 111520XX. For Form 1120 returns beginning after 12/31/2015 (excluding those with a tax period ending in 06) , the TC830/836 date is the RDD (there is no need to add a month). Refer to IRM 21.7.4.4.5, Estimated Tax Overpayment Credit Elect-General. Note: Multiple TC 830s may need to be input depending on the date the credit is available. Always transfer the most recent credits first. If a tax adjustment or credit transfer creates, or is a part of the overpayment, time the offset (TC 830) to post after the adjustment or credit transfer, by inputting a Posting Delay Code (See Use of Posting Delay Codes Table). Note: Timing the actions will allow all of the transactions to post and will prevent unintentional refunds and unpostables. If the required overpayment amount is not available, the computer will resequence the TC 830 for one cycle. The exact amount of credit must be available or the TC 830 will unpost. Reminder: An adjustment notice will generate the same cycle as a penalty reversal if a Failure to Deposit (FTD), Failure to File (FTF), Failure to Pay (FTP) (decrease only) or Estimated Tax (ES) Penalty recomputes. Refer to the Use of Posting Delay Codes chart below. If Then The penalty or interest will recompute because of an adjustment action. Note: If penalties and interest will not recompute, the Posting Delay Code on the TC 830 is not required. Use appropriate Posting Delay Codes to time the transactions to post in the following order: Adjustment or credit transfers and TC 290 .00 adjustments, if preventing an adjustment notice. Note: When inputting a credit transfer follow instruction in IRM 3.14.2.7.7, Credit Transfers. The TC 830. The TC 571, if required. Caution: Check prior periods for debit modules before inputting the TC 830/TC 710. If no E Freezes are present, manually offset applicable credit to the debit module(s) with the earliest CSED(s) before applying forward. Use TC 820/700 with CC ADD24. Time the transaction to post in the same cycle as the TC 830/TC 710. A Doc Code 34 credit transfer will create the overpayment, use a Freeze Code 1 on the transfer. Input TC 290 .00, Hold Code 3, appropriate Posting Delay Code, if the adjustment notice must be suppressed. See Note below. Input TC 830/TC 710, Doc Code 48, appropriate Posting Delay Code on the debit side of the transfer. Release module freeze, appropriate Posting Delay Code to post after the TC 830 if there is remaining credit that must refund. A Doc Code 24 or 48 credit transfer will create the overpayment, use a TC 570 on the credit side of the transfer. Input TC 290 .00, Hold Code 3 if the adjustment notice must be suppressed. See Note below. Input TC 830/TC 710 with Doc Code 48. Release module freeze. Use appropriate Posting Delay Code to post after the TC 830 if there is remaining credit that should refund. A Doc Code 54 adjustment will create the overpayment, use Hold Code 4 on the adjustment. Input the TC 830/TC 710 on a Doc Code 48. Reminder: The TC 830 will release any remaining credit on the module when Hold Code 4 is used. Note: For more information on selecting the appropriate Hold Code, see, IRM 3.14.2.7.6.3, Hold Codes and IRM 20.1.2.2.10, Hold Codes and Notices. See the Credit Elect Notice Disposition chart below to determine the correct notice disposition. If And Then The CP 145 or settlement notice with the credit elect pop-in paragraph will be mailed to the taxpayer. Master File cannot systemically offset the additional credit elect. Manually transfer the credit elect (see above). Use label 7 to reflect the credit elect. The CP 145 or settlement notice with the credit elect pop-in paragraph will be mailed to the taxpayer. Master File can systematically offset the additional credit elect. Let Master File offset the credit. Do not input a TC 830/TC 710. Use Label 2. Allow the CP 147 to generate. All of the requested credit elect amount has now been applied. A CP 145 generated. Void the CP 145. All of the requested credit elect amount has now been applied. A settlement notice generated with the credit elect pop-in paragraph. Retype the notice to exclude the pop-in paragraph or void if returning to taxpayer's original figures. The total credit elect applied is still less than the taxpayer's figures. A CP 145 generated. Retype the CP 145. The total credit elect applied is still less than the taxpayer's figures. A settlement notice generated with the credit elect pop-in paragraph. Retype the notice to correct the dollar amounts in the pop-in paragraph. Keep the following in mind when manually transferring credit elect: Use an Override-Date Indicator 2 on both sides of a Doc Code 48 if the debit and credit transaction dates are different. Use the date of the credit being reversed as the reversal transaction date. Do not transfer credit elect for an amount exceeding the available credit on the module. Do not transfer credit elect with a transaction date earlier than the due date of the return. Do not transfer credit elect with a transaction date earlier than the credit or payment that created the overpayment. Note: In the case of a tax decrease (TC 291/295), use the due date of the return or latest payment date.

# Lump Sum Credit Offset - TC 826 / TC 706 and TC 820 / TC 700

3.14.2.6.1.5.2 (01-01-2025) Lump Sum Credit Offset - TC 826 / TC 706 and TC 820 / TC 700 Master File offsets available credit (with a TC 826/706) to an account on which a taxpayer has a balance due. A notice will generate to tell the taxpayer of the offset: Note: This offset to a debit account has priority over a requested credit elect except when an -A Freeze is present. CP 138 generates when an overpayment offsets to another tax liability. Use a Doc Code 24 credit transfer with a TC 701/821 to reverse an offset to a tax liability. Include a TC 570 on the credit side (TC 821) if the credit must be held. A Bypass Indicator is unnecessary. Use of IAT is mandatory to perform credit transfers. Make sure the reversal date matches the original offset date. Use CC BMFOLT to review a module that is not in the NRPS package or on IDRS. Caution: The TC 826 date may differ from the corresponding TC 706 date. Reverse multiple transactions in the order that the TC 826s appear on the module. Do not lump transactions together. Reverse a TC 826 offset if there is a pending manual credit transfer If an adjustment will leave a balance due on a module: Reverse the offset. Refer to the Offset Reversal Decision Table below. If Then There is a current cycle TC 826/706 offset Reverse it in whole or in part to satisfy the balance due. Do not reverse a prior cycle TC 826 unless timely credits are located to satisfy the account. The module that received the offset has a current cycle refund Delete the refund. Reverse the TC 826 using a Posting Delay Code to allow time for the TC 841 to post before the TC 821. Use CC ADD24 with a TC 731/851 to reverse offset interest (TC 736/ 856). Note: Use CC REQ54 with a TC 772 to reverse the TC 776. Use Hold Code 3 if needed. Void or retype the CP 138. When manually transferring offsets, input TC 820/700 on CC ADD24. Use the later of the Return Due Date (RDD) or the date of the credit creating the overpayment as the TC 820/700 date. Caution: Never transfer lump sum credit from a module with an expired RSED. Multiple TC 820s may need to be input depending on the date credit is available. Always transfer the earliest available credits first.

# TOP Offset

3.14.2.6.1.5.3 (04-03-2023) TOP Offset Bureau of the Fiscal Service (BFS) initiates refund offsets to outstanding federal tax debts, child support, state income tax obligations and unemployment compensation debts via the Treasury Offset Program (TOP). These offsets are referred to as TOP offsets. A TOP offset appears on the module as: TC 898 with an Offset Trace Number (OTN), an offset amount, and a debtor-TIN field, if the offset is for a secondary spouse. OTN - Starting with 1 indicates primary taxpayer debt. OTN - Starting with 2 indicates secondary taxpayer debt. TOP offsets occur after the IRS has certified a refund to BFS for payment (TC 840/846 on account), but before BFS direct-deposits the refund overpayment or mails the refund check. A TOP offset reduces the amount of the IRS refund by the amount of the TC 898 offset. A TOP offset does not affect IRS' ability to stop a refund through (CC) NOREF, or the time frame involved to do so. A TOP offset Bypass Indicator (BPI) is assigned to all manual and systemic refunds issued to BFS by IRS. The BPI is a one-digit indicator that identifies for BFS whether the refund is eligible for offset by TOP. The BPI is posted/displayed along with the TC 840/846 on all output screens such as TXMOD, IMFOL, BMFOL, and on MFTRA transcripts. There are ten BPIs, 0 through 9. For a complete definition of BPI codes refer to IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI). TOP offsets are made against any refund issued from the following MFTs: 02, 03, 07, 10, 13, 29, 34, 44, 46, 52, 60, 63, 64, 77, and 78, unless a BPI is systemically generated on the refund or input on a manual refund. See IRM 21.4.6.4.2.1, TOP Offset Bypass Indicator (BPI). Note: For specific questions concerning offsets refer to IRM 21.4.6, Refund Offset.

# $100 Million Refunds

3.14.2.6.1.6 (01-01-2025) $100 Million Refunds An account with an overpayment of $100 million or more requires that a manual refund be issued because a TC 846 will not generate. Assign these cases to a work leader the same day they are received in the unit. See IRM 3.14.2.6.6.25 , Refund X- Freeze for more information. Note: Refer to Document 6209 Freeze Codes Section 8 A for more information. Use current procedures for resolving over payment prior to initiating a manual refund: Verify all unclaimed credits. Offset the overpayment as needed to cover any debit balances. Abate any interest caused by an overpayment not due the taxpayer. The account must be satisfied or in debit status before closing the control. If another area has an open control on the case, contact that area, and route all available documents to that area (remember to document this action on IDRS). Exception: The control base may be closed if there is an -L Freeze (see IRM 3.14.2.6.6.13, AIMS Indicator Freeze (-L)) on the module and a Revenue Agent (RA) has advised that the credit not be refunded due to legal implications. Remember to document this action on IDRS. If, after any adjustments, the account has a credit balance less than $100 million with a -X freeze: Offset credit to any debit-balance modules. Prepare a manual refund for the excess credit. Initiate a manual refund using the IAT tool. If, after any adjustments, the account has a credit balance of $100 million or more, Notice Review must initiate the manual refund using the IAT and route to the Accounting Function for issuance. Take the following steps below" Prepare Form 3753. Send a copy of the original return, transcript, Form 3753 , Manual Refund Posting Voucher, all prints essential to manual refunds, and any other documents about the case to the Accounting function. Refer to IRM 3.14.2.7.2.2, Manual Refunds, for more information. Close the control base after all account transactions post. Keep photocopies of the return and the transcript on file for future reference.

# Analyzing NRPS Data Sheet Appended

3.14.2.6.1.7 (01-01-2026) Analyzing NRPS Data Sheet Appended The NRPS data will show appended (changed/pending) transactions at the beginning of each notice file in the batch. NRPS extracts this data from the following sources: Generalized Unpostable Framework (GUF) and Unpostable Files Taped Edited Program (TEP) File Error Resolution System (ERS) File Revenue Receipts Unidentified Remittance and Excess Collection File Resequencing File (RS) Generalized Mainline Framework (GMF) Error, Block Out of Balance (BOB), and Reject Files (RF) See the following sections for more information on pending transactions.

# Pending Transactions

3.14.2.6.1.7.1 (01-01-2026) Pending Transactions Pending transactions are account actions that have not posted to the taxpayer's account by the notice cycle. Pending transaction data consists of transaction codes, dates, and amounts, account identifying information, and other pertinent data. This data appears with the name of its source file (GUF, TEP, etc.) under the Pending Transaction heading on the NRPS Package Contents Page. ( See Document 6209 Section 14 Pending Transaction Identification Codes/IDRS Merge Related Transaction Codes ). Pending Transactions can be identified by their IDRS status. Below are common statuses seen in Notice Review. AP - Awaiting Pending status. A transaction that was input on the current day and will remain in AP status until end of day processing. PN - Pending. A transaction that is pending and has passed IDRS validity checks. RJ - Rejected. A transaction that has been rejected due to not meeting IDRS validity checks. RS - Resequencing. A transaction that has been extracted from the resequencing file due to account conditions. UP - Unpostable. A transaction that cannot post due to errors that will not pass GUF validity verification. CU - Corrected Unpostable. A transaction that previously unposted, has been corrected, and will post after Master File processing. DU - Deleted Unpostable. A transaction that previously unposted and could not be corrected due to unknown variables or system limitations. Due to CADE 2 accelerating IDRS updates the amount of pending transactions should be reduced. See the following sections for processing different types of pending transactions.

# Pending (PN, RS, or UP) Adjustment Transactions

3.14.2.6.1.7.1.1 (01-01-2026) Pending (PN, RS, or UP) Adjustment Transactions Adjustment transactions in IDRS with a DLN Document Code of 54 or 47 indicate an input from ADJ54. See Document 6209 Section 4, Document Locator Number and Section 4, Part 2, DLN Doc Code composition for more information. If the pending transaction is Resequencing (RS), the transaction will post unless conditions on the module or in the transaction data cause it to go unpostable. Refer to, IRM 3.14.2.6.1.7.2, Unpostable Transactions, for more information. See IRM 3.14.2.6.14, Adjustment Notices, and its subsections for specific information for adjustment notices. If a pending adjustment was input by another area, with a Hold Code 0 or 1, another notice will generate. Label 1 the notice in OLNR. See the table below for account and OLNR actions. Reminder: When Hold Code 0 is used, it will not display on IDRS screens (other than ADJ54) or in the NRPS Package/Control D. If no hold code is visible, Hold Code 0 was input. If the account is Then Not overpaid Apply Label 1 to the selected notice in OLNR. Overpaid but the pending transaction will not reduce the refund Apply Label 1 to the selected notice in OLNR. Overpaid, the pending transaction will reduce the refund, and the refund can be intercepted, Intercept the refund. Apply Label 1 to the selected notice in OLNR. Overpaid, the pending transaction will reduce the refund, and the refund cannot be intercepted Follow erroneous refund procedures ( IRM 3.14.2.7.2.1, Erroneous Refunds) and apply either Label 15 or 16 in OLNR as applicable. When the pending transaction was input using a Hold Code 3 or 4, use the following chart: Note: Another adjustment notice will not generate. Reminder: In addition to preventing an adjustment notice, Hold Code 4 will freeze any available credit from refunding or offsetting. If the account And the Pending Transaction will Then Is refunding Not reduce the refund Retype the notice if one refund check will be received. If two refund checks will be received, apply Label 17. Is refunding Reduce the refund Intercept the refund and retype the notice. If the refund cannot be intercepted, follow erroneous refund procedures and apply either Label 15 or 16 as applicable. Is not refunding (regardless of the original account balance) Change the account balance Retype the notice to reflect the correct account information and module balance.

# Pending (PN, RS, or UP) Credit or Debit Transactions (Payments and Credit Transfers)

3.14.2.6.1.7.1.2 (01-01-2026) Pending (PN, RS, or UP) Credit or Debit Transactions (Payments and Credit Transfers) Timely credits or debits posting to an account may result in systemic recomputation of Failure to Deposit (FTD), Failure to Pay (FTP), Failure to File (FTF), and Estimated Tax (ES) penalties. See IRM 3.14.2.6.14, Adjustment Notices, and its subsections for specific information for adjustment notices. Carefully research IDRS. If review of the account determines that a pending (AP, PN, RS, UP or CU) credit or debit transaction will post: Use CC INTST to compute the new module balance updating the date to the current 23C (notice) date. Exception: If interest or Failure to Pay penalty is restricted, use CC COMPA to recompute interest or CC COMPAF to recompute Failure to Pay penalty. Exception: If the pending transaction is a payment that is RS or UP, CC INTST reflects only the payment. Penalty and interest must be manually recomputed. Use CC PIEST to show a recomputed ES Penalty (TC 176 assessment/TC 171 abatement) when timely payments are moved into a module for Form 990-T , Form 990-PF, Form 1041 and the Form 1120 series. See IRM 3.14.2.6.17.7, Estimated Tax Penalty and IRM 3.14.2.6.16 CP 173 - ES Penalty for more information. Use CC COMPAE/ CC COMPAS to recompute the ES Penalty if it is restricted by a manual TC 170 or TC 171 or an additional tax adjustment requires the penalty to be recomputed. If a pending (PN, RS, or UP) credit transaction will post, use the following chart: Note: If the pending transaction will not post, print the notice. If another notice will And the notice module Then Not generate Note: A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute. Is overpaid or offsetting Retype or label the notice as appropriate. The label options for this scenario are: Label 4,(IRM 3.14.2.7.10.6.4, Label 4), Label 6 ( IRM 3.14.2.7.10.6.6, Label 6), and Label 14 ( IRM 3.14.2.7.10.6.14, Label 14). Review each label carefully before selecting in OLNR. Not generate Note: A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute. Is in balance due that will be reduced, become even balance, or overpaid Retype the notice to reflect the credit and update interest and penalties as needed. Label 3 may be used instead, but the module must remain in balance due status and the updated account balance must be provided on the label in OLNR. Exception: If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice. Generate because the FTF, FTP (decrease only), or ES Tax penalties will recompute Reminder: Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice. Will be overpaid or even balance Apply Label 18. Generate because the FTF, FTP (decrease only), or ES Tax penalties will recompute Reminder: Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice. Will have a balance due Apply Label 2. If review of the account determines that a pending (PN, RS, or UP) debit transaction will post to the notice module, follow the chart below. Exception: If an account is refunding and the debit transaction is a TC 820 or TC 830, see (5) below. Note: If the pending transaction will not post, print the notice. If another notice will And the notice module balance Then Not generate Will be a decreased overpayment Intercept the refund and retype the notice including applicable interest and penalties Exception: If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice. Not generate Note: A notice will not generate if the FTF, FTP (decrease only), or ES Tax penalties will not recompute. Is balance due and the balance due will increase Retype the notice to reflect the debit transaction and update interest and penalties. Generate because the FTF or ES Tax penalties will recompute Is overpaid, the overpayment will be decreased, and the account will remain overpaid or even balance Intercept the refund. Retype the notice as appropriate, including interest and penalties. Input a TC 290 .00 Hold Code 3 to intercept the adjustment notice. Exception: If the account balance will match taxpayer figures and the account will have a zero balance without a math error or the taxpayer is receiving the expected refund with one TC 846 (refund), then void the notice. Generate because the FTF or ES Tax penalties will recompute Is balance due and the balance due will increase Retype the notice to reflect the debit transaction and update interest and penalties. Input a TC 290 .00 Hold Code 3 to intercept the adjustment notice. If the pending debit transaction is a TC 820 (manual offset) or TC 830 (manual credit elect), and the account is refunding or has systemically offset, the TC 820 or TC 830 will go unpostable if the credit is no longer available when the transaction posts. Review all of the involved modules to determine if the pending transaction is correct. Intercept the refund if possible. See IRM 3.14.2.7.1, Refund Intercepts using CC NOREF, for more information. If the refund cannot be intercepted or the overpayment amount has already systemically offset, contact the originator if they do not have an open control base to notify them of the impending unpostable, and print the notice. If the refund can be intercepted to allow the TC 820 or TC 830 to post , the taxpayer account will remain overpaid, and the transaction is for the same EIN on the credit and debit sides of the transaction, then release any remaining refund and Label 7 the notice. If the account will become balance due or the EIN on one side of the TC 820 or TC 830 is different then retype the notice to include the offset or credit elect amount(s).

# Unpostable Transactions

3.14.2.6.1.7.2 (01-01-2023) Unpostable Transactions Unpostable transactions are transactions that require corrective action before posting to the Master File. Unpostable Codes (UPCs) identify the set of conditions that caused the transaction to be unpostable. Unpostable Reason Codes specify the various conditions that can be present for each UPC. Note: Document 6209, Section 8, contains descriptions of UPCs and RCs along with a list of unpostable resolution codes (URCs). This information will help decide the corrective action to take. See Document 6209 Section 8B Unpostable Codes chapter 4 and/or Document 6209 Section 8B Unpostable Resolution Codes chapter 7 The GUF and the Unpostable Files show pertinent information about unpostable transactions on IDRS, including: Transaction Code Date Dollar Amount TIN MFT Tax Period Cross Reference (XREF) Account

# Reviewing Unpostable Transactions

3.14.2.6.1.7.2.1 (01-01-2021) Reviewing Unpostable Transactions A pending Unpostable will display one of the following identification codes next to the Transaction Code: Unnn or UP: An open unpostable transaction nnn is a numeric unpostable codes (e.g., 198 or 175). CU: A corrected unpostable. The transaction should post in the cycle displayed on IDRS DU: A deleted unpostable. This transaction will not post and has been deleted from the module. NU: A nullified unpostable to be resolved by the Rejects Function or by the originating tax examiner. Reminder: If the account is not on your local database, research controls or actions being taken on the remote database. Use CC UPTIN on cases open on the Unpostable File to provide useful information to the Unpostables Function. Only the Unpostables Function can correct and close a case on the Unpostable File. Note: The originating tax examiner may need to resolve closed cases. Use the unpostable code to decide what caused the unpostable. If Unpostables has closed the case, an Unpostable Resolution Code (URC) will describe the resolution (See Document 6209, Section 8b and IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution). Use this information to decide how the transaction will affect the notice and the notice module. Correct the notice (See IRM 3.14.2.7.10, Notice Disposition and IRM 3.14.2.6.14, Adjustment Notices) and resolve the case. No further action is required on the unpostable. If the case is still open, check the transaction information to decide the cause of the unpostable. Overlay the CC UPDIS response screen with CC UPCASZ and input any history item information that will be useful in resolving the unpostable case. Note: If the case is still open ,check the transaction information to determine the cause of the unpostable and how it will effect the notice module and add the appropriate disposition to the notice. If the transaction can be posted as it is, leave a history item indicating that Unpostables should post the transaction without a change. The transaction may have been unpostable when it first reached the Master File. When a Notice Review tax examiner receives notification of an unpostable, the transaction has usually been deleted on IDRS. Use the Unpostable Code information to correct the transaction. Refer to the Unpostable Decision Table below. Note: Unpostables will open a control base for the originating tax examiner and include the transaction on the Nullified Distribution Listing. If the Then Error condition can be corrected Re-input the transaction with the corrected information. Error condition cannot be corrected Close the base. Input any necessary history items, TC 570s or CC STAUPs. Delete any incorrect refunds. Adjustment or credit transfer was already input by someone else Do not enter a duplicate transaction. Close the control base assigned to you. Refer to the chart below for Common Unpostable Codes and Resolutions. UNPOSTABLE CODE ERROR CONDITION RESOLUTION UPC 305 A credit transfer input without a Bypass Indicator or a TC 570, attempts to post to a settled module. When transferring a payment to a settled module, use CC UPTIN to tell the Unpostable (UP) Unit to allow the credit to post. If the module balance changes to a credit balance and the credit is not to be released, input a TC 570 using REQ77, FRM77. UPC 313 Incorrect TC was used to reverse original TC in module. (no matching TC found) Determine what the correct TC should have been. Use CC UPTIN to alert the Unpostables unit to post with the correct TC. ( Input correct TC in remarks) UPC 316 Transaction date of credit transfer does not match date of the related TC. Use UPTIN to tell UP unit to post with the correct date. (Input correct date in remarks) UPC 316 Money amount not matching Input credit transfer with correct amount. UPC 316 Doc Code 24 credit transfer input for EFT payment without inputting the EFT indicator Re-input credit transfer using ADD/ADC24 with EFTPS indicator 1 or using ADD/ADC34. (EFTPS indicator is not required) UPC 325 TC 820 or 830 amount exceeds the credit balance in the module Re-input the transaction by either waiting until the credit will be available or reducing the amount of the TC 820/830. UPC 328 A tax adjustment without Priority Code 8, is within $10.00 of a previous tax adjustment Decide if the adjustment is not a duplication. Re-input the adjustment with Priority Code 8. See IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution, for further information concerning resolving any of the UPCs listed above. Note: UPTIN can only be used if the case is open on the UPTIN file. Note: The Unpostables Unit cannot correct money amounts.

# Preventing Unpostable Transactions

3.14.2.6.1.7.2.2 (01-01-2025) Preventing Unpostable Transactions Avoiding unpostables requires that the proper Priority Codes, Hold Codes, Bypass Indicators, Freeze Codes (or TC 570), and Posting Delay Codes be input with adjustment actions. When inputting a credit transfer, follow instructions in IRM 3.14.2.7.7, Credit Transfers. Use of the IAT tool is mandated to prevent date and transaction code unpostable transactions. The following are actions to take to prevent unpostables: Decide the correct TC. Use Doc Code 24 to transfer credits between Master Files when a secondary TC is needed, or when changing the date on a posted transaction. The debit and credit parts post separately on ADC34 (3 cycle) and ADD34 (2 cycle). The debit and credit parts post together on ADC24 and ADD24. Review each account carefully before entering an adjustment or credit transfer. Note: Use of the Integrated Automation Technologies (IAT) Credit Transfer tool is mandated when inputting credit transfers. The IAT tool was designed to help reduce unpostable transactions and to prevent erroneous transactions from posting. Consider the effects of pending transactions, previous actions, freeze codes, module balances, and posted manual penalty and interest adjustments. Also consider the effects of the transaction being input. Contact any tax examiner with an open control base (A status only) to coordinate actions on modules and prevent erroneous and duplicate adjustments. See IRM 3.14.2.7.3, Controlling Cases, for more information. To prevent Unpostable Tax Adjustments (Doc Code 54): Be sure the adjustment is not a duplicate of a previous adjustment. Consider previous tax adjustments before inputting another adjustment, especially those within $10.00 of a previous adjustment. Look for manual adjustment of penalties and interest (TCs 160, 161, 170, 171, 340, 341 and 240 with PRN 722 or 723) that need correction or recognition when inputting an adjustment. Use the correct MFT, tax period, and name control. Input the correct Item Reference Numbers (IRN) and Credit Reference Numbers (CRN). See IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN), for more information. Consider posted amounts and limitations for each code being input. Do not reduce Reference Number 886 below zero. To prevent Unpostable Credit Transfers (Doc Codes 24, 34, or 48): Follow instructions in IRM 3.14.2.7.7, Credit Transfers. Use the correct reversal transaction code for the posted transaction code. Example: Use TC 672 to reverse TC 670. Use the correct MFT, name control, and tax period. When transferring overpayments, make sure the credit to be transferred is available on the module. The TC 830/820 amounts cannot exceed the credit balance on the module. When transferring payments from an account, make sure the dates on both sides of the credit transfer match. The money amounts must not exceed the amounts of the transactions being reversed. Exception: TC 826 and TC 706 can have different transaction dates. Use the correct dates for the debit and credit transactions when reversing these transactions. See IRM 3.14.2.6.1.5.2 Lump Sum Credit Offset (TC 826/706 and TC 820/700) procedures. Use a Bypass Indicator 1 to allow the credit to refund, or use a TC 570 or Credit Freeze Code 1 to freeze the credit when transferring TCs 650, 660, or 670 to a full paid tax module (status 10 or 12) and the posting of the credit will create an overpayment of $1.00 or more. Use a Bypass Indicator 1 to allow the credit to refund, or use a TC 570 or Credit Freeze Code 1 to freeze the credit when transferring TCs 650 or 670 to a balance due tax module when the payment is dated later than the period ending and the posting of the credit will create a credit balance of $10.00 or more. Use a Credit Freeze Code 1 or input a TC 570 on the credit side of the transfer if the credit will be held. This will generate a -R Freeze. Note: Two TC 570s will not post simultaneously on a module, you should use only one TC 570 for multiple credit transfers. An EFT indicator is required on a 24 Doc Code for EFT deposits. Use a Posting Delay Code to delay the posting of a transaction so that it matches the posting cycle of another transaction. Enter 1 through 6 to delay the posting of a transaction for one to six cycles, respectively. Example: Use a Posting Delay Code to delay the posting of a Doc Code 48 debit transaction until a Doc Code 34 credit transaction posts.

# Common Command Codes Used in Notice Review

3.14.2.6.2 (01-01-2026) Common Command Codes Used in Notice Review Command Codes are used to perform taxpayer account research to aid in case resolution and to initiate changes to taxpayer accounts on IDRS (Integrated Data Retrieval System). BMF Notice Review employees should use the Integrated Automation Technologies (IAT) tools. The IAT tools simplify taxpayer account processing by assisting the user with IDRS research and input. They are desktop productivity enhancing tools. If an IAT tool is not available, or an employee has a problem with the IAT TASK Manager (ITM), the account action should be processed manually on IDRS. If you have any questions or concerns contact your lead for help. For additional information regarding IAT functionality, reference the Job Aids on the Integrated Automation Technologies - IAT website. Exception: IAT is mandated to complete all credit transfers. If the tool is unavailable hold the case in inventory (mark the notice in OLNR with "H" ) until the IAT Credit Transfer tool is available. Be sure to hold refunds as applicable and leave an open control base in IDRS. See IRM 3.14.2.7.1, Refund Intercepts using Command Code (CC) NOREF, for more information. Below are the most commonly used IDRS Command Codes in Notice Review with a brief description of its use. For more information on the command codes listed below refer to the IDRS Command Code Job Aid (or see IRM 2.3.10, Command Codes MFREQ and RECON, through IRM 2.4.61, Command Code IDT48/IDT58/RPM48/RPM58/CSO48/CSO58/ELP45, for specific command code input information): See Command Codes ACTON - BMFOL in the table below. Command Code: Used to: ACTON Open or close control base and input history items. ADD/ADC24 Transfer one payment at a time or reverse one offset at a time. ADD/ADC34 Transfer one to four payments at one time. The credit side of the transaction will post one cycle after the debit side. ADD/ADC48 Input credit elect transactions ADJ54 (response screen for REQ54) Input adjustments including TC 290 .00 freeze releases. AMDIS Review a display of any action or potential action initiated by the Examination Function. Note: The definer A (AMDIS A) limits access to a particular module. BMFOL Research of nationwide entity and tax data information posted to the Business Master File (BMF) BMFOL is a very important research tool for Notice Review tax examiners. The below table defines the BMFOL definers used for research. Definer Display File Source MFT and Tax Period Result A Y Y Adjustment transactions including trans code, posted date, among, cycle, DLN, codes and other dates B Y Y CFOL038 Screen message or error screen. C N N Tax Module screen associated with input check symbol/check number, CFOL041, or CFOL042 D Y N Deposit Schedules for Forms 941, CT-1, 943, and 945. E Y N Entity information including cross-ref TIN, freeze codes, indicators, codes, and posted transactions F Y N FTD coupon ordering information H N N Help screen I Y N On/off-line status of entity and tax modules, merge information, sign of module balance, posted return indicator, and IDRS service centers K Y Y Form 941 Lookback information L Y N Last tax module satisfied N Y N Index of Retention Register Tax Modules that do not have an associated Vestigial Entry O Y N Exempt organization information P Y N Payment Summary R Y Y Return DLN, cycle posted, transaction date, some schedules, codes, exemptions, amounts S Y Y Status histories T Y Y Control DLN, exemption total, settlement information, amounts, freezes, indicators U Y Y CAWR information V Y N Vestigial data (retention register) W Y Y Quarterly Form 941 information. Z Y N Audit history information # N Y Refund Checks (up to 5) associated with a particular TIN/MFT/Tax Period. See Command Codes BMFOR - COMPA in the table below. Command Code: Used to: BMFOR Access BMF retention tax modules from accounts that merged to a new TIN after the tax module had been dropped to retention. BRTVU Review the transcribed and posted data for BMF returns. BNCHG (response screen for ENREQ input) Enter an entity change to an account on the TIF. CFINK Access the Centralized Authorization File (CAF), which contains information on the type of authorization that a taxpayer has granted a representative. COMPA Manually compute penalties and interest. The correct definer must be used when calculating the penalty. Refer to the CC COMPA Definers chart below. COMPA must be input with the correct definer to accurately manually compute penalties and interest. Follow the chart below for definer input. Definer Description C Before 01/01/1999 for a Non-Corporate Taxpayer. Before 01/01/1995 for a Corporate taxpayer, regardless of the overpayment amount. On or after 1/1/95 for a Corporate taxpayer and the overpayment amount is less than or equal to $10,000.00. Caution: For a corporate taxpayer, if the overpayment exceeds the $10,000.00 GATT threshold, the excess amount represents the portion of the overpayment that is subject to the lower GATT rate. See IRM 20.2.4.10.2 , Determining the GATT Threshold. A On or after 01/01/1999 for a Non-Corporate taxpayer D Used to compute debit interest. Provides percentages, factors, and dates for the computation. Limited to one computation per request. E Used to compute Estimated (ES) Penalty, accumulates and displays page totals, and provides estimated tax from and to dates in a formatted screen display for MFTs 02, 05, 33, and 44. F Used to compute Failure to Pay Penalty (FTP) (TC 276). G Credit interest after 12/31/94 for a Corporate taxpayer and the overpayment amount is greater than $10,000.00, or the GATT threshold has previously been met (See IRM 20.2.4.10.2, Determining the GATT Threshold.) M Used to compute multiple independent credit interest computations on the same page. R Used whenever several independent interest calculations are desired on the same page. S Used for the manual computation of the Estimated Tax Penalty. 4 Used with certain estate tax modules. Computes interest at 4%. 5 Used to compute interest at 45% of the current normal interest rate, and displays details of the interest computation on the response screen. See Command Codes ENMOD - INOLE in the table below. Command Code: Used to: ENMOD Request a display of a particular taxpayer's name, address, Fiscal Year Month (FYM) and filing requirements. Note: This CC is a prerequisite for CC ENREQ. ENREQ Make name, address, and miscellaneous changes to the data recorded on a taxpayer's entity module (ENMOD). ESTAB Request or recharge documents. FIND (Definer E or S) Search for matching name(s) and address(es). FRM49 Reprocess a return to a prior year (quarter) module with a TC 140 present. FRM77 Response screen for REQ77 allows input of informational transactions on an account. FTDPN Manually compute FTD penalty on Form 940, Form 941, Form 943, Form 944, Form 945, Form 1042 and Form CT-1. IADIS Display all Installment Agreement data available on IDRS. INOLE Research the National Account Profile (NAP) file, which contains Master File entity information on all taxpayers by TIN. Refer to the CC INOLE Definers chart below. The chart below explains which definer to use when researching TIN information with CC INOLE. Definer Description G Used when TIN type is unknown. S Displays name line information available for any account associated with the TIN. T Displays name line and street address for all accounts with the same EIN. Command code INTST computes the correct outstanding balance, including interest and failure to pay accruals, to the date specified in the input of the command code. For more information refer to IRM 2.3.29, Command Codes INTST, ICOMP, and COMPA. The list of INTST definers is in the chart below: INTST definer: Definer Functionality: A Has the same capabilities as INTST no definer. In addition, accruals will be computed to the input date plus 10 days, 15 days and 21 days or any dates input, as long as they are less than 30 days. B Has the same capabilities as CC INTST no definer. In addition, it computes a separate total for other assessed penalties. D Is used to display FTP and Interest calculations. N Has the same capabilities as INTST no definer. In addition, accruals will be computed to the input date plus 30 days, input date plus 45 days, and input date plus 60 days. See Command Codes LETER -TRDPG in the table below. Command Code: Used to: LETER Input IDRS letters. LPAGD Delete IDRS letters on the same day the letter was input. MFREQ Bring a module to the TIF for review on TXMOD. Note: Various definers can be used. NAME (Definers B and E) Allow IRS employees access to the national file name and address data located at ECC-MTB. NOREF Delete (or intercept) a refund. Automatically establishes a control base with use. Note: Refer to IRM 3.14.2.7.1 Refund Intercepts using Command Code (CC) NOREF. PIEST Display an explanation of an estimated tax penalty (TC 176) computation. PIFTD Display an explanation of an FTD penalty (TC 186) computation. PIFTF Displays the computation of the Failure to File Penalty (TC 166). Note: CC PIFTF must be used to decide if the FTF penalty will recompute after payments are moved into and out of a module. PWACT Input answers to security questions which Activates PWMGT. This allows users the capability to reset their IDRS password and unlock their profile. RECON Updates/refreshes TXMOD to match BMFOL posting data, bypassing the normal processing cycle. This is especially helpful to compute correct interest and penalty amounts. REQ54 Originate an adjustment to a tax module for tax, penalty, interest and other dollar amount information. REQ77 Originate an informational transaction (such as an extension or reprocess information) input on the response screen FRM77. RFINK Research the Reporting Agent File. SFDISP Display all authorized CC in an employee's security profile. Also displays accessible sites and password management status. STAUP Delay, accelerate, or skip the issuance of notices to taxpayers. SUMRY Request a chronological listing of all available tax modules on IDRS (active on the TIF) for a particular TIN. TERUP Delete/ "tear up" an adjustment transaction, including credit transfers, name and address changes, etc., made to a taxpayer's account. Caution: The originator of the adjustment must input CC TERUP by 6:00 p.m. of the same day of input to ensure the transaction will be deleted/ "torn up" . For specific swing shift cutoff times, see your work lead. TRDBV Review tax return and related schedule data transcribed or received from electronically filed returns. Similar to BRTVU. TRDPG Response screen from input of TRDBV allows specific input of return data/pages. Command Code TXMOD is used to request all tax module information for a specific tax period on the Tax Information File (TIF). The display consists of Entity data, posted returns, posted transactions, pending transactions, control base information and reject data if available on IDRS TIF. The display shows the latest control DLN of the return. Use the following definers to access a specific module of a particular TIN. Refer to the CC TXMOD Definers chart below. For more information go to IRM 2.3.11, Command Codes TXMOD and SUMRY. Definer Description A Displays all tax module information for an account. C Displays control base and history data. L Displays pending transactions only. N Displays notice data. P Displays posted and pending transaction data. S Displays SPC and Master File status history data. X Displays status history and notice data. See the table below for common Notice Review unpostable command codes. Command Code: Used to: UPCASZ Add history information and comments to the CC UPRES screen. UPDIS Input the unpostable sequence number to bring up the response screen CC UPRES on IDRS. UPRES Review and resolve an unpostable case. Response screen to input of CC UPDIS with unpostable sequence number. UPTIN Display unpostable case data, including the unpostable sequence number used to input CC UPDIS.

# Unidentified Remittance and Excess Collections Files

3.14.2.6.3 (01-01-2016) Unidentified Remittance and Excess Collections Files When there is insufficient information to properly apply credits to a taxpayer's account (e.g., when a taxpayer does not claim a payment and the correct taxpayer cannot be located), funds may be transferred to the Unidentified Remittance File (URF - 4260 Account) or the Excess Collections File (XSF - 6800 Account). If a return is later filed claiming those payments, it may be necessary to request a transfer to move the payments from URF or XSF to the Master File. Refer to IRM 3.17.220, Excess Collections File, for further guidance. If the credit is an FTD/EFTPS payment, the last five digits will reflect the FTD/EFTPS number into 9 through 13 digits of the original DLN. This will create a unique control number which reflects the credit's origin. When a credit or payment is moved to the Excess Collection File (XSF) or the Unidentified Remittance File (URF), a Transaction Code (TC) 971, Action Code (AC) 296 must be input on the module, please refer to IRM 21.2.4.3.10.1, Excess Collections File (XSF) and Unidentified Remittance File (URF) for AMRH. This is the final audit trail that indicates that all available research sources have been used. This requirement was part of the Excess Collection Task Group and was started in 1/2007. This applies to Excess Collection only. Note: TC 820 may indicate that a payment has been moved from the taxpayer's account to URF or XSF. If the cross-reference TIN and tax period (next to the transfer DLN) are all zeros or nines, the credit was transferred to either the URF or the XSF. Matches with these files are displayed on the NRPS Appended Data page. Research CC XSINQ/URINQ for credits claimed by taxpayers. Credits less than 12 months old are applied to the Unidentified Remittance File. Credits over 12 months old are applied to Excess Collections. An application to move credits to Unidentified Remittances can be made in the 11th month. Exception: Credits with Document Codes 48, 58, or 65 may be added to the XSF regardless of age. Generated Refundable Credit (TC 766) will be accepted by Excess Collections. Excess Collections File (6800 Account) When credits and payments are over one year old and have not been applied back to a taxpayer's account on Master File, they are moved into the 6800 Account. If necessary to transfer credits or payments to the Unidentified Remittance File or Excess Collections File, see work lead.

# Requesting Payments from Unidentified Remittance File (Form 8765)

3.14.2.6.3.1 (01-01-2026) Requesting Payments from Unidentified Remittance File (Form 8765) Use CC URINQ to verify the availability of the credit. Complete the Form 8765, IDRS Control File Credit Application. (See Figure 3.14.2-2, entitled, Form 8765 and Instructions below.) Attach current prints of Command Codes: URINQ, BMFOL, or TXMOD to Part 1 of the form. Note: Current prints as noted above, for the purpose described throughout this section, is fewer than 7 days before the date the case is routed. Note: Remember Form 8765 must be forwarded to the correct SPC based on the DLN of where the money was applied. Input a CC STAUP for 9 cycles on balance due modules. This will prevent the generation of a notice while the transfer is being processed. After requesting application of payment, treat the notice as if payment(s) will be applied to the module. If the refund statute has expired, the application to move credits from Excess Collections File (XSF) must not exceed the tax liability, interest, and penalties. There can be no refund or credit elect. Timely payments will abate all but taxpayer-reported assessed penalties. However, timely payments will result in the abatement of taxpayer-reported assessed estimated tax penalties which can be identified with a TC 170 with a DLN that matches the return DLN. If the module contains a TC 170 with a DLN that matches the return DLN, use CC ADJ54 to post TC 170 .00 to prevent abatement of the taxpayer-reported assessed estimated tax penalty. Follow local procedures if the notice module is a statute year, before routing it to the Excess Collection unit. Figure 3.14.2-2 Form 8765The figures gives the TEs the instructions that need to be filled out when completing Form 8765. The form is used to request payments form the Unidentified Remittance File. Please click here for the text description of the image. The instructions for Form 8765 are as follows: Source of Credit: Select the IDRS Control File where the credit is located. Choices are XSF or URF. Application Type: Use M when the credit is to be applied to a Masterfile account (use N when credit is to be applied to a Non-Masterfile account or use T when the credit is to be applied to a general account rather than to a taxpayer's account). File Control Number: Must match the number shown on the XSF or URF record. Attach an IDRS print of CC XSINQ or CC URINQ. Notice Indicator: Check only if Letter 2349G is to be sent to the taxpayer. Note: If the M or N application was not based upon information received from taxpayer, then Letter 2349CG should be sent to the taxpayer. Date Return Filed: IRS Received Date of the return. Enter in MM/DD/YY format. If received date is unknown, leave blank. File Name Control: Enter 4-character name control as shown on XSF or URF. Application Name Control: Enter 4-character name control of the module to which the credit is to be applied (if M application). Transaction Code (1): See IRM 3.17.10-11, Valid URAPL M Transaction Table, for URF or IRM 3.17.220-13, Table of Valid TC/MFT/Doc Codes (Application from XSAPL), for XSF for a valid list of TCs to be used on M applications. Transaction Code (1) Amount: Amount of the credit to be applied in relation to TC (1). Transaction Code (2): See IRM 3.17.10-11, Valid URAPL M Transaction Table, for URF or IRM 3.17.220-13, Table of Valid TC/MFT/Doc Codes (Application from XSAPL), for XSF for a valid list of TCs to be used on M applications. Transaction Code (2) Amount: Amount of the credit to be applied in relation to TC (2). Transaction Code (3): See IRM 3.17.10-11 , Valid URAPL M Transaction Table, for URF or IRM 3.17.220-13 , Table of Valid TC/MFT/Doc Codes (Application from XSAPL), for XSF for a valid list of TCs to be used on M applications. Transaction Code (3) Amount: Amount of the credit to be applied in relation to TC (3). Taxpayer Identification Number: TIN to which credit is to be applied (used on M and N applications only). Tax Period: Enter the tax period to which the M or N application is to be made. Enter in YY/MM format. MFT: Enter 2-digit MFT if application is M or N. Remarks: Required Entry on all requests for application. Preparer Name: Required Entry. Enter name of the person preparing Form 8765. Employee Number: Required Entry. Enter the IDRS employee number of the person preparing Form 8765. Stop Number: Required Entry. Enter the Stop Number of the person preparing Form 8765. Phone Number: Required Entry. Enter the phone number of the person preparing the Form 8765. Manager's Signature: Required Entry. Date: Required Entry. Enter the date the Form 8765 was completed.

# Requesting Payments From Excess Collections (Form 8765)

3.14.2.6.3.2 (01-01-2026) Requesting Payments From Excess Collections (Form 8765) To request a payment from Excess Collections File (XSF): Use CC XSINQ to verify the credit(s) is available. Note: The credit is not available if the remarks section of the XSINQ record indicates CLOS. Do not request transfer of the credit. Reminder: Remember Form 8765 must be forwarded to the correct SPC based on the DLN of where the money was applied. Complete Form 8765 to request the Excess Collection Function transfer payment/credit from XSF to the taxpayer's account (see Figure 3.14.2-2, Form 8765 and Instructions). Include a complete explanation of the reason for the request in the remarks section of Form 8765. Attach a current print (less than 7 days old) of CC TXMOD or BMFOLT and CC XSINQ to Form 8765. Route Form 8765 with attached research to the Excess Collection Team. Caution: If the refund statute has expired, the credit application must not exceed the tax liability, interest and penalties. Follow local procedures if the notice module is a statute year. After requesting application of the credit, complete notice disposition as if payment(s) will post to the module. Refer to the Notice Disposition Decision Table below. If Then Payment(s) is timely and all penalties will abate. Void the original notice and request the additional notice that will generate utilizing LCF. The additional notice should also be voided. IRM 3.14.2.5.4.1, NRP97 Input Information. Payment(s) is late or unsure of TC 186 penalty recomputation. Apply Label 2 and allow the next notice to generate. Input CC STAUP for 9 cycles on balance due accounts to prevent erroneous notices.

# Special Notice Review Issues

3.14.2.6.4 (01-01-2016) Special Notice Review Issues This subsection contains instructions related to miscellaneous issues such as: Taxpayers meeting Taxpayer Advocate Service (TAS) Criteria Slipped or Mixed Blocks Natural Disaster Large Dollar Review Short Period Undeliverable Conversion of Form 944 to Form 941 American Recovery Reinvestment Act of 2009 PII fraudulent returns

# Taxpayer Advocate Service (TAS)

3.14.2.6.4.1 (01-01-2025) Taxpayer Advocate Service (TAS) The Taxpayer Advocate Service (TAS) is an independent organization within the IRS, led by the National Taxpayer Advocate, that helps taxpayers and protects taxpayer rights. TAS offers free help to taxpayers when a tax problem is causing a financial difficulty, when they've tried and been unable to resolve their issue with the IRS, or when they believe an IRS system, process, or procedure just isn't working as it should. TAS strives to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico. While the Internal Revenue Service (IRS) is continually working to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Per 7803(c) Congress established the office of the National Taxpayer Advocate (NTA) and its functions within the IRS to assist these taxpayers. TAS has identified criteria that qualify taxpayers for TAS assistance. The Case Advocate will conduct an independent review of actions that have been taken or need to be taken to resolve the problems taxpayers are experiencing. Employees should not view TAS case criteria as a means of excluding taxpayers from TAS, but rather, as a guide to TAS case acceptance. The criteria under which TAS accepts a case should not govern whether a taxpayer is entitled to relief. Taxpayers meeting TAS criteria will get priority handling. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for additional information.

# Frivolous Claims

3.14.2.6.4.2 (01-01-2021) Frivolous Claims The IRS is faced with a growing number of individuals who file frivolous tax returns based upon tax avoidance arguments that are not supported by law. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. A list of potential frivolous return arguments can be found in IRM 3.12.38-8, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . If it can be determined that a return is a frivolous claim, refer the notice and return to the Return Integrity Verification Operation (RIVO), Frivolous Return Program immediately. Use the procedures outlined in IRM 21.5.3.4.16.7, Identifying Frivolous Returns/Correspondence and Responding to Frivolous Arguments, when referring frivolous claims and/or correspondence to the Ogden SPC Frivolous Return Program.

# Slipped Blocks and Mixed-Data Blocks

3.14.2.6.4.3 (01-01-2026) Slipped Blocks and Mixed-Data Blocks "Slipped blocks" and mixed-data blocks occur when data from a document or payment posts to a module related to a different document or payment in the same block of DLNs. The erroneous data on the notice module usually belongs to the taxpayer whose document or payment is immediately before or after the notice document or payment in the DLN block sequence. Slipped Blocks have the following characteristics: A block (or part of a block) of documents or payments posted to the Master File incorrectly. The incorrect transactions have DLNs from other documents or payments in the same block. The DLN is usually from the document or payment immediately before or after the notice document or payment in the block sequence. A slipped block may result in erroneous refunds, incorrect notices, and/or lost or missing documents, returns, or payments. Mixed-Data Blocks have the following characteristics: A block (or part of a block) of documents or payments posted to the Master File incorrectly. The data is incorrect due to a transcription error. A mixed-data block may result in erroneous refunds and/or incorrect notices. Suspect a slipped block or a mixed-data block if any of the following conditions are present: The data on the notice module does not match the data on the document. A posted payment amount does not match the amount listed on the payment voucher. A payment is missing or is misapplied. Research and inspect the block by reviewing the Remittance Transaction Research (RTR) system to match checks with name/EIN. Refer to the RTR Decision Table below. If the Situation Involves And the Case is a Then Two or fewer taxpayers Slipped or mixed data block Resolve the case in Notice Review. (See IRM 3.14.2.7, Case Resolution.) More than two taxpayers Slipped block Recharge and route the BMFOL prints and RTR check prints to the Accounts Management Function's Adjustments/Payment Tracer Unit. More than two taxpayers Mixed-data block Recharge and route the BMFOL prints and RTR check prints to the Accounts Management Function (Adjustments). When routing the case: Input CC STAUP for 9 cycles on any balance due account. Input a TC 570 on any credit balance account. Close the Notice Review control base. Enter appropriate history items. Indicate in the remarks section of Form 3465, Adjustment Request, that a. through d. above have been completed. Make every effort to resolve or route slipped and mixed data situations in cycle.

# Natural Disaster Procedures

3.14.2.6.4.4 (01-01-2026) Natural Disaster Procedures Use CC BMFOLT and/or CC ENMOD to check for disaster areas and use the date shown to calculate interest and penalties. Note: CC ENMOD can have several disasters listed, so verify you are using the dates for the correct filing period. Notice Suppression: The Disaster Relief Memorandum identifies the covered disaster area (ZIP codes) and the beginning and ending dates for notice suppression and/or stuffer requirements. If systemic notice suppression is established by an -O Freeze, no further action is required to suppress notices. Note: If an -O freeze is not reflected on the taxpayer's account, whose address of record is in the covered disaster area, then input a TC 971 with an AC 688 via IDRS to ensure that the account will not have any penalties or interest assessed. Verify the area and impact year using Tax Relief in Disaster Situations before inputting a TC 971 AC 688. Penalty Adjustments: If the -O Freeze is not on the module, notices with ZIP codes in the impacted disaster areas may require penalty adjustments for the period designated in the Disaster Relief Memorandum. Use Local Control File to select those notices with ZIP codes in the impacted disaster areas. Notice Review will review notices generated for taxpayers who have filed late tax returns, or submitted late payments during the disaster period. Notice Review will only address the Failure to File and Failure to Pay penalties if the following apply: If only the Failure to File penalty (TC 166) is assessed, the original or extended due date is within the disaster period, and the return received date is timely based on the disaster postponed due date, abate the TC 166 for each month, or part of a month the penalty was assessed. See Federal Disaster Area IRC 7508A, IRM 20.1.2.2.2.2, Federal Disaster Area - IRC 7508A. If only the Failure to Pay penalty (TC 276) was assessed and the original due date is within the disaster period, abate the penalty for each month or part of the month from the original due date to the postponed due date that the tax remained unpaid. If both TC 166 and TC 276 penalties were assessed and the original or extended due date is within the disaster period, abate the part of the FTF penalty from the original or extended due date (if the original due date is within the disaster period). (See IRM 20.1.2.2.2.2, Federal Disaster Area - IRC 7508A, IRM 20.1.1, Introduction to Penalty Relief and IRM 20.1.2, Failure to File/Failure To Pay Penalties, for information and abatement procedures.) If the taxpayer notates on the front of the return the designated disaster phrase, abate the TC 166 and TC 276 per instructions in (2) above. If the taxpayer correspondence attached to the return is requesting relief of any penalty because of disaster damage or disruption, take the following actions: Decide if the taxpayer qualifies for TC 166 and/or TC 276 relief based on the disaster criteria. If the taxpayer qualifies, abate the penalty(s). If the taxpayer does not qualify for relief based on the disaster criteria but may qualify based on the Reasonable Cause criteria, route the case to Accounts Management using Form 5101 , Examination Referral Slip. This includes taxpayer requests for FTD Penalty abatement. FTD and Reasonable Cause: All requests for abatement for FTD penalties received in Notice Review must be routed to Accounts Management for determination and resolution. Estimated Tax Penalty: If an Estimated Tax Penalty (TC 176) has been assessed, decide if the taxpayer was required to make an estimated tax payment during the disaster period. If the payment was received by the date required by the Disaster Relief Memorandum, abate the part of the estimated tax penalty assessed for the underpayment. Notate on the adjustment document, "Adjustment Due to Disaster" . If in doubt, send case to Accounts Management for determination and resolution.

# Large Dollar Review

3.14.2.6.4.5 (01-01-2025) Large Dollar Review Upon identification, all Balance Due Notices of $100,000.00 or more must be reviewed for accuracy. An in-depth review of the entire account must be performed, because problems with other modules or TINs not directly related to the notice often surface at this time and must be expeditiously resolved to prevent future taxpayer and/or Accounts Receivable impact. Refer the case to the work lead if a questionable situation is identified, and corrective action cannot be determined by the tax examiner. When reviewing Form 1065 with partnership penalties review the prior year to see if the number of partners appears to be in error. Erroneous penalties may have been assessed because various other fields were picked up for the number of partners. If the penalty is in error, recompute and make the necessary adjustment, and retype the notice. For CP 162 instruction refer to IRM 3.14.2.6.10. Form 706 is filed under the decedent's Social Security Number (SSN). When researching IDRS, input a V behind the decedent's SSN (i.e., 000-00-0000V). The MFT is 52 and the tax period consists of six zeros (000000). Although the return is filed under the decedent's SSN, research via BMF CC such as BMFOL and BRTVU. Also, input a W behind the decedent's SSN (i.e., 000-00-0000W) to research accounts on the invalid segment. For Forms 706 and 709, use CC IMFOL to research the IMF SSN for possible misapplied payments. Note: An SSN beginning with 909-17 or any temporary TIN will not have any Master File information. For Form 709 the missing credit may be posted to the Form 1040 account (for joint returns check both SSNs). If the Form 1040 is overpaid, research CC RTVUE for the amount of credit the taxpayer claimed on the Form 1040 return. If credit is available for Form 709, refer to the Form 709 Decision Table below. Form 709 Decision Table Delete the refund on the 1040 account. If the TC 846 has already posted, then print the notice. Do not debit the IMF account if the TC 846 has posted. The IMF refund has already been received by the taxpayer when a TC 846 is present. An IMF refund may only be deleted or intercepted if there is a TC 570 with a DLN blocking series of 55555. Transfer the credit Input a CC STAUP for 9 Cycles on the Form 709 account Transfer the extension if no extension is posted on the Form 709 account Caution: If the taxpayer obtains an extension of time to file a calendar year individual income tax return (e.g., Form 1040) using Form 4868, the time to file Form 709 is also extended.

# Short Period Returns

3.14.2.6.4.6 (01-01-2026) Short Period Returns A short period return must be filed by a subsidiary corporation when it becomes affiliated with a consolidated group (parent corporation). This step allows the subsidiary corporation to file an initial consolidated return with the parent corporation. Income not included in the consolidated return by a corporation, because it was not in the group for the complete taxable year, must be reported on a separate return. The due date of the return is decided by using the earlier of the due date of the original tax period of the parent corporation, or the due date of the original tax period of the subsidiary corporation. Do not confuse the original tax period with the short period. Research of the parent corporation accounts may be required to decide the due date. Review any short period Form 1120 to make sure the return was processed with the correct period information. Change in Accounting Period. An approved accounting period change for a Form 1120 can be identified on ENMOD by a TC 053 or a TC 054. For tax years beginning January 2016 through December 2025, the Form 1120 due date is the 15th day of the 4th month after the end of the tax year. Exception: However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year. A corporation with a short tax year ending anytime in June will be treated as if the short year ended on June 30, and must file by the 15th day of the 3rd month after the end of its tax year. See Exhibit 3.14.2-24, Form 1120 (MFT 02) Family Estimated Tax Installment Payment, Return, and Extension Due Dates (EXCLUDES 1120-C, 1120-F D3 not checked, 1120-POL, and 1120-S), for more information. For tax periods beginning prior to 2016 the Form 1120 return due date is the 15th day of the 3rd month after the end of the tax period. Example: A tax period ending December 31, 2015 is due March 15, 2016. Tax entities not in existence the entire year may file a short period return. Requirements for filing the return and figuring the tax are generally the same as if the return was for a full tax year that ended on the last day of the short tax year. Watch for any reprocessable returns.

# Researching Undeliverable Notices

3.14.2.6.4.7 (01-01-2017) Researching Undeliverable Notices Research ENMOD, NAMEE or FINDED for PN and AP address changes. Use the new address, if present. Use the address on the yellow Post Office Forwarding Label if it is different from the notice address. Use the address on the 3 x 5 card from the Files Function if a more current address was not found and the notice has an original DLN. Use the following procedures if a more current address is not found: Use local procedures to send the notice to the Files function to be attached to the return. Input CC STAUP 51 for no cycles to issue a Taxpayer Delinquent Account (TDA) to the Collection function and suspend all Collection procedures.

# Resolving Undeliverable Notices

3.14.2.6.4.7.1 (01-01-2026) Resolving Undeliverable Notices Do not change the entity based on the address note from Files, the Post Office label, or research: Follow local procedures to change only the address on the notice. Include Form 8822 (Change of Address) with the notice. Note: The taxpayer will use this form to authorize an address change. Label the notice with the appropriate label. Use CC ACTON to enter a history item if CC TXMOD is up on IDRS. Input a CC STAUP for six cycles on balance due accounts. Refer to the Label Decision Table for Refund and Overpaid Notices below to determine the appropriate label for Refund and Overpaid notices. If Then Label the Notice With A TC 846 posted to the module in the notice cycle Labels 11 and 12. A TC 740 posted to the module with 99999 in the DLN, setting an S- Freeze Labels 11 and 12 if a new address is found. Note: The S- Freeze means that a refund check was returned as undeliverable. A TC 740 posted to the module between two TC 846s for the same amount Labels 11 and 12 to the address shown on CC ENMOD. Note: The original refund check was returned as undeliverable and subsequently reissued. No TC 846 is present on the module Label 11. Refer to the Label Decision Table for Undeliverable Balance Due Notices below to determine the appropriate label for Undeliverable Balance Due Notices: If a Payment Then Label the Notice With: Posted since the notice cycle or is pending on the module Labels 3 and 9. Use CC INTST to decide the new account balance. Has not posted since the notice cycle Label 9. Use CC INTST to decide the new account balance. Resolve Even Balance and Information notices by mailing the notice with Label 11. Note: Use CC BMFOL if the account is not available on IDRS. Resolve Adjustment notices by mailing the notice with Label 9 or any other applicable label from IRM 3.14.2.7.10.6, Labeling Notices. Assume that any additional notice that was mailed was also undeliverable. Update the original notice using the above instructions. Exception: If module conditions indicate that the entity was corrected before the next notice generated, assume that the notice was delivered and take no action other than to correct the undelivered notice. If the next notice is going out in the current cycle, void the notice if possible, when no better address can be found. Input a history item on IDRS. Paper clip all stuffers and attachments to the notice. Do not discard anything. Return the completed Undeliverables to the Clerical Unit to be mailed within the same cycle as received.

# Form 944 Issues

3.14.2.6.4.8 (01-01-2025) Form 944 Issues Taxpayers who file Form 944, Employer's ANNUAL Federal Tax Return, due on January 31st, should have total taxes of $1,000 or less. If the total of all taxes are over that amount, then a taxpayer can receive 3 notices for this condition depending on when the return is processed. All three notices give the taxpayer instructions on what form to file. The notices are: CP 250A - You Are No Longer Eligible to File Form 944 CP 250B - You Are No Longer Eligible to File Form 944 CP 250C - You Are No Longer Eligible to File Form 944 Note: These notices will not be sent after 2025. CP 250A is issued to taxpayers who file Form 944 and have a total tax liability on line 7 of Form 944 of more than $1,000, but the returns met the PCD (Program Completion Date), posting in or before cycle 09. This notice instructs the taxpayer that they are no longer eligible to file Form 944 and they must file quarterly using Form 941 for the current year. CP 250B is issued to taxpayers who file Form 944 and have a total tax liability on line 7 of Form 944 of more than $1,000, but the return did not meet the PCD of cycle 09. This notice is for the returns processed between cycles 10 - 49. This notice instructs the taxpayer they will remain a Form 944 filer for the current year and to make the appropriate FTD payments as required by the lookback analysis. These taxpayers will be allowed to remain Form 944 filers for the year because there is not a sufficient amount of time to notify them to file quarterly. Taxpayers that receive CP 250B will also receive CP 250C later in the year informing them that they will be changed to a Form 941 filer beginning in January the subsequent year. CP 250C is issued to Form 944 filers who received CP 250B earlier in the year, or File Form 944 after cycle 49 of the current calendar year. These taxpayers will not receive CP 250B, only CP 250C. This notice informs the taxpayer that because they exceeded the threshold for the Form 944 participation, they must file Form 941 for the upcoming year. This notice is generated in cycle 52.

# Instruction for Form 944

3.14.2.6.4.8.1 (01-01-2019) Instruction for Form 944 If the Taxpayer receives a CP 250A and a selected notice (usually a CP 145), Notice Review should: Transfer any credit elect amount(s) from Form 944 to the Form 941 first quarter return of the following year. Retype CP 145 to reflect Form 941. Exception: Use Label 7 to notify the taxpayer where the credit elect has been applied. Exception: If credit elect amount is zero print CP 145. Notice Review will not be required to take any action for CP 250B and CP 250C.

# Credit Payments to Issuers of Qualified Bonds Form 8038-CP (MFT 46)

3.14.2.6.4.9 (01-01-2026) Credit Payments to Issuers of Qualified Bonds Form 8038-CP (MFT 46) This information is for the Issuers of Qualified Bonds related to Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, (MFT 46). The tax class is 3 and the document code is 61. For a fixed rate bond, the due date is the 45th day before the applicable interest payment date with respect to the bonds. For variable rate bonds, when the issuer doesn't know the interest payment amount 45 days prior to the interest payment date, the issuer must aggregate all credit payments on a quarterly basis and file Form 8038-CP for reimbursement in arrears no later than 45 days after the last interest payment date within the quarterly period for which reimbursement is being requested. For variable rate bonds when the issuer knows the interest payment amount 45 days prior to the interest payment date, Form 8038-CP may be filed within the same timelines as fixed rate bonds (45 days before the relevant interest payment date but no earlier than 90 days before the relevant interest payment date). Research payments and account actions for these cases. See Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, instructions for more information. Note: IDRS input is limited and specific for this MFT. See Exhibit 3.14.2-33, MFT 46, MFT 74 and MFT 76 Required Plan Input and Command Code Limitations, for specific information. Disposition of these cases in OnLine Notice Review (OLNR) is limited. Follow the guidelines below: a) The following disposition codes are the only ones allowed to be used for CP 116s, CP 138s, CP 210s, CP 220s for Form 8038-CP (MFT 46) when utilizing OLNR : E (Entity): Use this disposition to make entity information changes or updates. V (Void) : Use this disposition to void the notice completely because of inaccurate information. VI (Void/Intercept): Use this disposition to void the notice and to intercept any refund on the module. It will only be applicable to CP 210s or CP 220s. P (Print): Use this disposition to send the notice to the taxpayer. PI (Print/Intercept): Use this disposition to send the notice and intercept the refund on the module. It will only be applicable to CP 210s or CP 220s. Note: Generally, these notices will not carry any penalties. However, CP 116, CP 210 and CP 220 may include Failure to File 8038-CP electronically or Failure to Pay penalty if a previously claimed credit was disallowed after a refund was issued. b) The following disposition codes are the only ones allowed to be used for Transcripts (CP 380s, CP 384s and CP 388s) generating for Form 8038-CP (MFT 46) when utilizing the OLNR application: T (Transcript): Use this disposition to mark the account as a transcript and no other updates are needed. TI (Transcript/Intercept): Use this disposition to just mark the account as a transcript and intercept the refund Note: A CP 386 will never generate for a Form 8038-CP (MFT 46).

# COVID-19 Related Employment Tax Relief

3.14.2.6.4.10 (01-01-2026) COVID-19 Related Employment Tax Relief This section of the IRM provides information on COVID-related legislation. The period to claim these COVID-related credits for employment taxes has expired. The Families First Coronavirus Response Act (FFCRA) established refundable employment tax credits for employers that provided qualified sick & family leave wages. Originally these credits were applicable to the period of leave employees took beginning April 1, 2020 through December 31, 2020. The COVID-related Tax Relief Act of 2020 modified employment tax credits for qualified sick and family leave wages and extended these credits for leave taken through March 31, 2021. For more information see, IRM 21.7.2.7.1, Credit for Qualified Sick and Family Leave Wages. Note: The qualified leave wages under FFCRA (as amended by the COVID-related Tax Relief Act of 2020) are not subject to the employer's share of social security tax (or the equivalent portion of the Railroad Retirement Tax Act Tier 1 tax). However, qualified leave wages under the American Rescue Plan Act of 2021 (ARP) are subject to the employer's share of social security tax, but the available credit is increased by such amount. ARP also amended and codified similar credits to include qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits) paid for leave taken after March 31, 2021 but before October 1, 2021. The paid leave credits under ARP are tax credits against the employer's share of Medicare tax (or the equivalent portion of the Railroad Retirement Tax Act Tier 1 tax). The Coronavirus Aid, Relief and Economic Security (CARES) Act established a refundable Employee Retention Credit (ERC) applicable to qualified wages paid after March 12, 2020 but before January 1, 2021. Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020 modified the Employee Retention Credit (ERC) for qualified wages paid after March 12, 2020 but before January 1, 2021. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 modified the ERC and extended it through June 30, 2021. ARP further amended and codified this credit to include wages paid after June 30, 2021 but before January 1, 2022. For more information see IRM 21.7.2.7.2.3, Employee Retention Credit (ERC) - The American Rescue Plan Act of 2021 (ARP) Provisions. The Infrastructure Act amended the availability of the ERC in the fourth quarter of 2021 to employers that were recovery startup businesses. See IRM 21.7.2.7.2.4, Employee Retention Credit (ERC) - Infrastructure Investment and Jobs Act (Infrastructure Act) Provisions. The CARES Act authorized the IRS to provide advance payment of the FFCRA credits to employers prior to the filing of their employment tax return. Form 7200, Advance Payment of Employer Credits Due to COVID-19, was created for the purpose. For more information see IRM 21.7.2.7.5, Form 7200, Advance Payment of Employer Credits Due to COVID-19. Note: The CARES Act, authorized advance payments of the Credit for Qualified Sick and Family Leave Wages. Advance payments of these credits was associated with wages paid after March 31, 2021 but before October 1, 2021. The CARES Act authorized advance payments of the ERC. Advance payments of the ERC associated with wages paid after June 30, 2021 and before January 1, 2022. The American Rescue Plan Act of 2021(ARP), included a provision authorizing advance payments of the COBRA premium assistance credit. See, IRM 21.7.2.7.3, COBRA Premium Assistance Credit — The American Rescue Plan Act of 2021 ( ARP), for more information about that credit. The Coronavirus Aid, Relief and Economic Security (CARES) Act deferred the required payment due date for the employer's share of social security taxes for wages normally due March 27, 2020 through December 31, 2020, as well as deposits and payments due after December 31, 2020 required for wages paid during the quarter which ended on December 31, 2020. See IRM 21.7.2.7.8, Deferred Payment of Social Security Taxes for 2020, for more information. Notice 2020-22 stated that employers that reduced deposits were not subject to FTD penalties, so long as they paid qualified wages prior to the time such deposits were due, the amount not deposited was less than or equal to the anticipated amount of the associated credits for the applicable calendar quarter, and the employer did not request an advance payment of credits on Form 7200 in addition to reducing deposits. Notice 2020-23 extended the due date for filing a claim for credit or refund due on or after April 1, 2020 but before July 15, 2020 for eligible persons (including individuals, trusts, estates, corporations, and any type of unincorporated business entities) to July 15, 2020. Note: The relief outlined in Notice 2020-23 applied to: filing returns or other documents, making payments, time-sensitive acts, such as filing a petition with the United States Tax Court, filing a claim for credit or refund of any tax, bringing suit upon a claim for credit, or refund of any tax. Notice 2020-35 extended the timeframe for making interest-free adjustments to correct employment tax reporting errors. Notice 2020-65 allowed for the deferment of the employee share of social security tax or the equivalent portion of Tier 1 railroad retirement taxes (RRTA) for wages paid during the period beginning on September 30, 2020 and ending on December 31, 2020, if an employee's wages were less than $4,000 in any bi-weekly pay period (or the equivalent threshold amount for other pay period intervals). The due date for withholding and payment of the employee's share of social security or the equivalent portion of Tier 1 railroad retirement taxes (RRTA) on applicable wages was postponed until the period beginning on January 1, 2021 and ending on April 30, 2021. Note: The COVID-related Tax Relief Act of 2020 extended the due date for payment of employee social security taxes deferred per guidance in Notice 2020-65 to December 31, 2021. Notice 2021-11 modified Notice 2020-65, 2020-38 I.R.B. 567 (September 14, 2020), by extending the time period during which employers withheld and paid applicable taxes (as defined in Notice 2020-65). This notice provided that the end date of the period during which employers withheld and paid applicable taxes was postponed from April 30, 2021 to December 31, 2021, and associated interest, penalties, and additions to tax for late payment with respect to any unpaid applicable taxes began to accrue on January 1, 2022, rather than on May 1, 2021. See Notice 2021-11, for more information. The American Rescue Plan Act (ARP) of 2021, was enacted on March 11, 2021. It altered or extended COVID-19 related relief for employment tax, including: Internal Revenue Code updates which allowed eligible employers to claim refundable tax credits that reimbursed them for the cost of providing qualified sick and family leave wages with respect to qualifying leave taken by employees beginning on April 1, 2021 through September 30, 2021. ARP added to the Internal Revenue Code, which extended the Employee Retention Credit to include qualified wages paid after June 30, 2021 but before January 1, 2022 and also amended certain provisions. Note: The Infrastructure Investment and Jobs Act retroactively terminated the ERC for the fourth quarter of 2021 for all but "recovery startup " businesses. The ERC as amended by the Infrastructure Investment and Jobs Act, was limited to wages paid after June 30, 2021 but before October 1, 2021, unless the employer was a recovery startup business. An employer that was a recovery startup business could have claimed the employee retention credit for wages paid after September 30, 2021 but before January 1, 2022. See Notice 2021-65, for more information. ARP also provided a temporary reduction in the premium that individuals paid when they elected COBRA continuation health coverage following a reduction in hours or an involuntary termination of employment. The new law provided a corresponding tax credit for eligible employers. COBRA premium assistance was available for periods of coverage beginning on or after April 1, 2021 through periods of coverage beginning on or before September 30, 2021. This provision allowed a credit (COBRA Premium Assistance Credit) against the employer share of Medicare tax in an amount equal to the premiums not paid by assistance eligible individuals for COBRA continuation coverage. The COBRA Premium Assistance Credit was claimed on employment tax returns for the second, third and fourth quarters of 2021 depending on when the employer (or other entity that maintained the health plan) became eligible for the credit. The One Big Beautiful Bill (OB3), was enacted on July 4, 2025. It amended the ERC for the third and fourth calendar quarters in 2021. OB3 prohibits the IRS from allowing ERC claims and processing refunds for the claims, for the third and fourth quarter of 2021, after the date of the act, unless the claims were filed on or before January 31, 2024. There have been several revisions to Form 941 to administer the COVID relief specified above, beginning with the 2nd quarter of 2020. Annual employment tax forms (Form 943, Form 944, and Form CT-1) were also revised for tax year 2020.

# Credits for Qualified Sick and Family Leave Wages

3.14.2.6.4.10.1 (01-01-2026) Credits for Qualified Sick and Family Leave Wages Qualified Sick and Family Leave Wages tax credits applied to qualified sick and family leave wages paid during the period beginning April 1, 2020 and ending September 30, 2021 (due to legislative extensions) and were included in the calculation of the Balance Due or Overpayment amounts reported in Part 1 of the Form 941 if claimed by the taxpayer. Note: For more information on how to adjust these credits see IRM 21.7.2.7.6.1 , Form 94XX — Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 and IRM 21.7.2.7.6.2 , Form 94XX — Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021. The Sick Leave Credit was claimed for the employee's regular rate of pay, up to $511 per day and $5110 in total up to 80 hours for qualified sick leave wages paid, if the employee was unable to work or telework because they were subject to a COVID-19 quarantine or isolation order, advised to self-quarantine or if they had COVID symptoms, and were seeking a medical diagnosis. This was for leave taken after March 31, 2021 but before October 1, 2021 if they were seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of COVID-19 and the employee had been exposed to COVID-19 or the employee's employer had requested a test or diagnosis, or for obtaining an immunization in relation to COVID-19 or recovering from any injury, disability, illness or condition related to the immunization. The Sick Leave Credit was claimed for two-thirds of the employee's regular rate of pay up to $200 per day and $2000 in total for up to 80 hours per eligible employee, if the employee was unable to work due to caring for a qualified individual in relation to a specified COVID-related reason. The employer was also eligible for credits for allocable qualified health plan expenses for the employee and the employer's portion of Medicare Tax, as well as for sick leave taken after March 31, 2021 but before October 1, 2021, the employer portion of OASDI and certain collectively bargained contributions allocable to the sick leave wages during the sick leave period. Note: Under ARP, the 80 hours of maximum qualified sick leave wages was determined without regard to any qualified sick leave wages paid with respect to leave taken prior to April 1, 2021, meaning ARP reset the number of hours effective April 1, 2021. The Family Leave Credit was claimed for 2/3 of the employees regular rate of pay capped at $200 per day or $10,000 in total up to 10 weeks. The employer was also eligible for allocable qualified health plan expenses for the employee and employer's portion of Medicare Tax, as well as, for family leave taken after March 31, 2021 but before October 1, 2021, the employer portion of social security tax and certain collectively bargained contributions allocable to the family leave wages during the family leave period. Beginning April 1, 2021, the aggregate cap on qualified family leave wages was increased to $12,000 in accordance with the American Rescue Plan. The $12,000 maximum in qualified family leave wages was determined without regard to any qualified family leave wages paid with respect to leave taken prior to April 1, 2021, meaning ARP reset the family leave wages effective April 1, 2021. Note: The Family Leave Credit could have been combined with the Sick Leave Credit for pay up to 12 weeks (i.e., 2 weeks of sick leave and 10 weeks of family leave as outlined above). Qualified sick and family leave wages paid to employees by eligible employers were exempt from the employer's share of social security taxes under the FFCRA, however, they were subject to the employer's share of social security tax under ARP but the available credit was increased by such amount. Note: Generally, the same wages couldn't be used as both qualified sick leave wages and qualified family leave wages. The taxpayer could not benefit from both the credit for qualified sick and family leave wages and the ERC with respect to the same wages. Additionally, under ARP, the credit for qualified sick leave wages and qualified family leave wages didn't apply to wages taken into account as payroll costs for a Small Business Interruption Loan under the Paycheck Protection Program (PPP) that had been forgiven or in connection with shuttered operator grants and restaurant revitalization grants. Employers could elect to take advantage of these credits by: Retaining (i.e., not paying) the federal income tax withholding, employee's share of social security and Medicare taxes and/or the employer's share of social security and Medicare taxes for all employees up to the amount of the eligible Sick Leave and/or Family Leave credits. If deposits were reduced to zeroes as a result of (a) above and did not cover the full credit amount, the taxpayer could have requested an advanced payment(s) of the eligible Sick and/or Family Leave Credits (excluding any amounts retained by the reduction of federal tax deposits or payments outlined in (a) above) by submitting Form 7200 Advance Payment of Employer Tax Credits Due to COVID-19. Note: The taxpayer was not subject to federal tax deposit penalties for retaining eligible deposits/payments as outlined in (a) above provided the employer did not also seek payment of an advance by filing a Form 7200 for the same credit amount that was used to reduce deposits (an employer could not avoid penalties by reducing deposits and seeking an advance for the same amount). These credits posted to the module as a TC 766 CRN 299 using the first day of the tax period as the transaction date unless the TC 766/767 is the result of an adjustment with an interest computation date, in which case, the interest computation date should be used as the transaction date. Keep this in mind when researching payment patterns and liability schedules. Reminder: For 2020, CRN 299 was used to identify COVID sick leave and family leave credit amounts. This 2020 CRN applies to MFTs 01, 11, 14 and 09. On Forms 941, 943, 944 and CT-1 returns, the taxpayer could claim a refundable credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021. Credit Reference Number 271 was created for this purpose. These credits posted to the module as a (TC 766 CRN 271) using the first day of the tax period as the transaction date unless the TC 766/767 was the result of an adjustment with an interest computation date, in which case, the interest computation date should have been used as the transaction date. The credit was allowed through 2023. The credit for Qualified Sick and Family Leave Wages could have been a non-refundable credit, a refundable credit or both depending on the amount of the Credit for Qualified Sick and Family Lave Wages that could have been claimed for a specific period and the amounts of other non-refundable credits reported. For more information on the Credits for Qualified Sick and Family Leave Wages, see IRM 21.7.2.7.1.1, Credit for Qualified Sick and Family Leave Wages-Families First Corona virus Response Act (FFCRA) Provisions, IRM 21.7.2.7.1.2, Credit for Qualified Sick and Family Leave Wages-COVID-related Tax Relief Act of 2020 Provisions, IRM 21.7.2.7.1.3, Credit for Qualified Sick and Family Leave Wages -The American Rescue Plan Act of 2021 (ARP) Provisions and IRM 21.7.2.7.1.4, Timing Considerations Applicable to Reporting Qualified Sick and Family Leave Wages, Tax and Associated Credits.

# Credit for Qualified Sick and Family Leave Wages Form 941

3.14.2.6.4.10.1.1 (01-01-2026) Credit for Qualified Sick and Family Leave Wages Form 941 The table below shows how the Credit for Qualified Sick and Family Leave Wages was reported on Form 941, Employer's QUARTERLY Federal Tax Return: Tax Period The taxpayer reported To administer these credit Form 941 was revised to include: 202006, 202009 and 202012 Qualified sick and family leave wages for leave taken before April 1, 2021, on lines 5a(i) and 5a(ii), respectively, and taxed at 6.2% for social security tax purposes. For leave taken before April 1, 2021, the credit for qualified sick and family leave wages was reported on line 11b (nonrefundable portion) and, if applicable, line 13c (refundable portion). Line 5a(i) Qualified Sick Leave Wages Line 5a(ii)Qualified Family Leave Wages Line 11b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Line 13c Refundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Note: This amount posted as a TC 766 CRN 299 on the module. Line 19 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Line 20 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages 202103 Any qualified sick and family leave wages for leave taken before April 1, 2021, on lines 5a(i) and 5a(ii), respectively, and taxed at 6.2% for social security tax purposes. For leave taken before April 1, 2021, the credit for qualified sick and family leave wages was reported on line 11b (nonrefundable portion) and, if applicable, line 13c (refundable portion). Line 5a(i) Qualified Sick Leave Wages Line 5a(ii) Qualified Family Leave Wages Line 11b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Line 13c Refundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Note: This amount posted as a TC 766 CRN 299 on the module Line 19 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Line 20 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages 202106 through 202312 Any qualified sick and family leave wages for leave taken before April 1, 2021, on lines 5a(i) and 5a(ii), respectively, and taxed at 6.2% for social security tax purposes. For leave taken before April 1, 2021, the credit for qualified sick and family leave wages was reported on line 11b (nonrefundable portion) and, if applicable, line 13c (refundable portion). Taxable qualified sick and family leave wages for leave taken after March 31, 2021, on line 5a and taxed at 12.4% for social security tax purposes. For leave taken after March 31, 2021, the credit for qualified sick and family leave wages reported on line 11d (nonrefundable portion) and, if applicable, line 13e (refundable portion); and the nonrefundable portion of the credit against the employer share of Medicare tax. Line 5a(i) Qualified Sick Leave Wages* Line 5a(ii) Qualified Family Leave Wages* Note: Taxable qualified sick and family leave wages for leave taken after March 31, 2021 were included on Line 5a. Line 5a(i) and 5a(ii) were ONLY used for wages paid after March 31, 2020 for leave taken before April 1, 2021. Line 11b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 Line 11d Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken after March 31, 2021 Line 13c Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 Note: This amount posted as a TC 766 CRN 299 on the module. Line 13e Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021 Note: This amount posted as a TC 766 CRN 271 on the module. Line 19 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken Before April 1, 2021 Line 20 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken Before April 1, 2021 Line 23 Qualified Sick Leave Wages for Leave Taken After March 31, 2021 Line 24 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 23 Line 25 Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages Reported on Line 23 Line 26 Qualified Family Leave Wages for Leave Taken After March 31, 2021 Line 27 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 26 Line 28 Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages Reported on Line 26 The nonrefundable portion of the credit for qualified sick and family leave wages for leave taken before April 1, 2021, was limited to the employer share of social security tax reported on Form 941, Employer's QUARTERLY Federal Tax Return, remaining after being reduced by the following credits: Form 8974 credit claimed for qualified small business payroll tax credit for increasing research activities, the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans, and any disaster credit claimed for qualified tax exempt organizations on Form 5884-D, Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters. Note: Any credit for qualified sick and family leave wages for leave taken before April 1, 2021, remaining at the end of the quarter because it exceeds the employer share of social security tax for the quarter was claimed on line 13c as a refundable credit. The nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, was limited to the employer share of Medicare tax on wages paid in the quarter. Note: Any credit for qualified sick and family leave wages which was remaining at the end of the quarter because it exceeded the employer share of Medicare tax for the quarter was claimed on line 13e as a refundable credit. Qualified wages should not have included wages that were used as payroll costs in connection with a Shuttered Venue Operator Grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act; or a restaurant revitalization grant under ARP. For leave taken after March 31, 2021 but before October 1, 2021, employers could have received both a Small Business Interruption Loan under the Paycheck Protection Program (PPP) and the credit for qualified sick and family leave wages; however, employers could not have received both loan forgiveness and a credit for the same wages.

# Credit for Qualified Sick and Family Leave Wages Form 943

3.14.2.6.4.10.1.2 (01-01-2026) Credit for Qualified Sick and Family Leave Wages Form 943 The table below shows how the Credit for Qualified Sick and Family Leave Wages were reported on Form 943: Tax Year The taxpayer reported To administer these credits Form 943 was revised to include: 2020 The nonrefundable credit for qualified sick and family leave wages for leave taken before April 1, 2021 on line 12b and, if applicable, the refundable credit on line 14d. These qualified sick leave wages and qualified family leave wages were reported on lines 2a and 2b, respectively. The employee share of social security tax on qualified sick and family leave wages were reported on lines 3a and 3b, respectively. Qualified sick and family leave wages for leave taken before April 1, 2021 weren't subject to the employer share of social security tax. Qualified sick and family leave wages not included on lines 2a and 2b because the wages reported on that line were limited by the social security wage base were included on line 4. Qualified health plan expenses allocable to qualified sick and family leave wages were reported on lines 18 and 19. Line 2a Qualified Sick Leave Wages Line 2b Qualified Family Leave Wages Line 3a Social Security Tax on Qualified Sick Leave Wages (multiply line 2a by 6.2% (0.62)) Line 3b Social Security Tax on Qualified Family Leave Wages (multiply line 2b by 6.2% (0.62)) Line 12b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Line 14d Refundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Note: This amount posted as a TC 766 CRN 299 on the module. Line 18 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Line 19 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages 2021-2023 The nonrefundable credit for qualified sick and family leave wages on line 12b for leave taken before April 1, 2021 and on line 12d for leave taken after March 31, 2021. The refundable credit, if applicable, was reported on line 14d for leave taken before April 1, 2021 and on line 14f for leave taken after March 31, 2021. The qualified sick and family leave wages for leave taken after March 31, 2021 was reported on line 2 while lines 2a and 2b were only used to report wages paid for leave taken before April 1, 2021. The employee share of social security tax on qualified sick and family leave wages was reported on lines 3a and 3b, for wages paid for leave taken before April 1, 2021. Qualified health plan expenses allocable to qualified sick and family leave wages for leave taken before April 1, 2021 were reported on lines 18 and 19 and for leave taken after March 31, 2021 on lines 23 and 26. Amounts under certain collective bargaining agreements allocable to qualified sick and family leave wages for leave taken after March 31, 2021 were reported on lines 24 and 27. Line 2 Wages Subject to Social Security Tax* Line 2a Qualified Sick Leave Wages* Line 2bLine 2b Qualified Family Leave Wages* Note: Taxable qualified sick and family leave wages for leave taken after March 31, 2021 were included on line 2. Line 2a & 2b were only used to report wages paid for leave taken before April 1, 2021. Line 12b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021. Line 12d Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021 Line 14d Refundable Portion of Credit for Qualified Sick and Family Leave Wages Taken Before April 1, 2021 Note: This amount posted as a TC 766 CRN 299 on the module. Line 14f Refundable Portion of Credit for Qualified Sick and Family Leave Wages Taken After March 31, 2021 Note: This amount posted as a TC 766 CRN 271 on the module. Line 18 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken Before April 1, 2021 Line 19 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken Before April 1, 2021 Line 22 Qualified Sick Leave Wages for Leave Taken After March 31, 2021 Line 23 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 22 Line 24 Amounts Under Certain Collectively Bargained Agreements Allocable to Sick Leave Wages Reported on Line 22 Line 25 Qualified Family Leave Wages for Leave Taken After March 31, 2021 Line 26 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 25 Line 27 Amounts Under Certain Collectively Bargained Agreements Allocable to Family Leave Wages Reported on Line 25 The nonrefundable portion of the credit for qualified sick and family leave wages for leave taken before April 1, 2021, was limited to the employer share of social security tax reported on Form 943, Employer's Annual Tax Return for Agricultural Employees, remaining after being reduced by the following credits: Form 8974 , Qualified Small Business Payroll Tax Credit for Increasing Research Activities, credit claimed for qualified small business payroll tax credit for increasing research activities, the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans and any disaster credit claimed for qualified tax exempt organizations on Form 5884-D, Employee Retention Credit for Certain Tax-Exempt Organizations Affected by Qualified Disasters. Note: Any credit in excess of the remaining amount of the employer share of social security tax was refundable and reported on Form 943, line 14d. The nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, was limited to the employer share of Medicare tax on wages paid. Note: Any credit for qualified sick and family leave wages remaining because it exceeded the employer share of Medicare tax was claimed on line 14f as a refundable credit. Qualified wages should not have included wages that were used as payroll costs in connection with a Shuttered Venue Operator Grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act; or a restaurant revitalization grant under ARP. For leave taken after March 31, 2021 but before October 1, 2021, employers could have received both a Small Business Interruption Loan under the Paycheck Protection Program (PPP) and the credit for qualified sick and family leave wages; however, employers could not have received both loan forgiveness and a credit for the same wages.

# Credit for Qualified Sick and Family Leave Wages Form 944

3.14.2.6.4.10.1.3 (01-01-2026) Credit for Qualified Sick and Family Leave Wages Form 944 The table below shows how the Credit for Qualified Sick and Family Leave Wages were reported on Form 944: Tax Year Reported To administer these credits Form 944 was revised to include: 2020 The nonrefundable credit for qualified sick and family leave wages for leave taken before April 1, 2021 is reported on line 8b and, if applicable, the refundable credit is reported on line 10d. The employee share of social security tax on these qualified sick and family leave wages is reported on lines 4a(i) and 4a(ii). Qualified sick and family leave wages for leave taken before April 1, 2021 aren't subject to the employer share of social security tax. Qualified health plan expenses allocable to qualified sick and family leave wages are reported on lines 15 and 16. Line 4a(i) Qualified Sick Leave Wages Line 4a(ii) Qualified Family Leave Wages Line 8b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Line 10d Refundable Portion of Credit for Qualified Sick and Family Leave Wages from Worksheet 1 Note: This amount will post as a TC 766 CRN 299 on the module. Line 15 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Line 16 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages 2021 Taxable qualified sick and family leave wages for leave taken after March 31, 2021, are included on line 4a and taxed at 12.4% for social security tax purposes. However, if the taxpayer is reporting any qualified sick and family leave wages for leave taken before April 1, 2021, these wages are reported on lines 4a(i) and 4a(ii), respectively, and taxed at 6.2% for social security tax purposes. For leave taken before April 1, 2021, the credit for qualified sick and family leave wages is reported on line 8b (nonrefundable portion) and, if applicable, line 10d (refundable portion). For leave taken after March 31, 2021, the credit for qualified sick and family leave wages is reported on line 8d (nonrefundable portion) and, if applicable, line 10f (refundable portion); and the nonrefundable portion of the credit is against the employer share of Medicare tax. Line 4a Taxable Social Security Wages* Line 4a(i) Qualified Sick Leave Wages* Line 4a(ii) Qualified Family Leave Wages* Note: Taxable qualified sick and family leave wages for leave taken March 31, 2021 are included on line 4a. Line 4a(i) & 4a(ii) are used to report wages paid for leave taken April 1, 2021. Line 8b Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 Line 8d Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021 Line 10d Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken Before April 1, 2021 Note: This amount will post as a TC 766 CRN 299 on the module. Line 10f Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021 Note: This amount will post as a TC 766 CRN 271 on the module. Line 15 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken Before April 1, 2021 Line 16 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken Before April 1, 2021 Line 19 Qualified Sick Leave Wages for leave Taken After March 31, 2021 Line 20 Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages Reported on Line 19 Line 21 Amounts Under Certain Collectively Bargained Agreements Allocable to Sick Leave Wages Reported on Line 19 Line 22 Qualified Family Leave Wages for leave Taken After March 31, 2021 Line 23 Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages Reported on Line 22 Line 24 Amounts Under Certain Collectively Bargained Agreements Allocable to Family Leave Wages Reported on Line 22 The nonrefundable portion of the credit qualified sick and family leave wages for leave taken before April 1, 2021 was limited to the employer share of social security tax reported on Form 944 remaining after being reduced by the following credits Form 8974 for the qualified small business payroll tax credit for increasing research activities the work opportunity credit for qualified tax‐exempt organizations hiring qualified veterans and any disaster credit claimed for qualified tax exempt organizations on Form 5884-D. Note: Any credit in excess of the remaining amount of the employer share of social security tax was refundable and reported on Form 944, line 10d The nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, was limited to the employer share of Medicare tax on wages paid. Note: Any credit for qualified sick and family leave wages remaining at the end of the quarter because it exceeds the employer share of Medicare tax was claimed on line 10f as a refundable credit. Qualified wages should not include wages that were used as payroll costs in connection with a Shuttered Venue Operator Grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act; or a restaurant revitalization grant under section 5003 of ARP. For leave taken after March 31, 2021 but before October 1, 2021, employers could receive both a Small Business Interruption Loan under the Paycheck Protection Program (PPP) and the credit for qualified sick and family leave wages; however, employers could not receive both loan forgiveness and a credit for the same wages.

# Employee Retention Credit

3.14.2.6.4.10.2 (01-01-2026) Employee Retention Credit The Employee Retention Credit (ERC) was a fully refundable tax credit claimed against certain employment taxes reported on quarterly and annual tax returns for 2020 and 2021. The table below explains the ERC and distinguishes the changes made to the credit from 2020 to 2021. Form 2020 2021 ERC Explained The amount of the ERC was equal to 50% of the qualified wages that an eligible employer paid to employees beginning March 13, 2020 and ending December 31, 2020. Note: Qualified wages up to $10,000 (including certain health plan costs) per employee, were used to determine the Employee Retention Credit amount. The maximum ERC was $5,000 per employee. The refundable portion of the ERC will post to IDRS as a TC 766 CRN 296 using the first day of the tax period as the transaction date unless the TC 766/767 is the result of an adjustment with an interest computation date, in which case, the interest computation date should be used as the transaction date. The amount of the ERC is equal to 70% of the qualified wages that an eligible employer paid to employees after December 31, 2020 but before January 1, 2022. Note: Qualified wages up to $10,000 (including certain health plan costs) per employee per quarter were used to determine the Employee Retention Credit amount. The maximum ERC per employee was $7,000 per quarter for a total of $28,000 annually. The refundable portion of the ERC will post to IDRS as a TC 766 CRN 296 using the first day of the tax period as the transaction date unless the TC 766/767 is the result of an adjustment with an interest computation date, in which case, the interest computation date should be used as the transaction date. Note: The nonrefundable portion of the employee retention credit changed for 3rd and 4th quarters of 2021 wherein the nonrefundable portion of the credit was limited to the employer share of Medicare. Form 941 For 202006 the Form 941 was revised to administer the ERC as follows: Line 11c Nonrefundable Portion of the Employee Retention Credit from Worksheet 1 Line 13d Refundable Portion of the Employee Retention Credit from Worksheet 1 Note: This amount will post as a TC 766 CRN 296 on the module. Line 21 Qualified Wages for the Employee Retention Credit Line 22 Qualified Health Plan Expenses Allocable to Wages Reported on Line 21 Line 24 Qualified Wages Paid March 13 through March 31, 2020, for the Employee Retention Credit (use this line for the second quarter filing of Form 941) Line 25 Qualified Health Plan Expenses Allocable to Wages Reported on Line 24(use this line for the second quarter filing of Form 941) For 202009 and 202012 the Form 941 was revised to administer the ERC as follows: Line 11c Nonrefundable Portion of the Employee Retention Credit from Worksheet 1 Line 13d Refundable Portion of the Employee Retention Credit from Worksheet 1 Note: This amount will post as a TC 766 CRN 296 on the module. Line 21 Qualified Wages for the Employee Retention Credit Line 22 Qualified Health Plan Expenses Allocable to Wages Reported on Line 21 For 202103 the Form 941 was revised to administer the ERC as follows: Line 11c Nonrefundable Portion of the Employee Retention Credit from Worksheet 1 Line 13d Refundable Portion of the Employee Retention Credit from Worksheet 1 Note: This amount will post as a TC 766 CRN 296 on the module. Line 21 Qualified Wages for the Employee Retention Credit Line 22 Qualified Health Plan Expenses Allocable to Wages Reported on Line 21 For 202106 through 2023 the Form 941 was revised to administer the ERC as follows: Line 11c Nonrefundable Portion of the Employee Retention Credit Line 13d Refundable Portion of the Employee Retention Credit Note: This amount will post as a TC 766 CRN 296 on the module. Line 21 Qualified Wages for the Employee Retention Credit Line 22 Qualified Health Plan Expenses for the Employee Retention Credit Form 943 Form 943 was revised to administer the ERC as follows: Line 12c Nonrefundable Portion of Employee Retention Credit from Worksheet 1 Line 14e Refundable Portion of Employee Retention Credit from Worksheet 1 Note: This amount will post as a TC 766 CRN 296 on the module. Line 20 Qualified Wages for the Employee Retention Credit Line 21 Qualified Health Plan Expenses Allocable to Wages Reported on Line 20 Form 943 was revised to administer the ERC as follows: Line 12c Nonrefundable Portion of Employee Retention Credit Line 14e Refundable Portion of Employee Retention Credit Note: This amount will post as a TC 766 CRN 296 on the module. Line 20 Qualified Wages for the Employee Retention Credit Line 21 Qualified Health Plan Expenses for the Employee Retention Credit Line 28 If you're eligible for the employee retention credit in the third quarter solely because your business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for the third quarter Line 29 If you're eligible for the employee retention credit in the fourth quarter solely because your business is a recovery startup business, enter the total of any amounts included on lines 12c and 14e for the fourth quarter Beginning with the 2nd quarter Form 941, the refundable portion of the Employee Retention Credit was reported on Line 13d. For tax years 2020 and 2021 the refundable portion of the ERC was reported on line 14e of Form 943 and on line 24 of Form CT-1. This credit posted to the module as a TC 766 CRN 296 with the first day of the tax period as the transaction date unless the TC 766/767 is the result of an adjustment with an interest computation date, in which case, the interest computation date should be used as the transaction date. Reminder: For 2020 and 2021, CRN 296 is being used to identify Employee Retention Credit amount. This 2020 CRN applies to MFTs 01, 11, 14 and 09. Employers could take advantage of this credit in 2020 and 2021 by following the steps below: Retaining (i.e., not paying) the federal income tax withholding, employee's share of social security and Medicare taxes and/or the employer's share of social security and Medicare taxes for all employees up to the amount of the eligible Employee Retention Credit, taking into account any reduction for deposits taken in relation to the Sick Leave and/or Family Leave credits, and If deposits were reduced to zeroes as a result of (a) above and did not cover the full credit amount, the taxpayer could have requested an advanced payment(s) of the Employee Retention Credit (excluding any amounts retained by the reduction of federal tax deposits or payments outlined in (a) above) by submitting Form 7200 Advance Payment of Employer Tax Credits Due to COVID-19. Note: The taxpayer was not subject to federal tax deposit penalties for retaining eligible deposits/payments as outlined in (a) above provided the employer did not also seek payment of an advance by filing a timely Form 7200 in 2020 or 2021 for the same credit amount that was used to reduce deposits (an employer could not avoid penalties by reducing deposits and seeking an advance for the same amount). In order to avoid FTD penalties, employers must also have paid Qualified Retention Wages to their employees during the relevant period. Form 7200, Advance Payment of Employer Credit Due to COVID-19 was created to request advanced payment of the tax credits for, and the Employee Retention Credit, in addition to the credits for qualified sick and family leave wages, and the COBRA Premium Assistance Credit claimed on Forms 941, 941(sp), 941-SS, 943, 943(sp), and CT-1. Note: The employee retention credit was available for wages paid before January 1, 2022. Additionally, the credit for the qualified sick and family leave wages were available for leave taken before October 1, 2021, and COBRA premium assistance was only available for periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021. However, the COBRA premium assistance credit could be claimed on employment tax returns for the second, third, or fourth quarter of 2021, depending on when the employer (or other person) becomes entitled to the credit. See the table below for ERC credits by MFT and tax period: MFT Tax Period 01 (Form 941, 941(sp), 941-SS) 202006, 202009, 202012, 202103, 202106, 202109, and 202112 only Note: Employers were permitted to reduce otherwise required federal tax deposits for the 1st quarter in anticipation of claiming the Employee Retention Credit attributable to the 1st quarter when they filed their Form 941 for the 2nd quarter of 2020, as such, some taxpayers may have a balance due on their 1st quarter account after filing. 11 (Form 943, 943(sp)) 202012 and 202112 only 09 (Form CT-1) 202012 and 202112 only Note: Advance payments of the employee retention credit for 2021 were limited to small employers that averaged 500 or fewer full-time employees in 2019. For employers that weren't in existence in 2019, advance payments were limited to small employers that averaged 500 or fewer full-time employees in 2020. Note: For 2021, the amount requested on Form 7200 could not exceed 70% of average quarterly wages paid in calendar year 2019. When Form 7200 was received timely, a TC 290 .00 with CRN 299, Reason Code (RC) 219 is input with a hold code of 3 with the amount of the advanced payment in the Misc Field. The transaction posted as a TC 766 CRN 299 on the module. Once posted an immediate TC 846 systemic refund for the same amount as the TC 766 less any offsets generated. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ These credits post to the module and refund/offset prior to the posting of the TC 150. Advanced refunds were not permitted after the posting of the TC 150. Note: Although a HC 3 is used when inputting the TC 290 .00 CRN 299 RC 219 adjustment to suppress the notice, if there is an offset on the module a CP 138 will generate and should go out to notify the taxpayer of the offset. Advance credit payments are reconciled by the IRS when the taxpayer's employment tax return is processed. Once processed, the system will reverse all the TC 766 CRN 299 advance payment transactions previously posted and replace them with a: TC 766 CRN 299 for the amount on Form 941, line 13c or the equivalent lines on annual employment tax returns. TC 766 CRN 296 for the amount on Form 941, line 13d or the equivalent lines on annual employment tax returns. Note: The temporary TC 766 CRN 299 credit figure used to generate advance payment(s) is essentially replaced with actual total credit amounts for which the taxpayer is eligible once the return is filed. Once reconciled, the system will calculate the remaining balance due, overpayment or even balance amount and post it to the module and generate the appropriate notice if necessary. Caution: Once a TC 150 has been posted to the tax account and the computer has reversed the CRN 299 advanced payment amounts, any CRN 299 amount with Reason Code 219 attempting to post to the module will unpost with UPC 306 RC 3. Any corrections to refundable credits allowed with the original return must be made with CRN 296 or with CRN 299 and any corrections to non-refundable credits must be made with a TC 29X and appropriate IRNs. Corrections made after the TC 150 posts cannot contain a RC 219. See the table in paragraph (2) of IRM 21.7.2.7.6, COVID-19 Related Employment Tax Relief and Forms 94XX, for more information on IRN usage for the 2020 Form 941, Employer's QUARTERLY Federal Tax Return. For additional information on the Employee Retention Credit, see IRM 21.7.2.7.2, Employee Retention Credit (ERC), IRM 21.7.2.7.2.1, Employee Retention Credit (ERC) — Coronavirus Aid, Relief, and Economic Security (CARES) Act Provisions, IRM 21.7.2.7.2.2, Employee Retention Credit (ERC) — Taxpayer Certainty and Disaster Tax Relief Act of 2020 Provisions, and IRM 21.7.2.7.2.3, Employee Retention Credit (ERC) — The American Rescue Plan Act of 2021 (the ARP) Provisions. See IRM 21.7.2.7.5, Form 7200, Advance Payments of Employer Credits Due to COVID-19.

# Deferred Payment of the Employer's Share of Social Security Taxes for 2020

3.14.2.6.4.10.3 (01-01-2026) Deferred Payment of the Employer's Share of Social Security Taxes for 2020 The CARES Act allowed all employers to defer the deposit/payment of the employer's share of social security taxes and certain railroad retirement taxes. This deferral applied to deposits/payments of the employer's share of social security tax that would have otherwise been due on or after March 27, 2020 but before January 1, 2021, as well as, deposits and payments due after January 1, 2021, that were required for wages paid on or after March 27, 2020, but before January 1, 2021. The maximum amount that could have been deferred each quarter was the smaller of: The employer's share of social security tax, or The total taxes after adjustments (Form 941, line 10) less any amount of QSB Research Credit (Form 941, line 11a) less total deposits made for the quarter (Form 941, line 13a). Note: Qualified Sick and Family Leave Wages were not subject to the employer's share of social security tax, therefore, employers could not include the employee social security taxes reported on Form 941, lines 5a(i) and 5a(ii) when determining the amount for which payment could be deferred. Reminder: Employers could not reduce the maximum amount for which payment could be deferred by any amounts of the non-refundable credits reported on Form 941, lines 11a, 11b or 11c. Form 941, Employer's QUARTERLY Federal Tax Return, was revised to administer the deferral beginning with the 2nd quarter of 2020 as follows: Line Item Purpose TC 970 Field Name 13b Used to report the deferred amount of the employer share of social security tax. Caution: In response to the Presidential memorandum authorizing the deferral of the employee portion of social security taxes, line 13b was renamed "Deferred Amount of Social Security Tax" and can now include both the deferred employer and the employee share of social security tax. Note: The employee social security taxes reported on lines 5a(i) and 5a(ii) should not be included in the Line 13b calculation for the employer share of social security tax, however, these lines can be used to calculate the employee share of social security tax deferred. The amount reported on line 13b shouldn't be reduced by any credits claimed on line 11a, 11b, or 11c. Tax that has already been paid cannot be deferred, therefore, the maximum amount that can be deferred each quarter is the smaller of (1) the employer share of social security tax and/or the employee share of social security tax, or (2) the excess of line 10 (reduced by the amount, if any, on line 11a) and line 13a. Reminder: The amount on line 13b will post to the module as a TC 766 CRN 280. DEFERRED-SECT-2302-AMT Amounts eligible to be deferred must have been paid by the following dates in order to avoid penalty and interest: 50% of the deferred amount was due on or by December 31, 2021. The remaining 50% of the deferred amount was due on or by December 31, 2022. Example: The employer's share of social security tax for the second quarter of 2020 was $20,000. The employer deposited $5,000 of the $20,000 during the quarter and reported a deferred payment amount of $15,000 on Form 941, line 13b. In this situation, the employer must pay $5,000 by December 31, 2021 (half of the $20,000 maximum deferral minus the $5,000 already paid), and the remaining $10,000 by December 31, 2022. Example: The employer's share of social security tax for the second quarter of 2020 was $24,000. The employer deposited $18,000 of the $24,000 during the second quarter and reported a deferred payment amount of $6,000 on Form 941, line 13b. In this situation, no payment is due by December 31, 2021 because the amount already paid exceeds the 50% due by that date. The remaining $6,000 must be paid in full by December 31, 2022. Reminder notices with a payment voucher were issued to the taxpayer prior to the payment due dates. Employers could have made deferred payments the same way as regular payments via EFTPS, check or money order. Caution: The taxpayer should have notated the appropriate 2020 tax period for which the payment was being made. All payments made towards the deferred liability should have posted to the appropriate 2020 tax period in which the deferral was made. If, when the payment was made, it was erroneously credited to a 2021 or 2022 module, transfer the payment to the appropriate 2020 tax period. The deferral of the employer's share of social security tax for the quarter was entered on Form 941, Line 13b and posted to the module as a TC 766 with CRN 280. The TC 766 CRN 280 "credit " transactions posted to communicate the deferral amount reported on the original return and TC 767 CRN 280 debit transactions reversed the credit as payments were received and applied towards the deferral or when the payment of the deferred amount became due (i.e., December 31, 2021 and December 31, 2022), whichever was sooner. Caution: The amounts posted with CRN 280 do not represent a refundable credit. The CRN 280 amounts are a false credit used to mask balances owed towards the deferred portion of the employer's share of social security taxes for 2020 until the earlier of the payments toward the deferred tax being made or the due date(s) for payment coming due (i.e., December 31, 2021 and December 31, 2022). This methodology was used to ensure penalty and interest calculations associated with the 2020 deferred payment amounts were accurately computed. Upon the posting of the return, Master File programming will ensure the TC 766 CRN 280 credit does not erroneously cause an overpayment condition that includes a portion of the CRN 280 deferred credit by posting a TC 767 CRN 280 for any overpayment which consisted solely of amounts permitted to refund or offset. Note: A refund cannot be more than the sum of the COVID credits (Form 941 Form lines 11b, 11c, 13c & 13d) when there is a TC 766 CRN 280 on the module. For Form 941, Employer's QUARTERLY Federal Tax Return, if the account module balance (AMB) upon the posting of the TC 150, is more than the sum of the unreversed COVID credits (Form 941, lines 11b, 11c, 13c & 13d), then a TC 767 CRN 280 will post for the excess amount (the AMB minus the applicable COVID credits specified above), up to but not to exceed the amount of the posted TC 766 CRN 280. After the posting of the TC 150, any payment made to the account or overpayment on the account will generally be applied to the deferred payment amounts prior to being considered for refund or offset when there is a CRN 280 amount on the 2020 module. If the deferred amount was not paid by the applicable due dates, Master File programming will post a TC 767 CRN 280 reversal for the appropriate amount owed and penalties and interest will begin to accrue from the applicable due date. For more information on payment of the deferred employer's share of social security tax, see , IRM 21.7.2.8.1 Deferred Payment of Employer's Share of Social Security Taxes for 2020. For additional information on CRN 280, see IRM 21.7.2.8.3 Credit Reference Number (CRN) 280 Computer Maximum Deferral Figure, UPC 306-3 and Reason Code 195.

# Deferred Payment of the Employee's Share of Social Security Taxes for 2020

3.14.2.6.4.10.3.1 (01-01-2026) Deferred Payment of the Employee's Share of Social Security Taxes for 2020 On August 8, 2020, the President issued a presidential memorandum directing the Secretary of the Treasury to defer the withholding, deposit and payment of certain payroll tax obligations. For wages paid during the period beginning on September 30, 2020 and ending on December 31, 2020, if an employee's wages were less than $4,000 in any bi-weekly pay period (or the equivalent threshold amount for other pay period intervals), the due date for withholding and payment of the employee's share of social security or Tier 1 railroad retirement taxes (RRTA) on applicable wages was postponed until the period beginning January 1, 2021 and ending on December 31, 2021. If the employer did not fully pay taxes that were deferred by December 31, 2021, applicable interest, penalties in addition to tax began to accrue on the unpaid amounts on January 1, 2022. Note: Reminder notices were not issued for the payment due in relation to the employee's share of social security taxes. Form 941, Employer's QUARTERLY Federal Tax Return, was revised for the third and fourth quarters of 2020 to enable employers to report deferred amounts of the employee's share of social security taxes. Taxpayers were instructed to include the deferred amounts of the employee's share of social security on line 13b, in addition to any amount for the deferral of the employer's share of social security taxes. A single TC 766 CRN 280 posted reflecting both the employee and employer shares of social security taxes that were deferred. Taxpayers were instructed to enter the amount of deferred employee's share of social security taxes on Form 941, line 24. The figure entered by the taxpayer on Line 24 will be used by the IRS in combination with the Line 13b entry to determine the amounts due on the respective due dates for employee's share deferred social security taxes (December 31, 2021) and employer's share of the deferred social security taxes (December 31, 2021 and December 31, 2022) reported as a total figure on Line 13b. The figures from line 24 will appear on TXMOD and BMFOL as reflected in the table below: Tax Period Form 941, Line 24 Description TC 970 Field Name (thru December 2020) Display in Posted Return Data on TXMOD/BMFOL (beginning January 2021) 202006 Qualified wages paid March 13th thru March 31, 2020 for Employee Retention Credit QLFY-EMPL-MARCH-WG-PD-AMT QLFY-EMPL-MARCH-WG-PD-AMT 202009 Deferred amount of the employee share of social security tax included on line 13b QLFY-EMPL-MARCH-WG-PD-AMT DEFERRED-EE-FICA-AMT 202012 Deferred amount of the employee share of social security tax included on line 13b N/A DEFERRED-EE-FICA-AMT Note: IRN 208 will be used to adjust the fields described above for all three referenced tax periods. Programming will apply the IRN 208 change to the correct field based on the tax period associated with the input and alter the field value appropriately. See the table in (2) of IRM 21.7.2.7.6, COVID-19 Related Employment Tax Relief and Forms 94XX, for more information on IRN usage for the 2020 Form 941, Employer's QUARTERLY Federal Tax Return. The deferral of the employee's share of social security tax for the quarter (in addition to any deferral of the employer's share of social security tax) was entered on Form 941, Employer's QUARTERLY Federal Tax Return, line 13b and posted to the module as a TC 766 CRN 280. The TC 766 CRN 280 "credit" transactions posted to communicate the deferral amount reported on the original return and TC 767 CRN 280 debit transactions reverse the credit as payments are received and applied towards the deferral or when the payment of the deferred amount was due (i.e., December 31, 2021) whichever was sooner. Caution: The amounts posted with CRN 280 do not represent a refundable credit. The CRN amounts are a false credit used to mask balances owed towards the deferred portion of the employee's share of social security taxes for 2020 until the earlier of the payment towards the deferred tax being made or the due date for payment coming due (i.e., December 31, 2021). This methodology is used to ensure penalty and interest calculations associated with the 2020 deferred payment amounts are accurately computed. For more information on the Deferral of the Employee's Share of Social Security Taxes for 2020, see IRM 21.7.2.8.2, Notice 2020-65 and Notice 2021-11 — Deferred Payment of Employee's Share of Social Security Taxes for 2020.

# COBRA Premium Assistance Credit

3.14.2.6.4.10.4 (01-01-2026) COBRA Premium Assistance Credit The American Rescue Plan Act of 2021(ARP), provided for COBRA premium assistance in the form of a full reduction in the premium otherwise payable by certain individuals and their families who elect COBRA continuation coverage due to a loss of coverage as the result of a reduction in hours or an involuntary termination of employment. COBRA premium assistance was available for periods of coverage beginning on or after April 1, 2021, through periods of coverage beginning on or before September 30, 2021. Section 9501(b) of ARP added new IRC 6432 allowing a credit (COBRA premium assistance credit) against the employer share of Medicare tax (or the equivalent portion of Tier 1 RRTA taxes) for each calendar quarter in an amount equal to the premiums not paid by assistance eligible individuals for COBRA continuation coverage. This credit could have been claimed on employment tax returns for the second, third or fourth quarter of 2021 depending on when the employer (or other person) became entitled to the credit. Employers eligible to claim the COBRA premium assistance credit could have reduced federal tax deposits by an amount equal to (or less than) their anticipated associated employment tax credit. Note: Employers who reduced deposits were not subject to FTD penalties if (1) the employer was a person to whom premiums were payable; (2) the amount of employment taxes that the employer did not timely deposit (after reduction for other credits) was less than or equal to the amount of the employer's anticipated COBRA premium assistance credit for the calendar quarter as of the time of the required deposit; and (3) the employer did not seek payment of an advance credit by filing Form 7200 with respect to the anticipated credits it relied upon to reduce its deposits. Employers could request an advance by filing Form 7200 if the anticipated COBRA premium assistance credit exceeds the available reduction in deposits. For Form 941, Employer's QUARTERLY Federal Tax Return, tax periods 202106, 202109, 202112, and 202203 the COBRA premium assistance credit can be a non-refundable credit, a refundable credit, or both, depending on the amount of the COBRA premium credit that can be claimed for a particular tax period and the amount(s) of certain other non-refundable credit(s) being reported. See the table below for information regarding the application of the COBRA Premium Assistance Credit on Form 941: Form How Credit is Reported Application of Credit 941 The nonrefundable portion of the credit was reported on line 11e and, if applicable, the refundable portion of the credit was reported on line 13f. If the taxpayer claimed this credit, they must also have reported the number of individuals provided COBRA premium assistance on line 11f. The refundable portion of the credit posted as a TC 766 CRN 276. The taxpayer should not have included any amount that was included as qualified wages for the employee retention credit or included as qualified health plan expenses allocable to qualified sick leave and family leave wages when determining the nonrefundable credit. The refundable portion of the credit was allowed after the employer share of Medicare tax was reduced to zero by nonrefundable credits that were applied against the employer share of Medicare tax. For Form 943, Employer's Annual Tax Return for Agricultural Employees, Form 944 and, Employer's ANNUAL Federal Tax Return, Form CT-1, Employer's Annual Railroad Retirement Tax Return, tax periods 202112 and 202212, the COBRA premium assistance credit could have been a non-refundable credit, a refundable credit, or both, depending on the amount of the COBRA premium credit that was claimed for a particular tax period and the amount(s) of certain other non-refundable credit(s) being reported. For more information on the COBRA Premium Assistance Credit and how it is claimed, see IRM 21.7.2.7.6.4, Form 94XX — COBRA Premium Assistance Credit. For information on how to adjust the credit, see IRM 21.7.2.7.6.5, Form 94XX — Adjustments When the Number of CRN and IRN Corrections Exceed Command Code ADJ54 Input Limitations.

# Inflation Reduction Act (IRA) of 2022

3.14.2.6.4.11 (01-01-2026) Inflation Reduction Act (IRA) of 2022 The IRA of 2022, Pub. L. No. 117-169, is a law applicable to tax and climate provisions. It enacted various clean energy provisions, a corporate alternative minimum tax on adjusted financial statement income, and an excise tax on stock repurchases by publicly traded corporations. These changes apply to tax years beginning January 1, 2023. The One Big Beautiful Bill (OB3) enacted July 4, 2025, terminated several of the climate provisions enacted by the IRA. See specific information for each section for termination dates.

# Elective Payment Election (EPE) Overview

3.14.2.6.4.11.1 (01-01-2026) Elective Payment Election (EPE) Overview Under the IRA of 2022, IRC 6417(d)(3)(A)(i), the elective payment election (EPE) must be made by the due date of the return (including extensions). An elective payment election may only be made on an original return (including any revisions on a superseding return) filed not later than the due date (including extensions of time) for the original return for the taxable year for which the applicable credit is determined. This election was briefly termed Deemed Payment Elections (DPE) so returns could indicate either terminology. By making this election, the amount of the credit is treated as a payment of tax. Any overpayment will result in a refund. Applicable MFTs are 02, 05, 06 and 34. For each EPE, a taxpayer must pre-register and receive a registration number from the IRS before filing a tax return making the EPE. The rules generally affect applicable entities, which includes tax-exempt organizations, State and local governments, Indian Tribal governments, Alaska Native Corporations, the Tennessee Valley Authority, and rural electric cooperatives. For more information see Pub 5817, Elective Pay Overview, through Pub 5817-G, Clean Energy Tax Incentives: Elective Pay-Eligible Tax Credits. In the table below are the thirteen credits [twelve credits for which an applicable entity can make an EPE under IRC 6417 and one credit allowing an EPE under IRC 48D(d)] including Credit Reference Number (CRN) and Item Reference Number (IRN): Credit Name CRN IRN Advanced Manufacturing Investment [IRC 48D(d)] 455 951 Alternative Fuel Vehicle Refueling Property 456 953 Renewable Electricity Production for Qualified Facilities placed in service after December 31, 2022 457 949 Carbon Oxide Sequestration for Qualified Facilities from equipment placed in service after December 31, 2022 458 956 Zero-Emission Nuclear Power Production 459 954 Clean Hydrogen Production Credit for facilities placed in service after December 31, 2012 460 950 Qualified Commercial Clean Vehicles but only for specific tax-exempt entities. Terminated by OB3 for vehicles acquired after September 30, 2025. 461 957 Advanced Manufacturing Production 462 947 Clean Electricity Production Credit 463 958 Clean Fuel Production Credit 464 952 Clean Energy 465 959 Qualifying Advanced Energy Project 466 948 Clean Electricity Investment 467 955 The following are three credits for which taxpayers (including individuals) that are non-applicable entities are also eligible to make an EPE: Credit Name CRN IRN Carbon Oxide Sequestration for Qualified Facilities 458 956 Clean Hydrogen Production 460 950 Advanced Manufacturing Production 462 947

# Elective Payment Election (EPE) Account and Notice Impact

3.14.2.6.4.11.2 (01-01-2026) Elective Payment Election (EPE) Account and Notice Impact IRA of 2022, IRC 6417(d)(4) provides that the EPE is treated as having been made on the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed. In other words, EPE is treated as having been made on the latest of the return due date (RDD), extended return due date (XRDD) or disaster due date (DDD) on an original return for the taxable year. Therefore, all refunds including an EPE in excess of total tax, cannot be released before the RDD of the tax return claiming the EPE. Tax returns filed before the RDD that include "refundable" EPE will be held with a C- freeze until the due date of the return. EPE is disallowed for late filed returns. If the taxpayer is claiming EPE on a late filed return, a systemic math error notice will be issued to the taxpayer. These notices will only be selected for review if the notice also contains a TPNC 90. Notices with EPE can be identified in NRPS with **EPE** at the top of the notice record and in OLNR with notice status type of "Q" . The systemic paragraph is not visible in OLNR or on the NRPS quick print. The only disposition available for these notices is retype. Entity information and the addition of a label, if necessary, will need to be edited using retype disposition. Caution: Void is not an option for EPE disallowance notices. Accounts requiring further review of EPE claimed credits by SB/SE and/or LB&I are identified by a TC 971 AC 831. These accounts will be frozen with a -R freeze. Do not release these overpayments. Perform regular review of the case, however only items other than EPE should be adjusted by Notice Review. Use a hold code 4 if retyping and hold code 1 if labeling the notice. Never input a TC 571 on these cases. Ensure that account actions do not inadvertently release the overpayment. Caution: Notice Review does not have the authority to adjust EPE credits. If EPE credits appear to need adjustment refer the case to a lead. Leads will contact local P&A and HQ if necessary, after review. For tax periods 202201-202212, the taxpayer should indicate "IRA22DPE" on the return and the claim will be identified in IDRS with a Return Processing Code (RPC) "J" . For tax periods after 202212, all applicable tax forms have been updated with EPE lines, therefore no special RPCs will be assigned. If the EPE has been allowed on a timely filed return, the corresponding credit will be on TXMOD. See IRM 3.14.2.6.4.11.1 for information regarding Elective Payment Election (EPE) Overview, for a list of CRNs and IRNs for EPE.

# Credit Transfer Election (TRE)

3.14.2.6.4.11.3 (01-01-2026) Credit Transfer Election (TRE) An eligible taxpayer, which is generally any taxpayer that is not an applicable entity, that qualifies for an eligible credit under section 6418(f)(1)(A), may elect to transfer all or a portion of the credit to an unrelated third-party in exchange for cash. The parties negotiate and agree to terms and pricing. The election to transfer an eligible credit to an unrelated third-party is called a Credit Transfer Election (TRE). A TRE for any portion of an eligible credit can be made no later than the due date (including extensions of time) of the tax return for the taxable year for which the credit is determined. Any such election, once made, is irrevocable. For each TRE, an eligible taxpayer must pre-register and receive a registration number from the IRS before filing a tax return making a TRE. See Pub 5884 for more information. See the table below for a list of TRE eligible credits. TRE Transferable Credit Name Alternate Fuel Vehicle Refueling Property Renewable Electricity Production for Qualified Facilities placed in service after December 31, 2022 Carbon Oxide Sequestration for Qualified Facilities from equipment placed in service after December 31, 2022 Zero-Emission Nuclear Power Production Clean Hydrogen Production Credit for facilities placed in service after December 31, 2012 Advanced Manufacturing Production Clean Electricity Production Clean Fuel Production Clean Energy Qualifying Advanced Energy Project Clean Electricity Investment For tax periods after 202212, all applicable tax forms have been updated with EPE/TRE lines, therefore no special RPCs will be assigned. For tax periods 202201-202212, the taxpayer should indicate "IRA22TRE" on Form 3800 or an attachment at the top of the return. A TRE can be identified on the claimant's tax account with an RPC "K" .

# IRC 965 Transition Tax Overview

3.14.2.6.5 (01-01-2026) IRC 965 Transition Tax Overview IRC 965 is a provision of the Tax Cuts and Jobs Act (TCJA) of 2017 that requires certain taxpayers to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States. The following persons/entities reported amounts under section 965 of the code on their tax return: US shareholders of a deferred foreign income corporation. Certain direct/indirect domestic partners in domestic partnerships that are United States shareholders of specified foreign corporations. Shareholders in a S corporation that is a United States shareholder of a specified foreign corporation. Certain beneficiaries of another pass-through entity that is a United States shareholder of a specified foreign corporation. Certain beneficiaries of a cooperative association that is a United States shareholder of a specified foreign corporation. Note: A United States shareholder is generally a United States person who owns 10 percent or more of the foreign corporation's stock, applying the indirect stock ownership principles of section 958. In general, foreign income held in the form of cash and cash equivalents is intended to be subject to an effective tax rate of 15.5 percent for calendar year domestic corporate taxpayers, and the remaining earnings are intended to be taxed at 8 percent. The IRC 965 inclusion period was 201712 through 201911. After November 2019, no new IRC 965 inclusions are allowable. Exception: In extremely rare cases, due to pass-through partnership claims, taxpayers could have an IRC 965 inclusion in 2020. During the inclusion period (201712-201911) taxpayers could elect one or more of the following on the inclusion year return: to pay the Section 965 transition tax in full, eligible S Corporation shareholders could defer the assessment and payment of the Section 965 transition tax from the S Corporation until a triggering event occurred by making a 965(i) election, and/or the taxpayer could defer the payment of the Section 965 transition tax over the course of 8 annual installments by making a 965(h) election, eligible REITs could defer the reporting of Section 965 income over an 8-year period, and/or eligible taxpayers could exclude 965 income when determining the net operating loss (NOL) deduction and when determining the amount of income that can be reduced by a NOL carryback or carry forward, thereby making the NOL available to offset the non-965 income only for the inclusion year return. A person/entity that had income under section 965 of the Code for its 2017 taxable year included with its return an IRC 965 Transition Tax Statement signed under penalties of perjury and, in the case of an electronically filed return, in Portable Document Format (.pdf) with a filename of 965 Tax. Multiple IRC 965 Transition Tax Statements could have been combined into a single .pdf file. In tax year 2018, Form 965, Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System, with Form 965-A , Individual Report of Net 965 Tax Liability, or Form 965-B , Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, replaced the 2017 IRC 965 Transition Tax Statement .pdf. Any individual taxpayer or taxpayer taxed like an individual (i.e., Form 1041 filer) with a net IRC 965 tax liability remaining unpaid at any time during a tax year must file Form 965-A. Note: Taxpayers that made an IRC 965(i) election must file Form 965-A, Individual Report of Net 965 Tax Liability, with their Form 1041, U.S. Income Tax Return for Estates and Trusts, every year until the IRC 965 liability is assessed and paid in full. Form 1041 filers, that made an IRC 965(h) election in the year of inclusion or in the year of the triggering event must file a Form 965-A each year with their Form 1041 until the IRC 965 liability is paid in full. Any corporate taxpayer who has a net IRC 965 tax liability for any tax year or has any net IRC 965 tax liability remaining unpaid at any time during a tax year, or an electing REIT with any IRC 965 amount, must file Form 965-B until the liability is paid in full or in the case of 965(m) until all of the 965 income has been reported. Note: Corporate taxpayers that made an IRC 965(h) election in the year of inclusion must file a Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, each year with their corporate income tax return until the IRC 965 liability is paid in full. In the inclusion year only, or in the year the IRC 965(i) net tax liability is assessed, if the taxpayer remits more than is currently due with respect to an IRC 965 installment and/or their undeferred income tax liability, for the inclusion year, the excess remittance will be applied to the next successive IRC 965 installment amount until the full amount of the excess credit has been applied or the full income tax liability (including net tax liability under section 965) for the inclusion year is satisfied. Only payments and credits that are more than the full income tax liability (including net tax liability under section 965) may be characterized as overpayments and subject to refund or application as a credit elect.

# Identifying IRC 965 Elections and Payments

3.14.2.6.5.1 (01-01-2026) Identifying IRC 965 Elections and Payments It is important to identify cases that have IRC 965 inclusion, so account and notice actions are correct. Applicable MFTs for IRC 965(h) elections are only applicable to MFTs 02, 05, 06, 34 and 44. IRC 965(i) elections are only applicable to MFT 05. All taxpayers with IRC 965 inclusion and deferred taxes must attach Form 965-A, Individual Report of Net 965 Tax Liability, or Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, as applicable to their tax return every year until all deferred tax liability has been paid in full. IRC 965 notices should be worked by leads or experienced personnel. NRPS selects these notices with keys 016 and 050. See IRM 3.14.2.6.5.4, IRC 965 CP Notices, for more information. Many cases that have IRC 965 impact do not have keys 016 and 050. Oftentimes, due to misapplied IRC 965 payments a case will be selected by NRPS as a refund transcript or a payment discrepancy notice. This causes non-inclusion year modules to be overpaid or have payment discrepancies. For BMF returns and modules with an IRC 965 inclusion, there will be a CCC J present on BRTVU Response Screen R1 and/or TRBDV Codes Response Screen. View Computer Condition Codes on the TXMODA response screen in the Posted Return Information section. Note: IRC 965(i) elections made after 201712 will be processed with a CCC B in addition to the CCC J. IRC 965 payments posted on IDRS can be identified by a Designated Payment Code (DPC) of 64, if processed correctly. Payments can be misapplied due to processing errors and taxpayers making payments without indicating the appropriate posting information. A DPC 64 is required for the payment to post correctly to IRC 965 deferred taxes. Necessary credit transfers can be performed by all Notice Review tax examiners. Example: TC 670 04152019 $6,000,000.00- 20182308 29000-001-00000-0 DESG-PYMT-CD>64 Always review RTR when possible; taxpayers often write 965 in the memo line of checks. EFTPSE vouchers will show indication of 965 if the taxpayer indicated IRC 965 when making the payment. Review TXMOD for indication of payments that have previously been moved with a DPC 64. Review BMFOLM for the tax year IRC 965(h) was elected (201711-201911) to identify installment payment amounts due to assist in payment placement. See IRM 3.14.2.6.5.6, IRC 965(h) Liability Schedule CFOL Screen (Command Code BMFOLM). For returns where an IRC 965 inclusion was made during the inclusion period (201712-201911), there will be a TC 971 AC 114 posted with the original return. The Miscellaneous Field will show the total amount of the IRC 965 transition tax minus any amount deferred under 965(i), as shown on the original return. This amount will be included in the TC 150 amount. For 2017 BMF returns, if the taxpayer elected the IRC 965(h) tax deferral method, there will also be a TC 971 AC 115 posted for the deferred tax amount with the original return. Note: The only time that a TC 971 AC 114 should be input on a module after November 2019, is if the taxpayer has an already established 965(i) election and experiences a triggering event (which they should report on Form 965-A, Part 4, Column (f) as a negative number and transfer to column (f) on one of lines 5 through 8 in Part I as a positive number) in which case the triggered liability should be input as a TC 971 AC 114 on the module in which the triggering event occurred. Reminder: In extremely rare cases, due to pass-through partnership claims, an IRC 965 inclusion could be made in 2020. For returns with an IRC 965(h) election made in the inclusion year and/or in the year of the triggering event for an IRC 965(i) election moving to an IRC 965(h) election, a TC 766 with Credit Reference Number (CRN) 263 should be posted to the module indicating the remaining unpaid IRC 965 liability amount (deferred amount) to be paid in installments. Example: A taxpayer's regular tax is $5,000. The transition tax is $25,000. The TC 150 is $30,000. Because 8 percent of the transition tax is due in year one ($25,000 x .08 = $2,000), a TC 766 is posted for $23,000. Small Business/Self-Employed (SB/SE), Accounts Management, and Notice Review leads can input adjustments on IRC 965 accounts. These manual adjustments and systemic adjustments appear the same on IDRS. These adjustments can be identified with CRN 263 with the corresponding TC 766 or TC 767 as applicable. Note: The TC 971 AC 114 will reflect an amount of 0 for Forms 1120-S and 1065 because no IRC 965 tax is assessed on the returns. For returns with an IRC 965(i) election made on Form 1041 (MFT 05), the IRC 965(i) deferral is for both the assessment and payment of the IRC 965 tax amount. In the case of an IRC 965(i) election on Form 1041, there will be a TC 971 AC 114 for zero input on the module for the year of inclusion. The 965(i) election deferral will remain intact until a triggering event occurs at which time the tax is assessed. A TC 971 AC 165 should be input on the 965(i) inclusion year tax module and on every Form 1041 tax year module thereafter until the year of the triggering event when the IRC 965 liability is assessed. The TC 971 AC 165 is input as a way on monitoring these accounts since the tax has not been charged.

# TC 971 AC 114 Explained

3.14.2.6.5.2 (01-01-2026) TC 971 AC 114 Explained The TC 971 AC 114 represents the IRC 965 Total Tax Liability minus any amount that was deferred under IRC 965(i). A TC 971 AC 114 should only be present on IDRS on the year of the IRC 965(h) inclusion or the year and IRC 965(i) election triggers. TC 971 AC 114 is only applicable to BMF MFTs 02, 05, 06, 34 and 44. Form 1041 filers (MFT 05) that made a 965(i) election during the inclusion period and subsequently experience a triggering event, should have a TC 971 AC 114 input on the triggering event year module when the IRC 965(i) tax is assessed. This is the only time that TC 971 AC 114 should be present on a tax module after 2020. If an erroneous TC 971 AC 114 is present on a module, reverse it. Note: After 201911, no new IRC 965 inclusions can be made, so there should not be a TC 971 AC 114 on MFT 02, 06, 34 or 44 modules after 201911. If a TC 971 AC 114 is present on an MFT 02, 06, 34 or 44 it is an indication of a late election, or it is erroneous. If an erroneous TC 971 AC 114 is present on a module, reverse it using REQ77. Exception: In extremely rare cases, due to pass-through partnership claims, an IRC 965 inclusion could be made in 2020. Caution: See the table below for a description of when a TC 971 AC 114 should be present on the module: If Then A 965 income inclusion and/or election is being made on a tax period 201712-201911 (MFT 02, 05, 06, 34, or 44) return A TC 971 AC 114 should be present on the inclusion year module. A triggering event is being reported on Form 1041 and Form 965-A for the reporting year, A TC 971 AC 114 should be present on the triggering event year module. The taxpayer is ONLY reporting a 965 installment payment that is being made towards a 965(h) election that was made during the inclusion period on Form 965-A or Form 965-B attached to the reporting year return A TC 971 AC 114 should not be present on the reporting year module. The taxpayer is ONLY reporting that the 965(i) election that was made during the inclusion period remains intact for the reporting year on Form 965-A attached to the reporting year return A TC 971 AC 114 should not be present on the reporting year module, however a TC 971 AC 165 with the amount of the intact 965(i) election should be present on the reporting year module. For additional information on how TC 971 AC 114 is reported in relation to IRC 965(i) elections, see IRM 3.14.2.6.5.3, IRC 965(i) Elections. For additional information on how TC 971 AC 114 can be adjusted in relation to IRC 965(i) elections, see IRM 3.14.2.6.5.3.1. For additional information on how TC 971 AC 114 is reported in relation to IRC 965(h) elections, see IRM 3.14.2.6.5.4. For additional information on how TC 971 AC 114 can be adjusted in relation to IRC 965(h) elections, see IRM 3.14.2.6.5.4.1.

# IRC 965(i) Elections

3.14.2.6.5.3 (01-01-2026) IRC 965(i) Elections An election made under Section 965(i) allows a shareholder of an S corporation that is an IRC 958(a) US shareholder to defer the assessment and payment of the Section 965 liability. An IRC 965(i) deferral is indefinite and will remain intact until a triggering event occurs, at which time the IRC 965(i) deferred liability is assessed. Triggering events include: The corporation ceases to be an S corporation (i.e., the S Corporation changes its status), A liquidation or sale of substantially all the assets of the S corporation, a cessation of business by the S corporation, the S corporation ceases to exist, or any similar circumstance, and The electing shareholder transfers any share of stock in the S corporation, A material misrepresentation or omission on a transfer agreement. IRC 965(i) elections could only be made on BMF Form 1041, U.S. Income Tax Return for Estates and Trusts, (MFT 05). A 965(i) election was made in the inclusion year (201712-201911), by including the 965 income and reducing the total income tax by the amount of the 965(i) deferral on the inclusion year return. Taxpayers that made an IRC 965(i) election are required to file Form 965-A, Individual Report of Net 965 Tax Liability, with their return each year until the IRC 965 liability is assessed and paid in full. When reviewing a notice on an account where an IRC 965(i) election was made, review the return and all attachments. For BMF returns with an IRC 965 inclusion, there will be a CCC J present on IDRS, BRTVU Response Screen R1 and/or TRBDV Codes Response Screen on the inclusion year module. Computer Condition Codes may also be viewed on the TXMODA response screen in the Posted Return Information section. Note: IRC 965(i) elections made after 201712 will be identified with a CCC B in addition to the CCC J. IRC 965(i) elections have specific IDRS TC 971 inputs for tracking claims and continuing intact (i) elections (965 tax is still deferred). A TC 971 AC 114 should be present on the inclusion year module and the triggering event year module only. If only an IRC 965(i) election was made a TC 971 AC 114 for zero should be displayed on the inclusion year module because IRC 965(i) defers both the assessment and the payment of the IRC 965 tax liability. Because the tax is not assessed and no other elections were made, the 965(i) total tax amount recorded in the TC 971 AC 114 should be zero. If an IRC 965(i) election was made in conjunction with an IRC 965(h) election in the inclusion year, a TC 971 AC 114 for the amount of the IRC 965 Total Tax Liability minus the 965(i) deferred tax amount , should be displayed on the inclusion year module. TC 971 AC 165 represents an intact IRC 965(i) election. If a 965(i) election was made by itself or in conjunction with a 965(h) election, a TC 971 AC 165 reflecting the 965(i) deferral amount, should be input on the 965(i) inclusion year tax module along with the TC 971 AC 114. A TC 971 AC 165 should be input on the inclusion year module and every subsequent year module that the 965(i) election remains intact and untriggered. Note: If there is no TC 971 AC 165 on a module with an intact 965(i) election, input a TC 971 AC 165 with the amount of the outstanding 965(i) deferred liability amount reflected in the MISC field; See IRM 3.14.2.6.5.3.1, IRC 965(i) Adjustment Procedures for REQ77 input fields. The remaining 965(i) deferral should be reflected on Form 965-A, Individual Report of Net 965 Tax Liability, Part IV, the sum of Column (i) for the reporting year return. For more information on annual reporting of IRC 965(i) deferred liabilities, see the Instructions to Form 965-A.

# IRC 965(i) Adjustment Procedures

3.14.2.6.5.3.1 (01-01-2026) IRC 965(i) Adjustment Procedures Please see a lead if an IRC 965(i) election case needs an adjustment. The lead should review the case and determine if an adjustment is needed. The lead or a manager will route the case to HQ for further review and possible routing to an outside IRC 965 team such as SB/SE or AM. IRC 965 cases should only be adjusted by leads after receiving HQ approval. Exception: A missing TC 971 AC 165 can be input by all personnel. All REQ77 and credit transfer actions should be taken without HQ approval. The above only applies to REQ54/ADJ54 adjustments. A TC 971 AC 165 reflecting the 965(i) deferral amount, should be input on the 965(i) inclusion year tax module and on every Form 1041 tax year module thereafter until the year of the triggering event when the full IRC 965(i) liability is assessed and deemed payable. Caution: If the amount in the TC 971 AC 165 MISC field is incorrect, do not input a TC 972 AC 165 to reverse it. Simply input another TC 971 AC 165 for the correct amount. BMF programming will systemically mark the original posting with an R to indicate the reversal once the new TC 971, AC 165 is input. Only use TC 972 AC 165 to reverse a posted TC 971 AC 165, if there is a TC 971 AC 165 posted to a module when there should not be one at all. The TC 971 AC 165 is input using CC REQ77/FRM77 as follows in the table below: FRM77 Field Name Input TC> 971 TRANS-DT> Current Date MMDDYYYY SECONDARY-DT> Current Date MMDDYYYY TC971/151-CD> 165 MISC> Input the 965(i) deferred liability amount (dollars only, no cents, no special characters) Note: For the inclusion year module this amount will be reflected on the Transition Tax Statement, Line 7 and the 965(i) Election Statement for TY 2017 or on the Form 965-A, Part I, Column (e) and Part III, Column (g), line 2 for 2018 or line 3 for 2019. Note: For any subsequent year this amount should match the amount reflected on Form 965-A, Part IV, the sum of Column (i) for the reporting year. REMARKS NSD, 965i Tax Refer to the table below for guidance on when to input a TC 971 AC 165 on a non-inclusion year module (i.e., 201912 or later). Caution: Do not input a TC 971 AC 114 on a non-inclusion year module, if the taxpayer is simply reporting that the 965(i) election that they made during the inclusion year remains intact for the reporting year. The only time a TC 971 AC 114 should be on a module other than the inclusion year module (i.e., after 201911), is when the taxpayer reports the 965(i) deferral was triggered in the reporting year, then and only then, should a TC 971 AC 114 be input on the triggering event year module. If Then Form 965-A is attached to the reporting year return indicating that a timely IRC 965(i) election was made during the inclusion period and remains intact for the reporting year Input a TC 971 AC 165 on the current year module using CC REQ77. Note: Input the total IRC 965(i) tax liability amount in the Miscellaneous Field. The amount should be input as dollars only (no cents), with no special characters. For example, an amount of $12,500.00 should be entered as 12500 in the Misc. Field. Enter the current date (MMDDYYYY) in both the TRANS-DT field and the SECONDARY-DT field. Caution: The taxpayer may have made an IRC 965(i) election in more than one inclusion year. If the Form 965-A indicates more than one 965(i) election was made, combine the 965(i) liability amounts and enter that amount in the Miscellaneous Field. Caution: If the taxpayer is a shareholder in more than one S corporation with section 965 amounts, the taxpayer could have elected to defer more than one S corporation-related net 965 tax liability until a triggering even occurs. There can be instances where an S-Corp(s) (whose related net 965 liability was deferred) experience a triggering event while others do not, meaning the triggered liability becomes due while the non-triggered liabilities remain deferred. So, the amount of 965(i) deferred tax that was reported in the inclusion year is subject to change as the deferred liabilities are triggered. The sum of Form 965-A, Individual Report of Net 965 Tax Liability, Part IV, Column (i) should reflect the remaining deferred IRC 965(i) net tax liability at the end of the reporting year. This total is the amount that is input into the TC 971 AC 165 Misc Field each year a 965(i) election remains intact. If a taxpayer fails to report an intact 965(i) liability annually by not attaching a complete Form 965-A ,Individual Report of Net 965 Tax Liability, to their income tax return reflecting the amount of the 965(i) deferred liability for the reporting year Refer the case for penalty assessment. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: There should not be a TC 971 AC 165 input on the triggering event year module unless, only a portion of the 965(i) deferred liability was triggered resulting in a portion of the 965(i) liability remaining deferred under 965(i), in which case there should be a TC 971 AC 165 for the remaining 965(i) deferral amount. Follow the table below to verify a TC 971 AC 165: If And Then There is a TC 971 AC 165 on a non-inclusion year module (i.e., module 201912 or later Research indicates the amount of the TC 971 AC 165 posted to the reporting year module is incorrect Research the reporting year, Form 965-A, Part IV, Column (i) and input a new TC 971 AC 165 with the sum of Column (i) in the MISC. field on the reporting year module. There is a TC 971 AC 165 on a non-inclusion year module (i.e., module 201912 or later) There is no indication of an intact 965(i) election (i.e., no Form 965-A attached to the reporting year return, or a Form 965-A attached but not reporting an intact 965(i) election, or a Form 965-A reporting a triggering event for the reporting year resulting in the full 965(i) deferral being triggered and assessed Use CC REQ77/FRM77 to input a TC 972 AC 165 to reverse the erroneous TC 971 AC 165. Note: Do not input an amount in the MISC field or a date in the SECONDARY-DT field when inputting the TC 972 AC 165.

# IRC 965(h) Elections

3.14.2.6.5.4 (01-01-2026) IRC 965(h) Elections An IRC 965(h) election is a deferral to pay the Section 965 transition tax in 8 annual installments. IRC 965(h) elections are applicable to Forms: 1120 (MFT 02), 1120-C (MFT 02), 1120-L (MFT 02), 1120-PC (MFT 02), 1120-RIC (MFT 02), 1120-REIT (MFT 02), 990-T (MFT 34) & 1041 (MFT 05). A 965(h) election could be made during the IRC 965 inclusion period (201712-201911), by including both the Section 965 income and Section 965 tax and deferring a portion of the Section 965 tax on the inclusion year return. Caution: A Section 965(h) election can be made any year if a taxpayer has an already established 965(i) election that was timely made during the inclusion period (201712-201911) and subsequently experiences a triggering event. The taxpayer may make an IRC 965(h) election, at the time of the triggering event (no matter the date), to pay the triggered S corporation-related net 965 tax liability in 8 installments, beginning in the year of the triggering event. A Transition Tax Statement & IRC 965(h) Election Statement should be attached to the TY 2017 income tax return for the purpose of reporting the 965 inclusion/election amounts. A Form 965 and a Form 965-A, Individual Report of Net 965 Tax Liability, (Form 1041 Only) orForm 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, should be attached to the inclusion year return, in lieu of a Transition Tax Statement, if the inclusion/election was made in TY 2018 or 2019. A Form 965-A, Individual Report of Net 965 Tax Liability, (Form 1041 Only) orForm 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is required to be attached to the income tax return, each year thereafter until the Section 965 liability is paid in full. Section 965(h) elections must be made by the due date of the inclusion year/triggering event year return (including extensions). Section 965(h) Annual installments are due on the due date of the return (not the extended due date). Failure to timely pay a required installment could result in the assessment of an addition to tax, which could accelerate the entire IRC 965 tax balance and cause it to become immediately due. For the convenience of the IRS, taxpayers are instructed to make two separate payments: one for the non-IRC 965 tax and another for the IRC 965 installment. Note: IRC 965 payments can be identified in IDRS by a TC 670 with a Designated Payment Code (DPC) of 64. For BMF returns with an IRC 965 inclusion, there will be a CCC J present on BRTVU Response Screen R1 and/or TRBDV Codes Response Screen. Computer Condition Codes may also be viewed on the TXMODA response screen in the Posted Return Information section. For BMF returns with an IRC 965(h) election, there will also be a CCC X that will set a -R freeze to prevent any excess remittance from refunding or offsetting, in the inclusion year only. Although the taxpayer deferred payment of the tax attributable to IRC 965, the deferred amount is still part of the assessed liability for the tax year and must be paid before a refund may be issued on the inclusion year module. The transaction codes used to administer Section 965(h) elections are listed below. These transaction codes work in tandem with one another to record the 965(h) liability remaining unpaid: The TC 971 AC 114 represents the Total IRC Section 965 tax amount (minus any amount deferred under 965(i)). This transaction should be present on the inclusion year module and the triggering event year module only. Caution: If the amount in the TC 971 AC 114 MISC field is incorrect, do not input a TC 972 AC 114 to reverse it. Simply input another TC 971 AC 114 for the correct amount. BMF programming will systemically mark the original posting with an R to indicate the reversal once the new TC 971 AC 114 is input. Only use TC 972 AC 114 to reverse a posted TC 971 AC 114, if there is a TC 971 AC 114 posted to a module when there should not be one at all. Reminder: A TC 971 AC 114 should not be input on a module where the Form 965-A, Individual Report of Net 965 Tax Liability, or Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, is simply reporting that the annual installment amount was paid. Note: The only time a TC 971 AC 114 should be posted to a BMF module later than 201911, is if the taxpayer had an already established 965(i) election that was made on Form 1041, during the inclusion period (201712-201911), and subsequently experiences a triggering event, in which case a TC 971 AC 114 with the amount of the triggered liability, should be input in the triggering event year module. A taxpayer may also make a Section 965(h) election to pay the triggered S corporation-related net 965 tax liability in 8 installments, in the year of the triggering event. The Table below reflects how a triggering event is reported on Form 1041, U.S. Income Tax Return for Estates and Trusts, and Form 965-A, Individual Report of Net 965 Tax Liability, for the reporting year. There should be no TC 971 AC 114 in put on an MFT 02 or MFT 34 (Corporation) module after 201911. A TC 971 AC 114 on an MFT 02 or MFT 34 module after 201911 is an indication of an erroneous TC 971 AC 114 transaction or a late IRC 965 inclusion/election. Form How a Triggering Event and/or a Triggering Event with a Section 965(h) Election is Reported 1041 Triggered Liability Paid in Full in the Year of the Triggering Event Reminder: A TC 971 AC 114 in the amount of the 965(i) triggered liability should be posted to the triggering event year module. If there is not a TC 971 AC 114 posted to the triggering event year module, input it. When a 965(i) deferred liability is triggered, it must be transferred from Form 965-A, Part IV, where it is annually reported, to Part I, on one of lines 5 through 8 as follows: In column (a), the tax year in which the triggering event occurred is reported. Columns (b) through (e) are skipped and the triggered liability is reported in column (f) as a positive number. "No" is then entered in column (g) to indicate a 965(h) election is not being made to pay the triggered liability in installments. The amount in Column (f) should be carried to Column (h) and the corresponding line in Part II, column (b), Paid for Year 1, should report the payment made to pay the 965 liability in full. In addition to reporting the triggered liability on the Form 965-A, the taxpayer should report the triggered net 965 tax liability on the Form 1041. 1041 Section 965(h) Election Made to Pay the Triggered Liability in 8 Annual Installments Reminder: A TC 971 AC 114 in the amount of the triggered liability should be posted to the triggering event year module. If there is not a TC 971 AC 114 posted to the triggering event year module, input it. Reminder: When a 965(h) election is made in the year of the triggering event, a TC 766 CRN 263 should be entered in the amount of 92% of the triggered liability along with the TC 971 AC 114 in the amount of the triggered liability. Additionally, there should be a TC 767 CRN 263 for each payment and/or credit applied towards the 965 tax liability. The triggered liability amount must be transferred from Form 965-A, Part IV, where it is annually reported, to Part I, on one of lines 5 through 8 as follows: In column (a), the tax year in which the triggering event occurred is reported. Columns (b) through (e) are skipped and the triggered liability is reported in column (f) as a positive number. "Yes" is then entered in column (g) to indicate a 965(h) election is being made to pay the triggered liability in installments. The amount in Column (f) should be carried to Column (i) and the corresponding line in Part II, column (b), Paid for Year 1, should report the 1st installment payment. The taxpayer may also file a Form 965-E, Consent Agreement Under Section 965(i)(4)(D), when making a 965(h) election in the year of the triggering event. In addition to reporting the triggered liability & subsequent 965(h) election on the Form 965-A, the taxpayer should report the triggered net 965 tax liability on the Form 1041, U.S. Income Tax Return for Estates and Trusts. Note: The total tax, ES Penalty and the 965 installment paid are netted against the total payments. If the Total Payments are lesser than this net amount, then the difference (which consists of 965 installment due plus any other unpaid tax/penalty will be reported as the balance due with the return thus deferring the remaining 92% of the 965 tax liability. The TC 766 CRN 263 is a faux credit that masks the IRC 965 liability on the inclusion year module or triggering event year module when a 965(h) election is made to pay the triggered liability in installments. It represents the unpaid IRC 965(h) liability (deferred amount) to be paid in installments. Note: TC 766 CRN 263 is input manually using CC REQ54/ADJ54 to input a TC 290 .00 CRN 263 if the transaction is supposed to carry the inclusion year/triggering event year return due date, otherwise a TC 298.00 CRN 263 should be input, with a specific interest computation date if the transaction should carry a date other than the inclusion year/triggering event year return due date. For TY 2018 and TY 2019 inclusion BMF programming systemically posted the TC 766 CRN 263 based on entries on the applicable BMF return, see the applicable inclusion year table in IRM 3.14.2.6.5, IRC 965 Transition Tax Overview, for more details . The TC 767 CRN 263 reverses the TC 766 CRN 263 by the amount of a payment(s) made against or credit(s) applied to the IRC 965(h) liability. Note: The TC 767 CRN 263 is input manually using CC REQ54/ADJ54 to input a TC 290 .00 CRN 263 with a minus sign behind the CRN 263 amount if the date of the transaction should be the inclusion year/triggering event year return due date, otherwise it must be input with a TC 298.00 CRN 263 with an interest computation of the received date of the installment payment or due date of the installment, whichever is earlier, unless, there is interest on the module in which case the due date of the installment should be used. Reminder: BMF programming will post a reversed TC 766 CRN 263 with an R behind it, to match the TC 767 CRN 263 and reduce the unreversed TC 766 CRN 263 on the module by the amount of the payment/credit that was applied to the deferral. The Designated Payment Code (DPC) 64 represents an IRC 965 designated payment. IRC 965 designated payments should post to the inclusion year module/triggering event year module as a TC 670 DPC 64. Note: Beginning 2019, BMF programming systemically generates a TC 767 CRN 263 when a TC 670 DPC 64 posts to the inclusion year module or triggering event year module if a 965(h) election was made to pay the triggered liability in installments. For more information on IRC 965 Designated Payments, see IRM 3.14.2.6.5.1, Identifying IRC 965 Elections and Payments. If a DPC 64 payment posts to a current year return and there is no TC 971 AC 114 review all possible inclusion year modules (201711-201911) using BMFOLM to identify where the payment belongs. IRC Section 965(h) installments should be made in adherence to the IRC 965(h) Payment Schedule. The IRC 965(h) payment schedule is reflected in the table below. The Maximum Unpaid Percentage per Year column represents the max deferral allowed under the law for the given year, meaning no more than the amount listed in the Maximum Unpaid Percentage per Year column can be left unpaid by the due date of the return for the applicable year. Note: If the due date below falls on a Saturday, Sunday or legal holiday, the due date will be the next business day. Caution: The below table is for "original" IRC 965(h) elections only (201711-201911). If a taxpayer IRC 965(i) election has triggered and they elect to transfer that triggered election to IRC 965(h) and the dates will be based on 8 years of installments beginning with the 965(h) inclusion year. Year Annual Payment Schedule Maximum Unpaid Percent Per Year Due Date if 965(h) Election was Made in TY 2017 Due Date if 965(h) Election was Made in TY 2018 Due Date if 965(h) Election was Made in TY 2019 1 8% 92% 4/15/2018 4/15/2019 7/15/2020 2 8% 84% 4/15/2019 7/15/2020 4/15/2021 3 8% 76% 7/15/2020 4/15/2021 4/15/2022 4 8% 68% 4/15/2021 4/15/2022 4/15/2023 5 8% 60% 4/15/2022 4/15/2023 4/15/2024 6 15% 45% 4/15/2023 4/15/2024 4/15/2025 7 20% 25% 4/15/2024 4/15/2025 4/15/2026 8 25% 0% 4/15/2025 4/15/2026 4/15/2027 Example: In a perfect scenario, the unreversed TC 766 CRN 263 amount should be 92% of the IRC 965 total tax amount (the TC 971, AC 114 amount) for the first year, 84% for the 2nd year and so on as payments are applied. To determine the payment schedule for a specific account, follow the steps below: To determine the installment due for a given year, multiply the IRC 965 Total Tax amount by the percentage due for the year. Example: To determine the 1st through 5th installment amounts, multiply the IRC 965 Total Tax amount by .08 because 8% is due in years 1-5. In year 6, multiply the IRC 965 Total Tax amount by .15, in year 7 multiply it by .20 and in year 8 multiply it by .25. To determine the Maximum Deferral Amount, multiply the IRC 965 Total Tax amount by the Max Unpaid percentage due per year. Example: To identify the Maximum Deferral Amount in year 1, multiply the IRC 965 Total Tax amount by .92, in year 2 multiply it by .84, in year 3 multiply it by .76, in year 4 multiply it by .68, in year 5 multiply it by .60, in year 6 multiply it by .45, in year 7 multiply it by .25. The remaining 25% is due in year 8 so that maximum deferral in year 8 is zero. Taxpayers were instructed to make a separate designated payment for their IRC Section 965 liability and/or 965(h) installment payment. CP 256 was created for this purpose. The CP 256 is a 965(h) installment reminder notice that is sent 8-10 weeks prior to the due date of the return to remind taxpayers of their 965 payment obligation. There is a payment voucher that can be utilized to send in the 965(h) installment payment. Taxpayers may also pay their 965(h) installments electronically. These 965 designated payments should be applied to the inclusion year module and/or the triggering event year module where the Section 965 liability was assessed and remains due and should post as a TC 670 DPC 64. Once posted, BMF programming systemically generates a TC 767 CRN 263 in the amount of the payment.

# IRC 965(h) Adjustment Procedures

3.14.2.6.5.4.1 (01-01-2026) IRC 965(h) Adjustment Procedures Please see a lead if an IRC 965(h) election case needs an adjustment. The lead should review the case and determine if an adjustment is needed. The lead or a manager will route the case to HQ for further review and possible routing to an outside IRC 965 team such as SB/SE or AM. IRC 965 cases should only be adjusted by leads after receiving HQ approval. Exception: REQ77 and credit transfer actions should be taken without HQ approval. The above only applies to REQ54/ADJ54 adjustments. The TC 971 AC 114 amount represents the total IRC Section 965 tax minus any amount deferred under 965(i). For TY 2017, the TC 971 AC 115 represented the IRC 965(h) deferred tax amount as reported by the taxpayer and was used to generate the TC 766 CRN 263 faux credit. For TY 2018 and TY 2019, BMF programming systemically posted a TC 766 CRN 263 from amounts reported on applicable BMF returns, see the tables located in IRM 3.14.2.6.5, IRC 965 Transition Tax Overview, for additional information on how the TC 766 CRN 263 was systemically posted on TY 2018 and TY 2019 modules. IRC 965 designated payments are identified with a Designated Payment Code (DPC) of 64. They should post to the inclusion year module as a TC 670 DPC 64. Once posted, BMF programming systemically generate a TC 767 CRN 263 in the amount of the payment. If, when reviewing an inclusion year module or triggering event year module where a Section 965(h) election was made to pay the triggered liability in installments, it appears that the taxpayer failed to pay an installment that was due, research the inclusion year/triggering event year module and each subsequent year module to see if the installment payment was misapplied and/or mis-coded and therefore not applied to the deferral. Refer to the table below when researching and transferring IRC 965 designated payments and/or applying payment to the Section 965 deferral: If And Then The IRC 965 designated payment (TC 670 DPC 64) posted to a non-inclusion year module or non-triggering event year module Example: A TC 670 DPC 64 posted to a module without a TC 971 AC 114 and/or TC 76X CRN 263 Research indicates there was a Section 965 inclusion/election on a preceding tax period and the liability has not been full paid Transfer the credit to the inclusion year or triggering event year module using CC ADD24. Caution: The DPC 64 must be input on both the credit and debit side of the transfer or it will unpost. The IRC 965 payment posted to the inclusion year module without a DPC 64 and has not been manually applied towards the 965 liability (i.e., no TC 767 CRN 263 was input that included the payment amount) Input an in-module credit transfer to add the DPC 64 to the payment so it posts as a TC 670 DPC 64 on the module. Once posted, BMF programming will systemically post a TC 767 CRN 263 in the amount of the payment. Caution: Do not perform an in-module credit transfer if the mis-coded DPC 64 payment has already been manually applied towards the 965 liability, as doing so will double credit the module in the amount of the payment. The IRC 965 payment posted to a non-inclusion year module without a DPC 64, and the credit is still available (i.e., the payment hasn't refunded or credit elected in error) Research indicates there was a Section 965 inclusion/election on a preceding tax period and the liability has not been fully paid Transfer the 965 payment to the inclusion year module or triggering event year module and post as a TC 670 DPC 64. Once posted, BMF programming will systemically post a TC 767 CRN 263 in the amount of the payment. When reviewing an account with an IRC Section 965(h) election, review the TC 971 AC 114 and TC 76X CRN 263 amounts to ensure they were entered correctly. If the TC 971 AC 114 is incorrect, use CC REQ77/FRM77 to input the necessary information as follows in the table below: FRM77 Field Name Input TC> 971 TRANS-DT> Current Date MMDDYYYY SECONDARY-DT> Tax Period Ending Date MMDDYYYY Example: If the TC 971 AC 114 is being input the 201812 module, it should be input as 12312018. TC971/151-CD> 114 MISC> Input the 965 Total Tax Liability amount minus any amount deferred under 965(i) (dollars only, no cents, no special characters) Note: For the inclusion year module this amount will be reflected on the Transition Tax Statement for TY 2017, the line 5 minus line 7 amount or on the Form 965-A, Part I, Column (f). REMARKS NSD, 965 Tax Refer to the table below when researching and making an adjustment to the TC 971 AC 114 amount: If And Then The TC 971 AC 114 amount posted to the module is greater than the TC 150 amount Research indicates that is how it was reported on the inclusion year return and/or triggering event year return Refer the case to your lead to be referred to HQ. The TC 971 AC 114 on the inclusion year module or triggering event year module was input for an amount that differs from the amount listed on the inclusion year return/attachments and/or the triggering event year return/attachments Research indicates there was no amended return filed Use CC REQ77 to input the TC 971, AC 114 amount reflected on the return/attachments. Note: Input the total IRC 965 tax liability minus any amount deferred under 965(i) in the Miscellaneous Field. The amount should be input as dollars only (no cents), with no special characters. For example, an amount of $12,500.00 should be entered as 12500 in the Misc. Field. Enter the tax period ending date (MMDDYYYY) in the SECONDARY-DT Field. Caution: Do not input a TC 972 reversal when adjusting the TC 971, AC 114 amount. BMF programming will systemically mark the original posting with an R to indicate the reversal once the new TC 971, AC 114 is input. Note: If an amended return was filed amending a timely 965 liability, the TC 971 AC 114 should reflect the 965 total tax amount reported with the amended return minus any amount deferred under 965(i). No TC 971 AC 114 was posted to the inclusion year module The inclusion year return/attachments or amended return indicate both a timely IRC 965 inclusion and an IRC 965(h) election were made Use CC REQ77 to input the TC 971, AC 114 to reflect the IRC 965 total tax amount minus any amount deferred under 965(i). Note: Input the total IRC 965 tax liability amount in the Miscellaneous Field. The amount should be input as dollars only (no cents), with no special characters. Reminder: A TC 766 CRN 263 should also be input in the year of the triggering event for 92% of the triggered liability amount when a 965(h) election is made. TC 767 CRN 263 adjustments should be input accordingly as payments/credits are applied to the 965 deferral. No TC 971 AC 114 was posted to the triggering event year module (MFT 05 ONLY) The reporting year Form 965-A reflects a triggered liability amount and the IRC 965 triggered liability being paid in full in the year of the triggering event Use CC REQ77 to input the TC 971 AC 114 to reflect the triggered liability amount. Reminder: The triggered liability amount is reported on Form 965-A, Part IV, Column (f) as a negative number and transferred to Part I, Column (f) as a positive number on one of lines 5-8. Note: Input the IRC 965 triggered liability amount in the Miscellaneous Field as a positive number. The amount should be input as dollars only (no cents), with no special characters. No TC 971 AC 114 was posted to the triggering event year module (MFT 05 ONLY) The reporting year Form 965-A reflects a triggered liability amount WITH an IRC 965(h) election being made to pay the triggered liability in 8 annual installments Use CC REQ77 to input the TC 971 AC 114 to reflect the triggered liability amount. Reminder: The triggered liability amount is reported on Form 965-A, Part IV, Column (f) as a negative number and transferred to Part I, Column (f) as a positive number on one of lines 5-8. Additionally, in Part I, Column (a), the tax year in which the triggering event occurred is reported. Columns (b) through (e) are skipped and "Yes" is entered in column (g) to indicate a 965(h) election is being made to pay the triggered liability in installments. Note: Input the IRC 965 triggered liability amount in the Miscellaneous Field as a positive number. The amount should be input as dollars only (no cents), with no special characters. Reminder: A TC 766 CRN 263 should also be input in the year of the triggering event for 92% of the triggered liability amount when a 965(h) election is made. TC 767 CRN 263 adjustments should be input accordingly as payments/credits are applied to the 965 deferral. A TC 971 AC 114 was input on a non-inclusion year or non-triggering event year module in error Research confirms there was no IRC 965 inclusion and/or no IRC 965 election made by the taxpayer for the tax period in question Use REQ77 to reverse the TC 971 AC 114 using TC 972, AC 114. Note: When inputting a TC 972 AC 114, do not input an amount in the Miscellaneous field. Caution: A TC 971 AC 114 should be input on an inclusion year module and a triggering event year module only. The IRC 965 inclusion period was 201712-201911, no new inclusions can be made after 201911, however, if the taxpayer (MFT 05 ONLY) made a 965(i) election during the inclusion period and subsequently experiences a triggering event, the taxpayer may make a 965(h) election to pay the triggered liability in installments in the year of the triggering event. Moreover, taxpayers are required to file Form 965-A, Individual Report of Net 965 Tax Liability, , (MFT 05 ONLY) or Form 965-B, Corporate and Real Estate Investment Trust (REIT) Report of Net 965 Tax Liability and Electing REIT Report of 965 Amounts, annually until the IRC 965 liability is paid in full. Do not mistake the reporting of an annual 965(h) installment payment or the annual reporting of a 965(i) deferred liability as a new IRC 965 inclusion or election. See IRM 3.14.2.6.5.3, IRC 965(i) Elections and IRM 3.14.2.6.5.4, IRC 965(h) Elections for an explanation of how annual 965(h) installment payments and triggered liabilities are reported. Refer to the table below when the inclusion year and/or triggering event year module is in a debit balance. If And Then The 965(h) inclusion year module and/or the triggering event year module is in a debit balance All TC 76X CRN 263 transactions on the module accurately reflect the payments posted to the module Research the module and each following module looking for misapplied and/or mis-coded IRC 965 Designated Payments. If any available IRC 965 payments are identified, move them to the inclusion year/triggering event year module and post them as a TC 670 DPC 64. Once posted, BMF programming will systemically post a TC 767 CRN 263 in the amount of the payment. If after the payment(s) are moved to the inclusion year/triggering event year module, the module balance is zero, no further action is needed. If after the payment(s) are posted to the inclusion year/triggering event year module, the module remains in a debit balance, refer the account for possible acceleration. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ If after the payment(s) are posted to the inclusion year/triggering event year module, the module is in a credit balance and the Section 965 liability has not been paid in full, input a TC 298.00 CRN 263 for the amount of the credit using the current date as the interest computation date to apply the credit to the next installment due. Caution: When attempting to post a TC 767 CRN 263, input the CRN amount with a minus sign. If after the payment(s) are posted to the inclusion year/triggering event year module, the module is in a credit balance and the Section 965 liability has been paid in full, the credit can refund or offset as normal The 965(h) inclusion year module and/or the triggering event year module is in a debit balance No misapplied/ miscoded IRC 965 payments are located and there is no indication on the module that the Section 965 liability has been accelerated Refer the account for possible acceleration. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The 965(h) inclusion year module and/or the triggering event year module is in a debit balance There is an open control base and one of the following history items on TXMOD: L6154, 965/L6154, 6154SNT Contact the employee with the open control, before taking any action on the account. The 965(h) inclusion year module and/or the triggering event year module is in a debit balance There is a history item on TXMODA of 965ACCEL The liability has been accelerated, and payment of the entire Section 965 liability is due in full. Do not input a TC 766 CRN 263 to re-establish the deferral. If it appears an adjustment to a TC 76X CRN 263 is required, a lead or manager should review the case and route to HQ for review and possible routing to an IRC 965 team. The below table information is for leads only if an adjustment is approved by HQ. Field Adjustment More Information EIN MFT TX-PRD NM-CTRL N/A These fields will auto-populate. SEQ-NUM> Input sequence number of the adjustment Number adjustments in sequential order BLK> Input 15 unless MFT 05 then input 17 Input 17 for MFT 05, Input 15 for all other applicable MFTs INTCMP-DT> Input the interest computation date for the adjustment as applicable This field is used when inputting a TC 298.00 CRN 263 adjustment. The TC 298.00 CRN 263 adjustment should carry an interest computation date of the installment due date OR the date of the payment (whichever is earlier) unless there is interest on the module, in which case, the installment due date should be used. Note: No INTCMP-DT> is needed when inputting a TC 290 .00 CRN 263 because the date defaults to the return due date for the module the adjustment is being input on when inputting a TC 290 .00. CASE-STS-CD> Input the following as appropriate: A - Assigned B - Background C - Close When inputting TC 76X CRN 263 adjustments, input in A status and leave in A status until all adjustments have posted. IRS-RCVD-DT> * Will generate the current date. CTRL-CAT> Notice Review input OURV, RFDL, or in rare instances IRRQ. Input OURV to indicate the case was reviewed/adjusted by Notice Review Note: If adjustment is part of a recovery project use category code IRRQ. Note: If CC NOREF was input use RFDL TC> Input 290 .00 if the 766/767 transaction should carry the return due date of the module being adjusted Input 298 .00 if the transaction should carry a date other than the return due date of the module being adjusted. When inputting a TC 766 CRN 263 or TC 767 CRN 263 adjustment to correct an erroneous TC 76X CRN 263 posted to the module, use TC 290 .00 and TC 298 .00 as appropriate to ensure the transaction you are inputting carries the date of the transaction you are correcting. Caution: TC 290 .00 defaults to the return due date of the module being adjusted, so if the transaction needs to carry a date other than the return due date use TC 298.00. When applying an overpayment to a future installment, use TC 298.00 for the current date. Example: If all installments have been timely paid and all TC 76X CRN 263 transactions and the TC 971 AC 114 are correct and there is a credit balance on the module and the 965 liability has not been fully paid, input a TC 298.00 CRN 263 using the current date to generate a TC 767 CRN 263 to apply the overpayment to the 965 liability. AMT> Enter .00 Enter .00 when inputting a TC 290/298 to adjust the TC 76X CRN 263 transactions. RSN-CDS> Input 192 Reason Code 192 is required when inputting/adjusting TC 76X CRC 263 adjustments. HOLD-CD> Follow the guidance in IRM 3.14.2.7.6.3, Hold Codes, to input the appropriate hold code. When inputting adjustments to correct the TC 76X CRN 263 amount(s) and there will be an outstanding 965 deferral remaining on the module, use of HC 4 is appropriate in most cases, however, if there is also a balance due of non-965 tax on the module, the notice should go out. When inputting adjustments to correct the TC 76X CRN 263 amount(s) and the adjustments result in the 965 tax liability being full paid with an overpayment on the module, the notice should go out. PSTING-DLAY-CD> Input the number of cycles as appropriate. The accepted values are 1-6. No posting delay code is required when inputting multiple TC 76X CRN 263 adjustments, however, if you are inputting other adjustments in addition to the TC 76X CRN 263 adjustment(s), then a posting delay code is needed. Example: If an adjustment to tax is needed, in addition to the TC 76X CRN 263 adjustments, input adjustment to tax prior to the TC 76X CRN 263 adjustments and the use a posting delay code of 1 when inputting the TC 76X CRN 263 adjustments. CD> Input 263 Ensure 263 is input when adjusting TC 76X CRN 263 amounts. AMT> Input the amount of the payment/credit being applied to and/or the amount of the adjustment being made to the 965 deferral Caution: When attempting to post a TC 767 CRN 263 to reduce the deferral, there MUST be a minus sign after the amount, otherwise the adjustment will post as a TC 766 CRN 263 increase to the deferral amount. SOURCE-DOC-ATTACHED> Enter Y if yes. Enter N if no. If you do not have the original or amended return/correspondence in hand, input N. The TC 766 CRN 263 amount should never be greater than the TC 971, AC 114 amount. The below table information is for leads only if an adjustment is approved by HQ. If Then The TC 766 CRN 263 amount exceeds the TC 971, AC 114 amount Review the Transition Tax Statement or Form 965-A or Form 965-B for the correct section 965 total tax and deferred tax amounts The TC 971, AC 114 amount was entered incorrectly Use CC REQ77 to input a new TC 971, AC 114 with the correct amount entered in the Miscellaneous Field. Note: This is a dollar only input. Do not include cents or special characters in the amount. The TC 766 CRN 263 amount was entered incorrectly Use CC REQ54 to input a TC 290 .00 CRN 263 or TC 298.00 CRN 263 to correct the deferred tax amount. Refer to the table below when researching and inputting adjustments to the TC 971 AC 114 and TC 766 CRN 263 amounts on Section 965(h) accounts. The below table information is for leads only if an adjustment is approved by HQ. If And Then The TC 971 AC 114 & TC 766 CRN 263 amounts are the same The transition tax statement/return/Form 965-A or Form 965-B reflect that the deferred tax amount should be an amount less than the amount posted Use CC REQ54 to input a TC 290 .00 CRN 263 to reduce the deferred tax amount Note: To figure the amount, subtract the correct deferred tax amount per the return from the posted TC 766 CRN 263 amount reflected on the module and input a TC 290 .00 CRN 263 for the difference. Once this adjustment is made a TC 767 will post to the account. Caution: If decreasing a posted TC 766 CRN 263, input the CRN amount with a minus sign. For example, a CRN 263 for $2,500.00- will generate a TC 767 CRN 263 for $2,500.00 A TC 971 AC 114 has posted, but no TC 766 CRN 263 posted The inclusion year return indicates an IRC 965(h) deferred tax amount and/or the Form 965-A reflects the triggered liability amount and an IRC 965(h) election being made in the year of the triggering event Ensure the TC 971 AC 114 amount was entered correctly and use CC REQ54 to input a TC 290 .00 CRN 263 to establish the 965 deferral on the module. Reminder: No minus sign is needed when inputting the CRN amount when establishing or increasing the posted TC 766 CRN 263 amount. Caution: If inputting a TC 29X CRN 263 adjustment and inputting a TC 971, AC 114, a Posting Delay Code (PDC) 1 is required on the TC 29X adjustment. Both the TC 971 AC 114 and TC 766 CRN 263 were input in error There is no indication on the return and/or return attachments of an IRC 965 inclusion and/or 965(h) election being made by the taxpayer Reverse the erroneous TC 766 CRN 263 using CC ADJ54 to input a TC 290 .00 CRN 263 with a minus sign to reverse the deferred tax amount in its entirety, then input the TC 972, AC 114 reversal using a Post Delay Code 1. Research indicates that a single payment was credited to the module more than once Example: A payment posted to the module without a DPC 64 but was included in a manual TC 767 CRN 263 transaction AND an in-module credit transfer is input to add the DPC 64 causing the systemic TC 767 CRN 263 to generate with the amount of the payment, thereby double crediting the module. Use CC REQ54 to input a TC 290 .00/ TC 298 .00 CRN 263 as appropriate, to generate a TC 766 CRN 263 to reverse one of the duplicate TC 767 CRN 263 postings. Reminder: No minus sign is needed when inputting the CRN amount to increase the posted TC 766 CRN 263 amount. Erroneous TC 76X CRN 263 postings resulting from the use of TC 290 .00 CRN 263 instead of the TC 298.00 CRN 263 to apply installment payments to the deferral are very common on inclusion year modules. Refer to the table below when correcting TC 76X CRN adjustments that were input in error. The below information is for leads only if an adjustment is approved by HQ. If Then A manual TC 767 CRN 263 was input using a TC 290 .00 to apply an installment payment that was received and due after the due date of the inclusion year/triggering event year return Input a TC 290 .00 CRN 263 to generate a 766 CRN 263 in the amount of the credit that was reversed in error to add the credit back in. Input a TC 298.00 CRN 263 with a minus sign in the amount of the payment using the date of the payment or the installment due date whichever is earlier unless there is interest on the module in which case the installment due date should be used as the interest computation date.

# IRC 965 CP Notices

3.14.2.6.5.5 (01-01-2026) IRC 965 CP Notices The following notices were created for BMF IRC 965 processing: CP 247A: Tax Assessed :Notification of the Requested Credit Elect/Refund Being Applied to Section 965 Tax Liability CP 247B: Tax Assessed - Notification of Credit Elect/Refund Being Applied to Section 965 Tax Liability CP 247C: Tax Assessed - Including Section 965 Tax Liability CP 256: Annual Section 965(h) Installment Notice CP notices 247A/B/C are notice and demand correspondence issued to notify the taxpayer of their IRC 965(h) tax liability. When reviewing CP notices 247A/B/C research the account to ensure the TC 971 AC 114 amount and TC 766 CRN 263 were input correctly. If correct, and the amount on the notice accurately reflects the information on the return and on the module, print the notice. If the TC 971 AC 114 and/or the TC 766 CRN 263 were input incorrectly, follow IRM 3.14.2.6.5.4.1, IRC 965(h) Adjustment Procedures. If there is a remaining IRC 965 tax liability, print the notice. If there was no IRC 965 inclusion and/or IRC 965(h) election made and the TC 971 AC 114 and/or the TC 766 CRN 263 were input in error, take to a lead to input the appropriate reversals in accordance with IRM 3.14.2.6.5.4.1, IRC 965(h) Adjustment Procedures, and void the notice. When reviewing CP 256, research the account to ensure the TC 971 AC 114 amount and TC 76X CRN 263 transactions were input correctly. Use the table below to verify CP 256 account actions. Research to ensure the following: Ensure the non-965 tax and the 1st installment payment were paid by the due date of the 1st installment. Ensure all subsequent installment payments were made by the due date of the installment and full paid the installment due. Note: The posted TC 767 CRN 263 should carry the due date of the installment or the payment date, whichever, is sooner except when there is interest on the module in which case the posted TC 767 CRN 263 should carry the due date of the installment. When applying an overpayment to a future installment the current date should be utilized when inputting the TC 290 .00/298 .00 CRN 263 to generate the TC 767 CRN 263. If the date of a posted TC 767 CRN 263 is incorrect, input an adjustment to correct it (i.e., reverse the erroneous TC 767 CRN 263 by inputting a TC 290 .00/298 .00 CRN 263 adjustment to post a TC 766 CRN 263 using the same date and amount as the erroneous TC 767 CRN 263 and then input the TC 290 .00/298 .00 CRN 263 to post the TC 767 CRN 263 with the correct date). Reminder: The IRC 965 Tool can be used to help determine the needed adjustments to the IRC 965(h) deferral. Ensure the TC 76X CRN 263 transactions posted to the module accurately reflect the payments made or credits applied to the IRC 965 deferral. Note: The net unreversed TC 766 CRN 263 transactions should reflect the IRC 965 Total Tax minus payments made or credit applied towards the IRC 965 deferral on BMF accounts. If correct and the amounts on the notice accurately reflect the IRC 965(h) deferral amount and payments and credits applied to the deferral on the module, print the notice. If the TC 971 AC 114 and/or the TC 76X CRN 263 transactions were input incorrectly, see IRM 3.14.2.6.5.4.1, IRC 965(h) Adjustment Procedures. If there is a remaining IRC 965 tax liability after the adjustments are made, and the installment is still owed retype the notice to include the correct Total Unpaid IRC Section 965 Amount and/or Installment Amount Due. Note: The Total Unpaid IRC Section 965 Amount is the net of all the unreversed TC 766 CRN 263 transactions on the module on BMF accounts. Caution: Be aware of pending transactions that could impact the accuracy of this amount on the notice and update the notice accordingly. If the pending transaction(s) will reduce the Total IRC 965 deferred tax to zero, void the notice. Note: The Installment Amount Due will be equal to the applicable percentage (8% in years 1-5, 15% in year 6, 20% in year 7 and 25% in year 8) of the most recently posted TC 971 AC 114 amount unless a prior payment paid a portion of the installment amount that is due for the reporting year, in which case the Installment Amount Due will be less than the applicable percentage (8% in years 1-5, 15% in year 6, 20% in year 7 and 25% in year 8) of the most recently posted TC 971 AC 114. If a previous payment paid all the installment due for the reporting year, then the Installment Amount Due on the notice should be zero. If there is a remaining IRC 965 tax liability, research to ensure all designated IRC 965 payments were properly applied to the appropriate module and accounted for. If an IRC 965 designated payment was misapplied, transfer the credit to the appropriate module and retype the notice to include the correct Total Unpaid IRC Section 965 Amount and/or Installment Amount Due. If there was no IRC 965 inclusion and/or IRC 965(h) election made and the TC 971 AC 114 and/or the TC 766 CRN 263 were input in error, take to a lead to input the appropriate reversals in accordance with IRM 3.14.2.6.5.4.1, IRC 965(h) Adjustment Procedures, and void the notice. If the TC 971 AC 114 amount is less than the TC 766 CRN 263, void the notice. If the TC 971 AC 114 and TC 766 CRN 263 amounts are correct and the notice module has a credit balance, void the notice. If the 965 liability has been accelerated due to failure to timely pay installments, void the notice. See table below for more details. If Then There is a history item on TXMODA of 965ACCEL and/or the net 76X CRN 263 transactions on the module equal zero Void the notice. There is an open control base and one of the following history items is on TXMOD: L6154, 965/L6154, 6154SNT Ensure the 965 amounts on the module are accurate and match the notice. If so, print the notice. If an adjustment is needed to the module, contact the employee with the open control prior to making any adjustment and retype the notice accordingly. If there is an indication of a transfer agreement on the module and you are unable to determine the accuracy of the notice, refer the case to the lead who will contact SB/SE Brookhaven for assistance. See the table below for information on how to identify transfer agreements on IRC 965 modules. Transaction Code Meaning TC 971 AC 507 An unreversed TC 971 AC 507 indicates an approved IRC 965 Transfer Agreement. This transaction creates an MFT 83 Transferee module which mirrors the Transferor's module. Once established any payment made towards the transferred 965 liability will be recorded on both modules until it is paid in full. TC 971 AC 507 links the transferor and transferee accounts. TC 76X CRN 337 RC 160 Indicates a payment made to a mirrored account. This transaction code is used to cross reference (mirror) payments made towards 965(h) installments to the joint and severally liable, transferee and transferor accounts. MFT 83 Indicates an IRC 965 liability was transferred. MFT 83 is the transferee's module and IRC 965 payments/credits on this account should mirror the IRC 965 payments/credits on the transferor's 965 inclusion year module until the 965 tax liability is paid in full.

# IRC 965(h) Liability Schedule CFOL Screen (Command Code BMFOLM)

3.14.2.6.5.6 (01-01-2026) IRC 965(h) Liability Schedule CFOL Screen (Command Code BMFOLM) Command Code BMFOL with Definer M was created to assist in identifying the IRC 965(h) deferral payments on the account. The amount listed under the title, Tax Liabilities and Installments reflects the latest TC 971, AC 114 (Total Net Tax Liability under Section 965) reported by the taxpayer. The amount listed under the title, Deferred Amount, reflects the latest TC 766 CRN 263 remaining deferred amount. The remainder of the screen display reflects the yearly percentage of the 8 installments based on the latest TC 971, AC 114 and the remaining installment amounts due based on the latest TC 766 CRN 263, along with the yearly due dates of the installments. This display screen will assist in determining the amount of the IRC 965 deferral amount paid as well as the remaining deferral amount still owed. It will allow you to determine if an installment amount was paid, overpaid with the overpayment being credited to the next installment or if the installment was underpaid. The BMFOLM display screen will recalculate with the input of a new TC 971, AC 114 and/or a new TC 766/767 CRN 263 amount. Note: See IRM 2.3.59-130, Command Code BMFOL IRC 965 Liability Schedule Screen, for a detailed display. If a DPC 64 payment posts to a current year return and there is no TC 971 AC 114 review all possible inclusion year modules (201711-201911) using BMFOLM to identify where the payment belongs.

# Reviewing Notices with Freeze Codes

3.14.2.6.6 (01-01-2023) Reviewing Notices with Freeze Codes Consider all existing freeze codes before taking any action on a tax module. Refer to Document 6209 Section 8A for a complete listing of Master File Freeze Codes with explanations of the codes, conditions on the account, and freeze release instructions. Consult your work lead for instructions for resolving cases with freeze codes not mentioned in the following sections.

# Duplicate Return Freeze (-A)

3.14.2.6.6.1 (01-01-2023) Duplicate Return Freeze (-A) The -A Freeze is set when a duplicate or amended return (TC 976 or TC 971 (AC 010)) posts to a tax module that contains a posted original return. The freeze generates a CP 193 transcript that is routed to Accounts Management (Adjustments) for resolution. If the notice is selected for review, follow the procedures in the -A Freeze Decision Table below. If Then The Category Code is DUPF or 941X Do not transfer credit into or out of the notice module. Do not assess the TC 160 penalty. Print the notice. The return posted to an incorrect tax period and must be reprocessed, and Either the receiving or losing module contains an -A Freeze Void the notice. If box 1 above applies, and The notice module contains excess credit, and The TC 976 tax liability on CC BMFOL or CC BRTVU matches the excess credit amount Void the notice. The notice module has an -A freeze with no current open control and there is a pending payment (TC 6XX) Label the notice as appropriate. The notice module is in balance due status with no current open control and a payment is located. Transfer payment into notice module and determine the correct notice disposition. If payment found on Losing module contains -A Freeze and no open control base. Transfer payment into notice module and determine the correct notice disposition. See IRM 3.14.2.7.10 Notice Disposition. The notice module has an -A freeze with no current open control. Print the notice. Do not assess TC 160. Controlled to a tax examiner outside Accounts Management Contact the tax examiner for case resolution (notice disposition, etc.) for all other instances see IRM 3.14.2.7.3. There is a pending adjustment with no Hold Code or Hold Code 1 on the notice module. Label the notice. CP 267 Refer to IRM 3.14.2.6.8, Controlling Cases.

# STEX Freeze (-B)

3.14.2.6.6.2 (01-01-2026) STEX Freeze (-B) This freeze prevents credits from refunding or offsetting (including Credit Elect) from the module. It is set when the Statute of Limitations for refunds expires. You must contact the Statute Unit for all notices with a tax increase selected with a -B Freeze to determine notice disposition. Use chart below for disposition. Follow any special instructions given by the Statute Unit when making an adjustment to the tax module. If increasing the tax, input a HC 4 to hold any remaining credit. If transferring credit with a TC 820, input a secondary TC 570 on the debit side of the transfer to create a -R Freeze and hold any remaining credit on the module. Any of the following actions will release the freeze: TC 820 The module balance becomes zero or debit, or less than $5.00 credit. Follow procedures in -B Freeze Decision Chart below. If Then Notice with refund selected with -B Freeze Void the notice. Notice with tax increase selected with -B Freeze Contact the local Statute Unit. See the Campus directory for Statute contact information. Your contact should state that if you do not receive any instructions from the Statute Unit before cycle closeout, the notice will be voided.

# Offset Overflow Freeze (C-)

3.14.2.6.6.3 (01-01-2016) Offset Overflow Freeze (C-) This freeze delays a TC 846 for one or two cycles. Master File generates this freeze when an offset overflow (computer capacity exceeded) exists. Follow normal review procedures. If the delayed refund needs to be reduced: Hold the notice. Monitor the case for posting of the TC 846. Delete the refund.

# Refund Statute Expiration Date (RSED) Freeze (-D)

3.14.2.6.6.4 (01-01-2025) Refund Statute Expiration Date (RSED) Freeze (-D) This freeze prevents credits from refunding or offsetting (including Credit Elect) from the module. The -D Refund Statute Expiration Date (RSED) Freeze is set when: An RSED is present A BMF adjustment (TC 29X/TC 30X) posts to the account The IRS received date of a taxpayer's return is more than three years after the due date or extended due date, whichever is later, and the module has a previously posted Substitute for Return (SFR) All or part of the credit must be made up of prepaid credits (prepaid credits are credits posted by the due date of the return). The credit is frozen and an RSED-STAT transcript is generated and distributed to the Statute Function for resolution 4 cycles after the -D Freeze is set. If the conditions above are met, void the notice. Caution: The following conditions will release the -D Freeze: A TC 29X with a Priority Code 4 posts to the module The module balance becomes zero or debit

# Amended Return Freeze (E-)

3.14.2.6.6.5 (01-01-2016) Amended Return Freeze (E-) This freeze prevents overpayments from refunding or offsetting into or out of the frozen module. The following conditions will set this freeze: No original return (TC 150) has posted, but a duplicate (TC 976) return posts to a tax module TC 971 Action Codes 010, 012, 013, 014, or 015 is input Any of the following actions will release the freeze: TC 150 TC 971 with Action Code (AC) 002 Note: If the case is controlled to a Tax Examiner (TE), contact the TE for case resolution.

# Rollback Freeze (-E)

3.14.2.6.6.6 (01-01-2016) Rollback Freeze (-E) This freeze prevents credits from offsetting into a debit module the computer has performed a rollback analysis on or to a debit module that has no modules in status 22, 23, 24, or 26 for the previous 12 months. Any of the following actions will release the freeze: Computer released after 10 cycles The credit discrepancy is resolved The module balance becomes zero or credit The module reaches status 22, 23, 24, or 26 Caution: Overpayments must be transferred into modules with -E Freezes only if the credit is claimed on the module, intended to be applied, or the taxpayer requested the credit transfer.

# Math Error Freeze (-G)

3.14.2.6.6.7 (11-05-2019) Math Error Freeze (-G) This freeze grants Appeal Rights to the taxpayer and prevents the tax module from updating to TDA status. One of the following conditions usually sets this freeze: An original return with a Math Error Notice Code (TPNC) posts to the module An adjustment in Blocking Series 770-789 posts to the module The freeze will automatically release in twelve weeks. Any of the following actions will release it earlier: TC 472 with Closing Code 94 TC 290 with Priority Code 6

# Restricted Failure to Pay Penalty Freeze (G-)

3.14.2.6.6.8 (01-01-2016) Restricted Failure to Pay Penalty Freeze (G-) This restricts the Failure to Pay penalty. Any of the following conditions will set the freeze: TC 270/271 (except with Reason Code 62) TC 320 (Return due date is before 1-1-87) TC 534 (for significant amount) TC 780 with a TC 480 Any of the following actions will release the freeze: TC 272 (zero amount) TC 321 TC 535 (if the TC 534 amount is completely reversed) TC 781 or TC 782 Manually compute the penalty and retype the notice if necessary. Note: Any transaction with Doc Code 52 will restrict FTP penalty and interest (credit and debit) in the module with that transaction. This restriction is permanent and cannot be released. This condition does not set the G- freeze. Nevertheless, manual penalty and interest computation is required. Exception: A transaction with Doc Code 52 with Julian Date 999 will not restrict the Failure to Pay penalty and interest.

# Restricted Credit Interest Freeze (I-)

3.14.2.6.6.9 (01-01-2016) Restricted Credit Interest Freeze (I-) This freeze restricts credit interest. One of the following conditions will set the freeze: TC 770 TC 780 TC 534 (for significant amount) Any of the following actions will release the freeze: TC 771 TC 772 TC 535 (must completely reverse TC 534 amount) TC 781 or TC 782 Net module balance becomes zero or debit Note: Any transaction with Doc Code 52 will restrict FTP penalty and interest (credit and debit) in the module with that transaction. This restriction is permanent and cannot be released. This condition does not set any I freeze. Nevertheless, manual penalty and interest computation is required. Exception: A transaction with Doc Code 52 with Julian Date 999 will not restrict the Failure to Pay penalty and interest. Follow normal review procedures.

# Restricted Debit Interest Freeze (-I)

3.14.2.6.6.10 (01-01-2023) Restricted Debit Interest Freeze (-I) The -I (Debit Interest) Freeze sets when a manual abatement or assessment requirement is placed on an account. The -I Freeze is generated when a TC 340/ TC 341 posts or when CCC "Z" is placed on an account identifying combat zone taxpayers entitled to an automatic postponement of a deadline. You must manually compute interest on adjustments input on an account with the -I Freeze. It also prevents credits from refunding or offsetting into or out of the module for eight weeks. A TC 340/341 sets this freeze. TC 342 will release this freeze. Manually compute the interest and retype the notice if necessary. Reminder: Electronically document reason for action taken when available to function inputting adjustment. Example: If case is located on Accounts Management Services (AMS) system and/or the CIS (Correspondence Imaging System) - effective February 17, 2009 renamed as AMS (Accounts Management Services) - notate the following in case history: • reason interest has been restricted • relevant interest computation dates/amounts for that adjustment • any specific information helpful in reconstructing the posted restricted interest adjustment. Reminder: Any transaction with Doc Code 52 will restrict FTP penalty and interest (credit and debit) in the module with that transaction. This restriction is permanent and cannot be released. This condition does not set any I freeze. Nevertheless, manual penalty and interest computation is required. Exception: A transaction with Doc Code 52 with Julian Date 999 will not restrict the Failure to Pay penalty and interest. For a complete list of conditions for -I Freeze refer to Document 6209 Section 8A, chapter 4, Document 6209 Freeze Codes.

# Credit Balance Freeze (-K)

3.14.2.6.6.11 (01-01-2016) Credit Balance Freeze (-K) This freeze prevents the credit balance from refunding or offsetting from the module. Any of the following conditions will set the freeze: TC 29X with Hold Code 1, 2, or 4 TC 30X with Hold Code 1, 2, or 4 Form 1120 with CCC "N" (Joint Committee Case) is posted Note: A TC 290 .00 with Hold Code 4 sets this freeze on a refund delete case. Caution: Do not set a -K freeze unless it is necessary for case resolution. Be aware of the conditions for the release of the freeze. Do not release a refund erroneously. Any of the following actions will release the freeze: TC 150 posts to the module TC 29X posts to the module TC 30X posts to the module TC 820 posts to the module TC 830 posts to the module A Doc Code 24 or 34 credit transfer The module balance becomes zero or debit

# Form 2290 (L-)

3.14.2.6.6.12 (04-03-2023) Form 2290 (L-) This freeze is set when MFT 60 (Form 2290) module has a credit balance of $10.00 or more. The freeze was created to prevent erroneous refunds. The credits are recorded on the Form 2290 Credit Report which is worked by the Excise Group in Cincinnati. The module is frozen from refunding and offsets. ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡If the form is requested by the Excise Team route to Internal Revenue Service, Excise Operation, Stop 5701-G 7940 Kentucky Drive, Florence, KY 41042.

# AIMS Indicator Freeze (-L)

3.14.2.6.6.13 (01-01-2016) AIMS Indicator Freeze (-L) A TC 420 or TC 424 sets this freeze. Note: This freeze will not prevent a refund. Follow normal review procedures. Note: If a CC REQ54 adjustment is needed, use Priority Code 1. Freeze is released by certain TC 30X or TC 42X transactions.

# Disaster Freeze (-O)

3.14.2.6.6.14 (01-01-2025) Disaster Freeze (-O) The -O freeze allows the IRS to provide special processing related to any filing, payment or interest relief, granted for a geographical area. It is input systemically at the request of the Disaster Program Office. This freeze is set by TC 971 (Action Code 086 or 087). AC 086 Normal Disaster FTF and FTP suspension, also for TC 972 AC 087 Disaster with 7508(a) relief, also for TC 972 (reversal) The -O freeze provides the following relief: Suspends the mailing of notices with the exception of assessment notices required by IRC 6303 and notices pertaining to the Release of Levy/Release of Property from Levy. Establishes a filing and payment postponement period for eligible taxpayers with a filing or payment due date/extended due date within the disaster period. Allows for special penalty/interest computation for taxpayers meeting the criteria for the filing and payment relief granted. Suspends a number of collection and examination activities. The -O freeze does not freeze the module from refunding. The -O freeze is released when the current date is beyond the secondary date (disaster ending date) of the TC 971 AC 087. Note: When performing account research, the -O freeze can be viewed using IDRS CC ENMOD and/or BMFOLE. The Disaster Victim Code will also post on the Entity portion of IDRS. For more information on the Disaster Victim Code see, IRM 3.14.2.6.6.19, Disaster Freeze (-S). Please refer to IRM 3.14.2.6.4.4, Natural Disaster Procedures, for more information.

# Refund Deletion Freeze (P-)

3.14.2.6.6.15 (11-04-2021) Refund Deletion Freeze (P-) This freeze prevents overpaid balances from refunding or offsetting from the module. Any of the following conditions will set the freeze: TC 720 TC 841 TC 842 with a posted TC 150 Any of the following actions will release the freeze: TC 29X posts to the module TC 30X posts to the module TC 721 posts to the module TC 722 posts to the module TC 820 posts to the module TC 830 posts to the module A Doc Code 24 or 34 credit transfer A TC 571 or TC 572 AFTER a TC 570 has previously posted The module balance becomes zero or debit Caution: If an open control base is on the module regardless of status, do not release the freeze without contacting the originator.

# Rollover Freeze (Q-)

3.14.2.6.6.16 (01-01-2025) Rollover Freeze (Q-) The Q-Freeze is set when a return posts with unclaimed excess credits. The account is frozen from refunding or offsetting for 15 cycles for MFTs 01, 02, 03, 05, 10, 11,12,16, and 33. Caution: If a credit transfer or adjustment needs to be made to it must be input at least 3 cycles before the Q- freeze release cycle. Example: If the Q- freeze will release in cycle 20XX20, then a necessary credit transfer must be input no later than cycle 20XX17. Any of the following actions will release the freeze: Automatically at the end of 15 cycles A TC 652 or TC 662 posts and remaining credits are within $10.00 of the claimed amount (including penalties and interest) A TC 290 .00 with Hold Code 3 and Priority Code 4 posts The module balance becomes zero or debit

# Additional Liability Freeze (-R)

3.14.2.6.6.17 (03-08-2024) Additional Liability Freeze (-R) A manual or systemic TC 570 sets this freeze. Any of the following conditions will generate a TC 570: A TC 150 with CCC X posts. A TC 291 with Priority Code 7 posts. Any of the following actions will release the freeze: TC 571 TC 572 TC 29X TC 180 posts for zero to a module with an unreversed TC 186 The module balance becomes zero Caution: Carefully review account conditions and open control bases before releasing any frozen overpayments. Use Document 6209, Section 8C, Master File Codes, Chapter 9, TC 971 Action Codes or IAT Code Search Index (CSI) to review all TC 971 Action Codes before taking action. Accounts requiring further review of EPE claimed credits by SB/SE and/or LB&I are identified by a TC 971 AC 831. These accounts will be frozen with a -R freeze. Do not release these overpayments. Perform regular review of the case, however only items other than EPE should be adjusted by Notice Review. Use a hold code 4 if retyping and hold code 1 if labeling the notice. Never input a TC 571 on these cases. Ensure that account actions do not inadvertently release the overpayment. Caution: Notice Review does not have the authority to adjust EPE credits. If EPE credits appear to need adjustment refer the case to a lead. Leads will contact local P&A and HQ if necessary, after review.

# RPS Multiple 610 Freeze (R-)

3.14.2.6.6.18 (01-01-2016) RPS Multiple 610 Freeze (R-) Any of the following actions will set this freeze: Multiple TC 610s on module when the TC 150 posts Multiple TC 610s posted with no TC 150 posted on module Any of the following actions will release the freeze: TC 29X TC 30X TC 612 (to reverse the TC 610) The module becomes zero or debit

# Disaster Freeze (-S)

3.14.2.6.6.19 (01-01-2026) Disaster Freeze (-S) The -S freeze is a systemic disaster indicator that gives the IRS flexibility to grant filing and payment relief without suspending compliance activities and the generation of notices when the impact and scope of a declared disaster does not warrant the use of the -O Freeze. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The -S freeze is set/reset by TC 971/972 with AC 688 with disaster beginning and ending dates for all taxpayers located within ZIP codes in the IRS covered disaster areas. Note: The Disaster Victim Code will post on the Entity portion of IDRS. The Disaster Victim Code is a value indicator that is defined in the table below: Disaster Victim Code Definition 1 -S freeze active 2 -O freeze active 3 Both -S and -O freezes are active 4 Historical indicator reflecting that the -S freeze or -O freezes were active at some point in the past but are not currently active The -S freeze is released when the current date is beyond the secondary date (disaster ending date) of the TC 971 AC 688. Please refer to IRM 3.14.2.6.4.4 , Natural Disaster Procedures, for more information. For detailed disaster information and impacted state list see Tax Relief in Disaster Areas.

# Undelivered Refund Check Freeze (S-)

3.14.2.6.6.20 (01-01-2016) Undelivered Refund Check Freeze (S-) This freeze prevents any overpayment from refunding. It also causes a CP 231 to be issued to the taxpayer. A TC 740 sets the freeze. Any of the following actions will release the freeze: TC 018 TC 742 (net of all TC 74X is zero and debit) TC 014 The module balance becomes zero or debit

# Outstanding Liability Freeze (V-)

3.14.2.6.6.21 (01-01-2016) Outstanding Liability Freeze (V-) This freeze indicates an outstanding liability on another tax account. A TC 130 sets this freeze. Any of the following actions will release the freeze: TC 131 TC 132 TC 824 Follow normal review procedures.

# Bankruptcy Freeze (-V)

3.14.2.6.6.22 (01-01-2016) Bankruptcy Freeze (-V) This freeze causes the Campus Status to become 72. A TC 520 with Closing Codes 60-67, 83, 85-89 sets the freeze. A TC 521/522 with Closing Codes 60-67, 85-89 releases the freeze. Follow normal review procedures. Closing Code 81 usually indicates that the Department of Justice (DOJ) is litigating a bankruptcy matter relating to the account. Follow procedures below. Caution: Taking actions on these cases before seeking DOJ concurrence/approval may have a negative and serious impact on the ongoing litigation or secured judgment. If during review, it is decided that the Territory Office Special Procedures function needs to be contacted: Give the case to the work lead. The work lead will contact the Territory Office Special Procedures function for case resolution. The work lead will return the case to the tax examiner with instructions for case resolution. The tax examiner will resolve the case.

# Claim Pending Freeze (W-)

3.14.2.6.6.23 (11-05-2019) Claim Pending Freeze (W-) This freeze indicates that a claim is pending. A TC 470 or TC 976 posting to a balance due module sets the freeze. Note: A TC 470 without a Closing Code or with a Closing Code 90 will prevent offsets into the account. Follow normal review procedures. If during review it is decided that the Territory Office Special Procedures function or the Appeals Office needs to be contacted: Give the case to the work lead. The work lead will contact the Special Procedures function and/or Appeals Office for case resolution. (To inquire about the status of a case in Appeals Office, call the Appeals Customer Service Line at (559) 233-1267 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.) The work lead will return the case to the tax examiner with instructions to resolve the case. The tax examiner will resolve the case.

# Litigation Pending Freeze (-W)

3.14.2.6.6.24 (11-05-2019) Litigation Pending Freeze (-W) A TC 520 with various closing codes sets this freeze. Follow normal review procedures. If during review it is decided that the Territory Office Special Procedures function or the Appeals Office needs to be contacted: Give the case to the work lead. The work lead will contact the Special Procedures function and/or Appeals Office for case resolution. (To inquire about the status of a case in Appeals Office, call the Appeals Customer Service Line at (559) 233-1267 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.) The work lead will return the case to the tax examiner with instructions to resolve the case. The tax examiner will resolve the case. The following defines a Department of Justice (DOJ) case: Any module in Status 72 and/or an unreversed TC 520 with closing codes 70, 75, 80 and 82. Any module with a TC 550 and definer code 04. Caution: Taking actions on these cases before seeking DOJ concurrence/approval may have a negative and serious impact on the ongoing litigation or secured judgment.

# Refund Freeze (X-)

3.14.2.6.6.25 (01-01-2025) Refund Freeze (X-) An X- freeze requires a manual refund, regardless of dollar amount or case type. In addition, all refunds in excess of $100 million dollars also require a manual refund. Notice Review must initiate a manual refund for all X- freeze cases unless another area has an open control or the refund should not be released. See IRM 3.14.2.7.2.2, Manual Refunds for more information.

# Unresolved Manual Refund Freeze (-X)

3.14.2.6.6.26 (01-01-2025) Unresolved Manual Refund Freeze (-X) The -X freeze is set when one of the following conditions is present: A TC 150 with Computer Condition Code (CCC) 0 posts to the account without a TC 840 (manual refund). A TC 840 posts to a module and creates a balance due. A manual refund is input and a TC 840 posts to the account and a corresponding adjustment is input without the proper Hold Case (HC), causing a duplicate refund to generate. A TC 840 posts without a TC 150 on the account. A TC 840 posts to an account in debit balance. If after review the case should be refunded, input a TC 290 .00, hold code 3, priority code 8.

# Offer in Compromise Freeze (-Y)

3.14.2.6.6.27 (02-26-2016) Offer in Compromise Freeze (-Y) A -Y freeze indicates an Offer in Compromise is pending. A TC 480 or TC 780 sets this freeze. Void the notice.

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3.14.2.6.6.28 (01-01-2024) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Math Error Condition

3.14.2.6.7 (01-01-2025) Math Error Condition A math error notice generates whenever a mathematical error is made by the taxpayer on the return, or the posted payment information does not agree with the amount claimed on the return. The taxpayer notice code (TPNC), also called the math error code, is a two-digit numerical code assigned by ERS or ECC-MTB for the specific error condition. See IRM 3.14.2.11 Taxpayer Notice Codes (TPNCs), for allowable TPNCs by Form type. The computer translates this code into an explanatory paragraph that prints on the math error notice. This message notifies the taxpayer of the error on the return or account. Complete all general review procedures in IRM 3.14.2.6, General Review Procedures, before reviewing the math error condition. The return may or may not be included with the NRPS package, depending on the error condition. The Math Error Notices are: Overpayment Notices are listed in the table below: Form Computer Paragraph Notice 940, 940-EZ 111 941, 943, 944, 945 112 CT-1, CT-1X 113 720 114 11-C, 706, 706-NA, 709, 709-NA, 730, 2290 115 990PF, 4720, 5227 116 1042 117 990-T, 1041, 1120, 1120-C, 1120X 133 720, 940, 940-EZ, 941, 943, 944, 945, 1041, 1120, 1120-C, 1120X 268 940(sp) 811 941(sp), 943(sp), 944(sp) 812 Even/Balance Due Notices are listed in the table below: Return Computer Paragraph Notice 940, 940-EZ 101 941, 943, 944, 945, 941X, 943X, 944X, 945X 102 CT-1, CT-1X 103, 123 720 104, 124 11-C, 706, 706-NA, 709, 709-NA, 730, 2290 105, 125 990PF, 4720, 5227 106, 126 1042 107, 127 990-T, 1041, 1120, 1120-C, 1120X 131, 131A and 132 940(sp) 801 941(sp), 943(sp), 944(sp) 802 To view an exhibit of a notice, refer to the Taxpayer Correspondence Services (TCS) website Servicewide Notice Information Program, SNIP.

# Reviewing Return Math Errors

3.14.2.6.7.1 (01-01-2025) Reviewing Return Math Errors Review math error notices to verify the changes made during processing and each corresponding Taxpayer Notice Code (TPNC). To verify the tax return changes made during processing: Review all lines and schedules impacted by point of error (usually the first TPNC assigned) verifying taxpayer and ERS math calculations. Review for transcription errors or a misplaced decimal point. See IRM 3.14.2.6.7.1.3, Decimal Point Errors Review and Correction, for more information. Review for taxpayer intent. Working a line calculation backwards from the total can help identify taxpayer intent for impacted lines. Example: On a Form 941 with TPNC 07, the taxpayer's figure for Total Social Security and Medicare Taxes (line 5d), divided by the correct percentage equals the Taxable Social Security Wages (line 5a). If this amount does not match the taxpayer's figure for line 5a, it could equal the entry for Wages, Tips and Other Compensation for (line 2). Line 5c will be greater than or equal to the total of lines 5a and 5b. Verify taxpayer intent before adjusting the account. Reminder: A CP may generate when the taxpayer is claiming total payments as estimated payments. Void the notice if the refund exactly matches the amount the taxpayer is expecting and there are no other error conditions present. The tax return is required for math error verification if: The account has a balance due of $250,000 or more or The account has an overpayment of $100,000 or more Note: If any required return is not received before cycle close out input an H Disposition in OLNR, as approved by Headquarters, (see also) until the return is received. If the account is overpaid with a TC 846 on the notice module, intercept the refund using NOREF. Correct any obvious errors found during review. To verify the TPNCs assigned on a math error notice: Review the validity of Taxpayer Notice Codes (TPNCs) for correct assignment by form type. See IRM 3.14.2.11, Taxpayer Notice Codes (TPNCs) and the corresponding subsection for each form. TPNCs by line number can be found in Business Master File Notice Review Job Aid 2533-701. Review assigned TPNCs clearly state the error(s) the taxpayer made on their return. If the assigned TPNC is incorrect, retype the notice to remove the incorrect TPNC(s) and add the correct TPNC(s). If you are reviewing a math error notice with a balance due of $250,000 or more or an overpayment of $100,000 or more, then you are required to have the return. If it is not provided, then you should request the document by using CC ESTAB. If the document is not received and the accuracy of the overpayment cannot be confirmed before the close out, you must input CC NOREF if there is a TC 846 present on TXMOD and input an H Disposition, as approved by Headquarters, until the return is received. Note: If the document is not received within the applicable timeframes for CC ESTAB, request the document using Form 2275, Records Request, Charge and Recharge. Use IAT Tool Fill Forms to make the request easier. Analyze for the taxpayer's intent. If the taxpayer entered a line incorrectly it could affect the whole return. This can sometimes be discovered by working a line calculation backwards. If the tax or credits are incorrect, input CC REQ54 on IDRS: Change other items, such as item reference numbers, as needed. Do not adjust reference items unless also changing the tax or credits. Refer to IRM 3.14.2.7.6, Tax Adjustments, when inputting tax adjustments. See IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN), and Document 6209, Document 6209 Item Adjustment Codes and Credit Reference Numbers for specific item reference numbers. Reminder: If adjusting tax on Employment Tax Returns, the FTD Penalty (TC 186) must be addressed. (Refer to IRM 3.14.2.6.17.8 , Failure to Deposit Penalty.) Delete a refund using CC NOREF: If increasing the tax If decreasing the refundable credits If a debit transaction is pending Note: Refer to IRM 3.14.2.7.1 for instructions on inputting Command Code NOREF.

# Math Error Processes for Specific Issues and Forms

3.14.2.6.7.1.1 (01-01-2025) Math Error Processes for Specific Issues and Forms Some forms and the corresponding CP notices, have special steps or review processes that should be done in addition to normal math error review procedures. In addition, some processing issues require specific corrective actions. The following subsections contain specific information for some common math error processing with correction guidance.

# Corporate Alternative Minimum Tax (CAMT)

3.14.2.6.7.1.2 (01-01-2025) Corporate Alternative Minimum Tax (CAMT) The Inflation Reduction Act of 2022 amended IRC 55 to create a new Corporate Alternative Minimum Tax (CAMT) which imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of applicable large corporations under IRC 59(k) for taxable years beginning after Dec. 31, 2022. Form 4626, Alternative Minimum Tax – Corporations, is used to determine whether a corporation is an applicable corporation under IRC 59(k) and to calculate CAMT under IRC 55 for applicable corporations. Note: S corporations, regulated investment companies (RIC), and real estate investment trusts (REIT) are not subject to CAMT. Caution: The CAMT applies to domestic and foreign tax forms. An applicable corporation under IRC 59(k) is any corporation that satisfies the AFSI test for one or more tax years which are prior to the current tax year, and which end after December 31, 2021. A corporation meets the general AFSI test for that tax year when the corporation's average annual AFSI for the 3-tax-year period ending with the tax year exceeds $1 billion. NOTE: All AFSI of members of a controlled group is included in the AFSI of the corporation for AFSI test purposes. For the first tax year beginning after December 31, 2022, a corporation may choose to apply the safe harbor method (simplified method) for purposes of determining whether it is an applicable corporation. See Notice 2023-7, section 5, for additional information. If a corporation has been in existence for less than 3 tax years of the 3-tax-year period, the AFSI test is applied by averaging the tax years of the 3-tax-year period during which the corporation existed. AFSI for any tax year of fewer than 12 months shall be annualized by multiplying the AFSI for the short period by 12 and dividing the result by the number of months in the short period. NOTE: See Form 4626 Instructions for additional information on ASFI and the ASFI test applicable to Foreign-Parented Multinational Groups (FPMG) (FPMG AFSI Test). CAMT applies if the tentative minimum tax for the tax year exceeds the sum of the regular income tax plus the base erosion minimum tax (imposed under IRC 59A). The tentative minimum tax for the tax year is the excess of 15% of AFSI for the tax year, over the CAMT Foreign Tax Credit (FTC) for the tax year. For any corporation that is not an applicable corporation, the tentative minimum tax for the tax year is zero. See Form 4626 and the Form 4626 instructions for additional information on calculating CAMT. A corporation may take a credit against regular tax for alternative minimum tax (including CAMT) incurred in prior years. See Form 8827, Credit for Prior Year Minimum Tax—Corporations, for details. A new field on entity module BMFOLE and ENMOD display TCAMT for a sum total of CAMT, which updates anytime a new return with CAMT or an adjustment to CAMT is input. Math verify Form 4626, Alternative Minimum Tax - Corporations, in addition to any other parent form lines that impact tax (from the point of error). If a correction needs to be made to CAMT, adjust with REQ54, using Item Reference Number (IRN) 905 for increase or decrease.

# Decimal Point Errors Review and Correction

3.14.2.6.7.1.3 (01-01-2025) Decimal Point Errors Review and Correction Decimal error issues are most common on Forms 940, 941 and 943, but can occur on any form. When these forms are processed, sometimes the data is transferred with incorrect placement of decimal points. Example: A CP 111 generated with tax of $5.60. The NRPS package shows taxable income of $700.00. The taxpayer's account has posted deposits of $56.00. The difference between the posted tax and the taxpayer's deposits ($50.40) is refunding. The return shows the taxpayer reported taxable wages of $7,000.00 and a tax of $56.00. It appears a transcription or scanning error was made during processing. Review the return if available. If the return is not available, research the NRPS package and IDRS, including but not limited to: TXMOD, BRTVU, and BMFOLT. If research indicates a misplaced decimal point or transcription error the account must be adjusted. If the exact amount of the adjustment can be verified using current account data and previous filing history (at least one year for quarterly filers and two years for annual filers) the adjustment can be input without ordering the return. Example: BMFOLT for the account being reviewed (CP 111 example above) shows tax (TC 150) of $59.00 the previous year and $55.00 the year before that with matching payments from the taxpayer. This is a clear filing history pattern. The filing history in conjunction with current IDRS data and research allows for an adjustment to be made without the return. If the necessary adjustment cannot be verified without the return, request the return using CC ESTAB. If the return is not received before cycle close-out., use notice disposition of "H" in OLNR, to allow more time to secure the return. Notify the lead of H disposition. Once the necessary research is complete and the return secured if required, figure the correct account adjustment utilizing a TC 290 and all necessary item and credit reference numbers. See IRM 3.14.2.7.6 , Tax Adjustments, and IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN) for more information. Do not access IDRS CC REQ54 until all CRNs, IRNs and dollar amount adjustments have been calculated including the expected final module balance. Example: Using the previous case data in this section, here is the final information needed to calculate the necessary adjustment. The Form 940 indicates the state of Missouri for FUTA and unemployment taxes. The taxpayer filing history and payment record verify the need for an increase from the posted tax, even if the return was not unavailable. Since the decimal error impacted the whole return in this example, the wages posted, and taxes posted need to be adjusted. The TC 150 is $5.60. The correct tax amount is $56.00. The current taxable wages on IDRS are $700.00 The correct taxable wages amount is $7,000.00. The account needs to be adjusted to the taxpayer's figures. The taxpayer paid timely, so does not need to receive a notice. This information used in conjunction with IRM 3.14.2.7.6.6.3, CRNs/IRNs for Form 940, is all that is required to figure the correct adjustment. When the adjustment has been calculated and all fields are identified, input the adjustment using CC REQ54, response screen ADJ54. After adjustment input verify the new IDRS module balance matches the adjustment calculations. Example: Based on the calculations above from the continuing example in this subsection, here is the correct adjustment input information for the ADJ54 screen: Blocking Series 15, Hold Code 3, TC 290 $50.40, WMO $6,300.00, and TMO 50.40. The account should also have a history item of CP111VOID or similar.

# Employment Forms, Review and Retype Instructions

3.14.2.6.7.1.4 (01-01-2025) Employment Forms, Review and Retype Instructions Employment forms require careful review. Decimal and transcription errors occur often. In addition, payments can be misapplied between quarterly and annual form MFTs for the same EIN. See BMF Notice Review Job Aid 2533-701 for specific employment form line information. See IRM 3.14.2.6.4.8, for Form 944 special issues.

# Review of Form 940, Form 940(sp), (MFT 10) and Notices CP 101, 111, 801 and 811

3.14.2.6.7.1.4.1 (01-01-2025) Review of Form 940, Form 940(sp), (MFT 10) and Notices CP 101, 111, 801 and 811 Form 940 and Form 940(sp), Employers Annual Federal Unemployment (FUTA) Tax Return are annual tax returns filed by employers to report unemployment tax. The calendar year return is due January 31st of the year following the end of the tax period. Four separate quarterly tax deposit payments are required in April, July, October and January. Compare payment dates and amounts with liabilities shown on the return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP). Note: Payments intended for Form 940 sometimes post to Form 941 modules. If a missing payment is located in another module, move the credit to the correct module. Research any unclaimed payments using RTR or IDRS CC EFTPS. If the correct posting of the unclaimed payment can be determined, intercept the refund and move the credit to correct module. If an unclaimed credit is consistent with Form 941 payments, stop the refund and transfer the payment(s) to the correct module. If there is a possibility of another TIN, research all available IDRS CCs for another EIN and missing payments. Review the document for attachments/additional information for incomplete processing (if the document is necessary to complete the review of the notice or if the return is available for viewing on EUP).

# Review of Form 941 and Form 943 - including Spanish - (MFT 01 and 11) and Notices CP 102, 112, 802 and 812

3.14.2.6.7.1.4.2 (01-01-2025) Review of Form 941 and Form 943 - including Spanish - (MFT 01 and 11) and Notices CP 102, 112, 802 and 812 Form 941 , Employers QUARTERLY Federal Tax Return, Form 943 , Employers Annual Tax Return for Agricultural Employees, and Form 944, Employers ANNUAL Federal Tax Return have a Spanish equivalent identified with (sp) following the form title. Review the entire section for specific issues pertaining to review of these forms and the corresponding notices. Form 941 is a quarterly return due April 30, July 31, October 31, and January 31. Form 943 is an annual return due on January 31. Note: Form 944 , Employer's ANNUAL Federal Tax Return, is an annual employment return due on January 31. See IRM 3.14.2.6.4.8, Form 944 Issues, for special issues. If any of these forms contain a math error the following notices will generate: English notices CP 102, balance due and CP 112 overpaid. Spanish notices CP 802, balance due and CP 812 overpaid. If a return is filed late, consider misapplied payments from another tax period. Compare tax and liability on the document (if available) and account with credits and payments on other modules without a TC 150 (open module). Research any unclaimed payments using RTR or IDRS CC EFTPS. Caution: A document may have posted to an incorrect period. If payments on the open module exactly match the payments claimed on the notice module, and research indicates a reprocess is needed, intercept refund and secure the return before reprocessing. If the NRPS package indicates another EIN, research IDRS. If a credit on a Q- Freeze module is needed, follow instructions in IRM 3.14.2.6.8 CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze, before transferring any credits. If reviewing a CP 812, and Q- Freeze indicates Schedule A was checked but Back-up Withholding (BUWH) was not assessed see IRM 21.5.4, General Math Error Procedures for more information. Note: Always use appropriate Hold Code to prevent another notice from generating. Compare the tax on Federal Insurance Contributions Act (FICA) wages with adjusted total of FICA taxes. Check for possible processing errors such as: FICA adjustment on withholding not recognized during processing and created a balance due notice for twice the amount. On Form 941, if the difference between the overpayment on the account and the credits claimed by the taxpayer is the same as the TC 716 (prior year credit) amount, verify no payments are misapplied. Once all payments are researched and no other issues are identified, intercept the refund and adjust the account. The Form 941 has been transcribed incorrectly. The taxpayer's claim of credit elect from the prior year on the form has been transcribed as an additional credit, TC 766. Review other accounts for TC 706 (BMF) for possible offsets. If TC 826 present in module and action offsets part or all of credit to another module but actually belongs on another tax period, reverse TC 826. Void or retype the offset notice, CP 138 or 838.

# Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions

3.14.2.6.7.1.5 (01-01-2026) Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions Estate and Gift Tax Forms include Forms 706, 706-NA, 709 and 709-NA. These forms have specific rules for return due dates. Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is due the day of the ninth calendar month after decedent's death numerically corresponding to the day of calendar month on which death occurred. For example, if the decedent died on May 31 of the current year, the due date is February 28 of the following year. An application for extension of time for filing (Form 4768, Application for Extension of Time To File a Return and/or Pay Estate (and Generation-Skipping Transfer) Taxes, may be granted even if the application is made later than 9 months after the Date of Death (DOD). Unless the executor is abroad, the extended due date for filing estate tax return may not be later than 15 months from date of the decedent's death. Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States, is due the same date as the date of the decedent's death nine months after the calendar month in which the death occurred. For example, if the decedent died on May 31 of the current year, the due date is February 28 of the following year. If the date falls on a Saturday or Sunday, the due date would be the following Monday. Taxpayers may request an automatic 6-month extension of time to file using Form 4768 , Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. If the executor is out of the country and already received a 6-month extension, an additional extension of time to file may be requested by filing a second Form 4768 and attaching a written explanation. Form 709, United States Gift (and Generation-Skipping Transfer), is filed on a calendar-year basis regardless of the taxpayer's income tax accounting period. It is an annual return which, generally, must be filed on or after January 1 and by April 15 of the year following the date the gift was given. Any extension applied to the taxpayer's Form 1040 individual return is also applied to the Form 709. Alternatively, the taxpayer may request an automatic 6-month extension of time to file using Form 8892, Application for Automatic Extension of Time To File Form 709 or Form 709-NA and/or Payment of Gift/Generation-Skipping Transfer Tax Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, is for gifts made after December 31, 2023. The form is due April 15 following the calendar year when gifts were made. If a donor makes a gift the year they die then the estate must file a Form 706, and the following rules apply: if the taxpayer died before July 15, the gift tax return is due when the estate tax return is due (Form 706, nine months after the Date of Death plus extensions).If the taxpayer died after July 14, the gift tax return (Form 709-NA) is due April 15 of the following year. If no estate tax return is required to be filed, the due date for the Form 709-NA, (without extensions) is April 15, 20XX. Review per normal math error procedures, starting from the point of error, verifying math for changes made in processing and the accuracy of the assigned TPNC. If an error is found in the transcription or other changes made during processing and an adjustment is needed, stop the refund if applicable and follow routing instructions below. Caution: Notice Review cannot adjust any Form 706, U.S. Estate Tax Return, Form 706-NA ,U.S. Estate (and Generation-Skipping Transfer) Tax Return, Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return, or Form 709-NA ,United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, accounts. If an adjustment is needed for these forms, the return must be routed to Cincinnati SB/SE. See below for routing instructions. If Notice Review is not in possession of the paper return, request the return using normal procedures. Use Label 1 for the notice disposition. Exception: If the required adjustment is a reprocess, void the notice. Leave a history item on IDRS for notice disposition. Leave a history item on IDRS for routing to SB/SE "F706toSBSE" or similar. Input STAUP on balance due notices. Once the return is received recharge it to 0283000000, using CC ESTAB. Route the return to Internal Revenue Service Estate and Gift Tax Operation, 7940 Kentucky Drive Florence, KY 41042 Estate and Gift to Cincinnati, mail stop 824G. Attach a Form 3465, Adjustment Request, explaining the adjustment or reprocess needed.

# Credit Discrepancy - Excess Credits

3.14.2.6.7.2 (01-01-2026) Credit Discrepancy - Excess Credits Excess credits occur when more credits are posted to the module than the amount claimed by the taxpayer. The credit may belong on another module, or the taxpayer may have forgotten a payment was made. Examples of notices reviewed are CP 111, CP 112, CP 117, CP 134R and CP 834R. This list is not all inclusive. Use the NRPS selection keys as a guideline when reviewing the account and notice. Identify the excess credit amount by subtracting the total payments claimed by the taxpayer from the actual amount posted. Since the taxpayer may be requesting a refund or credit elect, use the credit amount the taxpayer claimed on the return to decide the discrepancy. Do not use the tax amount. Caution: Consider that any credit elect (TC 716/TC 710) or credit applied (TC 700) posted to the module may not have been claimed by the taxpayer or the credit elect posted may not match the full amount requested by the taxpayer on the prior module return. Use the NRPS package data to assist in identifying which credit(s) or part of a credit is creating the discrepancy. Exception: If discrepancy is $ .99 or less void notice and leave a history item in IDRS. Review all other modules provided in the NRPS package for the selected notice to decide if the excess credit belongs on another module. If research indicated the excess credit is for a different module, transfer the payment using IAT. Use the following to analyze the account for the taxpayer's intent. Review the payment pattern. A payment pattern is the taxpayer's history of payments. Verify if the amounts and timeliness of current module payments match the taxpayer's previous module payments (two to three prior modules should give an indication of prior history also known as a pattern). Example: BMFOLT for the account being reviewed shows tax (TC 150) of $100.00 the previous year and $105.00 the year before that with matching payments from the taxpayer. This is a clear payment pattern. Review payments claimed by the taxpayer and any underpaid tax amounts. Review liability schedules on balance due modules (IDRS research is required). Review the NRPS package for evidence of a previous transfer to or from another TIN (Research any other TIN on IDRS if found in the NRPS package). Several payments may be misapplied between two or more modules. Analyze the entire account (IDRS research is required). Multiple credit transfers may be required. When inputting a credit transfer follow the instructions in IRM 3.14.2.7.7, Credit Transfers. If the date of the overpayment is timely for a prior year or prior quarter return use Exhibits 13-29, for due date and payment information starting at Exhibit 3.14.2-13, Form 11-C Filing (MFT 63) Information, Due Date, and Wager Schedule, and ending at Exhibit 3.14.2-29, Form 2290 (MFT 60)Tax Rates - Return and Extension Due Dates, to decide if the payment belongs on the prior module (IDRS research is required). Transfer a payment into a full paid module only if the transfer(s) will reduce penalty and/or interest, or if the transfer into the account will overpay the module and another misapplied payment will then be transferred to a different module. Otherwise, allow the refund to generate from the notice module. When inputting a credit transfer follow the instructions in IRM 3.14.2.7.7, Credit Transfers. Research unclaimed credits that do not fit the payment pattern for the taxpayer. A payment pattern is the taxpayer's history of payments reviewing for amounts and timeliness. Research the payment using RTR. If a payment is made on the Electronic Federal Tax Payment System (EFTPS), research for a correction to an incorrect module or tax type. See IRM 2.3.70 , Command Code EFTPS and Document 6209, Section 4, Chapter 8, EFTPS. Verify that all unclaimed, refunding TC 670 payments belong to the taxpayer. Note: Payment with return (TC 610) will not generate a credit discrepancy notice. However, if the TC 610 amount is not the balance due per taxpayer, and NRPS/IDRS research does not explain the payment, verify the payment using the above research steps. Check for misplaced line entries creating erroneous credits. Federal Tax Deposits or extension payments may be entered on withholding or refundable credits lines on income tax returns. Compare the tax and liability data on the notice module with credits and payments posted on other modules. See below for the Excess Credit Decision table. Caution: Do not void or label a CP 161 if the module is partially or fully paid by credits that offset (TC 706) in the same cycle as the notice. A CP 138 will generate from the losing module. Print the notice. If And Then Tax liability or claimed credits match timely credits posted on another tax module. TC 150 has not posted to the other module. Request the return using Form 2275 ,Records Request, Charge and Recharge, (if the return is not included with the NRPS package). Use IAT Tool Fill Forms to make the request easier. The return may need to be reprocessed. Use Disposition Code H to hold the notice until a determination can be made regardless of selection key. Tax liability or claimed credits match timely credits posted on another tax module. TC 150 has posted to the other module and the tax liability matches the credit on the notice module. Request returns for both modules using Form 2275, Records Request, Charge and Recharge,(if not included with the NRPS package).Use IAT Tool Fill Forms to make the request easier. If the returns posted incorrectly, do not reprocess the returns. Adjust the tax on each module to agree with the information on the correct tax period. Use Disposition Code H to hold the notice until a determination can be made regardless of selection key. After completing the necessary research, refer to the table below to determine when to delete the refund (NOREF). Note: See (13) below if the module with excess credits also has zero tax liability (TC 150 for .00). If: Then delete the refund using NOREF and: There is a pending (AP, PN, UP, CU, TP, or RS) debit transaction listed in the NRPS package and on IDRS Use the LCF to request the resulting CP 260 or other adjustment notice that should be voided. See IRM 3.14.2.5.4.1, NRP97 Input Information, for more information. Void or retype the original notice as appropriate. The taxpayer requested credit elect, a TC 836 has not posted, and credit is available Transfer the credit elect to the next module using IAT. Void or retype the notice as appropriate. A payment is claimed on or intended for another module Transfer the payment to the correct module using IAT. Void or retype the notice as appropriate. An unclaimed payment is timely and in-line for the next tax period or another MFT Transfer the payment(s) to the correct module using IAT. Void or retype the notice as appropriate. The taxpayer entered the credit elect, total deposit amount, or extension amount on the Refundable Credits line or Withholding line on the return, a TC 766 generated, giving the taxpayer a double credit or erroneous withholding credit Reverse the TC 766 or TC 806 using CC REQ54. Void or retype the notice as appropriate. The return posted to the incorrect tax module and requires reprocessing Follow IRM 3.14.2.6.18, Reprocessing Returns. Void the notice. Unable to determine where a payment should be applied Set -R freeze by inputting a TC 570 using REQ77. Print the notice. TC 976 , TC 971 (AC 010) or TC 150 is pending on the notice module and the overpayment will not exceed the updated tax information (Check TRDBV or AMS to review the pending return to decide if TC 976 will post with tax liability.) Void or retype the notice as appropriate. TC 976 has posted on BMFOLT, and the overpayment will not exceed the updated tax information Void or retype the notice as appropriate. If the module with excess credits also has zero tax liability (TC 150 for .00) then follow the steps below. Check for other TINs refer to IRM 3.14.2.6.1.1.1, Employer Identification Number (EIN) for more information. Also, check the return, if provided, for any other TINs. Use CCs INOLE and ENMOD to check for possible name changes. Check the return if provided for any other names. Note: Sole proprietors may incorporate and file incorrect preprinted forms. If a Doing Business As (DBA) is entered on the return if available, check CC NAME with the appropriate definer B for a corporation TIN. If an indication of previous sole proprietor is found on the return if provided, check CC NAMEB/NAMEI for a sole proprietor's TIN. If another TIN is found, use IDRS to decide if the excess credit belongs on the other TIN. Decide if the taxpayer is liable for other types of tax. The credit may belong on a different MFT. Research excess payments to verify the payments belong to the taxpayer and have posted correctly. Request the return using Form 2275, Records Request, Charge and Recharge, only if it is required to complete the review of the notice. Use IAT Tool Fill Forms to make the request easier, if the return is needed. If prior history indicates the taxpayer is liable for tax on the notice module (significant TC 150 amount on prior modules), refer to the table below. If Then The payment(s) belong on another TIN or MFT Delete the refund. Transfer the payment to the correct module using IAT. Void or retype the notice as appropriate. Prior history indicates the taxpayer has filed returns with tax liability and payment patterns are in line with the payments posted to the notice module Note: Prior history research is limited to 2 years. Example: BMFOLT for the account being reviewed shows tax (TC 150) of $100.00 the previous year and $105.00 the year before that with matching payments from the taxpayer. This is a clear payment pattern. Delete the refund. Set -R freeze by inputting a TC 570 using REQ77. Print the notice. Exception: If CCC F, see below. If CCC F Allow the refund if payments or credits are not posted on the next module. A posted payment is out of line (amount and/or date) Delete the refund. Set -R freeze by inputting a TC 570 using REQ77. Print the notice. TC 570 is pending on the notice module Delete the refund. Print the notice. TC 976 , TC 971 (AC 010) or TC 150 is pending on the notice module and the overpayment will not exceed the updated tax information (Check TRDBV or AMS to review the pending return to decide if TC 976 will post with tax liability.) Delete the refund. Void, label, or retype the notice as appropriate. TC 976 is posted on BMFOLT, and the tax liability matches the refund amount Delete the refund. Void, label, or retype the notice as appropriate. Unable to determine where payment should be applied Delete the refund. Set -R freeze by inputting a TC 570 using REQ77. Print the notice. Exception: See IRM 3.14.2.6.8, CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze for correct case resolution for CP 267 and CP 268. When a taxpayer changes the reporting agent within a given quarter and does not terminate the contract with the old agent, the old agent is still required to file tax returns until the contract is terminated. Any credits posted to the module must be held until the new agent files the correct return. Refer to the table below. If And Then Prior history indicates taxpayer did not file returns for prior quarters Note: Your prior history research is limited to 2 years. TC 846 is present on the account Follow instructions above in IRM 3.14.2.6.7.2 (13), Credit Discrepancy - Excess Credits. Prior history indicates taxpayer is liable for tax and payments are posted to the module There is no posted or pending TC 976 on the module and TC 846 is not present Void the notice. Input a REQ77 TC 570 to set the -R freeze. Add ELF150ZERO as an additional History Item. Prior history indicates taxpayer is liable for tax and payments are posted to the module There is no posted or pending TC 976 on the module and TC 846 is present Void the notice. Delete the refund using CC NOREF. Input a REQ77 TC 570 to set the -R freeze. Close base and input ELF150ZERO as Case Activity (history). Prior history indicates taxpayer is liable for tax and payments are posted to the module If a pending or posted TC 976 is on the module and no TC 846 is present Void the notice. Add ELF150ZERO as an additional History Item. Research indicates there is a partial offset of the refund and a CP 138 has generated in the same cycle as the notice cycle There is no posted or pending TC 976 on the module and a TC 846 is present Print the notice and the CP 138. Do not reverse the offset. Use the table below to determine if the refund should be released to the taxpayer. If: Then: The excess credit is timely and in line with other posted credits in the module and does not belong on any other module Allow the refund to release and print the notice. The excess credit is an unclaimed Credit Elect (TC 716 or TC 710) Allow the refund to release and print the notice. The excess credit is an extension payment that does not belong on another module Allow the refund to release and print the notice. Information on the return explains the excess credit or indicates the taxpayer is requesting a refund for the amount of the excess credit Allow the refund to release and print the notice. CCC F- Final Return and payments or credits are not posted on next module Allow the refund to release and print the notice. There is no indication an amended return will post to the notice module Allow the refund to release and print the notice. The excess credit is an unclaimed Credit Elect (TC 716 or TC 710) Allow the refund to release and print the notice. The excess credit is an extension payment that does not belong on another module Allow the refund to release and print the notice. Information on the return explains the excess credit or indicates the taxpayer is requesting a refund for the amount of the excess credit Allow the refund to release and print the notice. Form 1120/1120-S - Specific Review: If an MFT 02 return has been filed with a TC 150 .00 and a TC 610 payment is refunding, it may be a Form 1120-S. In some instances, a Form 1120-S may not have tax liability, and the income reported is taxed to the shareholders on their individual tax returns (Schedule K-1). Caution: Please be aware that the tax can be for $ .00 if the taxpayer's income is less than their deductions. In these instances, allow the refund, do not set a freeze on these accounts. To decide if a return is a Form 1120 or a Form 1120-S, check CC ENMOD and refer the Form 1120/1120-S Decision Table below. If Then Action TC 091 or TC 096 has posted with Blocking Series 950 - 999 The return was originally a Form 1120-S and the filing requirements have been changed to Form 1120. The taxpayer will be liable for tax. If the return is available: Delete the refund using CC NOREF. Assess the tax using CC REQ54 with Hold Code 3. Void the notice. If the return is not available: Request return using Form 2275, Records Request, Charge and Recharge. Use IAT Tool Fill Forms to make the request easier. Delete refund if applicable using CC NOREF. Input a H notice disposition if return is not received before cycle closeout. Once the return is obtained, follow instructions above under the heading, "If the return is available". No TC 091 or TC 096 has posted Tax must not be assessed. Allow the refund. Form 1041T, Transmittal of Estimated Taxes Credited to Beneficiaries - Specific Review: Note: Form 1041T is used by an estate or trust to make an election to transfer the estimated tax payment from the 1041 account to the individual accounts of the beneficiaries. Review the account to decide if estimated credits have already been transferred to the beneficiaries. Refer to the Decision Table below. If Then The credits have already been transferred No action is required. The credits have not been transferred and are frozen with a -P Freeze No action is required. The credits have not been transferred and are refunding Notify lead to contact Accounts Management Function for correct resolution. Note: If Form 1041T is attached to the Form 1041, detach it and route it to Accounts Management.

# Credit Discrepancy - Missing Credit

3.14.2.6.7.3 (01-01-2025) Credit Discrepancy - Missing Credit Missing credits occur when the total credits posted to the module are less than the amount claimed by the taxpayer. The credit may have posted to another module, or the taxpayer may not have made the payment. To decide the missing credit amount: Subtract the posted credits from the amount claimed on the return. Consider that any credit elect (TC 716/TC 710) or credit applied (TC 700) posted to the module may not be claimed on the return. Consider that the taxpayer may have claimed credit elect but not received any or not received the full amount. Reminder: If there has been activity on account by Accounts Management or some other area, involving the transferring of credits or payments, (i.e., AP, PN, CU, RS, TP credits), reflect payment and use appropriate label. Examples of notices reviewed are CP 101, CP 102, CP 107, CP 134B and CP 834B. List is not all inclusive. Check the selection key for an indication of how to find the missing credit. See Exhibit 3.14.2-5, NRPS Selection Keys, for a complete listing of selection keys. Note: If the selection key is Key 31, or the taxpayer is claiming a credit or payment(s) that refunded in a prior year, prior quarter, or from a different MFT, then use Label 8. Key 40 is a common selection key for missing credits. Key 40 notices are selected by NRPS because the underpaid tax amount equals a posted credit on another module. The NRPS package provides a possible payment in another module that meets the criteria for resolving the balance due on the notice module. Review the entire NRPS package and complete the steps below to verify if the payment identified in the NRPS package should be moved to the notice module or remain where it posted. Look for pending (AP, PN, CU, RS, TP) credits on the contents page of the NRPS package and IDRS. Note: If a TC 650/660 (Doc Code 97) payment dated later than the last day of the tax period is unclaimed and overpays the module, the payment may roll to the next tax period or into the FTD module. (A rolled payment will post on BMFOLT as TC 650/660 for .00). Refer to Payment Decision Table below. If Then The payment is not claimed and does not appear to belong on the notice module Do not include the payment amount on the notice. The payment belongs on the module but has or will roll (i.e., is posted on BMFOLT as TC 650/660 for .00) it may require monitoring for correct determination Transfer the payment back into the notice module. (Use bypass indicator(s) or freeze code(s) as applicable) The payment has posted but does not belong on the notice Decide where the payment belongs and transfer to the correct module. The taxpayer is claiming a credit or payment(s) that refunded in a prior year, prior quarter, or from a different MFT Mark your disposition and add Label 8 to the notice. Using the NRPS package and IDRS, look for credits that match the missing credit amount, the underpaid tax amount, or the liability schedule. Look for credits that match taxpayer's payment pattern. Compare the number of payments made on the notice module to the prior and future tax modules. Also compare the dates and money amounts of the payments. Like payments on employment tax returns are payments for the same amount, made weekly, biweekly or monthly based on the taxpayer's deposit requirements. Most employers with like liabilities and like payments are monthly depositors with deposits due by the 15th day of the month following the month the employees are paid. Transfer a like payment only if timely for the module based on the liability due date or payment pattern. Do not transfer a like payment if the payment is dated earlier than the beginning of the tax period for the notice module. Multiple transactions may be required to transfer payments into correct modules. IDRS is required to research prior tax periods not included in the NRPS package. Example: The notice module is missing credit is a like payment. Payment found in the FTD module is dated early for the notice module but timely for the prior module. A payment dated timely for the notice module has posted to the prior module. Multiple transfers are required. If the missing credit(s) is found on an open module (no TC 150), before transferring the credit determine if it is in-line with the other payments in the notice module. In-line refers to similar payment amounts that have posted to your module. Note: When inputting a credit transfer, follow instructions in IRM 3.14.2.7.7, Credit Transfers, and IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48. Transfer a late payment if there is a clear indication based on payment amount, liability schedule, total deposits or balance due amounts (does not apply to like payments). Example: A payment is a dollar and cents payment that matches a liability or is the amount of the missing credit. Do not transfer credits posted earlier than the beginning day of the tax period. If credits posted earlier than the tax period are claimed on the return, this may indicate the return has posted to the wrong tax period. Decide the correct Filing Requirements if Form 941 is filed and the credit(s) have posted to a Form 943 open module, or if Form 943 is filed and the credit(s) have posted to a Form 941 open module. The taxpayer may have filed the incorrect form. Check for tax liability on prior tax modules using CC BMFOLT to decide which form the taxpayer is liable to file. If the taxpayer has filed the incorrect form, do not transfer the credit(s). Print the notice instead. Note: The taxpayer's entity (first name line and/or DBA) may serve as a guideline to decide if the taxpayer is an agricultural Form 943 filer. If the return is available for review, verify the tax period and refer to the Tax Period Verification Decision Table below. If Then The tax period matches Print the notice. The tax period is incorrect and belongs on the tax period where the credits have posted Reprocess the return to the correct tax period. See IRM 3.14.2.6.18 , Reprocessing Returns. When the return is not available for review, refer to the decision table below: If And Then An incorrectly posted return regardless of selection key is suspected (not certain the return is a reprocess) or The return posted incorrectly based on 2 or more claimed credit(s) or one payment for the full amount of tax, that posted timely to an open module (no TC 150) regardless of selection key The notice is reviewed before Friday of current cycle 1. ESTAB for the return. 2. Open a control base. 3. Use notice disposition H (Hold). 4. Input STAUP for 9 weeks. 5. After the return is received, reprocess if posted incorrectly. See IRM 3.14.2.6.18 Reprocessing Returns. Input Hold Code 4 on CC REQ54. 6. If the return is not a reprocess, reduce STAUP to 5 cycles. 7. Close the control base. If a missing credit is found on a module with TC 150 posted use the decision table below: If Then The liability schedules or payment dates indicate misapplied payments between multiple modules. Transfer multiple credits. Use proper bypass indicators to prevent unpostables and ensure all credits post in the same cycle to prevent an erroneous notice. Transfer the credit in before transferring credit out to prevent a settled module from going into a balance due status. Caution: Do not put a full paid (settled) module into balance due. Credits located on another module match the missing credits or tax of the notice module, and the credits posted on the notice module match the tax or credits claimed on the other module. Do not transfer the credits or reprocess the returns. Order the other return(s) and adjust the tax for both modules. Missing credit has previously refunded from another module Do not transfer the credit. Missing credit is located on a full paid module (balance .00) Do not transfer the credit. (Do not put a full paid module into balance due.) Missing credit is located on a balance due module and the taxpayer has received a previous notice that included the credit Do not transfer the credit. The missing credit is located on a module with a Q- Freeze and credit is available for transfer. Transfer the credit. Taxpayers often claim the Q- Freeze credit on a later module. The missing credit is on a module with a Q- Freeze and is the amount of overpayment before any penalty and/or interest Transfer the credit and allow CP 260 to generate for penalty and interest. The missing credit is on a Q- Freeze but is not the total amount of overpayment (partial credit is needed to full pay tax on Q- Freeze module) Transfer the available credit as a lump sum module balance (TC 820/700). Exception to IRM 3.14.2.6.1.5.2 (Lump Sum Credit Offset TC 826/706, 820/700): For this situation, use the date of the payment claimed as the credit availability date. Note: Refer to IRM 3.14.2.6.8, CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze, review for additional information. Reminder: At least three cycles must remain when transferring credits from a Q- Freeze to allow sufficient time for the transfer to post. When less than three cycles remain on the Q- Freeze, refer to the Q- Freeze Decision Table below. If Then All debit modules have -E Freeze 1. Transfer credit with applicable posting delay codes to allow transfer to post after TC 841. 2. Complete notice disposition in cycle. 3. Monitor for TC 846 and intercept the refund. All debit modules do not have -E Freeze Credit will offset to the earliest debit module. 1. Complete notice disposition in cycle (Label the notice if FTD penalty is on the account and unable to decide recomputation). 2. Monitor for any TC 846 posting and intercept the refund. 3. Reverse offsets as required and transfer credit to notice module. Review NRPS package and return (if included in the NRPS package) for evidence of another EIN. Research IDRS for missing credit(s) for any other EIN found. Verify the return has posted to the correct EIN. Transfer available missing credit(s) or reprocess return based on review. Caution: Do not transfer credit(s) or reprocess a return with a merge in process. CC BMFOLI will not display an index of tax modules when accounts are merging. Instead, MRG-PRO will be indicated. TC 011 is located on CC ENMOD on the losing module's TIN. The XREF TIN listed under TC 011 is the receiving module. (The account with TC 011 will merge to the XREF TIN listed) If credits will be merged into a balance due notice module, consider the credits as pending to the notice module and input CC STAUP to prevent the generation of an erroneous CP 504. If credit will fully pay module void notice. Use Local Control File to select any adjustment notice. If the credit will not full pay module use appropriate label.

# CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze

3.14.2.6.8 (01-01-2026) CP 267 and CP 268 Review - Notice of Excess Credit Q- Freeze A Q- Freeze (Rollover Freeze) is set and CP 267 or CP 268 generates when the module contains more credits than claimed on the return. The credit is frozen from refunding or offsetting for 15 cycles from the posting of the TC 150. See IRM 3.14.2.6.6.16, Rollover Freeze (Q-) for more information. CP 267 is a non-math error notice with unclaimed excess credit(s) that were rolled into the notice module because it met roll-over criteria. This notice informs the taxpayer of possible misapplied payments and allows them to advise the IRS of their correct application. This notice requires a response from the taxpayer. The CP 268 is a math error notice with unclaimed excess credit that was rolled into the notice module because it met roll-over criteria. This notice informs the taxpayer of a math error on the return and possible misapplied payments, resulting in an overpayment. It allows the taxpayer the opportunity to advise IRS of the validity of the math error and of proper application of the credits. This notice requires a response from the taxpayer. To view an exhibit of a CP 267 or CP 268 refer to the Taxpayer Correspondence Services (TCS) website Servicewide Notice Information Program SNIP. The Q- Freeze will release when any of the following occurs: The module balance becomes zero or debit balance. A TC 652/662 posts and the credit discrepancy is resolved, and any remaining credit is within ≡ ≡ ≡ ≡ ≡ of the credit amount claimed on the return or the remaining credit is ≡ ≡ ≡ ≡ or less. A CC REQ54 is input with Hold Code 3 and Priority Code 4. 15 cycles have elapsed, and no corrective action was taken on the account. CPs 267 and 268 Review Complete all General Review Procedures. See IRM 3.14.2.6, General Review Procedures. Exception: If the return is not signed, do not correspond for a signature unless releasing the refund. Reference IRM 3.14.2.6.1.1.6, Signatures, as a guide on requesting signatures on a paper filed return. For CP 268 only, verify the math error condition. Use the selection key as a guideline to assist in the review of the notice. Review the account for -A Freeze conditions that may affect notice disposition. Refer to the -A Freeze Condition chart below. If Then The module contains a -A freeze with no case control or open control base to Accounts Management. Do not input CC REQ54 TC 290 .00. Void the notice. The control base indicates the case is assigned to another employee Contact employee to decide case resolution and notice disposition. TC 976, TC 971 (AC 010) or TC 150 is pending on the notice module, or TC 976 is posted on BMFOLT Note: A pending TC 971 (AC 010) or TC 150 on the notice module will post as a TC 976 and create a -A Freeze. Void the notice. The overpayment is caused by a rolled payment and the module that the credit rolled from now has a -A freeze or pending TC 976 Print the CP 267. Do not release the credit (Q freeze). Exception: If the -A freeze is being released with a pending TC 290 .00 with no change to tax, release the Q- freeze (TC 290 .00, HC 3, PC 4) and apply Label 22 in OLNR. Compare the tax amount on the notice module with the tax amount on the return (if the return is necessary to complete the review of the notice or if the return is available for viewing on EUP). Use the decision table below for more information. If Then The tax return is not included in the NRPS package, and you suspect a decimal point, transposition or transcription error If the return is necessary to complete the review of the notice, request the return using CC ESTAB or view the return on EUP, if available). If return is needed for review and not received in time for cycle close-out, input a disposition of H until the return is received and the notice can be reviewed. The tax amount differs from the tax amount on the return and is not an obvious transposition or decimal point error Research to determine the cause. If the cause cannot be determined, then request the entire block to determine if a slipped block condition exists. Reference Section IRM 3.14.2.6.4.3 Slipped Blocks and Mixed Data Blocks. Mark Notice disposition H until the block is received. Note: Review the return for taxpayer request for credit elect. If credit elect is requested but not transcribed, manually transfer the amount requested on the return. When inputting a credit transfer follow the instructions in IRM 3.14.2.7.7, Credit Transfers, and IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48. Caution: At least three cycles must remain when transferring credits from a Q- Freeze to allow sufficient time for the transfer to post. When less than three cycles remain, review BMFOLT for debit modules containing a -E freeze. See IRM 3.14.2.6.8 (7), Q- Freeze Decision Table, below for more information. Review the NRPS contents page and IDRS for pending transactions (AP, PN, UP, CU, RS or TP) that may affect notice disposition. See the table below for more information. Note: If a TC 650 or 660 is pending and the payment is dated later than the last day of the notice module, the payment may roll to the next period or into the FTD module. Check CC BMFOLT; a TC with a dollar amount .00 indicates the credit rolled while attempting to post. If the rolled payment belongs on the notice module, then transfer the payment back into the notice module. Decide if other payments will be transferred out and excess credit released. If Then The taxpayer indicates on their return to apply credit to the next quarter (year) Manually transfer the amount requested and void/retype the notice as appropriate. There is no indication because the return does not show either a refund or credit elect box is checked. Print the notice. If the CCC is set to E but there is no credit available or the balance on the return is zero. Print the notice. If a TC 670 and TC 570 with the same DLN created the overpayment, look for an incoming correction to the original return (i.e., pending TC 976, TC 971 (AC 010) or pending TC 150). If present, void the notice. If not present, print the notice. Researching CP 267 / CP 268 Use the NRPS notice module data (including liability schedule, if available) to decide which credit(s) or part of a credit created the excess credit discrepancy. Subtract the total credits claimed on the return from the actual total credits posted. If prior history indicates the taxpayer should be liable for tax but the notice module contains a TC 150 for $.00 and not all fields in BRTVU are $ .00, you must follow procedures to set a -R Freeze on the account. See the case processing table below and IRM 3.14.2.6.7.2(13), Credit Discrepancy - Excess Credits, for more information. Case Processing 1. If CCC F, do not set the -R Freeze 2. Print the notice in cycle 3. Input REQ77 TC 570 Review other NRPS modules to decide if the unclaimed credit on the notice module is claimed or belongs on another module. Review the return (if included in the NRPS package) for any explanation of the unclaimed credit. Research the NRPS package and the return (if included in the NRPS package) for any indication of another TIN. If another TIN is found, research IDRS to decide if the unclaimed credit belongs on the other TIN. If a payment(s) rolled or was transferred in from another module or TIN creating the overpayment, verify there is no balance due or pending assessment on that module or TIN. If a -A Freeze is on the losing module, do not release the Q- Freeze. Print the notice. (Requires IDRS research.) If the date of the overpayment is timely for an earlier tax period or is timely and the payment amount is in-line for another MFT, research to decide if the payment belongs on the earlier tax period or other MFT. (Requires IDRS research if the prior tax module or other MFT is not on NRPS.) Compare the tax liability data on the notice module with credits posted on other modules. If the tax matches credits posted timely on another module, decide if the return posted to an incorrect tax period and should be reprocessed. (Refer to IRM 3.14.2.6.18 Reprocessing Returns.) If a payment does not appear to belong to the taxpayer, use RTR or CC EFTPS definer E to verify that the payment belongs to the taxpayer. Review the check and voucher (if applicable) for an indication of another TIN or for correct posting of the payment. Follow instructions below for Q- Freeze resolution and notice disposition. Resolving CP 267 / CP 268 Q- Freeze - Releasing Q- Freeze: If the overpayment is caused by a rolled payment and the module that the credit rolled from now has a -A freeze or pending TC 976, print the CP 267. Do not release the credit (Q- freeze). Input TC 290 .00, Blocking Series 15 or 17 for MFT 05, HC 3, PC 4, NSD, on CC REQ54 to release the Q- Freeze if the overpayment amount is $10.00 or more in the following situations listed in the table below: IF AN UNCLAIMED OVERPAYMENT IS CAUSED BY THEN RELEASE THE CREDIT AND Credit Elect TC 716/710 TC 700 credit from another module Rolled payment (99 in DLN) Payment transferred in (Doc 24/34) COBRA Premium Assistance Credit TC 766 HIRE Credit TC 766 Apply Label 22. The TE must look for the actual, specific, unclaimed overpayments that are exact or within $10.00 of the overpayment. Caution: If the overpayment is not exact but is equal to any combination of these credits within $10.00 before penalty and interest, release the credit and apply Label 22. Reminder: If overpayment amount is $ 9.99 or less, a REQ54 290 .00 is not necessary. The payment will release automatically. Do not input CC REQ54 TC 290 .00 if there is a -A Freeze on the module. Posting of a TC 290 .00 would release the -A Freeze. Void the notice if Accounts Management does not have an open control base otherwise reference section on the -A Condition in the table above, IRM 3.14.2.6.8 (4)d, for the -A Freeze Condition chart. Resolving CP 267 / CP 268/ Q- Freeze - Transferring credit(s) to balance due module(s): Caution: At least three cycles must remain when transferring credits from a Q- Freeze to allow sufficient time for the transfer to post. When less than three cycles remain on the Q- Freeze, refer to the Q- Freeze Decision Table below. If Then All debit modules have -E Freeze Transfer credit with applicable posting delay codes to allow transfer to post after TC 841. Complete notice disposition in cycle. Monitor for TC 846 and intercept the refund. See IRM 3.14.2.7.1, Refund Intercepts using Command Code (CC) NOREF, for more information. All debit modules do not have -E Freeze (Credit will offset to the earliest debit module.) Complete notice disposition in cycle (Label the notice if FTD penalty is on the account and unable to decide recomputation). Monitor for any TC 846 posting and intercept the refund. Reverse offsets as required using a credit freeze on the transfer and transfer the payments as needed. To decide if a payment will be transferred to a balance due module: review the account for balance due modules, liability amounts, previous notice amounts, credits claimed by the taxpayer minus credits posted to the module and other payments posted. Transfer only those credits that belong on the balance due module. Do not transfer credits based only on the availability of the Q- Freeze credit. Transfer the entire payment if claimed on another module. Do not split a payment unless taxpayer intent can be determined. Research TC 670 payments on the RTR system. Payments may be intended for a balance due module or for another MFT or TIN. Check for balance due amounts, previous notice amounts, and taxpayer intent. If check or voucher indicates the payment belongs on another TIN, transfer the payment. If the payment belongs to the taxpayer, but a determination to transfer the payment cannot be made, print the notice. Reminder: If TC 670 and 570 with the same DLN is creating the overpayment, and a TC 976, TC 971 (AC 010), or TC 150 (correction to the module) is pending, void the notice. Resolving CP 267 / CP 268/ Q- Freeze; Transfer credit(s) to a future open module(s) (No TC 150) when all the following conditions are met: Caution: At least three cycles must remain when transferring credits from a Q- Freeze to allow sufficient time for the transfer to post. When less than three cycles remain, see IRM 3.14.2.6.8 (7), Q- Freeze Decision Table, for more information. The payment(s) have valid dates for the next period The payment amounts are in-line with prior history payment patterns A payment is missing on the next module (based on posted data and history of payment patterns) Use the Decision Table below when the credit transfer resolves the Q- Freeze as follows: If the credit transfer Then Results in a partial excess credit remaining on the module and the taxpayer is not in a balance due status. Retype the notice, or Void the notice if the remaining credit is $9.99 or less of the overpayment the taxpayer expected. Note: The Q- Freeze does not need to be resolved. Resolves any remaining excess credit on the module and the account is in zero balance. Void the CP. Does not resolve the Q- Freeze but the unclaimed excess credit remaining on the module meets the criteria for releasing the Q- Freeze. Retype the notice to remove the transferred credit, apply label 22 in OLNR to and release credit with TC 290 .00, HC 3, PC 4, and PD 1. Results in a balance due on the notice module for penalty and/or interest only. Transfer the credit and retype CP 267 to a CP 161 balance due notice. Results in a balance due for underpaid tax on the notice module when the underpayment can be decided by comparing the liability schedule with the tax deposits. Transfer the credit and retype to a CP 161 balance due notice. Results in a balance due for underpaid tax but the missing liability payment cannot be decided by comparing the liability schedule with the deposits. Do not transfer the credit. Print the notice. Q- Freeze Retype Condition Flow Chart. Use the flow chart below to determine the actions that should be taken on notices with Q- Freeze on the module. Figure 3.14.2-3 Q- Freeze Retype Condition Flow ChartThis flow chart should be used to determine the actions to be taken on notices with a Q- Freeze on the module.Start (A) This is the start of the -Q Freeze Retype Condition Flow Chart for CP 268 and CP267- after inputting a credit transfer. Continue to Decision (1).Decision (1) Is there a math error? If Yes, Continue To Process (a) If No, Continue To Process (b)Process (a), Continue to Decision (2)Decision (2), Will the module be balance due or overpaid?If Balance Due, Continue To Process (c) If Overpaid, Continue To Process (d)Process (c) If only math error remains convert notice to CP 102 or 132 as appropriate. This is the end of the flow chart.Process (d) Retype the CP 268. This is the end of the flow chart.Process (b) Continue to Decision (3)Decision (3) Is the module balance due or overpaid/even balance? If Balance Due, Continue To Process (e) If Overpaid/Even Balance, Continue To Process (f)Process (e), Retype CP 267 to a CP 161. This is the end of the flow chart.Process (f) Continue to Decision (4)Decision (4), Are you returning to taxpayer figures? If Yes, Continue To Process (g) If No, Continue To Process (h)Process (g) , Void CP 267. This is the end of the flow chart.Process (h) Continue to Decision (5)Decision (5), Is the credit elect different than what the taxpayer expected? If Yes, Continue To Process (i) If No, Continue To Process (j)Process (i), Retype CP 267 to CP 145. This is the end of the flow chart.Process (j), Continue to Decision (6)Decision (6), Is the taxpayer's overpayment reduced only due to interest and penalties being charged? If Yes, Continue To Process (k) If No, Continue To Process (l)Process (k) , Retype CP 267 to CP 173 or CP 210 as appropriate. This is the end of the flow chart.Process (l), Retype CP 267. This is the end of the flow chart. Please click here for the text description of the image. Retype the CP 267 or CP 268 notice based on the account conditions that remain after all corrective IDRS actions have been input on the module. Refer to the table below. A math error remains with the taxpayer figures on the tax return. A credit discrepancy remains. The account is in balance due status. Note: If none of the above apply, see IRM 3.14.2.7.10.3 , Voiding Notices, for more information. Note: CP 267 and CP 268 can only be retyped to one of the following CP notice types, due to programming limitations. Follow instructions in IRM 3.14.2.7.10.5, Retyping Notices, when retyping to one of the notices listed below. Caution: If you are unable to retype the CP 268 to the necessary CP and the taxpayer must receive a notice (balance due), retype the CP 268 to the corresponding math error notice, even if no math error remains. Update all fields on the retype screen as needed to match the account. Assign a TPNC 90 with the following wording: Your tax return was processed incorrectly due to an error. All necessary corrections have been made. This notice reflects the current balance due on your account. Original CP CP Retype Options 267 101, 102, 104, 111, 112, 114, 132, 133, 145,161, 268 268 101, 102, 104, 111, 112, 114, 132, 133, 145, 161, 267 Resolving CP 267 / CP 268/ Q- Freeze; Transfer a payment to another MFT when the payment fits the pattern per date and amount. Examples are shown in the table below: If a Then Small payment posted to a Form 941, 944, 945, or 1120 module Decide if the payment belongs on the Form 940 account. Large payment posted to a Form 940 module Decide if the payment belongs on a Form 941, 944, 1120, or 1041 account. Large even payment posted to the notice module Decide if the payment belongs on a Form 1120 or 1041 account. See specific review Form 1120, 1041, 990 T in IRM 3.14.2.6.8 (13), Specific Review Form 990, Form 1041 and Form 1120. Form 944 filer does not meet the qualification (whose annual liability for social security, Medicare, and withheld federal income taxes is not $1000 or less). Move the credits to MFT 01 for Form 941. Caution: At least three cycles must remain when transferring credits from a Q- Freeze to allow sufficient time for the transfer to post. When less than three cycles remain, see IRM 3.14.2.6.8 (7), -Q Freeze Decision Table more information. Specific Review Form 990, Form 1041 and Form 1120: Check the notice module for posted estimated tax payment(s). Transfer payment(s) from the notice module to the correct module if the payment amount matches other posted payments and the date is in line with required estimated tax payments. Transfer the payment if it is one-fourth or a multiple of one-fourth of the total tax liability on the notice module and the payment date is in line for the next tax year module. Example: The next module is missing the first two Estimated Tax deposits. The overpayment on the Q- Freeze is one-half of the notice module's tax liability. Transfer the payment per taxpayer intent to combine both payments. If a misapplied payment is transferred from a notice module with an estimated tax penalty, and the overpayment per the taxpayer is reduced by the penalty, retype the notice to a CP 173 (if no other discrepancy exists). Review module for the incorrect posting of TC 806 (Credit for Withheld Taxes) or TC 766 (Refundable Credits). Check for payment(s) posting to the module that match the TC 806 or TC 766 amount. If the credit is incorrect, reverse the TC 806 with TC 807 (credit reference code) and the TC 766 with TC 767(credit reference code) using CC REQ54. If transferring a timely misapplied payment from a notice module for Form 940, 941, 943, 944, or 945, check CC FTDPN or PIFTD for FTD penalty computation and refer to the Transferring a Timely Payment Decision table below: If Then An FTD penalty (TC 186) has not posted on the notice module, but CC FTDPN indicates a penalty amount over tolerance The FTD penalty will assess when the credit transfer posts. Refer to Q- Freeze Retype Condition Chart to decide if notice must be retyped to the applicable notice or voided and allow CP 210 to generate. An FTD penalty (TC 186) has posted on notice module and CC FTDPN or PIFTD indicates the penalty will recompute The penalty will recompute when the credit transfer posts. Use LCF to void the next adjustment notice or stop an adjustment notice from being issued using CC REQ54, 290 .00, Hold Code 3. (See Q- Freeze Retype Condition Chart for notice disposition.) If LCF is being updated, see IRM 3.14.2.5.4.1 , NRP97 Input Information. Note: Specific Review Credit Elect: If a Credit Elect (TC 836) has offset from the notice module to the next module (TC 716), and a debit balance results when a misapplied payment is transferred, reverse the amount of offset needed on the notice module. Reverse offset with TC 832/712. Notify the taxpayer of any reduced Credit Elect amount on the retype if retyping to a settlement with the pop-in paragraph. Type CP 145 if the Credit Elect pop-in paragraph is not included on the retyped notice (such as CP 173 or CP 210). Specific Selection Key Review: Follow applicable procedures above to review, research and resolve CPs 267/268: Selection Keys 01 or 03 - CP 267 overpaid for $250,000.00 or more: If the taxpayer claimed at least a $1,000,000.00 but less than $10,000,000.00 refund initiate a manual refund to avoid additional credit interest. If additional unclaimed credits remain on the module, do not release the Q- Freeze. Retype the notice to reflect the unclaimed payments. (Do not address the $1,000,000.00 manual refund because the taxpayer is expecting it.) However , if the refund is questionable in nature and taxpayer intent cannot be decided, print the notice. Selection Key 11: The overpayment amount is equal to or greater than 100 times the tax liability - verify tax amount for decimal error, transposition error, or transcription error. If the tax is incorrect, adjust on CC REQ 54. For Forms 941, 943, 944, and 945, compute FTD penalty on CC FTDPN and assess if penalty amount is ≡ ≡ ≡ ≡ ≡ ≡ or more. See IRM 3.14.2.6.7.1.3, Decimal Point Errors Review and Correction, for more information. Selection Key 18: TC 186 and Schedule Indicator Code (SIC) 1 with Schedule B attached to return - Ensure the criteria for SIC 1 is met. If the liability schedule has been disregarded incorrectly or transcription errors are found, verify addition on the Schedule B. If the schedule is valid, compute the FTD penalty on CC FTDPN and adjust penalty according to the computation. Selection Key 34 - Select if the overpayment amount is equal to the TC 716/TC 710 +/- $10.00 before penalty and interest. If so, release credit and apply Label 22. Selection Key 12: The overpayment amount is between $500.00 and $24,999.99 and no other CP 267 / CP 268 selection criteria are met. Selection Key 36: When the CP 267 / CP 268 notice amount is $500.00 or more and a TC 766 or TC 806 is present. Notice Disposition: Void if returning to taxpayer's figures. Void if TC 976 or TC 971 (AC 010) is posted or pending. Print if no changes are made, no action is taken on the account, or if a determination to transfer or release the overpayment cannot be made. Retype CP 267 / CP 268 to the appropriate notice based on corrective actions taken on the module and: * If a math error is found, add the appropriate TPNC(s), that clearly states the taxpayer's error, to the retyped notice (CP 268 or other math error notice as appropriate if no credit discrepancy remains). * OLNR will populate the fields depending on which notice the CP 267 /CP 268 is being converted. * Use a Hold Code 3 or 4 on an adjustment to prevent another notice when retyping the original notice or use CC NRP97 to intercept the next notice with the Local Control File. See IRM 3.14.2.5.4, NRPS Local Control File, and IRM 3.14.2.5.4.1, NRP97 Input Information for directions. * Use CC ACTON to enter a history item on IDRS when retyping, voiding and/or labeling a notice. If retyping to a different notice, include both CP numbers in the history item, such as CP267TO161 as an example. * If a balance due notice is held past the notice cycle, update the pay by date to the current cycle pay by date. Update the balance due, penalties, and interest to the 23C date. Refer to the Posting Cycle Chart in the BMF Notice Review Job Aid 2533-701. * For additional instructions refer to IRM 3.14.2.7.10, Notice Disposition. Apply Label 22 in OLNR only when releasing a credit elect TC 716/710, TC 700 credit from another module, rolled payments(s) or transferred in payments(s), COBRA, or HIRE credit TC 766. (See IRM 3.14.2.6.8 (10), Q- Freeze Retype Condition Chart). Note: The Q- Freeze will remain on the notice module if an unclaimed credit balance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ remains. Retype the CP 267/ CP 268 to reflect the correct credit balance. Reminder: A CP 260 credit reversal notice generates when a credit reversal transaction results in a debit balance ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Suppress a CP 260 with input of TC 570 on debit side of Doc Code 24 credit transfer. A secondary TC 570 will not suppress an adjustment notice. To suppress an adjustment notice, input CC REQ54, TC 290 .00, Hold Code 3. Note: Doc Code 34 (ADD34) credit transfer input with a credit freeze will not suppress a CP 260. If there are multiple IDRS transactions see the table below: If Then Releasing a Q- Freeze and completing a credit transfer (DOC Code 24, 34 and 48) Retype the notice to remove the transferred credit and add Label 22. Release the Q- Freeze with HC 3, PC 4. Use PD 1 on the CC REQ54 to delay the release one cycle past the credit transfer to avoid creating an unpostable condition. The remaining credit after completing a credit transfer is ≡ ≡ ≡ ≡ or less of the credit claimed by the taxpayer or the remaining credit is ≡ ≡ ≡ ≡ or less CC REQ54, Priority Code 4 is not required. The remaining credit will release automatically. Note: The Q- Freeze will remain in effect if the difference between the credit claimed and the remaining credit on the module is ≡ ≡ ≡ ≡ ≡ ≡ or more. Adjusting the tax or credits and releasing the Q- Freeze CC REQ54 must be input. Input a second CC REQ54 with Hold Code 3, Priority Code 4 to release the refund. (Posting Delay is not required.) Note: A CC REQ54 does not apply to a tolerance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Credit of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must be manually released with a second CC REQ54, Hold Code 3, Priority Code 4. Caution: Do not input CC REQ54 if there is a -A Freeze or a pending TC 976, TC 971 (AC 010), or pending TC 150 on the notice module. Void the notice in OLNR and leave a history in IDRS.

# CP 161 (CP 861 Spanish) Balance Due Notice - Non-Math Error

3.14.2.6.9 (01-01-2025) CP 161 (CP 861 Spanish) Balance Due Notice - Non-Math Error The CP 161 (CP 861 Spanish equivalent) is a non-math error notice informing the taxpayer of a balance due of $5.00 or more. The balance due may be the result of any combination of tax, penalties, and interest. Use the selection key as a guide for reviewing the notice. See Exhibit 3.14.2-5, NRPS Selection Keys. Look for pending (AP, PN, TP, RS, UP or CU) credits in the NRPS package and IDRS. If the payment overpays the module and is not pending on TXMOD or posted on BMFOLT, decide if the payment belongs on the notice module before including the payment on the notice. If the payment is UP, check UPTIN for the Unpostable Resolution Code to decide if the payment will post to the module. If the unpostable case is open, use CC UPCASZ to enter information to facilitate posting of the payment. Reminder: Input CC STAUPS for 9 cycles. Look for misapplied payments in the NRPS package. Look for credits that match the underpaid tax amount on the tax return and the liability schedule. When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers, and IRM 2.4.17, Command Codes ADD24/34/48, ADC24/34/48, FRM34 and DRT24/48. Reminder: Do not transfer credits dated earlier than the tax period. Check for credits on others MFTs and Fiscal year ending returns. Decide correct Filing Requirements before transferring credit. If timely credits have posted to a module with no TC 150, and they match the tax liability of the notice module, the return may have posted to the wrong tax period. Verify the tax period. Follow instructions in IRM 3.14.2.6.18, Reprocessing Returns and IRM 21.8.2 , BMF International Adjustments, for International notices. Do not void a CP 161 or CP 861 if fully paid by credits that offset (TC 706) into the notice cycle. A CP 138 will generate from the Losing module. Print the notice. Do not label if the offset partially pays the module. A CP 138 will generate from the losing module. Print the notice. Do not move TC 766 credits from a different module on a Form 8752, MFT 15 generating a CP 161. Only misapplied payments should be moved. Form 8288 MFT 17 (OSPC Only) Specific Review: Research using IDRS and BMFOLI for possible misapplied payment(s). The missing payment may have posted to the incorrect tax period. In this case, BMFOLI will show the account you are working and the account the payment posted to. If the Tax Period on the CP 161 is 20XX01 and the missing payment is on Tax Period 20XX02, look at the "DT-OF-TRFR>" on TXMODA to determine if the payment belongs to your module. Note: The Tax Period is always the Date of Transfer from Form 8288. See the two tables below for examples and the Form 8288 decision. Example: If DT-OF-TRFR> on TXMODA is 20XX0120, the Tax Period will be 20XX01. The Date of Transfer on TXMODA is always in YYYYMMDD format. TXMOD DT-OF-TRFR DISPLAY ADJ54 INPUT DT-TRNSFR FIELD INPUT YYYYMMDD MMDDYYYY Example: 20XX0120 (January 20, 20XX) Example: 012020XX If And Then The payment will satisfy the debit balance Penalties will recompute (TCs 166, 186, 176 or decrease TC 276) Transfer the payment in TC 290 .00, HC 3, DT-OF-TRFR> Note: On this screen (REQ54), input the DT-OF-TRFR as MMDDYYYY. Input a CC STAUP for 9 cycles Void the notice Forms 941/943/944/945 - Specific Review: If a tax liability schedule is attached but not transcribed, and a FTD Penalty (TC 186) is assessed on the notice module, refer to IRM 3.14.2.6.17.8 , Failure to Deposit Penalty. Forms 990 /1041/1120 series - Specific Review - ES Penalty (TC 170): If the module contains an Estimated Tax Penalty (TC 170), the missing payments may include the balance of tax, plus the taxpayer's computed ES Penalty. Add TC 170 to the balance due to decide the missing payment amount. Note: When timely credits are applied to a module containing a TC 170, a CP 234 transcript will generate. Accounts Management will review and recompute the ES Penalty if necessary. Forms 990 /1041/1120 series - Specific Review - Penalty (TC 276, 166) and Interest (TC 196): The taxpayer may have included any combination of FTP penalty, FTF penalty, and interest in the balance due amount on the return. If the return is included in the NRPS package, review thoroughly for any notation. Also, consider the taxpayer's addition of penalty and interest when looking for a missing payment. Note: Return not included in the NRPS package : If a payment is dated close to the received date of the return, but overpays the tax due, check CC INTST to the date of the payment. If the balance due on INTST is the amount of the payment, the taxpayer computed penalty and interest, transfer the payment. Forms 990 /1041/1120 series - Specific Review - Extensions : Search for timely credits and an extension of time to file. A timely filed extension with or without credits can post to an incorrect tax period or EIN. If you decide the extension was intended for the notice module, transfer the extension. See IRM 3.14.2.7.9 , Extensions. Form 990 Series - Specific Review: CP 161 generates as a settlement notice for missing credits. Decide missing credit amount by subtracting claimed credits from credits posted. Check for tax due, tax due plus penalty and/or interest, and missing claimed credits. If payments posted to other modules appear to be timely for the notice module, use CC BRTVU to decide total claimed credits. (Extension payments may not appear on NRPS as claimed credits. Form 2290 - Specific Review: CP 161 is issued when there is an L- Freeze present on the account. See IRM 3.14.2.6.6.12, Form 2290 (L-), for more information on Form 2290 L- freeze. The Form 2290 (MFT 60) Heavy Highway Vehicle Use Tax, is unique because the tax rate is charged per vehicle in use. The tax period and tax are based on the month(s) the vehicle(s) was put in use and the number of vehicles in use. These notices are selected for review due to payments posted to a prior year settled module. Review the account, including the previous module(s) to see if the balance due can be resolved and/or prior year payments can be moved. After completing general review procedures (IRM 3.14.2.6, General Review Procedures), verify the tax return has been processed to the correct tax period. The determination for From 2290 is different than other forms. View the notice module on TXMOD and review the tax per taxpayer and TC 150 amounts. Example: If the tax return has posted as 202307 for one vehicle in category column V, then the tax charged should be $550.00. Compare the posted tax (TC 150) on TXMOD to the data from BRTVU page R2, verifying the following: vehicle category column (VEH CAT), number of vehicles (NUM VEH A / NUM VEH B), and VEHICLE HIGHWAY TAX (per CMPTR). The amounts on BRTVU should match the posted TC 150 and Form 2290 tax rates found in Exhibit 3.14.2-29, Form 2290 (MFT 60)Tax Rates - Return and Extension Due Dates. If the TC 150, BRTVU, and Form 2290 tax rates match, using the NRPS package, IDRS and BMFOL, identify the payments that have posted to a prior module causing the overpayment. Using verified tax (steps above), return information (if available), RTR, EFTPS, and payment pattern history, decide if the taxpayer claimed or intended the payment(s) for the notice module. The prior year module must have a credit balance (overpayment) to move any payments to the notice module. Note: See (e) below if the module information does not match the processing and Form 2290 tax rate. If the payments belong on the notice module use the following table to determine action and notice disposition: If And Then 1. The taxpayer is claiming the payment on the notice module (or research has indicated the payment is misapplied) Moving the payment will not place the "from" module in debit (balance due) status Transfer the payment using the IAT credit transfer tool. See IRM 3.14.2.7.7 , Credit Transfers, for more information. 2. The taxpayer is claiming the payment on the notice module (or research has indicated the payment is misapplied) Additional credit will remain after the payment is transferred out Use a TC 570 on the debit side of the credit transfer to hold any remaining credit. 3. If the payment is timely Full pays the notice module (penalty and/or interest will abate) Void the notice. 4. If the payment is applied It is not timely, or there is still a remaining balance Use the appropriate label. See IRM 3.14.2.7.10.6 , Labeling Notices, for more information. If the TC 150, BRTVU, and Form 2290 tax rates do not match, a reprocess may be required. If a MeF return, follow IRM 3.14.2.6.18.1. If a paper return, request the document from files and follow IRM 3.14.2.6.18, Reprocessing/Adjusting E-filed Returns. Do not make a determination for reprocess without the paper return. Instead use OLNR disposition H to hold the notice. Reminder: If a notice needs to be held past cycle, the lead must notify the Headquarters analyst. Form 706 and Form 709 - Specific Review: Use CC IMFOL to research the IMF SSN (for joint returns check both SSNs) for possible misapplied payments. For Form 709, a missing extension payment may be posted to the Form 1040 account use the table below to determine account actions: If And Then There is excess credit on Form 1040 that is refunding The overpayment equals the amount claimed on the Form 709 1. Stop the refund on the Form 1040 account. Refunds in IMF can only be intercepted if there is a TC 570, DLN blocking series of 55555. If there is a TC 846 the account has already refunded. If there is a TC 846 on the IMF account, skip step 2 and 3. Add the extension if necessary. 2. Transfer the credit. 3. Input a CC STAUP for 9 cycles on the Form 709 account. 4. Add the extension to Form 709 account if no extension has posted and there is a TC 460 on the IMF account. See Exhibit 3.14.2-11, Adding and Deleting Extensions for more information.

# CP 162 Series Balance Due - Non-Math Error Notices

3.14.2.6.10 (02-05-2024) CP 162 Series Balance Due - Non-Math Error Notices Prior to January 1, 2022, CP 162 was a balance due notice used to notify taxpayers of penalties assessed on Form 1065 (MFT 06) and Form 1120-S (MFT 02). This notice was issued when Form 1065 or Form 1120-S was assessed a penalty for failure to file by the return due date (including extensions), for failure to include required information on a return, or (for Form 1065) for failure to file electronically when required. See IRM 21.7.4.4.2.7, Partnership Penalties, IRM 20.1.2.4, Failure to File a Partnership Return - IRC 6698, and IRM 20.1.2.6, Failure to File S Corporation Return - IRC 6699, for more information. After December 31, 2021, the CP 162 was revised and will inform Partnerships with more than 100 partners that they are being assessed a penalty for failure to file electronically. After December 31, 2021 TC 16X will no longer be used to assess IRC 6698/6699 penalties. After December 31, 2021, the CP 162 was revised to generate for Form 1065 (MFT 06) when the failure to file electronic media penalty is assessed using TC 24X with PRN 688. In January 2022, CP 162A was created to inform a partnership, Real Estate Mortgage Investment Conduit or S corporation that a penalty has been assessed for failure to timely file Form 1065, 1066 or 1120-S. A CP 162A will generate for Forms 1065, 1066 and 1120-S when a failure to file/late filing penalty is assessed using TC 24X PRN 722 with or without a PRN 688. See Exhibit 3.14.2-22, Form 1065 (MFT 06) Return and Extension Due Dates, Exhibit 3.14.2-28, Form 1120-S (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates. Also, in January 2022, CP 162B was created to inform a partnership or S corporation that a penalty is being assessed for missing or incomplete information in relation to Form 1065 or 1120-S. A CP 162B will generate for Forms 1065 and 1120-S when a missing/incomplete information penalty is assessed using TC 24X PRN 723 with or without a PRN 688. In January 2024, the CP 162C notice was created to generate when there is a manual or systemic adjustment to a prior assessed penalty and the resulting module balance is either a credit of $0.99 cents or less OR a debit greater than $4.99. The CP 162C generates in lieu of CP 210/220. In January 2024, the CP 162E was created to generate when there is a manual or systemic adjustment to a prior assessed penalty and the resulting module balance is between $1.00 credit and $4.99 debit. The CP 162E generates in lieu of CP 210/220.

# CP 162 Failure to File Electronic Partnership Return

3.14.2.6.10.1 (01-01-2026) CP 162 Failure to File Electronic Partnership Return For partnership returns that are due in calendar years beginning after December 31, 2023, partnerships are required to file their partnership return electronically if : the partnership is required to file 10 or more returns during that calendar year ending with or within the taxable year of the partnership or the partnership had more than 100 partners during the partnership's taxable year For returns due before January 1, 2024, partnerships with 100 partners or less can file a paper return or can voluntarily file their returns electronically. Partnerships with more than 100 partners were still required to file electronically but the number of returns did not apply. Note: See IRM 21.7.4.4.2.8.1.1, Large Partnership Penalty for Failing to File Electronically, and IRM 20.1.2.5, Failure to File Partnership Return Using Electronic Media, for more information on partnerships that are required to file electronically. For years ending December 31, 2000 and later, IRC 6011(e)(6) requires partnerships with more than 100 partners to file electronically, unless an exception applies. Treas. Reg. 301.6011-3(c) provides for a penalty for partnerships that fail to file electronically when required to do so. (See information concerning waivers for this requirement in IRM 21.7.4.4.2.8.1.2, Waiver Requests by Large Partnerships Required to File Electronically, and IRM 20.1.2.5.1, Penalty Relief). If a partnership is required to file their return electronically and they fail to do so, a penalty will be assessed for each schedule K-1 over 100. See the table below for a list of penalty amounts by year: For Returns Due Penalty Per Partner in Excess of 100 Higher Maximum Penalty Lower Maximum Penalty In 2026 $340 $4,098,500, $1,366,000 In 2025 $330 $3,987,000 $1,329,000 In 2024 $310 $3,783,000 $1,261,000 In 2023 $290 $3,523,500 $1,777,500 In 2022 $280 $3,426,000 $1,142,000 In 2021 $280 $3,392,000 $1,130,500 In 2020 $270 $3,339,000 $1,113,000 In 2019 $270 $3,275,500 $1,091,500 In 2018 $260 $3,218,500 $1,072,500 In 2017 $260 $3,193,000 $1,064,000 In 2016 $260 $3,178,500 $1,059,500 Between January 1, 2011 & December 31, 2015 $100 $1,500,000 $500,000 Before January 1, 2011 $50 $250,000 $100,000 Note: Partnerships with average gross receipts of $5,000,000 or less in the three most recent taxable years qualify for a lower maximum penalty; however, the penalty per partner over 100 remains the same. For example, if a partnership return with 120 partners is due between January 1, 2011 and December 31, 2015, the penalty would be $2,000 (20 x $100). If the return was due between January 1, 2016 and December 31, 2016, the penalty would be $5,200 (20 x $260) because the penalty is determined by multiplying the number of partners over 100 by the base penalty amount. The failure to file electronically with more than 100 partners penalty is assessed as TC 246 with reference number 688. Note: A return with over 100 partners may have both Failure to File and Failure to File Electronically penalties assessed. The systemically charged penalties can be identified by the following transaction codes: before December 31, 2021, TC 166 for Failure to File and TC 246 Failure to File Electronically; after December 31, 2021, TC 240 PRN 722 or 723 and TC 240 PRN 688. Reminder: If a partnership was assessed a penalty in excess of the lower maximum penalty, and has shown its average gross receipts for the previous three years was $5,000,000 or less, the excess penalty is abated with TC 241 using penalty reason code (PRC) 045. Notice Review does not make these adjustments. Follow general review procedures then research BRTVU and BMFOLT history to ensure the number of partners is correct. If the number was increased in error during processing and the taxpayer does not owe the failure to file electronically penalty (fewer than 100 partners) remove the penalty using REQ54/ADJ54 with the following information: Use blocking series 17 TC 290 .00 Input penalty reason code (PRC) 045 in the fourth position in the reason code field Reverse the full amount of the penalty using PRN 688, with the penalty amount as a negative (trailing minus) Caution: If the correct number of partners cannot be established by reviewing historical data, request the return using normal procedures.

# CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures

3.14.2.6.10.2 (01-01-2026) CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures CP 162A was developed to inform taxpayers that a penalty has been assessed for failure to timely file a tax return for Form 1065, U.S. Return of Partnership Income, Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return and Form 1120-S Income Tax Return for an S Corporation. See the table below for the following conditions upon posting of an original assessment which generate a CP 162A: MFT (Form) With original account posing of: MFT 02 & TC 150 doc code = 16 (Form 1120-S) TC 24X with PRN 722 posted in cycle MFT 06 (Form 1065 or 1065-B) TC 24X with PRN 722 posted in cycle with or without PRN 688 MFT 07 (Form 1066) TC 24X with PRN 722 posted in cycle See the table below for conditions which upon assessment adjustment will generate a CP 162A: MFT And IRN 851 IRN 852 MFT 02 (Form 1120-S) TC 29X or 30X input with PRN 722 to generate a TC 24X Number of Shareholders Number of Months MFT 06 TC 29X or 30X input with PRN 722 to generate a TC 24X Number of Partners Number of Months MFT 07 TC 29X or 30X input with PRN 722 to generate a TC 24X Number of Residual Interest Holders Number of Months Note: IRN 851 will pass the number of Shareholders/Partners/Residual Interest Holders to the notice. IRN 852 will pass the number of months late/incomplete to the notice. When a CP 162A generates as a result of an assessment of the penalty, compare the "Number of Partners/Shareholders" and "Number of Months" in OLNR to the values in IRNs 851 and 852 reflected on the module and the amounts reported on the return, if the return is available. If the amounts are incorrect on the module or in OLNR, correct them and retype the notice accordingly. Reminder: If a TC 29X adjustment with a PRN 722 is input to generate a TC 241 PRN 722 to reduce, abate or remove a penalty assessment, a CP 162C or 162E will generate. See IRM 3.14.2.6.10, CP 162 Series Balance Due - Non-Math Error Notices, for specific generation criteria. Follow general review procedures in IRM 3.14.2.6, General Review Procedures, to determine the timeliness of the return. If the return was filed late follow the procedures in the table below to determine the number of months for which the penalty needs to be assessed. IRS date stamp (Earliest date stamp by SPC, Area Office, US Consulate, or Revenue Officer). The earliest legible postmark date (U. S. Postal Service, Foreign Postmark, or Private Delivery Service) on the return. If Then An envelope is not attached Use the postmark date stamped on the face of the document. An envelope has both a USPS or Foreign postmark and private metered postmark, Always use the USPS or Foreign postmark. An envelope has two private metered postmarks, Always use the latest private metered postmark. An envelope has only one private metered postmark, Use the private metered postmark. Taxpayer signature date Julian date minus 10 days Current date minus 10 days Note: All other issues should be referred to your lead or manager so that a determination can be made. If received date as figured above is different than the date on CC TXMOD you must manually adjust the FTF Penalty. Reminder: When Adjusting these accounts you must input the correct received date in the REQ54 adjustment screen by entering the correct date in the Ret Proc Date field on IDRS. If a partnership terminates before the end of the tax year, Form 1065 must be filed for the short period. The short period consists of the period from the beginning of the tax year through the date of termination. Therefore, the return is due the 15th day of the third month following the termination. If more time is needed to file, the Form 7004 must be filed by the short period return due date (the 15th day of the third month following the date of termination). If a Form 1120-S is used to file a short period return, it must filed by the 15th day of the 3rd month following the end of the short tax year. A dissolving corporation is required to file a return for the short period from the first day of its normal accounting period to the date of dissolution. The return is due the 15th day of the 3rd month following the close of the short tax year. Research the module and return if the return is available, to verify the number of partners/shareholders on the module match the number of partners/shareholders displayed in OLNR. If the number listed on the module is correct and the number of partners/shareholders in OLNR differs from that amount, retype the notice with the correct number of partners/shareholders and update the penalty amount in OLNR as appropriate. Research the module and return if the return is available, to verify the number of months matches the number of months on the module match the number of months displayed in OLNR. If the number listed on the module is correct and the number of months in OLNR differs from that amount, retype the notice with the correct number of months and update the penalty amount in OLNR as appropriate. Research the module to verify that the base penalty amount displaying in OLNR is correct. The penalty for failure to file or failure to file a complete return for Form 1065, or Form 1066, is charged for each month (or part of a month) that the failure continues for up to 12 months (for tax periods after December 20, 2007). See IRM 20.1.2.4.2, entitled, Penalty Computation for more information on these penalties. The penalty for the failure to file or failure to file a complete return, Form 1120-S, U.S. Income Tax Return for an S Corporation, is charged for each month (or part of a month) that the failure continues for up to 12 months. See IRM 20.1.2.6.2, entitled, Penalty Computation for more information on these penalties. Note: See the table below for base penalty amounts for failure to file and/or failure to file complete Forms 1065, 1066 & Form 1120-S, see, IRM 20.1.2.4.2, Penalty Computation, and IRM 20.1.2.6.2, Penalty Computation, for information on base penalty amounts for previous years not mentioned below. Form 1065/ 1066/ 1120-S Return Due Base Penalty Amount January 1, 2026 and after $255 Between January 1, 2025 & December 31, 2025 $245 Between January 1, 2024 & December 31, 2024 $235 Between January 1, 2023 & December 31, 2023 $220 Between January 1, 2022 & December 31, 2022 $210 Between January 1, 2021 & December 31, 2021 $210 Between January 1, 2020 & December 31, 2020 (without regard to extension) $205 Between January 1, 2019 & December 31, 2019 (without regard to extension) $200 Between January 1, 2018 & December 31, 2018 (without regard to extension) $200 Between January 1, 2017 & December 31, 2017 $195 The Late filing/Incomplete return penalty amount field displayed in OLNR (OLNR field Ret Pen ) should equal Number of Partners/Shareholders x Base Penalty Amount x Number of Months late. If it does not, and the information on the module is correct, retype the notice to match the information displayed on the module. Note: If when retyping the notice, there is a payment reflected on the module and in the "Payments Section" at the bottom of the OLNR display screen, add the total payment amount to the "Less Penalty Paid" field. If research determines the received date is different than the date on CC TXMOD, manually adjust the FTF penalty and retype the notice. If a CP 162 should have generated instead of a CP 162A (i.e., the penalty is assessed with a PRN 688 only without PRN 722), then input an "H" disposition to hold the notice and provide your lead with the notice information who will refer it to HQ immediately. If the information on the notice is correct, print the notice. Refer any other issues with the CP 162A not addressed in this section, to your lead or manager who will refer it to HQ, so that a determination can be made.

# CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures

3.14.2.6.10.3 (01-01-2026) CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures CP 162B was developed to inform a partnership or S corporation that a penalty is being assessed for missing or incomplete information in relation to Form 1065 or 1120-S. The following conditions in the table below will generate a CP 162B upon original assessment of the penalty: MFT/Form AND MFT 02 & TC 150 doc code = 16 (Form 1120-S) PRN 723 present in cycle MFT 06 (Form 1065 or 1065-B) PRN 723 present in cycle with or without PRN 688 The penalty is assessed with Transaction Code (TC) 24X PRN 723. Note: The penalty is abated systemically with TC 241/247 if changes post to the account that cause the system to compute a lower penalty or no penalty. The following conditions in the table below upon assessment adjustment will generate a CP 162B: MFT/Form And IRN 851 IRN 852 IRN 853 MFT 02 (Form 1120-S) TC 29X or 30X input with PRN 723 to generate a TC 24X Number of Shareholders Number of Months Missing Information Code (MIC) Note: Acceptable MIC codes for MFT 02 are: 33, 34, 36, 45, 46, 47, or 49. MFT 06 (Form 1065 or 1065-B) TC 29X or 30X input with PRN 723 to generate a TC 24X Number of Partners Number of Months Missing Information Code (MIC) Note: Acceptable MIC codes for MFT 06 are: 33-39 and 45-52. Note: IRN 851 will pass the number of Shareholders/Partners/Residual Interest Holders to the notice. IRN 852 will pass the number of months late/incomplete to the notice. IRN 853 will pass the missing information code. When a CP 162B generates as a result of an adjustment made to assess the penalty, compare the Number of Partners/Shareholders, Number of Months, and the Missing Information Code in OLNR to the values in IRNs 851, 852 and 853 reflected on the module and the amounts reported on the return, if the return is available. If the amounts are incorrect on the module or in OLNR, correct them and retype the notice accordingly. Note: If when retyping the notice, there is a payment reflected on the module and in the "Payments Section" at the bottom of the OLNR display screen, add the total payment amount to the Less Penalty Paid field. Research the module to verify that the base penalty amount displaying in OLNR is correct. See IRM 3.14.2.6.10.2, CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures. The steps to review 162A and 162B and the base penalty amounts are the same. If a secondary assessment was input on a module and the balance on the CP 162B only reflects the current adjustment and not the total penalty assessed and owed on the module, retype the notice to reflect the total penalty amount owed. Verify the information on the notice is accurate. Retype, Void, Print as appropriate. Note: If when retyping the notice, there is a payment reflected on the module and in the Payments Section at the bottom of the OLNR display screen, add the total payment amount to the "Less Penalty Paid" field. If an S corporation return is both late and incomplete, the penalty will be assessed for filing an incomplete return, unless the return is 12 months or more late.

# CP 162C Adjustment of Previously Assessed Penalty Refund Under $1.00 or Balance Due Forms 1065, 1066, or 1120-S and Review Procedures

3.14.2.6.10.4 (01-31-2025) CP 162C Adjustment of Previously Assessed Penalty Refund Under $1.00 or Balance Due Forms 1065, 1066, or 1120-S and Review Procedures The CP 162C was developed to more clearly explain adjustments to previously assessed penalties in lieu of issuing a CP 210/220 adjustment notice when the resulting module balance will be a credit of $0.99 or less or a debit greater than $4.99. An adjustment of the previously assessed penalties in the table below will generate a CP 162C: MFT/Form With a And a resulting Module Balance of MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B), or MFT 07 (Form 1066) TC 29X/TC 30X manual or systemic adjustment to TC 161 a credit of $0.99 or less or a debit balance greater than $4.99 MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B),or MFT 07 (Form 1066) TC 24X with PRN 722 manual or systemic adjustment in current cycle with or without PRN 688 adjusted in current cycle a credit of $0.99 or less or a debit balance greater than $4.99 MFT 02 & TC 150 doc code = 16 (Form 1120-S) or MFT 06 (Form 1065 or 1065-B) TC 24X with PRN 723 manual or systemic adjustment in current cycle with or without PRN 688 a credit of $0.99 or less or a debit balance greater than $4.99 For more information on the specific penalties being abated see IRM 3.14.2.6.10.1, CP 162 Failure to File Electronic Partnership Return, IRM 3.14.2.6.10.2, CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures, and IRM 3.14.2.6.10.3, CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures. Due to programming constraints, CP 162C notices will be reviewed as Manual Intervention only cases, see IRM 3.14.2.5.3, Manual Intervention CAF/RAF/MM/SC.

# CP 162E Adjustment of Previously Assessed Penalty Even Balance Form 1065, Form 1066 or Form 1120-S and General Review Procedures

3.14.2.6.10.5 (02-05-2024) CP 162E Adjustment of Previously Assessed Penalty Even Balance Form 1065, Form 1066 or Form 1120-S and General Review Procedures The CP 162E was developed to more clearly explain adjustments to previously assessed penalties in lieu of issuing a CP 210/220 adjustment notice when the resulting module balance will be between $1.00 credit and $4.99 debit. An adjustment of the previously assessed penalties in the table below will generate a CP 162E: MFT/Form With a And a resulting Module Balance between MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B), or MFT 07 (Form 1066) TC 29X/TC 30X manual or systemic adjustment to TC 161 $1.00 credit and $4.99 debit MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B),or MFT 07 (Form 1066) TC 24X with PRN 722 manual or systemic adjustment in current cycle with or without PRN 688 adjusted in current cycle $1.00 credit and $4.99 debit MFT 02 & TC 150 doc code = 16 (Form 1120-S) or MFT 06 (Form 1065 or 1065-B) TC 24X with PRN 723 manual or systemic adjustment in current cycle with or without PRN 688 $1.00 credit and $4.99 debit For more information on the specific penalties being abated see IRM 3.14.2.6.10.1, CP 162 Failure to File Electronic Partnership Return, IRM 3.14.2.6.10.2, CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures, and IRM 3.14.2.6.10.3, CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures. Follow general review procedures in IRM 3.14.2.6 to determine the timeliness of the return. Research the module and return if the return is available, to verify the return received date and the notice information in Control D and OLNR matches IDRS for base penalty amount, adjustment amount, and module balance.

# Return and Extended Due Dates for Forms 1065 and 1120-S

3.14.2.6.10.6 (01-01-2024) Return and Extended Due Dates for Forms 1065 and 1120-S Starting in tax year 2023, due to IRA legislative changes, the Form 1065 can claim credits and have an overpayment or balance due. Before tax year 2023, Form 1065 was an information return and therefore had no tax. Each partner's distributive share of each partnership item is reported on the partner's return of income. See table below for the Form 1065 Return and Extended Due Dates for tax periods beginning before January 1, 2016: Note: Form 1065 filers with a tax year beginning before January 1, 2016 were granted an 5 month extension with upon receipt of a timely filed Form 7004 extension request. Period Ending Return Due Date Extended Due Date Jan. 31 5-15 10-15 Feb. 28 6-15 11-15 Mar. 31 7-15 12-15 Apr. 30 8-15 1-15 May 31 9-15 2-15 June 30 10-15 3-15 July 30 11-15 4-15 Aug. 31 12-15 5-15 Sept. 30 1-15 6-15 Oct. 31 2-15 7-15 Nov. 30 3-15 8-15 Dec. 31 4-15 9-15 Note: The due date for Form 1065 for tax periods beginning before January 1, 2016 is the 15th day of the 4th month following the end of the tax period. See table below for Form 1065 Return and Extended Due Dates for tax periods beginning January 1, 2016 and later. Note: Form 1065 filers with a tax year beginning on or after January 1, 2016 were granted a 6 month extension upon receipt of a timely filed Form 7004 extension request. Period Ending Return Due Date Extended Due Date Jan. 31 4-15 10-15 Feb. 28 5-15 11-15 Mar. 31 6-15 12-15 Apr. 30 7-15 1-15 May 31 8-15 2-15 June 30 9-15 3-15 July 30 10-15 4-15 Aug. 31 11-15 5-15 Sept. 30 12-15 6-15 Oct. 31 1-15 7-15 Nov. 30 2-15 8-15 Dec. 31 3-15 9-15 Note: The due date for Form 1065 for tax periods beginning January 1, 2016 and later is the 15th day of the 3rd month following the end of the tax period. Note: As a result of Public Law 114-41 Section 2006, the return due date changed for partnership returns (Forms 1065, 1065-B and 8804) and for corporations (with the exception of Forms 1120-C, 1120-IC-DISC and Form 1120-S) effective for tax periods beginning after December 31, 2015. However, this law did not change the due date for Corporate return periods that end June 30. They will remain the same until tax period 202606, at which time they will also change. See table below for Form 1120-S Return and Extended Due Dates. Form 1120-S is due the 15th day of the 3rd month following the end of the tax period (March 15 for a calendar year return). Period Ending Return Due Date Extended Due Date Jan. 31 4-15 10-15 Feb. 28 5-15 11-15 Mar. 31 6-15 12-15 Apr. 30 7-15 1-15 May 31 8-15 2-15 June 30 9-15 3-15 July 30 10-15 4-15 Aug. 31 11-15 5-15 Sept. 30 12-15 6-15 Oct. 31 1-15 7-15 Nov. 30 2-15 8-15 Dec. 31 3-15 09-15

# Selection Key for CP 162, CP 162A, CP 162B, 162C, and 162E

3.14.2.6.10.7 (02-05-2024) Selection Key for CP 162, CP 162A, CP 162B, 162C, and 162E The selection key for CP 162 is 53. See the chart below for an explanation of Key 53. CP 162 Selection Key Explanation Key 53 The return is filed late and an extension (TC 460) has posted to a different, open module (no TC 150) or a posted TC 610 has a Julian date that indicates the return may be filed timely by extended due dates. Note: CP 162, CP 162A, CP 162B, CP 162C, and CP 162E can also be selected through the LCF and as such can appear in LCF keys. See IRM 3.14.2.5.4 , NRPS Local Control File, for specific LCF keys.

# Specific Review Procedures for Key 53

3.14.2.6.10.8 (01-01-2025) Specific Review Procedures for Key 53 The selection criteria for Key 53 is a balance due notice with a delinquency penalty with an extension of time to file pending or a potentially mis-posted extension of time to file. Refer to the Key 53 Decision Table below: If Then The EIN and/or tax period are incorrect and the tax return is not available Decide if the return needs to be reprocessed. If so, follow the reprocessing returns procedures in IRM 3.14.2.6.18 (Abate the penalty using CC REQ54, Blocking Series 00, TC 16X or TC 24X with applicable PRN, Hold Code 3). If return must be reprocessed void the notice. The number of partners transcribed is incorrect (compare the number of partners on the notice with the number on the return) Note: If the return is not available for partner verification, check BRTVU or TRDBV for number of partners on previous tax years. Abate or adjust the penalty (using CC REQ54, Blocking Series 00, TC 16X or TC 24X with applicable PRN, Hold Code 3) based on the penalty computation using the correct number of partners. Void or retype the notice, as applicable. The postmark is timely for the Return Due Date or for a posted extension Abate the TC 166 or TC 24X penalty (using CC REQ54, Blocking Series 00, TC 16X or TC 24X with applicable PRN, Hold Code 3) and void the notice. A payment(s) or refundable credit is on the module or in the payment tab area of OLNR for a notice generating from Form 1120-S Retype CP 162, CP 162A or CP 162B and add the total payment amount to the Less Penalty Paid Field. Change MIC Code to 00 except if retyping a CP 162B where the correct MIC code is required (see IRM 3.14.2.6.10.3, CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures, for more information on MIC codes). Void any additional current cycle notices that are selected for the same EIN, MFT and Tax period. (They will be in the same batch.) The return was filed by an extended due date and the extension has posted on an open tax module (no TC 150) Delete the extension from the open module and add the extension to the notice module using CC REQ77. Void CP 162, CP 162A or CP 162B. Input TC 290 .00, appropriate Blocking Series, Hold Code 3 to suppress the next adjustment notice. The extension was timely filed and Form 1065 is received by the short period extended due date, (the 15th day of the third month following the date of termination) Input the extension on the notice module using CC REQ77. Void the notice. Input TC 290.00, appropriate Blocking Series, Hold Code 3 to suppress the next adjustment notice. The extension was timely filed and Form 1120-S is received by the short period extended due date (third month following the date of termination) Input the extension on the notice module using CC REQ77. Void the notice. Input TC 290 .00, appropriate Blocking Series, Hold Code 3 to suppress the adjustment notice. The extension was processed to an incorrect tax period (prior year) Determine timeliness of the extension, using the Julian date of TC 460 and/or TC 620. If the Julian date makes the extension timely filed, delete the extension from the incorrect module and add the extension to the correct module using CC REQ77. Void CP 162, CP 162A or CP 162B. If the Julian date indicates the extension was not timely filed for the correct tax period, delete the extension from the incorrect module. Print the CP 162, CP 162A or CP 162B. Note: If Form 1065 or Form 1120-S is used to file a short period return, it must be filed by the Return Due Date of short tax year. Reminder: Indicate on CC REQ54 in remarks field that the penalty is being abated based on a timely filed extension for a short period return.

# Reasonable Cause Requests for Form 1065

3.14.2.6.10.9 (01-01-2023) Reasonable Cause Requests for Form 1065 All Reasonable Cause requests for penalty abatement on partnership returns with over 100 partners are processed at the Ogden SPC. If there is a "1382C letter" action trail in the left margin of the return or CCC "R" is present on the return, Code & Edit has already addressed the Reasonable Cause statement and no further action is required. If there is no indication that Code & Edit has addressed the Reasonable Cause statement, it must be either faxed or routed to Accounts Management. Either method is acceptable. See the table below. Manner of Routing Steps to Take To fax to Accounts Management ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Input CC STAUP for 9 cycles and print the notice An Interim letter is required if more than 25 days have elapsed from the return received date To route to Accounts Management Photocopy the first page of the return and the original Reasonable Cause Statement letter (Notate "photocopy" ) Attach the photocopy of the letter to the original return Route original letter and photocopy of the first page of the return to Ogden Accounts Management at: Ogden Service Center 1973 N. Rulon White Blvd Ogden, UT 84404 M/S 6552 Input CC STAUP for 9 cycles and print the notice An Interim letter is required if more than 25 days have elapsed from the return received date

# Reviewing Notices with Remittance Processing System (RPS) Indicators (Key 02)

3.14.2.6.11 (01-01-2023) Reviewing Notices with Remittance Processing System (RPS) Indicators (Key 02) An RPS coded return (TC 150) posts to the Master File and the corresponding RPS TC 610 or TC 670 payment transaction is not present on the module. An RPS timely coded return (TC 150) posts and there is a corresponding RPS TC 610 or TC 670 payment transaction with a delinquent service center received date. RPS notices are designated as selection Key 02 or by the literal RPS-Discrepancy or the Control D, NRPS Appended Data page. Review all notices with the RPS indicator. Follow General Review Procedures. See General Review Procedures at IRM 3.14.2.6. To locate the missing TC 610 or TC 670 payment: Check the NRPS Appended Data for a pending, unpostable, or reject transaction. Check the NRPS tax modules and the tax modules on IDRS. Follow the table below for missing TC 610 actions. If Then The payment posted to an incorrect tax period Transfer the payment. Use appropriate notice disposition. Refer to IRM 3.14.2.7.10, Notice Disposition. The payment is found on another EIN (look for any cross-referenced data on the NRPS package tax modules) and research CC NAMEE on IDRS Transfer the payment. Use appropriate notice disposition. Refer to IRM 3.14.2.7.10, Notice Disposition. When researching IDRS, follow the table below if an unpostable is found: Research CC SUMRY, TXMOD, or BMFOL Input CC UPTIN to check the Generalized Unpostable Framework (GUF) If an open case is found, use UPCASZ to notify Unpostables of the correct information The TC 610 payment can be posted to the notice module but may have an incorrect date. The payment may have been delayed in processing or batched incorrectly. The payment date may need to be changed. Verify the return is timely. To correct the payment date, input CC ADD24 using IAT and use the same tax period on the debit and credit sides. See the table below. Input the corrected transaction date on the credit side: Use an Override Date Indicator 2 on both sides Input a TC 570 on the credit side If the payment cannot be located or transferred, print the notice. Note: In cases where the TC 610 cannot be found, the returns could have been blocked incorrectly, causing the RPS indicator to generate in error. Overpaid RPS Notices. Three different conditions are possible with overpaid RPS notices: Multiple TC 610s posted on the notice module (R- Freeze). Research the excess payment through local ISRP procedures. The posted TC 610 does not match the DLN of the TC 150 (R- Freeze). Research any TC 610 payment with a DLN different from the TC 150. The payment may belong to another taxpayer. The TC 610 payment is missing on the module. Other payments posting to the module may have created the overpayment. Look for the missing TC 610 payment and research any extra payments on the module; see the table below for actions if a payment is found. If Then The TC 610 document is available, Follow instructions in IRM 3.14.2.6.4.3. (Slipped Blocks and Mixed Data Blocks) or perform additional research. The payment belongs to another taxpayer, Transfer the payment to the correct account. The payment belongs on the EIN where posted, Follow the taxpayer's intent. The payment may be intended for a later tax period. For pending payments, credit transfers, or changing the payment date, follow the notice disposition instructions. See IRM 3.14.2.7.10, Notice Disposition.

# Refund Transcripts

3.14.2.6.12 (01-01-2024) Refund Transcripts Refund Transcripts are reviewed to decide if the account overpayment should be allowed to refund. Refund transcripts are identified on NRPS as CPs and marked in OLNR. However, a CP notice is not issued. Transcripts are selected for NRPS and reviewed by key. There are four types of Refund Transcripts: CP 380 - Refund of 1 Million dollars or more CP 384 - Normal NRPS Refund Transcript CP 386 - Highly Questionable Refund CP 388 - Refund Interest Transcript Allowable OLNR dispositions for refund transcripts are: T (Transcript) - Use this disposition to mark the account as a transcript and the money should be allowed to refund to the taxpayer. TI (Transcript/Intercept) - Use this disposition to mark OLNR when the refund needs to be stopped using NOREF. Disposition TI should only be used if Notice Review intercepts the refund. Note: Use the T disposition if another area input the Refund Intercept/NOREF request. CPREF shown on CC TXMOD (in the CP notice section) indicates Refund Transcript. Refund Transcripts generate from the same file as CP notices. A transcript is issued when: The refund amount includes interest of more than $50.00 on a module that contains a TC 766 The refund amount is $500.00 or more for Form 941 (MFT 01), or $1000 or more on all other forms The amount of the overpayment claimed by the taxpayer differs by more than $100 from the IRS amount. TC 570 blocking series 55555 is input by Frivolous Return Program (FRP) on BMF accounts to stop frivolous BMF refunds. Do not release these refunds.

# Million Dollar Transcript (CP 380)

3.14.2.6.12.1 (01-01-2025) Million Dollar Transcript (CP 380) Refunds of $100 million or more must be reviewed by a lead or experienced Subject Matter Expert (SME). See IRM 3.14.2.6.1.6, $100 Million Refunds, for more information. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The select key for Million Dollar NRPS Transcripts is Transcript key 020. If there is an open control base, contact the employee identified as having control over the account. This contact should be done as an email notification that this account has an X- Freeze posted that is 15 cycles old. Once the contact has been made, leave a case history using IDRS that the employee identified as having control over the account was notified. Note: A refund for $100 million dollars or more will not generate a TC 846. A manual refund is required if the refund must be allowed. If there is no open control base to another area, Notice Review must initiate the manual refund. See IRM 3.14.2.7.2.2, Manual Refunds, for more information.

# Normal Refund Transcripts (CP 384)

3.14.2.6.12.2 (01-01-2024) Normal Refund Transcripts (CP 384) Review the transcript module using the keys below to help focus IDRS research to identify if the refund should be allowed to refund to the taxpayer. Normal NRPS Refund Transcript selection keys are: Key 024 - selected if there is a pending debit transaction Key 025 - selected if a TC 670 is causing the refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Key 027 - selected when no other select key criteria is met Delete the refund under the following circumstances: Payment(s) that appear to be misapplied. Determine taxpayer intent by evaluating payment patterns, amount claimed on return, missing payments on other modules, and liability schedule(s). Use research tools such as RTR, if available, to verify payment(s). Look for a history of misapplied payments that have been moved to other modules (See IRC 965 note below). Note: If the payment that is attempting to refund has a designated payment code (DPC) of 64, research to determine if an IRC 965 inclusion was made on a 201712-201911 module. If an IRC 965(h) election is identified on an inclusion year module and the 965(h) liability has not been paid in full (i.e., there is still an outstanding deferral on the inclusion year module, intercept the refund and move the payment to the inclusion year module and post as a TC 670 DPC 64. See IRM 3.14.2.6.5.4 and IRM 3.14.2.6.5.4.1 for more information on IRC 965(h) deferrals. Note: If a payment is attempting to refund on a 94X module, research all 2020 quarters to determine if there is an unreversed TC 766 CRN 280. If the payment matches the amount due on the deferral, intercept the refund and move the payment to the 94X deferral module. See IRM 3.14.2.6.4.10.3, Deferred Payment of the Employer's Share of Social Security Taxes for 2020, for more information on COVID deferrals. Unclaimed payments are refunding on another tax period. See the table to research if the following situations apply and actions to take: Unclaimed Payment Requirements TC 620 (payment with extension) posted to the incorrect tax year - transfer to correct year TC 660 or TC 650 posts to the incorrect tax period or year (per date and amount of payment) - move to the appropriate tax period or MFT The overpayment matches the tax due per taxpayer for another module, or the amount on a balance due notice - move to the appropriate tax period or MFT The overpayment is refunding from MFT 67 (Form 990) and is not a result of a payment made for a penalty that was subsequently abated - transfer the credit to MFT 34 or 44 if filing requirements, previous filing history, or payment history indicates payment will be transferred A TC 610 payment substantially overpays the module and does not match the taxpayer's figures. Complete the following steps in the table below: TC 610 Over Pays Module Check other modules on the taxpayer's account for debit balances (with or without penalty and interest) that match the overpayment Note: Taxpayer may submit one payment intended for tax on two or more modules. If this is the case, then move the payment(s) to the correct module(s). Check account for a pending debit transaction as the payment may belong there. If so, move the payment. Check for any indication that the refunding TC 610 is actually a later year ES payment (i.e., one-fourth of the tax liability). If so, move the payment. Research the TC 610 payment to ensure the payment was credited to the correct taxpayer and/or tax period. If research determines the payment was credited to the incorrect taxpayer and/or tax period then move the payment to the correct taxpayer and/or tax period. If unclaimed payments are refunding and the reason for the payment cannot be determined. Exception: TC 670 with Designated Payment Codes 05, 07, or 15 do not require verification. These refunds should not be deleted. These payments are in response to levies/liens. Transcripts are generated and resolved by the Collection Function for these payments. The overpayment is the amount of TC 670 payment(s) and the following apply: The taxpayer did not previously receive a balance due notice for the amount; RTR research and/or balance(s) due on other module(s) indicate the payment is misapplied. Follow the table below. Unclaimed Refunding Payments Research the payment, and delete the refund if the required research has not been received before the CC NOREF delete deadline. Check the notice history for a CP 207, and CC FTDPN for an indication of a potential FTD penalty Note: TC 670 may be in response of the CP 207. (The FTD penalty will assess fifteen weeks after the CP 207 generates unless a TC 180 is input by the Accounts Management (Adjustments) Function). Note: Research an Electronic Federal Tax Payments System (EFTPS) payment if it is extremely out-of-line or if the taxpayer has not previously made EFTPS payments. Transfer to the correct module or MFT if possible. If a determination cannot be made, contact with the taxpayer may be necessary to verify the payment. The refund is due to erroneous IRS math error condition, duplicate posting of payment (same date and amount), or decimal point error (such as a TC 150 for $20.00 instead of $2,000.00). Make the necessary correction to resolve the error condition(s). Input the adjustment using REQ54. See IRM 3.14.2.6.7.1.3, Decimal Point Errors Review and Correction for more information. The wrong line entry created erroneous credits (such as ES payments entered as withholding or as refundable credits). Watch for double credit situations. Make the necessary correction to resolve the erroneous credit(s). Input adjustment using REQ54. The credit elect intended for the next period is refunding. TC 976 or TC 971 (AC 010) is pending on the module. A pending or unpostable Transaction Code would reduce the refunding credit or leave the module in debit status. A TC 570 is pending. Note: If CP 260 or CP 210/220 will generate before the TC 841 posts use Local Control File to intercept the notice. If deleting a refund to transfer a credit from the refunding module will create a balance due, follow the table below: If Then The taxpayer was not issued a previous settlement notice Input TC 570 on debit side of credit transfer to suppress the CP 260 or input CC REQ54, TC 290 .00, Hold Code 3, to suppress an Adjustment notice. (See note below) The taxpayer was issued a previous notice for the same balance due amount Input TC 570 on debit side of credit transfer to suppress the CP 260 or input CC REQ54, TC 290 .00, Hold Code 3, to suppress an Adjustment notice. The taxpayer was issued previous notices for amounts other than the resulting balance due or previous refunds Allow the CP 260 or Adjustment notice to generate. Use the appropriate posting delay code on the credit transfer. Note: Because penalties may be assessed when timely credit is transferred out of the module, Local Control File may be used to obtain the CP 260 or Adjustment notice. This will ensure the correct penalty amounts are included on a typed settlement notice. Allow the Refund under any of the following circumstances: The taxpayer requested the credit to be refunded. The refund is caused by an action not requiring verification, such as an abatement of interest or penalty, or a valid Doc Code 24 or 34 credit transfer. TC 700 or TC 706 posted to the module and another TC 670 is causing the refund. Notice history indicates a bill was issued on the account for the refunding amount, but the module has since been satisfied. Note: Ensure the refunding amount is not a TC 650 or TC 660 that posted to the incorrect tax period. The module has two 670 payments for the total tax amount and one is Doc Code 18. The taxpayer has paid the balance due twice. The module has multiple TC 670 payments for the same amount as part of an installment agreement and the module has been satisfied. Overestimated tentative tax was paid with a request for an Extension of Time to File (TCs 620 or 670 obviously submitted as an extension payment) for Forms 990 /1041/1120 Series. Note: The amount must be reasonable and the extension payment date applicable for the module. The TC 620 may belong on the next year tax module. TC 29X adjustment or TC 30X Examination Tax Adjustment created the refund. TC 571 or TC 290 .00 has released the credit freeze. Claimed TC 650 or TC 660 payments are posted and another TC 610 for the amount of tax due posts to the module.

# HQ (Highly Questionable) Refund Transcript (CP 386)

3.14.2.6.12.3 (01-01-2024) HQ (Highly Questionable) Refund Transcript (CP 386) Carefully review the transcription errors and review payment dates for possible posting errors like incorrect tax period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The select key for HQ NRPS Transcript is 021. If criteria exists to generate a CP 112, the HQ Transcript will be suppressed and a CP 112 will generate with select key 021.

# Refund Interest Transcript (CP 388)

3.14.2.6.12.4 (01-01-2024) Refund Interest Transcript (CP 388) These transcripts must be reviewed to decide if a manual refund will be issued to meet the interest free period. (See IRM 3.14.2.7.2.2.3, Computing Credit Interest on Manual Refunds.) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The select key for Refund Interest Transcripts is 022. Credit interest is allowed on overpayments if a refund is not issued on or before 45 days (180 days on any overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4) from the later of the dates listed in the table below: Credit Interest Allowed: The Return Due Date (determined without regard to any extension of time for filing the return) The Return Received Date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return) The Return Processable Date (date required information is received if the return is received in an unprocessable form) Verify if it is possible to meet the interest free period, using the following steps in the table below: Decision Table for 45-Day and 180-Day Interest Free Period: Count two work days past the current date on the calendar Subtract 45 days (180 days for Chapter 3 or Chapter 4 withholding) from the Julian date No interest is allowed on refunds if the refund is issued within 45/180 days of the dates outlined in the table above. For returns received or due on the day and later, it is still possible to prepare an interest free manual refund Input CC NOREF to delete the TC 846 on the module and complete the Manual Refund procedures in IRM 3.14.2.7.2.2.2, Initiating Manual Refunds. Prepare Form 5792 for the manual refund. Note: For BMF, the date of the refund check is the 23C Date of the TC 846 plus 1 calendar date. The date of the direct deposit is the 23C Date of the TC 846 minus 6 calendar days. The date of the refund check for a manual refund is the date certified by Accounting for allowing the refund.

# Required Payment or Refund Under Section 7519 - Form 8752

3.14.2.6.13 (01-01-2025) Required Payment or Refund Under Section 7519 - Form 8752 Notices in relation to Form 8752, Required Payments or Refund Under Section 7519, (MFT 15) are usually selected in batches 7600-7699 which are processed by Accounts Management Large Corp teams. If the selected notice is in Batch 7600-7699, then Large Corp personnel will review and input the appropriate disposition into OLNR for the notice. For additional information regarding the required payment or refund under Section 7519 - Form 8752, see IRM 21.7.4.4.7, Form 8752, Required Payment or Refund Under Section 7519. Caution: While most of these cases are not worked by Notice Review, some Form 8752 cases can be found in NR sample (batches other than 7600-7699). Review this complete section for case determination. Partnerships and S-Corporations file Form 8752, Required Payments or Refund Under Section 7519, when they make the Section 444 election to file their income tax return on a fiscal year basis instead of the required calendar year. The Form 8752 is used to remit the required payment intended to represent the value of the tax deferral using a taxable year other than the required calendar year. Taxpayers electing Section 444 are not required to remit a payment until they incur a total liability for the current year and all previous years in excess of $500.00. Later, the taxpayer must make their required payment even when the amount is below the $500.00 threshold. The Form 8752, Required Payments or Refund Under Section 7519, return will post to the Business Master File (BMF) as MFT 15, Document Code 23 and Tax Class 2. Note: Personal Service Corporations do not file Form 8752. Form 8752 is an annual return due on or before May 15th of each year for which the election is in effect See the Form 8752 instructions for specific line by line computation instruction. Form 8752 notices are mostly selected by NRPS using Select Key 75, however key 40 and other keys may display for these forms. IRC section 6651 penalties (failure to file and pay) will not be applied to Form 8752 MFT 15 underpayments. The required payment (line 9b) will post as the TC 150 amount. The system will credit the payment and automatically roll that amount forward to the following year's account and post the credit with a TC 766; there will not be a corresponding debit for that amount. When the return posts, one of three things can occur: TC 150 $5,000, TC 766 $8,000 (excess credit) the system will roll over $5,000 and issue a refund of $3,000. TC 150 $8,000, TC 766 $5,000 (Balance due) if paid with the return, TC 610 for $3,000 and the system will roll over a credit of $8,000. If not paid with the return, a Balance Due Notice for $3,000 plus penalty and interest will be issued to the taxpayer. The system will roll over the credit of $5,000 and when paid, the system will roll over an additional $3,000. TC 150 $5,000, TC 766 $5,000 (account in balance); The system will roll over a credit of $5,000. Review Instructions: Follow general review procedures. Verify the correct tax period. The tax period is the election year on the Form 8752. If the tax period is incorrect, route the case to Accounts Management (Adjustments) with a Form 3465 , Adjustment Request, and void the notice. Caution: Do not follow reprocess procedures. Route to Accounts Management if posted to the wrong tax period. Stop a refund if necessary and void the notice. No other actions should be taken for Form 8752 incorrect tax period cases. Search for a missing TC 610 or TC 670 payment on a balance due case. If found on another module, transfer the payment to the notice module. Void or retype the notice. An adjustment notice will not generate from the 10% penalty (TC 246) recomputation. In addition: • Void the notice if the tax will be full paid after transferring the payment • Retype the notice if the tax will be only partially paid • Refigure the 10% penalty on the new underpaid tax amount If the missing payment posted on another MFT 15 module that has a return, route the case to the Accounts Management (Adjustments) Function. Void the notice. If the TC 766 amount does not match Line 10 of Form 8752, the fault lies with the prior year return. Print the notice. The TC 150 can be adjusted. If line 9b was transcribed in error, input a TC 290 or TC 291 to adjust the TC 150. Void or retype the notice. The IRS will issue a refund after April 15 and not later than the 90th day after the claim is filed. The taxpayer must file a final Form 8752 when terminating the Section 444 Election. The taxpayer should check box c on Form 8752, or write at the top of the form Termination of Section 444 Election. Credit interest will not be added to any refund made under this Section. Do not manually adjust the TC 76X credit. Programming will prohibit the manual input of a TC 76X The system will automatically adjust the TC 766 credit when the required payment (TC 150) is adjusted The computer will accept a TC 290 or TC 291. Section 7519 required payments will be treated as deposits rather than tax for the purpose of the statute of limitations on credits or refunds.

# Adjustment Notices

3.14.2.6.14 (01-01-2026) Adjustment Notices Adjustment Notices include CP 210, CP 220, CP 225, CP 260, CP 910 and CP 920. CP 910 and CP 920 are Spanish language notices. Adjustment Notices generate to tell the taxpayer of adjustments or credit transfers made on the account. For example: Examination Adjustment input using ADJ47, with a hold code of 0 or 1, will result in an adjustment DLN with a Doc Code 47 generates the applicable adjustment notice, usually a CP 210 or CP 220. Data Processing (DP) Adjustment (this includes Notice Review input) input using ADJ54, with a hold code of 0 or 1, will result in an adjustment DLN with a Doc Code 54 generates the applicable adjustment notice, usually a CP 210 or CP 220. Changes to penalties, Failure to File (FTF - TC 166/167, TC 240 PRN 722 or 723), Failure to Pay (FTP - TC 277) decrease only , Failure to Deposit (FTD - TC 186/187), Estimated Tax Penalty (ES - TC 176/177) generates the applicable adjustment notice, usually a CP 210 or CP 220. Penalty assessed on an overpaid, non-math error return generates a CP 210 or CP 910 as a first notice. Credit transfer on Doc Code 34 (ADD34) with Correspondence Received Date entered on the credit side generates a CP 225. Credit reversal on an overpaid or even balance module resulting in a debit balance of ≡ ≡ ≡ ≡ or more generates a CP 260. Adjustment notices are generally selected by NRPS for Notice Review due to pending transactions. The adjustment notice NRPS selection keys are 60, 63, 79, 80, 81, and 84. The selection key criteria can be found in Exhibit 3.14.2-5 NRPS Selection Keys. To view an exhibit of the above CP notices, refer to the Taxpayer Correspondence Services (TCS) website Servicewide Notice Information Program SNIP. An adjustment notice will not generate with the posting of TC 290 .00 without a Credit Transaction Code (CRN). Notice Review TEs are responsible for determining the effects any adjustments or credit transfers will have on the module. Proper use of Hold Codes, Posting Delay Codes, Local Control File, TC 570, and unpostable bypass indicators (BPI) is essential for preventing incorrect adjustment notices and unpostable transactions. When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers.

# CP 210, CP 220, CP 910 and CP 920

3.14.2.6.14.1 (01-01-2026) CP 210, CP 220, CP 910 and CP 920 The CP 210 is an adjustment notice which generates due to the account conditions listed below. The CP 910 is the Spanish equivalent. The adjustment results in an overpayment, an even balance, or a balance due of less than ≡ ≡ ≡ ≡ ≡ (≡ ≡ ≡ ≡ ≡ for MFT 61), or the adjustment results in a balance due of ≡ ≡ ≡ ≡ or more (≡ ≡ ≡ for MFT 61), and the module was in TDA Status (22, 24, or 26) before the adjustment for the conditions listed below. An adjustment to tax (DP/ADJ54 or Exam/ADJ47) input with using hold code 0 or 1 or A adjustment to: credits (TCs 637, 766, or TC 767), penalties [FTF, FTP (decrease only), FTD or ES], or Civil Penalty (TC 240 with Reference Numbers 680-682, 686 for MFTs 05, 51, and 52). The CP 220 is an adjustment notice which generates due to the account conditions listed below. The CP 920 is the Spanish equivalent. The adjustment results in a balance due of ≡ ≡ ≡ or more (≡ ≡ ≡ ≡ ≡ for MFT 61) and the module was not in TDA Status (22, 24, or 26) before the adjustment for the conditions listed below. An adjustment to tax (DP or Exam) input with using hold code 0 or 1, or An adjustment to credits (TCs 637, 766, or 767), penalties [FTF, FTP (decrease only), FTD or ES], or Civil Penalty (TC 240 with Reference Numbers 680-682 for MFTs 05, 51, and 52). Note: There is no minimum balance due amount for generation of these notices. If the balance due is less than ≡ ≡ ≡ ≡ ≡, the balance due amount will print as none. An adjustment notice will have the DLN of the TC 150 if it generated for the recomputation of FTF (TC 166), FTP (TC 276 decrease only), ES (TC 176), or FTD (TC 186) penalties to a timely credit or extension posting after the notice module has settled or at settlement if the notice module is overpaid with no math error. The notice will have an adjustment DLN only if generated by a Doc Code 54 or 47 adjustment action (ADJ54 or ADJ47 input). The 4th and 5th digits of the IDRS adjustment transaction DLN will carry the Doc Code of the adjustment type. Doc Code 54 indicates an adjustment input on CC REQ54. Doc Code 47 indicates an adjustment input on CC REQ47 by Examination. For more information see IRM 3.14.2.6.1.7.1, Pending Transactions, for more information. Review all aspects of the CP 210/910 and CP 220/920 notice module before voiding. CP 210/910 or CP 220/920 can only be voided if: The original notice was voided (returning to taxpayer's figures). The original notice was retyped to reflect the information on the adjustment notice or the information on the adjustment notice was previously communicated to the taxpayer. An adjustment notice reflecting the correct module information will be retyped in a later cycle. The adjustment is incorrect and a pending transaction will correct the module. The credit transaction that created the notice is invalid and will unpost in a later cycle. A pending transaction on the notice module is a reversal of the adjustment action that created the adjustment notice. Note: If a another notice will generate, request that notice using the Local Control File (LCF) and once the notice has generated, void or retype that notice in OLNR, to exclude the incorrect information. See IRM 3.14.2.5.4.1 , NRP97 Input Information. CP 210/910 and CP 220/910 cannot be voided if: The taxpayer has not previously received the information and will not receive the information on a later notice. If the original balance due notice was voided in error and the resulting CP 210/220/910/920 is the selected notice being reviewed, print the notice ensuring it matches the module information.

# CP 210 (CP 910) and CP 220 (CP 920) Review Procedures

3.14.2.6.14.2 (01-01-2026) CP 210 (CP 910) and CP 220 (CP 920) Review Procedures Review Adjustment Notices on IDRS to accurately decide notice disposition. Ensure the action creating the adjustment notice: Is not a duplicate of a previously posted credit or adjustment. Is a valid credit and has not unposted on the debit side of the credit transfer. If the notice module has a TC 300 .00 adjustment (Exam ADJ47), look for a refunding TC 640 (advance payment of decided deficiency) on the module. If the TC 640 is refunding, check the Disposal Code on CC AMDISA. Follow the table below for actions based on the AMDISA disposal codes. If Then Disposal Code is 01 or 02 Allow the refund and print the notice. Disposal Code is other than 01 or 02 Delete the refund and contact Exam for notice disposition. When reviewing a notice generated by a Doc Code 47 or 54 adjustment, follow the table below: If Then The validity of the assessment or abatement is an unreasonable amount or a duplicate and the adjustment appears to be incorrect Contact the originator (lead or manager if originator cannot be contacted) to verify the adjustment was input correctly, if not, discuss taking corrective action such as notice disposition or deleting refund. Note: If the originator, their lead or manager cannot be contacted, take the case to the Notice Review lead to determine possible corrective action.

# CP 210 (CP 910) and CP 220 (CP 920) with Pending Adjustment (Doc Code 47 or 54) Transactions

3.14.2.6.14.3 (01-01-2026) CP 210 (CP 910) and CP 220 (CP 920) with Pending Adjustment (Doc Code 47 or 54) Transactions Follow the table below if an adjustment is pending on the notice module. See IRM 3.14.2.6.14.4 , for pending payments or credit transfers. Exception: If the Doc Code 47 or 54 adjustment is RSQ or UP, see IRM 3.14.2.6.14.3 (2)table below. For more information on posing status see IRM 3.14.2.6.1.7.1, Pending Transactions. If the pending transaction was input with And Then Hold Code 0 or Hold Code 1 Will reduce the refund Delete the refund using CC NOREF. Retype the notice in OLNR to remove credit interest if applicable and apply Label 1 since another notice will generate. Hold Code 0 or Hold Code 1 Will not reduce the refund Apply Label 1 in OLNR since another notice will generate. Hold Code 2 with a Doc Code 24 or 34 credit transfer posting in the same cycle Will reduce the refund Delete the refund using CC NOREF. Retype the notice in OLNR to remove credit interest if applicable and apply Label 1 since another notice will generate. Hold Code 2 with a Doc Code 24 or 34 credit transfer posting in the same cycle Will not reduce the refund Apply Label 1 in OLNR since another notice will generate. Hold Code 2 without a Doc Code 24 or 34 credit transfer posting in the same cycle Will reduce the refund Delete the refund using CC NOREF. Retype the notice in OLNR. Another notice will not generate. If the correct amounts cannot be determined prior to the posting of a TC 841, hold the notice and notify your lead. Once the TC 841 has posted retype the notice. Hold Code 2 without a Doc Code 24 or 34 credit transfer posting in the same cycle Will not reduce the refund Retype the notice in OLNR. If the overpayment will generate more than one TC 846 also apply Label 17. Another notice will not generate. Hold Code 3 Will reduce the refund Delete the refund using CC NOREF. Retype the notice in OLNR. Another notice will not generate. If the correct amounts cannot be determined prior to the posting of a TC 841, hold the notice and notify your lead. Once the TC 841 has posted retype the notice. Hold Code 3 Will not reduce the refund Retype the notice in OLNR. Another notice will not generate. Hold Code 4 Will reduce the refund Delete the refund using CC NOREF. Retype the notice in OLNR. Another notice will not generate. If the correct amounts cannot be determined prior to the posting of a TC 841, hold the notice and notify your lead. Once the TC 841 has posted retype the notice. Hold Code 4 Will not reduce the refund Retype the notice in OLNR. Another notice will not generate. If the pending adjustment is Resequencing (RS) or Unpostable (UP)follow the table below. If Then The transaction is resequencing (RS) The transaction will post unless conditions on the module or the transaction data will cause it to unpost. Decide notice disposition based on Hold Code per previous chart. The transaction is unpostable (UP) Decide if transaction will post. If determination cannot be made, print the notice. If determination is made that transaction will post, decide notice disposition based on the Hold Code input per above.

# CP 210 (CP 910) and CP 220 (CP 920) with Pending Credit Transactions

3.14.2.6.14.4 (01-01-2026) CP 210 (CP 910) and CP 220 (CP 920) with Pending Credit Transactions Follow the below information for pending credit transactions on adjustment notices. This section applies to pending payments and pending credit transfers. See the table below for notice disposition for pending (PN, RS, TP or UP) credit transactions such as TCs 610, 640, 650, 660, 670, 700 or 710: If Then OLNR Disposition is The notice module is overpaid, another refund will issue, but another notice will not generate Label 6. The notice module is overpaid and another notice will generate due to recomputation of penalty [FTF - TC 166, ES - TC 176, FTD - TC 186, or FTD - TC 276 (decrease only)] Label 18. The notice module is balance due, the balance due will be reduced, and another notice will not generate Label 3. Exception: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The notice module is balance due or even balance and will become overpaid, and another notice will not generate Label 4. See Caution below. The notice module is balance due and another notice will generate due to recomputation of penalty [FTF - TC 166, ES - TC 176, FTD - TC 186, or FTD - TC 276 (decrease only)] Label 2. Caution: INTST does not reflect recomputation of CCs PIFTD, PIFTF, or PIEST. If FTD penalty (TC 186), FTF (TC 166), or ES Penalty (TC 176) is on the module and timely credits are applied, CC INTST will not reflect any changes to the penalties in the balance due amount. Multiple pending credit transactions on the notice module may post in different cycles. Determine which cycle the credit will post and review the notice disposition table below. Reminder: When an account has more than one pending payment (such as TCs 610, 620, 640, 650, 660, 670, 700 or 710) that is resequencing (RS), Tape Edit Processing (TEP), adjustment awaiting IDRS daily close out (AP), corrected unpostable (CU) or pending transaction (PN), then in OLNR apply the appropriate label. If Then OLNR Disposition is Another notice will generate Label 2 or 18 as appropriate; Address only the pending credits that will be reflected on the next notice. Another notice will not generate Apply applicable label or retype per instructions in (a) above. Address all pending credits. You are reviewing a CP 210 or CP 910 and, your module contains two different credits that are PN on an overpaid module and they are being transferred to two different modules with the same EIN Apply label 21. If credit is unpostable, review IDRS to determine if the credit will post. If determination cannot be made, print the notice. If the PN (pending), RS (resequencing) or TP (pending on the Tape Edit Processor File) credit is listed on the NRPS contents page but not on BMFOLT or TXMOD, determine if the credit will post to the module. If determination cannot be made, print the notice. Note: DLN of the payment will indicate SPC location of payment. CC INTST does not recompute using the current module information if the pending transaction is a RS, TP or UP. If the payment belongs on the module and the updated balance is required for OLNR retype or label, use the chart below to calculate the updated balance due. If Then Payment is RS or TP and reflected on CC BMFOLT Use CC RECON to bring the information to TXMOD and overlay with CC INTST to view the updated balance, then enter calculate interest using CC COMPA. Payment is RS or TP but not reflected on CC BMFOLT Compute correct balance using CCs COMPA (interest) and COMPAF (FTP). Payment is UP and belongs on the module Compute correct balance using CCs COMPA (interest) and COMPAF (FTP). Ensure the transaction creating the adjustment notice is correct and valid. The credit transfer may be a duplicate transaction. If TC 700 or TC 710, ensure the debit side of the transfer is not unpostable and the credit is available for transfer. If the transaction has unposted on the debit side, do not reverse the transaction. Unpostables will reverse the credit side of the transaction in a future cycle. Void the adjustment notice and request and void the next or resulting notice utilizing the Local Control File. See IRM 3.14.2.5.4.1, NRP97 Input Information for specific information. Example: TC 710 posts to the notice module but has unposted on the debit side. Unpostables will reverse the TC 710 in a future cycle. Any previous penalty decrease will reverse and generate another notice.

# CP 210 (CP 910) and CP 220 (CP 920) with Pending Debit Transactions

3.14.2.6.14.5 (01-01-2026) CP 210 (CP 910) and CP 220 (CP 920) with Pending Debit Transactions If review of the module indicates pending debit transactions will post to the module, the transaction may result in systemic recomputation of penalty and/or interest. Recomputation of interest (TC 196) does not generate an adjustment notice. Recomputation of penalties will result in the issuance of a CP 210/910 or CP 220/920. See the table below for command codes which are used to review recomputation of penalties. If Then TC 166 (FTF Penalty) CC PIFTF recomputes TC 176 (ES Penalty) CC PIEST recomputes TC 186 (FTD Penalty) CC PIFTD recomputes Caution: CC INTST does not provide correct computation of FTP or Interest if the pending transaction on IDRS is Unpostable (UP), Resequencing (RS), or Tape Edit Processing (TP). Use CC COMPA and CC COMPAF to obtain this information. The penalty period for FTP (TC 276) is calculated from the date the penalty period begins (the Return Due Date) to the same date in each following month. TC 276 will not recompute if the payment is late and dated within the same monthly period as the 23C Date of the notice. If the return is due the 15th of the month, the penalty will not recompute until the 15th of the month after the 23C Date of the notice. Note: If the payment is timely (≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡), the FTP will recompute and generate an adjustment notice even if the payment is dated within the same monthly period as the 23C Date of the notice. If timely credit is removed from a module, an FTF or FTD penalty may assess on the module. See the below to determine if a notice will generate. If Then CC FTDPN indicates penalty TC 186 will be assessed and an adjustment notice will generate. CC PIFTF indicates penalty TC 166 will be assessed and an adjustment notice will generate. This section is for notice disposition for pending (PN, RS, TP or UP) debit transactions such as TCs 612, 642, 652, 662, 672, 701 or 702 due to credit transfers or reversed payments. See the table below for account actions and notice disposition for pending debit transactions except TC 820 or TC 830. See (b) below for Notice Disposition for Pending Debit Transactions (PN, RS, or UP) that are TC 820 or TC 830. If the Notice Module is Then Balance due or will become balance due and another notice will not generate Delete the refund using CC NOREF. In OLNR, retype the notice as appropriate and update interest and penalties. Reminder: Labeling the notice is not appropriate for this scenario. Balance due or will become balance due and another notice will generate and the notice is reviewed before LCF cutoff (Thursdays at 12 PM Local Time) Delete the refund using CC NOREF. Using NRP97 add the data to the LCF and in the following cycle void the resulting adjustment notice. See IRM 3.14.2.5.4.1, CC NRP97 Input Information. In OLNR, retype the notice as appropriate to include the pending transactions and update interest and penalties. Balance due and a another notice will generate and the notice is reviewed after LCF cutoff (Thursdays at 12 PM Local Time) Delete the refund if applicable using CC NOREF. Notify the lead the notice must be held until all transactions have posted. Once all transactions have posted, retype the notice in OLNR to include all posted transactions and correct interest, penalties, and balance due. Apply Label 13 to the retyped notice so the taxpayer knows the previously sent notice information was inaccurate. Reminder: Maintain an IDRS open control base until all transactions have posted and the notice disposition is complete in OLNR. The notice module is overpaid and the module balance will remain in credit or even balance Delete the refund if applicable using CC NOREF. Retype the notice in OLNR to remove credit interest included on the notice if applicable. Also apply Label 7 in OLNR if necessary. See IRM 3.14.2.7.10.6.7, Label 7, for more information. Caution: Void the notice if the pending transaction(s) is a reversal of the transaction that generated the adjustment notice. Notice Disposition for Pending Debit Transactions (PN, RS, or UP) TC 820 or TC 830. If the pending transaction is a TC 820 or TC 830, the transaction will unpost if the overpayment is refunding or the module balance is less than the transaction amount (because the credit is not available to be transferred). See below. If Then TC 820 or TC 830 is correct and is pending on an overpaid, non-refunding module and the full credit is available Retype the notice in OLNR to remove credit interest if applicable. Apply Label 7 in OLNR. If there is a -R freeze and credit will remain on the account after the TC 820/830 posts, release the freeze with TC 571 or TC 290 .00 Hold Code 3, Posting Delay Code 1. Note: If the full amount of credit is not available for the offset, the transaction will unpost. TC 820 or TC 830 transaction is incorrect, will unpost or has unposted, and must be re-input if the credit transfer has not been corrected and the module is refunding Note: If unpostable record is open on CC UPCASZ leave history item if you are inputting the credit transfer. Retype the notice in OLNR to remove credit interest if applicable. Apply Label 7 in OLNR. If there is a -R freeze and credit will remain on the account after the TC 820/830 posts, release the freeze with TC 571 or TC 290 .00 Hold Code 3, Posting Delay Code 1. If inputting the CC UPCASZ history item, close the unpostable open control base on TXMOD. Reminder: Notice Review Tax Examiners are responsible for notices generating on the credit side of the transactions. An incorrect TC 820 or TC 830 transaction has already been re-input and the module is refunding Retype the notice in OLNR to remove credit interest if applicable. Apply Label 7 in OLNR. If there is a -R freeze and credit will remain on the account after the TC 820/830 posts, release the freeze with TC 571 or TC 290 .00 Hold Code 3, Posting Delay Code 1. Note: It may be necessary to contact the originating tax examiner to determine if the transaction is valid.

# CP 210 / CP 220 Annual Branded Prescription Drug (BPD) Fee - Ogden Only

3.14.2.6.14.6 (01-01-2026) CP 210 / CP 220 Annual Branded Prescription Drug (BPD) Fee - Ogden Only Annual fee for branded prescription drug sales (BPD) notices will generate only in Ogden Notice Review inventory. Caution: These notices should not be worked by Notice Review or Large Corp/Technical. Do not assign to tax examiners. CP 210 or CP 220 will be the only notice generating for these accounts. These notices will generally generate under Key 018, but may be selected by other key selection criteria. Branded Prescription Drug Fees will always have a tax period ending in August and MFT of 03. Example: 03 20XX08. If inventory is received Headquarters staff will contact the notice owners for disposition. If necessary HQ staff will communicate notice disposition to Ogden management for disposition in OLNR. In January 2011, the IRS started to use the information submitted on Form 8947 to calculate the annual fee for branded prescription drug (BPD) sales (the fee). The fee was imposed by section 9008 of Public Law 111-148 (Patient Protection and Affordable Care Act), as amended by Public Law 111-152 (Health Care and Education Reconciliation Act of 2010) (the Act). Branded prescription drug sales are sales of branded prescription drugs made to specified government programs (or sales due to coverage under the programs). A branded prescription drug is any prescription drug for which an application was submitted under section 505(b) of the Federal Food, Drug, and Cosmetic Act (21 USC 355(b)), or any biological product the license for which was submitted under section 351(a) of the Public Health Service Act (42 USC 262(a)). Section 9008(b)(4) sets an applicable fee amount for each year, beginning in 2011, that will be allocated among covered entities with aggregate branded prescription drug sales of over $5 million to specified government programs or pursuant to coverage under such programs.

# CP 225 - Notice of Credit Transfer

3.14.2.6.14.7 (01-01-2016) CP 225 - Notice of Credit Transfer CP 225 is issued to tell the taxpayer that a missing payment(s) inquired about either through correspondence or telephone, has been located and applied. It generates if the CORRESP-DT field on FRM 34 is overlaid with a correspondence received date and will not be voided. There are four versions of CP 225. See the table below: CP 225 Status Information to Taxpayer Complete CP 225: 1. Balance Due Generates if no other notice of demand is generated in the same cycle (a CP 210/220/910/920). Informs taxpayer of payment(s) located and applied to the requested tax module. Fully explains the balance due (including tax data and penalty information). Partial CP 225: 2) No Return Filed - Informs taxpayer that payment(s) was located and applied. 3) Overpayment - Informs taxpayer that payment(s) was located, applied and the resulting overpayment amount. 4) Even Balance - Informs the taxpayer that payment(s) was located, applied and account is full paid. The partial CP 225 and the CPs 210/220/910/920 generate in the same cycle. Use the NRPS package and IDRS to review a partial or a complete CP 225. Ensure the credit transfer creating the CP 225 is valid. Note: If both CP 225 and CP 210 are selected for review, both notices are to be reviewed. Verify tax period, all credits, tax assessed, prepayments, penalty and interest amounts. Verify balance due, even and overpayment amounts. Review the CP 225 for accuracy. Follow the table below for research steps.: If the CP 225 is Then Even balance Verify the validity of the action that settled the account. Overpaid Verify that the action is valid and the refund must not be intercepted. Balance Due Verify that the action is valid; search for remaining claimed credit(s) that match the balance due. If found, transfer in. Note: If the credit transfer that settled the account is being removed from the account with a pending TC 652, or the validity of the transfer is questioned, print the notice. Another CP 225 will generate after the pending transactions posts. Review the NRPS package and IDRS for any AP, PN, or RS transaction that affect the notice module. For complete balance due CP 225 notices follow the table below for notice disposition. If And Then Credit(s) are pending (AP, PN, or RS) Penalties will recompute Disposition the CP 225 with Label 2. Credit(s) are pending (AP, PN, or RS) Penalties will not recompute Disposition the CP 225 with Label 3 or 4. A TC 29X or 30X is pending Another notice will generate Disposition the CP 225 with Label 1. A credit balance is refunding A debit transaction is pending that will decrease the refund Delete the refund. Disposition CP 225 with Label 7 or 14. A credit balance is refunding The overpayment is the result of a duplicate credit transfer Delete the refund and retype the notice. Note: Follow procedures in IRM 3.14.2.6.14.1, CP 210, CP 220, CP 910 and CP 920, and the following subsections for specific information. Review a partial CP 225 to ensure the credit transfer is valid. If valid, print the notice. Because the partial CP 225 is verification to the taxpayer of the payment transfer, do not label to reflect other transactions pending on the module. An additional CP 225 will generate in later cycles for pending Doc Code 34 credit transfers, if correspondence received dates were input. The CP 210/220 generating in the same cycle as the CP 225 will be labeled or retyped with any changes affecting the notice module. The partial CP 225 must be mailed. When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers.

# CP 260 - Credit Reversal Adjustment Notice

3.14.2.6.14.8 (01-01-2016) CP 260 - Credit Reversal Adjustment Notice CP 260 is generated to tell the taxpayer of a credit reversal on the tax module. The notice generates under the following conditions: The resulting module balance is a debit of ≡ ≡ ≡ ≡ or more. The credit reversal does not cause a recomputation or assessment of penalties resulting in the generation of CP 210 or 220 adjustment notice (FTF, FTD, ES or decreased FTP penalties). Note: TC 570 on the debit side of a credit transfer suppresses the CP 260 but does not suppress a CP 210 or CP 220. Hold Code 3 input on CC REQ54 does not suppress CP 260. Use the NRPS package and IDRS to review CP 260 for possible resolution of the debit balance. Check all other tax modules for a credit claimed on the notice module. If located and available for transfer, input the credit transfer. Check NRPS and the tax module on IDRS for pending (AP, PN, RS, UP, and TP ) transactions. Follow the table below for notice disposition and possible account actions. If Then The credit will satisfy the debit balance (overpay, even balance, or balance due less than ≡ ≡ ≡ ≡) Void the notice. The credit will not satisfy the entire debit balance, and penalties will not recompute Label the notice with Label 3. Input CC STAUP if necessary. The credit will not satisfy the entire debit balance but penalties will recompute (TCs 166, 186, 176 or decrease TC 276) Void the CP 260 and allow the next adjustment notice to generate to the taxpayer. Input CC STAUP if necessary. If the credit is unpostable on the notice module or another module Input CC STAUP for 9 cycles. Notify Unpostables by utilizing CCs UPTIN, UPDIS, and UPCASZ. Follow the above for correct notice disposition. Check the tax module on NRPS and IDRS to decide if the credit needed has offset (TC 826/706). See the table below to determine account actions and notice disposition. If Then TC 826 generated from another module in the notice cycle 1. Reverse enough of the offset to cover the debit balance (if available). 2. Transfer the credit to the notice module. 3. Void, retype or label the CP 260, as applicable. 4. Void CP 138. (Retype if only part of the offset was reversed.) Pull and void or retype CP 128 if it generates. TC 826 offset in a prior cycle from the notice module or from another module Do not reverse the offset unless the credit is refunding or available for reversal, because the taxpayer has previously received the CP 138 (notification of the offset). TC 856 (offset of generated interest) and TC 776 (generated interest) are present and the offset is reversed. Use CC ADD24 to reverse TC 856 with TCs 731/851. Then use CC REQ54 to reverse TC 776 with TC 772 (Hold Code 3). Check the tax module for a prior cycle refund. Follow the table below for CP 260 notice disposition. If And Then The refund was deleted and the TC 841 will satisfy the debit balance - Void the CP 260 and input CC STAUP for 9 cycles. (STAUP is not required if TC 841 has posted on CC BMFOLT.) The refund was deleted but the TC 841 will not completely satisfy the debit balance A notice or a refund previously generated Retype the CP 260 with the current account information. The refund was deleted but the TC 841 will not completely satisfy the debit balance A notice or a refund did not previously generate Retype the CP 260 to the appropriate settlement notice. The case control history shows a category 3913 - Void or retype the CP 260 using the above criteria. Input CC STAUP for 9 cycles. The refund (TC 846 was not deleted and a category 3913 is not present). - Print the CP 260. Note: Use CC COMPA to compute penalties and interest when CP 260 retype is required. Input CC STAUP for 9 cycles. Check the module for a pending tax adjustment. Follow the table below for CP 260 notice disposition. If And Then The adjustment contains: 1. No Hold Code 2. Hold Code 1 or 3. Hold Code 2, with a pending Doc Code 24/34 credit transfer - Void CP 260. The adjustment contains: 1. A Hold Code 2, with no pending Doc Code 24/34 credit transfer 2. Hold Code 3 3. Hold Code 4 The module balance will be full paid or credit Void CP 260. The adjustment contains: 1. A Hold Code 2, with no pending Doc Code 24/34 credit transfer 2. Hold Code 3 3. Hold Code 4 The module will remain in balance due Retype CP 260 with the correct balance due. If the payment was transferred to a module for another taxpayer, (different TIN), print CP 260. It is important to know that the penalties and interest shown on CP 260 are accrued, and not yet assessed on the module and the taxpayer has not been previously notified of these accruals. Always input history items when voiding, labeling or retyping CP 260. Reminder: When deleting a refund for a pending credit reversal, use Local Control File to pull the CP 260. Retype or void CP 260 based on the TC 841 amount.

# Employer Shared Responsibility Payment (ESRP)

3.14.2.6.14.9 (01-01-2024) Employer Shared Responsibility Payment (ESRP) Large employers (generally, employers with at least 50 full-time employees, including full-time equivalents employees, in the prior calendar year) may be assessed an employer shared responsibility payment (ESRP) under IRC 4980H(a) if they do not offer health insurance with minimum essential coverage (MEC) to full-time employees (and their dependents) and at least one full-time employee receives a premium tax credit (PTC) under IRC 36B. The ESRP may also be assessed under IRC 4980H(b) if the employer offers MEC to its full-time employees (and their dependents), but at least one full-time employee receives a PTC because the employer's offer of MEC was not affordable or did not provide minimum value or because the employee was not one of the at least 95 percent of full-time employees offered MEC. Form 1094-C and Form 1095-C are used to report information about offers (or non-offers) of health coverage and enrollment in health coverage to an employee by the employer. ESRP will not be self-reported by the taxpayer but will be assessed by the Exam function based on information reported to the IRS. Form 1094-C and Form 1095-C are used by Exam in determining whether an employer owes an ESRP. The ESRP assessments are processed on the BMF (Business Master File) under MFT43. On MFT 43, the assessment posts as a TC 290 .00 and/or a TC 298 for any amount (including zero), with a three-digit reference number which identifies the type of assessment. These reference numbers can be 240, 241, 242, 243, or 244 which identifies the type of assessment (reference number of 240 is the most common). A TC 150 never posts to this module.

# CP 220J/CP 233J, 4980H Adjustment Balance Due, Even Balance or Overpayment (ESRP) Notices

3.14.2.6.14.9.1 (02-16-2018) CP 220J/CP 233J, 4980H Adjustment Balance Due, Even Balance or Overpayment (ESRP) Notices CP 220J/233J are assessment/adjustment notices issued to employers once assessment has been posted or adjusted on MFT 43. CP 220J is systemically issued when an assessment posts on MFT 43 as a TC 290 .00 and/or a TC 298 for any amount (including zero) with a reference number 240. CP 233J is systemically issued when anymore TC 298 or TC 299 post to the MFT 43 module. CP 220J/233J are selected via the LCF as a KEY 092 and will be included in the NRPS package. Verify the information contained on the notice by utilizing the information in the NRPS Package and IDRS research command codes to compare the information contained on the notice to the information displayed on the applicable MFT 43 module to ensure the notice contains correct information. Verify the ESRP amount, Payments/Credits and Amount Due on the notice match the amounts on the MFT 43 module. See the table below for notice disposition. If Then The amounts on the notice match the amounts displayed on the MFT 43 module Print the Notice The amounts on the notice do not match the amounts displayed on the MFT 43 module Retype the notice to reflect the correct module information Note: Do not void the notice if there is a zero balance due on the notice. If the information on the notice matches the information contained on the MFT 43 module, print the notice.

# Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33, 52, 54, 55, 90 and 91

3.14.2.6.15 (01-01-2026) Selection Keys - Additional Review Required for Notices Generated Under Keys 09, 33, 52, 54, 55, 90 and 91 Key 09 - TPNC 90: When none of the standard TPNCs adequately describe an error condition on the return, the Error Resolution System (ERS) tax examiner writes a specific math error explanation on Form 12648 , 90 - TPNC, and attaches it to the return or selects an approved 90 Math Error Code and writes 90 dash with the literal number on the corner of the tax return. Follow the table below if a TPNC 90 case is received without access to the tax return. Example: 90-210 If Then The return is not included with the NRPS Package Check with Notice Review Clerical Team to identify if the return was received from ERS. The return is located at a different service center (based on the DLN) Take the case to your lead to work with the other service center to ensure the math error is review correctly and the notice marked accurately. The return is not located at any service center Use CC BRTVU and all other IDRS research command codes to review the Math Error(s) and correctly disposition the notice. Reminder: Coordination with ERS may be necessary in order to ensure the TPNC 90 returns are sent to Notice Review timely. Follow local procedures for providing feedback to ERS. Follow normal review procedures. Review the validity of the 90 Error Code written on or attached to the front of the return. Refer to the 90 Error Code Decision Table below. Caution: If you do not have the return (paper document) and have not received other documentation for the TPNC 90 (printed ERS screens with the correct TPNC 90 copy paste information), see above for verifying the location of the return. Do not void the notice or change a TPNC 90 to another TPNC solely because the return has not been received in Notice Review. If Then The taxpayer is correct with no math error on the return Void the notice if all conditions are met for voiding the notice per IRM 3.14.2.7.10.3, Voiding Notices. A standard TPNC is indicated on the Form 12648, TPNC 90, or the return and is correct Select the correct TPNC in OLNR. The standard TPNC is incorrect Research the case and delete the incorrect TPNC and select the correct TPNC. If the 90 literal written on the Form 12648 or the return is correct Select the TPNC 90 literal code from the TPNC 90 Literals-Copy and Paste Job Aid. If the 90 literal written on the Form 12648 or the return is incorrect Research the case to identify the correct TPNC. Select the correct standard TPNC, type the appropriate paragraph in the TPNC 90 open box in OLNR or select the TPNC 90 code from the TPNC 90 Literals-Copy and Paste Job Aid. Note: ERS may indicate a standard TPNC for the math error rather than a 90 Error Code. Beginning in 2014, some of the TPNC 90 literals have been numbered and are programmed for use in OLNR. They can be selected in the same manner as any other TPNC. A list of these programmed TPNC 90s can be found on the BMF Notice Review SERP Portal under Job Aids, titled TPNC 90 Math Error Code Job Aid. TPNC 90 literals that are not programmed into OLNR can be copied and pasted from the TPNC 90 Literals-Copy and Paste Job Aid. This job aid can be found on the BMF Notice Review SERP Portal under "Job Aids", titled TPNC 90 Literals-Copy and Paste. TPNC 90 is still available to be used as an open fill-in paragraph box in OLNR. A maximum of 10 lines with 70 characters in each line is allowed in OLNR. Key 33 - CP 161, MFT 51 - Form 709 ***Kansas City Only***: Key 33 cases generate for any CP 161 with an MFT 51. An extension filed for Form 1040, applies to Form 709 but as of 2004, the extension (TC 460) is not systemically placed on the Form 709 tax module. To decide if the taxpayer filed an extension for their Form 1040 and the payment intended for the Form 709 is available on the Form 1040 module, do the following: Use CC IMFOLT or TXMOD to research the IMF SSN for a TC 460 on the tax module. This TC 460, extension, is also applicable to the Form 709 filing. If a joint return, research both the primary and secondary SSN. If a timely extension is found, input the TC 460, using REQ77, on the Form 709 notice module. See IRM 3.14.2.7.9 , Extensions, and Exhibit 3.14.2-11 , Adding Extensions Using FRM77, for more information. If the 1040 module is overpaid, check CC RTVUE to decide the amount of credit claimed by the taxpayer. If the credit is available and can be transferred to the Form 709 notice module without placing the IMF module into a balance due status, transfer the credit using the IAT credit transfer tool. Do not consider penalty and/or interest charges not claimed on the tax return if they create the balance due left on the account. If the above actions will systemically abate any penalty and/or interest charges in full, on the Form 709 module, void the notice. If a balance due remains after completing the steps above, retype the notice including updates to penalties and interest. Key 52 : Generates if the notice balance due amount is less than or equal to the amount being refunded this cycle (TC 846) from another tax period for the same taxpayer. Intercept the refund where the credit is posted (must be a claimed credit or exact amount needed). Move the credit with a posting delay code 2 on the debit side of the credit transfer. Apply appropriate notice disposition. Key 54: Delinquency Penalty (TC 166) was not assessed on a potentially delinquent return. The Balance Due Notices are selected if returns that appear to be late are processed with timely received dates. Note: Key 54 process as outlined below is only for current year tax returns. If the tax year is other than current, do not request the return (unless needed for another issue), process the notice and notice module following normal procedures outlined in IRM 3.14.2.6, General Review Procedures. You must have the return to review this key. If the return is not available, you must request it using CC ESTAB. Mark notice disposition H. When the return is received, follow the remaining instructions. Exception: See the table below for situations when Notice Review does not order the return or assess the penalty. Do Not Order Return or Assess the Penalty If: There is a -A freeze on the account. It is a 6020b return (not liable for penalties). A 6020b return is a substitute for a return using Forms 4549, 886-A, and 13496 in place of a return under IRC Section 6020b. These forms are completed during an Examination case. It is a Dummy Return. Check CC BMFOLT and/or CC ENMOD for FEMA disaster areas and use the date shown to calculate interest and penalties. Note: CC ENMOD can have several FEMAs listed, so verify you are using the dates for the correct filing period. Refer to IRM 3.14.2.6.17.3, Failure to File (Delinquency) Penalty Recomputation IRC 6651(a)(1), and IRM 3.14.2.6.17.3.1, Failure to File Penalty (IRC 6698/6699), for more information concerning FTF penalty. Use the following table to decide the correct received date of the return and conclude if Failure to File penalty (TC 160) will be assessed: Note: 7 days after the due date the return is considered on time. 8 days past the due date the return is considered 1 month late. Received Date Decision Table IRS stamped Received Date or edited Received Date, unless a timely postmark date is present. Earliest postmark date, if the envelope is attached, Note: The return is not late if the postmark is on or before the Return Due Date (RDD), regardless of the IRS Received Date stamp. Use the taxpayer signature date if there is no IRS Received Date or postmarked envelope, (Do not use the preparer's signature date). Julian control date of DLN (i.e., if more than one DLN is present, then use the earliest DLN Julian Date posted) minus 10 days. Caution: Do not use correspondence issued from Code and Edit to decide the received date. That correspondence is often sent on timely filed returns after the due date. If the return is delinquent, compute and assess the FTF penalty using the following table: FTF Penalty Assessment 1. Identify the penalty period: From the Return Due Date to the return received date (the number of months or any part of a month the return is late, up to a maximum of 5 months). 2. Identify the penalty rate: 4 1/2 percent per month (maximum 22 1/2 percent) or 5 percent per month (maximum 25 percent) if FTP is not assessed for the same time period. 3. Identify the amount subject to penalty: The TC 150 tax amount minus timely credits received on or before the RDD. Note: Payments received after the RDD will not be used in the penalty computation. 4. Multiply: amount subject to penalty X penalty rate X penalty period = the penalty amount. Example 10000 x 5 % x 3 = $ 1,500.00. Caution: Please keep in mind the minimum penalty amounts. 5. Assess TC 160 on CC REQ54, Blocking Series 00, Hold Code 3. 6. Use CC COMPA to compute the interest, but do not assess the additional interest. Reminder: Interest is charged on FTF penalty. Include the penalty amount when computing the interest due. 7. Retype the notice to reflect the assessed FTF penalty and the correct interest amount due. Reminder: If a notice has been held, then update other penalties on the notice as required. Figure the TC 160 amount using the following chart. Number of Months TC 160 (no TC 276) TC 160 (TC 276 on module) 1 month Underpayment x 5% Underpayment x 4.5% (.045) 2 months Underpayment x 10% Underpayment x 9% (.09) 3 months Underpayment x 15% Underpayment x 13.5% (.135) 4 months Underpayment x 20% Underpayment x 18% (.18) 5 months Underpayment x 25% Underpayment x 22.5% (.225) Attach adjustment tag to the return, being careful that you do not cover any portion of the entity, and put return in gusset folder. You may still use the pink adjustment tag if preferred. Attach completed Form 6502 to gusset folder. To figure the interest on the Retype, use CC COMPA and input per the table below: Figure 3.14.2-4 IDRS input format of CC COMPAThis figure shows an image of the correct IDRS input format of CC COMPA with one paymentUpper left hand corner shows "COMPA"Line 2 shows Due date of the return (RDD) - 013120XX space Date of the 1st payment received after the RDD - 052120XX space $,$$$.$$ - Total tax minus any timely payments, plus TC 160/166 Failure to File (FTF) penalty amount unless an extension (TC 460) has been filed. If an extension has been filed the TC 160/166 FTF amount will not be added into the dollar amounts in COMPA until the date of the extension has been reached and the taxpayer is still in balance due. Please click here for the text description of the image. Due date of return space 23C date space Underpayment plus FTF penalty amount (if no extension or past extension date) XXXXXXXX sp XXXXXXXX sp $$$$.$$ Figure 3.14.2-5 CC COMPA with PaymentsImage shows COMPA with multiple payments.Upper left hand corner shows "COMPA"Line 2 shows Due date of the return (RDD) - 013120XX space Date of the 1st payment received after the RDD - 030520XX space $,$$$.$$ - Total tax minus any timely payments, plus TC 160/166 Failure to File (FTF) penalty amount unless an extension (TC 460) has been filed. If an extension has been filed the TC 160/166 FTF amount will not be added into the dollar amounts in COMPA until the date of the extension has been reached and the taxpayer is still in balance due.Line 3 shows the Date of the 1st payment received after the RDD - 030520XX space Date of the 2nd payment received after the RDD (if applicable) - 031820XX space $,$$$.$$ - The amount from line 1 $,$$$.$$ minus the amount of the 1st payment received after the RDD plus TC 160/166 Failure to File (FTF) penalty amount unless an extension (TC 460) has been filed or the extension date has been reached.Line 4 shows the Date of the 2nd payment received after the RDD - 031820XX space Date of the 3rd payment received after the RDD (if applicable) 052120XX - space $,$$$.$$ The amount from line 2 $,$$$.$$ minus the amount of the 3rd payment received after the RDD plus TC 160/166 Failure to File (FTF) penalty amount unless an extension (TC 460) has been filed or the extension date has been reached. Please click here for the text description of the image. If there are late payments, figure interest per the table below: Due date of return space 23C date space Underpayment XXXXXXXX sp XXXXXXXX sp $$$$.$$ (Due date of return) sp (1st late payment date) sp (Total tax minus any timely payments, plus TC 160 penalty amount) XXXXXXXX sp XXXXXXXX sp $$$$.$$ (Repeat 1st late payment date) sp (2nd late payment date, if necessary) sp (Subtract 1st late payment) If the notice disposition is retype, Change Interest Field to the new amount found on COMPA. Do not assess the interest, but include it in the retype. Select the Penalty Tab and input 01 amount (TC 160 amount). Reminder: FTF is charged on the amount of tax due at the normal RDD (Return Due Date). This includes only timely credits. There is a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on payments. The computer does not take this grace period into account, so you must use the due date. (e.g., Payment dated May 5th should be input with an April 30th payment date). Interest is charged on the Failure to File penalty. Caution: Do not assess FTF penalty if reasonable cause indicator R for filing late is on the return. Key 55: Balance Due Notices are selected if an acceptable reason for not filing a return (TC 590 or TC 591) is posted to the notice module. The Collections function inputs a TC 590 or TC 591 on the module where a return is not required to indicate no further filing is required for an EIN. Because taxpayers may change EINs for various reasons research is required. Follow the table below. EIN Changes: Use NRPS and IDRS to research previous tax modules Check the return for an indication of any other EIN Use CC NAMEB Note: Research the Doing Business As (DBA), as well as the primary name on the return. The business may have been incorporated. Seethe table below for Required Action for EIN Changes. If And Then Another EIN is found The return has posted to the correct EIN for the notice module Transfer any missing claimed credits located to the notice module. Another EIN is found The return has posted to the incorrect EIN for the notice module Reprocess the return to the correct EIN (rather than transferring credits). No other EIN is found - Print the notice. Key 91 : The Error Resolution System (ERS) has no provision for correcting a record after the document has been completed in ERS. If a defect is detected, ERS will notify Notice Review to modify the notice as follows: Error Correction TEs will prepare Form 3465, and send it with the return to Notice Review Upon receipt of Form 3465, use Key 91 under Local Control to select the notice for review Follow General Review procedures in addition to the Key 91 table below: If the action requested on Form 3465, Adjustment Request, is Then Correct 1. Delete the refund if necessary. 2. Input the adjustment (use Posting Delay Code if necessary). 3. Take corrective action on the notice. 4. Use appropriate notice disposition. Incorrect, unclear, or an action not normally completed in Notice Review Follow local procedures for requesting clarification from or providing feedback to ERS.

# Special Review - Patient Centered Outcomes Research (PCOR) Review on Form 720

3.14.2.6.15.1 (10-04-2017) Special Review - Patient Centered Outcomes Research (PCOR) Review on Form 720 Patient Centered Outcomes Research (PCOR) is an annual tax that is reported only on second quarter Form 720. If payments have been misapplied, transfer to the correct module. The following adjustment reference numbers are available to adjust the fields: DRN 906 is used to overlay the SHIP-COUNT field. CRN 813 is used to adjust the SHIP-AMT field. DRN 907 is used to overlay the ASIHP-COUNT field. CRN 814 is used to adjust the ASIHP-AMT field. NOTE: If adjustments are made to a PCOR return, SHIP and ASHIP fields must also be adjusted. For example: If the PCOR tax liability is reduced to zero, the SHIP and ASIHP fields must also be reduced to zero. If reprocessing of the return is required, recharge the return to 0280200000 and route to Excise Stop 5701G.

# CP 173 - ES Penalty

3.14.2.6.16 (01-01-2024) CP 173 - ES Penalty Purpose: CP 173 is a settlement notice generated to inform the taxpayer of a computer generated Estimated Tax penalty assessment (TC 176) on Form 990-T, Exempt Organization Business Income Tax Return, Form 990-PF,, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, Form 1041, U.S. Income Tax Return for Estates and Trusts, and the Form 1120, U.S. Corporation Income Tax Return, series. The notice is issued in the cycle the TC 150 posts with a full paid module (Status 10 or 12) and in the absence of any other taxpayer settlement notice. To view an exhibit of the CP 173, refer to Taxpayer Correspondence Services (TCS) website Servicewide Notice Information Program SNIP. Review Instructions: Use the NRPS selection key as a guideline to assist in the review of the notice. Follow General Review procedures. If the return is not included with the NRPS package, work the case without it. Verify that the ES payments on the notice module match the ES credits claimed on the return. If the credits do not match, then some or all of the ES payments may have been misapplied. See the table below. Misapplied ES Payments Late or timely unclaimed or excess payments posting incorrectly to the module Timely missing payments posting incorrectly to a different module or TIN Research Research the NRPS package and IDRS for any timely payments that must be applied or removed from the notice module. Follow the table below. Research for Timely Payments Request payment voucher according to local procedures Check for an indication of the correct placement of questionable payments Use CC BMFOL and TXMOD Research additional EINs indicated on the return or in account history. Case Resolution If found: Transfer the payment(s) to and/or from the notice module Use CC PIEST to decide if the ES Penalty will recompute Reminder: An adjustment notice generates when the ES Penalty recomputes. Research additional TINs indicated on the return or in the NRPS package for missing payments or resolution of excess credits Check dates and amounts of unclaimed payments and take the following action: If the payments are timely for the next tax year, delete the refund (if applicable) and transfer the payment(s) (Use proper Posting Delay Code) Note: To resolve a CP 173 case, transferring missing payments into the module and excess payments out of the same module may be necessary. Reminder: Credit Elect may need to be reversed and CP 145 voided or retyped when transferring credits from a notice module with a TC 830/836 (Credit Elect Transaction Code). Verify any payments that are out-of-line (date and amount) for the notice module but will not be transferred to the next tax year Follow instructions in IRM 3.14.2.7.10, Notice Disposition.

# Penalties and Interest

3.14.2.6.17 (02-20-2025) Penalties and Interest Certain penalties and interest must be specifically addressed when adjusting tax, credits or payments within a module. Document 6209 Section 10, provides penalty and interest policy guidelines, processing codes and additional information from the Office of Servicewide Penalties (OSP) and the Office of Servicewide Interest (OSI). The following websites provide additional penalty and interest information: The Penalties Knowledge Base: The Penalties Knowledge Base (KB) is owned and maintained by the Office of Servicewide Penalties (OSP). It provides guidance, resources, and information for all employees considering assessment and/or abatement of civil penalties. Interest Knowledge Base: The Interest Knowledge Base is owned and maintained by the Office of Servicewide Interest and provides guidance, resources, and information for all employees that consider assessment and/or abatement of interest. The table below lists penalty types: Type of Penalty Transaction Code Used to Assess Penalty Rate & Information BMF Impacted Forms Failure to File (FTF) IRC 6651(a)(1) Assessment Codes Manual- TC 160 Systemic- TC 166 Abatement Codes Manual- TC 161 Systemic- TC 167 The penalty is 5% of the tax unpaid on the return due date (determined with regard to extensions to file) for each month or part of a month that the return is late, not to exceed 25%. When an income tax return is more than 60 days late, a minimum penalty applies. The penalty amount is the lesser of 100% of the unpaid tax or the minimum penalty for the tax year. See IRM 20.1.2.3.7.4, Minimum Penalty, for more information. Caution: When both FTF & FTP penalties apply for the same month, the Failure to File penalty is reduced by the amount of the Failure to Pay penalty for the applicable months, unless the minimum Failure to File penalty applies. Note: The minimum penalty amount applies to income tax returns ONLY. It does not apply to employment tax, excise tax, gift tax, estate tax or penalties assessed under IRC 6698/6699 in relation to Forms 1065, 1066 and 1120-S. 706, 706-NA, 709, 709-NA, 720, 730, 940, 941, 943, 944, 945, 990-PF, 990-T, 1041, 1042, 1065-B, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, 2290 Failure to Pay (FTP) Tax Shown on the Return IRC 6651(a)(2) Assessment Codes Manual- TC 270 Systemic- TC 276 Abatement Codes Manual- TC 271 Systemic- TC 277 In general, the penalty is 1/2% of the tax shown on the return that is not paid by the return due date with regard to extensions. The penalty is charged on the unpaid tax for each month or part of a month that the tax remains unpaid, but it cannot exceed 25% in the aggregate. See IRM 20.1.2.3.8.4, Failure to Pay Tax Shown on the Return—IRC 6651(a)(2), for more information. 706, 706-NA, 709, 709-NA, 720, 730, 940, 941, 943, 944,945, 990-PF, 990-T, 1041, 1042, 1065-B, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, 2290 Failure to File IRC 6698 Assessment Codes Manual- TC 240 Systemic- TC 246 Abatement Codes Manual- TC 241 Systemic- TC 247 For taxable years beginning after December 31, 1978, IRC 6698 imposes a penalty on a partnership that fails to file a timely or complete return. Prior to January 1, 2022 this penalty was assessed using TC 160/166. After December 31, 2021, these penalties will be assessed with a PRN and IRN: Failure to File Partnership Return Using Electronic Media PRN 688 is used Failure to File PRN 722 is used IRN 851 lists number of partners IRN 852 lists number of months late Failure to File a Complete Return PRN 723 is used IRN 851 lists number of partners IRN 852 lists number of months late IRN 853 lists the missing schedule code 1065, 1066 Failure to File IRC 6699 Assessment Codes Manual- TC 240 Systemic- TC 246 Abatement Codes Manual- TC 241 Systemic- TC 247 For S corporation returns due after December 20, 2007, IRC 6699 imposes a penalty on an S corporation that fails to file a timely or complete return as required by IRC 6037. Prior to January 1, 2022 this penalty was assessed using TC 160/166. After December 31, 2021, these penalties will be assessed with a PRN and IRN: Failure to File PRN 722 is used IRN 851 lists number of shareholders IRN 852 lists number of months late Failure to File a Complete Return PRN 723 is used IRN 851 lists number of shareholders IRN 852 lists number of months late IRN 853 lists the missing schedule codes 1120-S Failure to Pay Estimated Tax (ES) IRC 6654 & IRC 6655 Assessment Codes Manual- TC 170 Systemic- TC 176 Abatement Codes Manual- TC 171 Systemic- TC 177 Estates and Trusts must pay estimated tax by its due date if the estate or trust is expected to owe at least $1,000 after subtracting its withholding credits. A penalty is applied if the estate or trust did not pay enough estimated tax, or it did not make the payments on time, or in the required amount. Corporations must make quarterly estimated tax installment payments if it expects its estimated tax to be $500 or more. The Corporation is subject to an underpayment penalty for failing to pay the required installment of estimated tax by its due date. Exempt organizations and private foundations are subject to an underpayment penalty for failing to pay the required installment of estimated tax by its due date. Partnerships that are required to withhold income tax on effectively connected income from their foreign partners use Form 8804 to compute their estimated tax penalty. 1041, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, Schedule A(8804), 8805, 990, 990-T, 990-PF Failure to Deposit Taxes (FTD) IRC 6656 Assessment Codes Manual- TC 180 Systemic- TC 186 Abatement Codes Manual- TC 181 Systemic- TC 187 For deposits required after December 31, 1989, there is a four-tiered penalty. The penalty is 2% for deposits 1-5 days late, 5% for deposits 6-15 days late, 10% for all direct payments and those deposits more than 15 days late, but paid on or before the 10th day following notice and demand, and 15% (actually, a 5% addition to the 10%) for late undeposited taxes still unpaid after the 10th day following the first balance due notice or the day on which notice and demand for immediate payment is given. See IRM 20.1.4, Failure to Deposit Penalty, for more information. 940, 941, 943, 944,945, CT-1, 1042, 720 Dishonored Check Penalty Assessment Codes Manual- TC 280 Systemic- TC 286 Abatement Codes Manual- TC 281 Systemic- TC 287 A penalty is imposed on dishonored checks or other forms of payment that are returned from a financial institution unpaid. See IRM 20.1.10.7, IRC 6657 - Bad Checks (Dishonored Checks or Other Forms of Payment), for more information. 706, 706-NA, 709, 709-NA, 720, 730, 940, 941, 943, 944, 945, 990-PF, 990-T, 1041, 1042, 1065-B, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, 2290 Information Return Penalty Assessment Codes Manual- TC 240 Abatement Codes Manual- TC 241 Information Return Penalty - Failure to File Correct Information Returns Due to Intentional Disregard. When any failure, or combination of failures, related to certain Information Returns is due to Intentional Disregard, the penalty rate is increased. The penalty rate per return depends on when the return is due. There is no maximum limitation. PRN 600 is used to assess this penalty. A penalty is also charged when a payee statement is not timely or correctly furnished to recipient. For more information, see IRM 20.1.7, Information Return Penalties. Fraud Assessment Codes Manual- TC 320 Abatement Codes Manual- TC 321 Fraud Penalty. A civil fraud penalty will be imposed when there is clear and convincing evidence to prove that some part of the underpayment of tax is due to fraud. The penalty rate is 75% of the underpayment of tax which is attributable to fraud. For more information, see IRM 20.1.5.16, IRC 6663, Civil Fraud Penalty. 706, 706-NA, 709, 709-NA, 720, 730, 940, 941, 943, 944, 945, 990-PF, 990-T, 1041, 1042, 1065-B, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, 2290 Civil Penalty for Frivolous Returns Assessment Codes Manual- TC 240 Abatement Codes Manual- TC 241 PRN 666 is used to assess this penalty. A penalty is imposed against a person who files a return based on a frivolous position identified under IRC 6702(c). The penalty rate for each return deemed frivolous is $5,000 if filed after March 16, 2007. $500 for income tax returns filed prior to March 17, 2007. For more information, see IRM 20.1.10.12.1, IRC 6702(a) - Civil Penalty for Frivolous Tax Returns. All BMF returns Debit (underpayment) Interest Assessment Codes Manual- TC 340 Systemic- TC 196 Abatement Codes Manual- TC 341 Systemic- TC 197 Debits the tax module for the amount of interest due when a tax module is underpaid. For more information, see IRM 20.2.1, Interest Introduction, Standards and Guidelines, IRM 20.2.5, Interest on Underpayments, IRM 20.2.7, Abatement and Suspension of Underpayment Interest Overview, IRM 20.2.10, Interest on Estate, Excise, Employment and Foreign Taxes, IRM 20.2.11, Miscellaneous Interest Provisions, and IRM 20.2.14, Netting of Overpayment and Underpayment Interest. Credit Interest Assessment Codes Manual (Restricted Interest)- TC 770 Systemic- TC 776 Abatement Codes Manual (Restricted Interest)- TC 771 Systemic- TC 777 Credits the Tax Module for the amount of interest due when a Tax Module is overpaid as the result of a credit or an abatement. For more information, see IRM 20.2.4, Overpayment Interest and IRM 20.2.14, Netting of Overpayment and Underpayment Interest.

# Recomputation of Interest and Penalties - General

3.14.2.6.17.1 (01-01-2023) Recomputation of Interest and Penalties - General See IRM 20.2 , Interest, for information on computing interest. Even though this IRM has instructions for manually adjusting penalty and interest, input manual restrictions only after determining that the computer cannot correctly assess or abate the penalty, interest, or both. If the taxpayer requests abatement of a penalty due to reasonable cause, then refer to IRM 3.14.2.6.1.1.7, Taxpayer Correspondence. The computer may assess and abate penalties on the Master File when: An exam adjustment posts A tax adjustment posts An approved Extension of Time To File posts after the tax and penalties were computer assessed An adjustment to a refundable credit posts A payment posts, or is transferred to or from the account Note: A manual penalty assessment will prevent systemic recomputation. See IRM 20.2.14, Netting of Overpayment and Underpayment Interest for an explanation of Interest Netting. Miscellaneous penalty issues: If the tax is full paid and the taxpayer requests reasonable cause consideration on FTF or FTP penalties and the amount of each is under ≡ ≡ ≡ ≡ ≡ ≡, allow the request and abate the penalty If the taxpayer requests abatement of Estimated Tax (ES) penalty and the amount is under ≡ ≡ ≡ ≡ ≡, allow the request and abate the penalty

# Definitions

3.14.2.6.17.2 (01-01-2023) Definitions Start Date: The date the penalty starts for a specific unpaid tax liability. This date indicates the beginning of the first monthly period. Multiple Start Dates are possible when there are different tax liabilities assessed at different times on the same module The most common Start Dates are the normal return due date (RDD), the extended payment due date, and the twenty-second day after an assessment date of demand (23C Date) In the case of an installment agreement, the start date for the reduced penalty rate is the later of 1/1/2000 or the transaction date of the TC 971/ Action Code 063 Monthly Period: The period that begins on the Start Date and ends on the numerically corresponding day in the following calendar month. If the following month does not have a matching day, use the last day of that month. Example: If the Start Date is August 31, the Monthly Period ends on September 30. Penalty Rate: The fixed amount or percentage charged with respect to a penalty. For example the penalty rate for a Failure to Pay (FTP) Tax Shown on the Return IRC 6651(a)(2) is 1/1% per month or fraction of a month. The penalty is figured on the first day of the monthly period. The rate changes to 1% per month on: The beginning of the first month following the tenth day after the Status 58 date or TC 971 with Action Code 035, or 069, or Example: If the Status 58 date is September 25, the 1% would begin on the first day of the monthly accrual period following October 5. The 1% rate begins on the 23C Date of a Jeopardy assessment (TC 370, Doc Code 51 Blocking Series 100-119). Example: If the 23C Date is September 25, the 1% would begin on October 1. Note: The maximum FTP penalty rate charged on the unpaid balance of each assessment is 25%. Reduced Penalty Rate: The reduction of the fixed amount or percentage charged based on specific criteria with respect to a penalty. An example of this is the 1/4 Percent Penalty Rate provision. For information regarding the 1/4 Percent Penalty Rate for IRC 6651 FTP penalties, see IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate - IRC 6551(h). Penalty Amount: Computed on the balance of unpaid tax at the beginning of each monthly period. Note: A payment received after the beginning of the monthly period will not affect that month's penalty amount. Assessments: Tax assessments are any of the following Transaction Codes: 150, 290, 298, 300, and 308.

# Failure to File (Delinquency) Penalty Recomputation IRC 6651(a)(1)

3.14.2.6.17.3 (01-01-2026) Failure to File (Delinquency) Penalty Recomputation IRC 6651(a)(1) The Failure to File (FTF) penalty is assessed when a taxpayer fails to file a tax return by the return due date including extensions {i.e., returns received after the normal or extended return due date (RDD)}. The FTF penalty applies to the actual amount of tax due on the RDD. Note: For additional information concerning the FTF penalty see IRM 20.1.2.3.7, Failure to File a Tax Return—IRC 6651(a)(1). The FTF penalty is 5% of the amount subject to the penalty, for up to five months, excluding any overlapping amount of Failure to Pay (FTP) penalty. The maximum FTF penalty is 25% of the unpaid tax remaining on the return due date without regard to extensions. Exception: See the Minimum FTF Penalty by Tax Year table below for income tax returns more than 60 days past due. Before inputting an adjustment on a case with FTF, use CC INTSTD or PIFTF to review the original FTF rates. Use the same percentage rate for abating that was used for assessing the FTF on the same unpaid tax amount. Different penalty rates may apply to different amounts of tax for the same time period. FTF rates are impacted when there is intent to levy, jeopardy assessment (see IRM 20.1.2.3.8.1.1, 1 Percent Penalty Rate—IRC 6651(d)), or an active installment agreement (see IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate—IRC 6651(h)). When inputting an adjustment in IDRS, compute the FTF penalty manually to determine whether the FTF penalty will recompute when the adjustment posts. Note: Use the IRC 6551 FTF Penalty Tool to assist in calculating the FTF penalty after adjustment when FTP also applies. The tool is located on the Penalties Knowledge Base (KB) site and is owned and maintained by the Office of Servicewide Penalties (OSP). It provides guidance, resources, and information for all employees considering assessment and/or abatement of penalties. To correctly recalculate the FTF penalty, first determine the penalty period, the number of months or part of a month the return is late. When the return has been processed correctly, the number of months a return is late can be found in IDRS on CC TXMOD to the right of field MO-DELQ>. If the delinquency period is in question, count the number of months from the latest of the RDD, extended due date, or disaster due date, to the date the return was filed (return received date). This is the number of months subject to penalty. Note: Any part of a month counts as a full month, i.e., a return with a due date of 4-15-2026 with a received date of 5-20-2026, without any extension or disaster dates, is two months late. See IRM 20.1.2.3.7.1, Period Subject to IRC 6651(a)(1), for more information on determining the months or period a return is late. After calculating the penalty period, determine the amount subject to the FTF penalty. Determine unpaid tax ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ following RDD or disaster due date, whichever is later. This is the amount subject to penalty. The disaster due date for FTF is determined without regard to any extension of time to file. See IRM 20.1.2.3.7.2, Amount Subject to IRC 6651(a)(1), for more information on determining the amount subject to the penalty. The base FTF penalty is calculated by multiplying the number of months the tax return is delinquent (up to five), times the amount subject to penalty, times 5%. The resulting FTF amount applies to cases without a Failure to Pay penalty. The formula for calculating the base FTF penalty is: Period X Amount X 5%. The FTF penalty when Failure to Pay (FTP) also applies is calculated by subtracting the overlapping amount of FTP penalty from the base FTF amount. When FTP and FTF apply to the account, calculate the FTF penalty as follows: Compute the base FTF penalty as outlined above. Compute the FTP penalty for the same number of months subject to FTF penalty. For math error returns, calculate FTP using the lesser of the tax per taxpayer or the corrected tax amount. For more information see IRM 3.14.2.6.17.5, Failure to Pay Penalty Recomputation. Subtract b) from a) to get the correct FTF amount when overlapping FTP also applies. Example: Form 941 with a return due date of 4/30/2026 had an unpaid tax amount of $5,500.00 on 4/30/2026. The return received date is 7-2-2026. Therefore, the penalty period is 3 months. The amount subject to penalty is $5,500.00. The base FTF is $825.00. The next step is to calculate the FTP using COMPAF. The taxpayer made no payments. So the FTP, for the overlapping 3 months, is $82.50. To calculate the correct amount of FTF, reduce the base FTF ($825.00) by the overlapping FTP amount ($82.50). The result is $742.50 for the final recomputed FTF. The minimum FTF penalty applies only to income tax returns. It does not apply to employment tax, excise tax, gift tax or estate tax returns. If the income tax return is more than 60 days late (RDD or EDD as applies) then a minimum FTF penalty applies. See the table below for the Minimum FTF Penalty by Tax Year. Exception: If the income tax return is more than 60 days late, the penalty is the lesser of the amount of unpaid tax at RDD or the minimum penalty amount shown in the table below. Return Due Date Without Extension Minimum Amount 1/1/2026 and After $525.00 Between 1/1/2025 and 12/31/2025 $510.00 Between 1/1/2024 and 12/31/2024 $485.00 Between 1/1/2023 and 12/31/2023 $450.00 Between 1/1/2020 and 12/31/2022 $435.00 Between 1/1/2018 and 12/31/2019 $210.00 Between 1/1/2016 and 12/31/2017 $205.00 Between 1/1/2009 and 12/31/2015 $135.00 On or before 12/31/2008 $100.00 Caution: FTF penalty is waived for certain tax year 2019 and 2020 returns listed in Notice 2022-36, filed on or before September 30, 2022. Applicable forms include: 1120 (MFT 02), 1041 (MFT 05), 1066 (MFT 07), 990-T (MFT 34), and 990-PF (MFT 44). Use REQ54, TC 161 with Penalty Reason Code 045 to abate any excessive minimum penalty.

# Failure to File Penalty (IRC 6698/6699)

3.14.2.6.17.3.1 (01-01-2023) Failure to File Penalty (IRC 6698/6699) Prior to processing year 2022, the IRC 6698/6699 penalty was assessed systemically on applicable Form 1065, Form 1066 or Form 1120-S modules, using Transaction Code (TC) 166 for filing late, or with TC 246 without a penalty reference number (PRN) if required information was missing. The penalty was abated systemically with TC 167 or TC 247 (if changes post to the partnership's account causing IRS computers to compute a lower penalty or no penalty) or manually abated using TC 161 if assessed as TC 16X or TC 241 without a PRN if assessed as TC 24X. Refer to the Penalties Knowledge Base SharePoint site, IRC 6698 and 6699 Penalty Information, to access information on IRC 6698 and 6699 Penalties. See IRM 20.1.2.4, Failure to File a Partnership Return—IRC 6698, and IRM 20.1.2.6, Failure to File S Corporation Return—IRC 6699, for more information. Refer to the Penalties Knowledge Base SharePoint site, IRC 6698 Penalty Knowledge Base to access information on the IRC 6698 & 6699 Penalty Computation Tool. Beginning processing year 2022, if the return is complete but received late, the penalty is assessed systemically with TC 246 PRN 722. Note: PRNs 722 can only be assessed using TC 290 .00 or TC 300 .00 with the applicable IRNs. The table below shows the PRN and IRNs needed to assess the FTF penalty under IRC 6698/6699: Form/MFT PRN 722 IRN 851 IRN 852 1120-S (MFT 02) PRN 722 lists the Total Penalty Amount Number of Shareholders Note: Number of shareholders is input in two decimal format 2.00 or higher. Number of Months Note: Number of Months is input in two decimal format up to 12.00. 1065 (MFT 06) PRN 722 lists the Total Penalty Amount Number of Partners Note: Number of partners is input in two decimal format 2.00 or higher. Number of Months Note: Number of Months is input in two decimal format up to 12.00. 1066 (MFT 07) PRN 722 lists the Total Penalty Amount Number of Residual Interest Holders Note: Number of Residual interest holders is input in two decimal format 2.00 or higher. Number of Months Note: Number of Months is input in two decimal format up to 12.00. If a partnership or shareholder return is both late and incomplete, do not assess two penalties. The incomplete return penalty takes precedence unless the return is 12 months or more late. Input a manual FTF assessment (TC 240 PRN 722) or abatement (TC 241 PRN 722) when the computer cannot correctly compute the penalty or when the module was previously restricted. A manual restriction is necessary when: A late return received date was not transcribed (i.e., the return posted as being timely) An incorrect received date posted (i.e., a timely return posted as being late) The taxpayer states a reasonable cause for filing late Form 1120-S - Do not compute Failure to File Penalty if: There is a TC 160 or TC 161 posted on the module. The TC 150 contains Condition R. RDD/XRDD falls in a disaster period. The return is a SFR return. Note: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.14.2.6.17.4 for information on assessing the Missing Information Penalty for Form 1120-S. See IRM 3.14.2.6.10.1, CP 162 Failure to File Electronic Partnership Return, IRM 3.14.2.6.10.2, CP 162A Failure to File Form 1065, 1066 or 1120-S General Review Procedures, IRM 3.14.2.6.10.3, CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures, for information regarding penalty rates, penalty assessment and notice information in relation to IRC 6698/6699 penalties.

# Missing Information Penalty IRC 6698/6699

3.14.2.6.17.4 (03-16-2023) Missing Information Penalty IRC 6698/6699 Beginning processing year 2022, if the return is incomplete, the penalty will be assessed with a TC 246 PRN 723. See IRM 20.1.2.4.4.1, Procedures for Assessment or Abatement After 01/01/2022, for specific procedures to assess the IRC 6698 penalty manually on Form 1065 and Form 1066. See IRM 20.1.2.6.4.1, Procedures for Assessment or Abatement After 01/01/2022, for procedures to assess the IRC 6699 Penalty on Form 1120-S. Compute Form 1120-S Missing Information Penalty (TC 246) using the following conditions: Return is MFT 02. Posting Form 1120-S does not have a RDD/XRDD that falls in a disaster period. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, or ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Missing Schedule Code of 33, 34, 36, 45, 46, 47 or 49 (formerly Missing Information Code of 1-7) is present on the input TC 150 indicating the following: 33 - Missing Schedules K-1 34 - Missing Balance Sheet 36 - Missing Schedules K-1 and Balance Sheet 45 - Missing Schedules K 46 - Missing Schedules K and K-1s 47 - Missing Schedules K and L (Balance Sheet) 49 - Missing Schedules K, K-1s and Balance Sheet PRN 723 can only be assessed using TC 290 .00 or TC 300 .00 with the applicable IRNs. The table below shows the PRN and IRNs needed to assess the Missing Information penalty under IRC 6698/6699 for Form 1120-S: Form/MFT PRN 723 IRN 851 IRN 852 IRN 853 1120-S (MFT 02) PRN 723 lists the Total Penalty Amount Number of Shareholders Note: Number of shareholders is input in two decimal format 2.00 or higher Number of Months Note: Number of Months is input in two decimal format up to 12.00 Missing Information Code (MIC) Note: Acceptable MIC codes for MFT 02 are: 33, 34, 36, 45, 46, 47, or 49. Note: The Missing Schedule Code is input in two decimal format (e.g., 33.00 or 34.00) Note: If all the conditions above are met, assess the penalty as follows: Determine the number of months or fraction of month late. If the number of shareholders is not present assume 1 shareholder is present. Compute the penalty by multiplying the number of months, by the number of shareholders, by the base penalty amount. Refer to IRM 20.1.2.6, Failure to File S Corporation Return—IRC 6699, or IRM 20.1.2.6.4, Procedures for Assessment or Abatement Prior to 01/01/2022, for information on penalty assessment and computation. The missing or incomplete information penalty is assessed on Form 1065 with a TC 246 PRN 723 with IRNs 851, 852 and 853. Return is MFT 06 Number of partners is 2 or more Number of months Missing Schedule Code of 33-39, 45-45, and 49-52 indicating the following: 33 - Missing Schedules K-1 34 - Missing Balance Sheet 35 - Missing K-1 TINs (5 or more) 36 - Missing Schedules K-1 and Balance Sheet 37 - Missing Schedule K-1s and K-1 TINs 38 - Missing Balance Sheet and K-1 TINs 39 - Missing K-1s, Balance Sheet and K-1 TINs 45 - Missing Schedules K 46 - Missing Schedules K and K-1s 47 - Missing Schedules K and L (Balance Sheet) 49 - Missing Schedules K, K-1s and Balance Sheet 50 - Missing Schedule K, K-1 and K-1 TINs 51 - Missing Schedule K, Balance Sheet and K-1 Tins 52 - Missing Schedule K, K-1, Balance Sheet and K-1 Tins (5 or more) The table below shows the PRN and IRNs needed to assess the Missing Information penalty using PRN 723 under IRC 6698/6699 for Form 1065: Form/MFT PRN 723 IRN 851 IRN 852 IRN 853 1065 (MFT 06) PRN 723 lists the Total Penalty Amount Number of Partners Note: number of partners is input in two decimal format 2.00 or higher Number of Months Note: Number of Months is input in two decimal format up to 12.00 Missing Information Code (MIC) Note: Acceptable MIC codes for MFT 06 are: 33-39 and 45-47 and 49-52. Note: The Missing Schedule Code is input in two decimal format (e.g., 33.00 or 34.00) Note: If all the conditions above are met, assess the penalty as follows: Determine the number of months or fraction of month late. Determine the number of partners. If the number of partners is not present assume 2 partners are present. Compute the penalty by multiplying the number of months, by the number of partners, by the base penalty amount. Refer to IRM 20.1.2.4.4.1, Procedures for Assessment or Abatement After 01/01/2022, for information on penalty assessment and computation.

# Failure to Pay Penalty Recomputation

3.14.2.6.17.5 (01-01-2025) Failure to Pay Penalty Recomputation The Failure to Pay (FTP) penalty is assessed after the Return Due Date (RDD) when there is an unpaid tax liability on the tax return, or as a result of an Audit or DP tax adjustment and there is no exclusion for failure to pay the tax owed. For more information please go to IRM 20.1.2, Failure To File/Failure To Pay Penalties. Note: FTP is generally computed on the lesser of the tax shown on the return (IRC 6651(a)(2) or on subsequently assessed tax (TC 290/300) that is not shown on the return (IRC 6651(a)(3). Determine when the FTP penalty begins: (Note: All payments have a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ after the RDD) On the posting of an original return showing balance due , FTP begins on the payment due date (generally the return due date) and ends on the date the payment(s) is made. On math error assessments, FTP begins on the twenty-second day (or the eleventh business day if the module balance is $100,000 or greater) after the 23C Date (the notice and demand date). On adjustments to tax that cause a balance due, FTP begins on the twenty-second day (or the eleventh business day if the module balance is $100,000 or greater) after the 23C Date. Example: If the 23C Date was September 8, the FTP begins on September 30. Note: An adjustment to income tax withholding will not change the FTP start date, which is the normal RDD (not including extensions).

# Failure to Pay (FTP) Penalty Command Codes

3.14.2.6.17.6 (02-20-2025) Failure to Pay (FTP) Penalty Command Codes CC INTST displays the FTP penalty computation, including both posted and accrued amounts, up to the date specified. CC INTST with definer "D" shows how the computer figured the penalty. This is accurate unless there is an FTP restriction (TC 270/271) or a pending TC 28X, 29X, or 30X on the account. See IRM 20.1.2, Failure To File/Failure To Pay Penalties, or IRM 2.3.29, Command Codes INTST, ICOMP, and COMPA, for other situations when INTST cannot correctly compute the FTP penalty. Use these CC for updating a notice to include pending payments and credit transfers. When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers. Note: For additional information refer to IRM 3.14.2.6.14.1, CP 210, CP 220, CP 910 and CP 920. CC COMPAF , use this command code to manually compute the FTP penalty. CC COMPAF computes the penalty on a specified amount for a specified time period. Input a separate CC COMPAF for each Start Date on the module. See IRM 3.14.2.6.17.2, Definitions, for more information regarding Start Dates. Note: Use CC COMPAF to compute FTP when the account is restricted after an adjustment or when a credit is pending but does not yet show on IDRS. Input the to and from dates and the underpaid amounts. Begin with the Start Date and end on a notice 23C Date. Add payments on their respective received dates and subtract their amounts from the underpaid liability amount. If multiple CC COMPAF screens are input for multiple Start Dates, add the totals of each screen to compute the total FTP penalty.

# Estimated Tax Penalty

3.14.2.6.17.7 (01-01-2026) Estimated Tax Penalty IRC Section 6655 imposes a penalty in addition to tax when a corporation (C or S), private foundation (including those organized as a trust), charitable trust, or a tax exempt organization liable for unrelated business income tax, underpays any required installments of estimated tax liabilities reportable on Forms 1120, 990 series, and certain Form 1041s. Other Form 1041s are subject to the same requirements as individuals filing Form 1040, per IRC Section 6654. Corporation Requirements: For tax years 198812 to 199211 corporations were required to prepay the lesser of 90% of the current year tax liability, 100% of the prior year tax liability, or the amount decided under the annualized or adjusted seasonal income installment method. The prior year must have been a 12-month taxable year with a tax liability greater than zero. For tax years 199212 to 199305, the rate for the current year liability is 93% of the tax shown on the return, less any refundable credits. For tax years 199306 to 199411, the current year rate is 97%. For tax years 199412 and later, the current year rate is 100%. Charitable trusts and private foundations filing Form 1041 are subject to the same rules as corporations, except with respect to the payment due dates. Large Corporation A large corporation is any corporation having a taxable income of $1,000,000 or more during any of the preceding three tax years. A large corporation may use 100% of the prior year liability as a basis for the first installment payment only. When the 100% prior tax base is used for the first installment, the difference between the 100% prior rate and the current rate must be added to the second installment payment. Form 1041 Requirements (except private foundation and charitable trust): The following fiduciaries are exempt from paying estimated tax for the tax years ending before the date two years from the date of death: Decedent's estates, grantor trusts that receive the residual of a probate estate under the decedents will, and for tax years after 198711 (if there is no will to probate), a trust that is primarily responsible for paying taxes, debts, and expenses of administration. The estimated tax base is the lesser of: 90% of the current tax liability, or 100% of the prior year liability if (1) the prior year was 12 months and (2) a return was filed for the prior year. Form 1120 Installments The installment payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. When the installment date falls on a weekend or legal holiday, the payment is considered timely if made on the next business day. Payments are applied against the earliest underpayment regardless of the date the payment was received. The installment due dates for charitable trusts and private foundations filing Form 1041 are the 15th day of the 5th, 6th 9th and 12th month of the taxable year. Form 2220 Taxpayers use Form 2220 to compute estimated tax penalty. The taxpayer is assessed the amount shown on the Form 2220. A CP 234 is generated to the Accounts Management (Adjustments) Function to verify the penalty amount. The estimated tax penalty is computed on the tax shown on the original taxpayer return, whether the return is filed timely or late. The penalty is not increased or decreased with later changes to the tax after the return due date without a manual adjustment to the penalty being processed. In case of a math error, the computer is programmed to compute the penalty on the lesser amount of tax as computed by the taxpayer or corrected by the IRS. Recomputation of ES Penalty The computer automatically recomputes the estimated tax penalty when an adjustment to TC 806 or 807 is made or a transaction code 43X, 61X, 62X, 66X, 67X, 700, 702, 71X, 760, 762, or 97X is present or transferred in with a transaction date before the return due date. The computer will not automatically recompute estimated tax penalty when there is a CCC P or exception 5. If CCC "A" , or a TC 170, or both are on the module, the computer will issue a CP 234 rather than posting a TC 17X. Use CC PIEST to view the computation of a TC 176. It will show any changes to the TC 176 after inputting a credit transfer, withholding adjustment, or a refundable credit (TC 766) adjustment. If a payment is pending on the module, and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Input Hold Code 3 if the adjustment notice will be suppressed. The amount shown on CC PlEST is used as the ES Penalty amount on a retyped notice. CC PIEST cannot be used if there is a TC 170 (with DLN other than return DLN), 171, or no ES Penalty charged on the tax module. Use CC COMPAE to manually figure the ES Penalty. Input CC COMPAE with the MFT and tax period of the return. The response format is CC COMPAS with the due date of each installment in the left column and the return due date in the right column. Overlay the dates with the appropriate from and to dates, if necessary, and enter the underpayment amounts, then input. More lines may be entered if payments were not made on the due dates. Each installment date adds to the liability and each payment subtracts from the liability. CC COMPAS can be entered directly but all dates and amounts must be filled in manually. Input COMPAS with the MFT and tax period of the return.

# Failure to Deposit Penalty

3.14.2.6.17.8 (03-16-2023) Failure to Deposit Penalty Taxpayers filing Forms 940, 941, 943, 944, 945, CT-1, 720, and 1042 are required to pay taxes through the Electronic Federal Tax Deposit System (EFTPS). Forms 941, 943, 944, 945 and CT-1 filers must deposit taxes either monthly or semi-weekly. Taxpayers who report less than $2,500.00 in taxes for a tax period on Form 941, Form 943, Form 944, or Form 945, may send the tax payment with their return when filing timely. For tax periods beginning after December 21, 2004, taxpayers who report less than $500.00 in taxes for a tax period on Form 940 may send the tax payment with their return when filing timely. Note: Beginning January 2010, employers who file Form 941 will not have to make deposits during a quarter if their total tax liability for either the current quarter or the prior quarter is less than $2,500 and they did not incur a $100,000 next-day deposit obligation during the current quarter and they fully pay the amount due with a timely filed return for the current quarter. A taxpayer's status, for Forms 941, 943, 944, 945, and CT-1 filers, will be decided by a review of a preceding 12-month period. See IRM 20.1.4.8.2 Lookback Periods for Employment Tax (Forms 941, 943, 944, 945, and CT-1.) This is the look back period. If the sum of taxes reported during the look back period is $50,000 or less, the taxpayer will be considered a monthly depositor. If the sum of the taxes reported during the look back period is more than $50,000.00, the taxpayer will be considered a semi-weekly depositor. Taxpayers can make their tax deposits, through the Electronic Federal Tax Payment System (EFTPS). Taxpayers required to use EFTPS may be subject to a penalty if they use a FTD coupon instead of EFTPS. (FTD coupons were eliminated after December 31, 2010). See IRM 20.1.4.7.1 Time Sensitive Four Tier Penalty System, for additional information. The FTD penalty has a four-tier rate structure of 2%, 5%, 10%, and 15%, charged as follows: 2%- for deposits 1 to 5 days late. 5%- for deposits made 6 to 15 days late. 10%- for all payments made directly to IRS. 10%- for amounts subject to electronic deposit requirements but not depositing using EFTPS or for depositing in an incorrect method (when required to use EFTPS). 10%- for deposits made more than 15 days late, but on or before the 23C Date plus 10 days. 15% - for all undeposited taxes still unpaid after the 10th day following the first Balance Due Notice or the day on which notice and demand for immediate payment is given. Deposits are generally applied to the most recently ended tax deposit period within a specific tax return period to which the deposit relates, however per IRC 6656(e) and Revenue Procedure 2001-58 taxpayers can designate the period(s) orally or in writing. (See IRM 21.5.2.4.9, Penalty Overview, for more information). For penalty computation purposes, the TC 716 availability date is the date on which the overpayment actually occurred. If more than one deposit makes up the overpayment, the date of the earliest deposit is the TC 716 availability date (see IRM 20.1.4.7.4, Application of Payments). The failure to deposit penalty (TC 186) will automatically recompute whenever timely credits are transferred into or out of a module that is not restricted (TC 180/181) (see IRM 20.1.4.22 , Master File Assessments and Recomputations). An adjustment notice will generate when an automatic recomputation of the FTD penalty occurs. Note: If the FTD penalty changes by less than ≡ ≡ ≡ ≡ an adjustment notice will not generate. A review of this penalty will be made whenever timely payments are transferred into or out of an account containing an FTD penalty. Command Code PIFTD (with no definer code) can be used to obtain the computer's FTD computation on a screen display for Forms 940, 941, 943, 944, 945 and 1042. Command Code FTDPN ( Definer Code A) can be used to manually compute the FTD penalty. For more information on CC FTDPN, see, IRM 2.3.28, Command Code FTDPN. The penalty can be adjusted with a TC 180 and the applicable Penalty Computation Code (PCC) to increase the penalty or a TC 181 with the applicable Penalty Reason Code (PRC) to decrease the penalty, using Blocking Series 00 or 15. When transferring credits, use CC FTDPN (with no definer code) to decide penalty recomputation See the caution in item d) below. The computer will abate the FTD penalty if the penalty when computed using the Most Recent or First in First Out (FIFO) method is less than ≡ ≡ ≡ ≡ ≡ for returns due after January 1, 2001. Before January 1, 2001, the computer will abate the FTD penalty if it recomputes under ≡ ≡ ≡ ≡. Note: When retyping a notice, use the appropriate FTD penalty code to ensure the taxpayer receives the correct explanation. OLNR displays a date of 01/01/0001 as a placeholder date for an account without an originally assessed FTD penalty. This field does not need to be addressed when retyping a notice for reasons other than FTD. The FTD penalty will be reviewed whenever an adjustment to tax is made on the notice module. If the tax is being increased and there is an unreversed TC 180 or TC 186 on the account, the TC 290 tax adjustment will post without addressing the FTD penalty. Manually recompute the penalty and adjust any increase/decrease with TC 180/181. If the total tax is being decreased and there is an unreversed TC 180 on the account, the TC 291 will unpost if the FTD penalty is not addressed. A partial tax decrease will post without the FTD penalty being addressed. The penalty may also need to be decreased (TC 181) to avoid an erroneous notice. See, IRM 20.1.4.21.3(13), Amended or Supplemental Return (Tax Decrease or Non-Interest-Free Tax Increase). If the TC 291 abates the entire tax, then the TC 186 will abate in full. The penalty may be abated if reasonable cause applies. Reasonable cause is determined separately for each payment. A CP 207 or a CP 207L proposed averaged FTD penalty notice may be issued on Forms 940,941, 943, 944, 945, CT-1 and 1042 when the Record Of Federal Tax Liability (ROFTL) or liability schedule is incomplete, illegible, or the liability does not equal the net taxes. For tax periods beginning January 1, 2001, and later Code and Edit must enter Schedule Indicator Code (SIC) 1 in some instances. See the table below. Schedule Indicator Codes Net Tax is less than ≡ ≡ ≡ ≡ ≡ ≡ ≡ Net Tax is ≡ ≡ ≡ ≡ ≡ ≡ or more and the ROFTL is blank without an attached liability schedule Net Tax is ≡ ≡ ≡ ≡ ≡ or more and there is a difference of ≡ ≡ ≡ ≡ or more between Net Taxes and Total Liability Negative amount of ≡ ≡ ≡ ≡ ≡ ≡ or more is on ROFTL or Liability Schedule Note: If no entry for Net Tax, use Total Tax. Data Input System (DIS) does not enter the liability schedule when SIC 1 is edited; tax liabilities will be averaged and a CP 207 or a CP 207L proposed averaged FTD penalty notice will be issued. If Code and Edit does not edit SIC 1 and the liabilities on the ROFTL do not equal the net tax within ≡ ≡ ≡ ≡ ≡ ≡ ≡, the return will reject to ERS. ERS will try to resolve the discrepancy. If it cannot be resolved, SIC 1 is entered and a CP 207 or a CP 207L proposed averaged FTD penalty notice will be issued. Note: Watch for transcription errors and obvious transposition errors, the FTD penalty may need to be adjusted manually. Ensure the liability schedule was entered by DIS unless the criteria of SIC 1 is met. If the liability schedule has been omitted in error or transcription errors are found, verify the taxpayer's addition on the schedule. If the schedule is valid, compute the FTD penalty on CC FTDPN definer A and adjust the module according to the computation.

# Computing Normal and Restricted Interest - General Rules and Information

3.14.2.6.17.9 (01-01-2025) Computing Normal and Restricted Interest - General Rules and Information The purpose of recomputing interest is to ensure that all outstanding balances, late posting credits, additional assessments, etc., are considered in determining the amount of interest due on a tax module up to the current 23C Date, and to make adjustments, if necessary. See IRM 3.14.2.6.2, Common Command Codes Used in Notice Review, for applicable command codes. If the due date for filing a return or making a payment is on a weekend or legal holiday, taxpayers may file or pay on the following first workday without being charged penalties or interest. Note: If the taxpayer pays after the following workday, penalties and interest will accrue from the due date, even though the normal return due date was a weekend or legal holiday. Apply payments in the following order: Tax Penalties Interest Add additional tax assessments to the original tax to arrive at the total corrected balance of tax due on the RDD. Because of the above order in which payments are applied, a payment which previously paid penalty and/or interest on an earlier assessment may now pay an additional tax assessment. Any remaining credit will apply to the penalty and interest. This actually reduces the amount of interest assessed on additional tax assessments, and may also reduce or completely eliminate the FTP penalty. When manually computing interest on a tax module, use the running module balance method so that all transactions in the module are in included in the computation. See IRM 20.2.5.2.3, Steps to Compute Interest. Reminder: Previous restricted interest transactions must be verified before recomputing a module. If you are unable to verify the TC 34X/77X amount, secure the adjustment document or case file. Compute interest on tax and interest on penalties at normal interest rates. Interest computations on a subsequently determined deficiency, where an overpayment was previously refunded or offset, depend on the amount of interest, if any, paid or allowed on the original refund or offset. See the table below for interest computation. If Then compute interest on The refund did not include interest The part of the deficiency assessment up to the amount of the refund/offset from the refund date. See IRM 20.2.5.7, Revenue Ruling 99-40. The refund did not include interest Any part of the assessment greater than the amount of the refund/offset from the unextended due date of the return. The refund did include interest Any additional assessment from the unextended due date of the return. During the period interest was paid on the refund/offset, interest will be charged at the same rate on the portion of the underpayment (including accruing interest) that does not exceed the refund/offset principal. See IRM 20.2.14.4 , Within Module Interest Netting under Revenue Procedure 94-60.

# Reprocessing Returns

3.14.2.6.18 (01-01-2026) Reprocessing Returns A Reprocessable return is a return that posted to an incorrect tax period or TIN and needs to be corrected and re-entered through the processing system. For information on Credit Reference Numbers and Item Reference Numbers see IRM 3.14.2.7.6.6, Credit Reference (CRN) and Item Reference Numbers (IRN). Definitions: Receiving module- The module the return will be reprocessed to. Losing module- The module the return will be moved from. Zeroing-out the module- Adjusting the TC 150, withholding, Advance Earned Income Credit (AEIC), TC 766, Reference Numbers, and certain penalties to zero. If the return is an Electronically Filed (Electronic File (ELF)) return, refer to IRM 3.14.2.6.18.1, Reprocessing/Adjusting E-Filed Returns. If the return is a Form 706, 706-NA, Form 709, or 709-NA refer to IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions, for routing procedures. Do not adjust the account. If the return was not included you must request the document following local procedures. If return is not received before the cycle close out you must input an H Disposition. Form 13596 , Reprocessing Returns, is used to process a return to the correct account or module that had previously posted to the wrong account or module. If a return was not edited according to current processing instructions, circle out any action codes, Computer Condition Codes (such as CCC G) and any other edited marks that are no longer applicable. Re-edit according to current processing instructions. If the return was edited according to current processing instruction, then ensure that the information from Form 13596 is correct on the return. See the table below for editing steps for a reprocess. Form 13596: Action Taken: TIN correction Edit correct TIN on return Tax Period correction Edit correct tax period on the return Reasonable Cause, Edit appropriate Computer Condition Code: Edit CCC R if the FTF box is checked. Edit CCC D if the FTP box is checked. Examine returns that have any color other than green edit in the tax data section to decide if the corrections are the results of improper perfection of taxpayer error. See the table below for editing corrections on reprocesses. If Then Improper perfection, Edit the same correction in green. Taxpayer error, Leave the entries as shown on the document. A received date must be present on all reprocessed returns. See the table below for editing the correct received date. If Then Received date is not present, Edit a received date to the middle of the return. Multiple received dates are present, Circle all but the earliest date. Circle out the green rocker and edit marks that may indicate a receipt of remittance. Certain circumstances prevent a return from being reprocessed. Follow the table below to determine steps when a return cannot be reprocessed. If Then A TC 150 has posted to the receiving module Request both returns. Do not zero-out the posted tax and reference amounts. Adjust them on both modules to agree with the information from the proper return. Transfer the TC 610 payments if necessary. Pull all current cycle notices for both modules. Follow normal notice disposition procedures in IRM 3.14.2.7.10 , (Notice Disposition). The return posting incorrectly to the losing module is a duplicate return of the TC 150 posted to the receiving module Zero out the tax on the losing module. Input TC 971 Action Code 001. Do not reprocess return using 13596 Input TC 290 .00 using Blocking Series 10, 15 or 17 as appropriate and hold code, on the receiving module. Use the return that posted incorrectly as the source document. Either module has: A pending or posted Doc Code 47, 51, or 54 transaction A pending or posted TC 976 or TC 971 (AC 010) on TXMOD or BMFOLT An erroneous refund Void the notice. Note: If the notice module has a pending or posted TC 150, the transaction will post as TC 976. If the Assessment Statute Expiration Date (ASED) is within six months of expiring, do not use Form 13596 to reprocess the return. The Statute Unit must clear and stamp the case to avoid barred assessments. Do not abate tax on the incorrect module before referring the case to the Statute Unit. Caution: Hand-carry returns with an ASED that has expired, or will expire within 120 days to the Statute Unit immediately. When reprocessing a return edit the following: Received Date: see IRM 3.14.2.6.1.1.4 , Return Received Date, to decide correct received date. See the table below for received date actions. Caution: Do not edit Return Received Date based on the TC 610 date of the losing module. If And Then The return is timely filed (for the receiving module) - Do not enter the Received Date unless reprocessing to a prior period. (See note below.) The return is timely filed for the receiving module The return date is stamped or edited on the return Edit the received date (circle the received date). The return is received after the due date of the receiving module - Enter the received date in the center of the first page of the return. The return is received after the due date of the receiving module The return date is stamped or edited on the return Do not edit the received date. Note: All prior period returns must have a received date stamped or edited on the return. Edit other necessary information per the table below. Remittance Circle out RPS money amount (TC 610) or the green rocker to indicate a non-remittance return. Reminder: Transfer the TC 610 to the receiving module on IDRS. Tax Period Note: Handwritten entries from the taxpayer must be considered when determining the correct tax period. Circle the incorrect tax period. 1. Quarterly returns - Enter correct quarter in YYYYMM format. All quarterly returns must be edited. 2. Annual returns - Enter correct year in YYYYMM format. All prior year returns must be edited even if the return clearly indicates the correct year. Name and Address Circle out incorrect name and/or address and enter the correct information directly above the circled information. Underline the name control if name changes. TIN Circle out incorrect TIN and enter correct TIN in entity section of the return if reprocessing return to a different TIN. Income, Tax and Credits Enter any changes to the tax information and credits by placing an X to the left of the incorrect amounts. Enter the correct amounts to the left of the X. Note: Changes to taxpayer entries must only be made for corrections to obvious taxpayer transposition or line entry errors. Preparer Information Circle out information to prevent duplication. DLN Line through Note: All BMF forms will receive a new DLN. If a remittance amount (TC 610) is present, circle out the money amount to the left of the DLN, or the green rocker on the balance due line. Reminder: Use IDRS to transfer the TC 610 to the receiving module. Correct any other necessary information: Caution: Never erase, line through, or in any way obscure taxpayer entries. Prepare a Form 13596 (a Reprocessing Document Control Sheet). See the table below. Reprocessing Returns IDRS Employee Number: _________________________ Date: __________ Complete applicable items below Correcting the TIN to: Correcting yearly return tax period to _____________ or Quarterly returns year _______ 1st qtr. ___ 2nd qtr. ___ 3rd qtr. ___ 4th qtr. ___ (EP/EO only) Correcting the Plan/Report number to: ___ CP 190/29 - Requestor must Input TC 971 with AC 002 to prevent CP/TRNS 193/36 and - A freeze generating. (Reprocess as the original to the same TIN and tax period) Reasonable Cause:______________ FTD ___ FTF ___ FTP ___ DDP (EP/EO only) Remarks (optional): Form 13596 (6-2004) Catalog Number 38636Y Department of the Treasury-Internal Revenue Service Input a REQ54/ADJ54 to zero out the incorrect module. (See Figure 3.14.2-6 , Checklist for Return Reprocessing.) See IRM 21.7.2.4.1 Item Reference Numbers (IRNs) and Credit Reference Numbers (CRNs) - Employment Taxes, for valid IRNs for tax periods 2004 and prior and 2005 and later. Figure 3.14.2-6 Checklist for Return ReprocessingThe figure gives the TEs a detailed list of what may need to be adjusted whenever the return need to be reprocessed. The list of items are:Input TC 291 for the amount of the TC 150 to zero out the tax.Input TC 171 to zero out any manually assessed TC 170 or computer generated TC 176 on income tax returns. The computer will not remove the TC 176 because it is based on the TC 150. The computer does not recognize the TC 29X that is input to zero the account.Input a TC 161 to zero out any manually assessed TC 160, TC 271 to zero out TC 270, and TC 341 to zero out TC 340. Input Hold Code 4 (or Hold Code 1 where appropriate), Blocking Series 15/17. Input TC 003 to zero out the Adjusted Total of Income Tax Withheld. Input TC 004 to zero out the Taxable Social Security Wages. Input TC 005 to zero out the Taxable Social Security Tips. Input TC 007 to zero out the Adjusted Total of Social Security/Medicare Taxes. Input TC 073 to zero out the Taxable Medicare Wages and Tips. Input TC 184 to zero out the Adjustment of Withheld Income Tax. Input TC 185 to zero out the Adjustment of Withheld Social Security/Medicare Taxes. Input Remarks, for example, "Reprocess from 20XX03 to 20XX06." Please click here for the text description of the image. Transfer the credits claimed on the return to the correct TIN or Tax Period. Input TC 570 on transfer to hold any remaining credit on the losing module. Delete refund if applicable. Use CC REQ77/FRM77 to input a TC 971 on the losing module to identify a cross-reference TIN or tax period when an original, amended or duplicate return posted to an incorrect TIN or tax period and is being reprocessed. TC 971 requires an Action Code. Always use valid Action Code 001 to indicate that the TC 150 posted to the wrong TIN or tax period. The transaction date of the return being reprocessed (TRANS-DT>) is the return received date indicated on RET-RECD-DT field on CC TXMOD screen; not the TC 610 date shown on NRPS notice module. (See Figure 3.14.2-7 , Command Code (CC) FRM77 response screen for CC REQ77 to input a TC 971 Action Code (AC) 001.) Figure 3.14.2-7 Command Code (CC) FRM77 response screen for CC REQ77 to input a TC 971 Action Code (AC) 001The figure shows a picture of Command Code (CC) FRM77 response screen for CC REQ77 to input a TC 971 Action Code (AC) 001. The TC 971 AC 001 identifies in IDRS the return was originally posted to the incorrect module and is being corrected.TC> Field - Enter 971 to add an informational action to an IDRS account.TRANS-DT> Field - Enter the RET-RECD-DT field from CC TXMOD.TC971/151> Field - This is the 971 Action Code field. Enter 001.XRED-TIN> Field - This is the cross reference TIN field. Enter the TIN of the account to which the tax return is being reprocessed. If the TIN is the same and only the tax period is different for the reprocess module input "R".XRED-TX-PRD> - This is the cross reference tax period field. Enter the tax period of the account to which the tax return is being reprocessed. Example 202310.Blank Field 14 rows down the page - Enter remarks "REPROCESS RETURN". Please click here for the text description of the image. When reprocessing a return to a prior year module that has a TC 14X or Master File (MF) status of 02 or 03, use CC FRM49 to input a TC 599 with Closing Code 18. This will prevent any further Tax Delinquent Investigation (TDI) action. Input TC 971 with the appropriate Action Code (AC) on the incorrect module (to identify cross reference TIN/tax period data) whenever an original or amended/duplicate return posted to an incorrect TIN/tax period and is being reprocessed to a correct module (See IRM 21.7.9.4.1.1, CP/TRNS 193s Involving Reprocessing Returns). Input TC 971 AC 017 on the receiving module regardless of the MF status. When inputting TC 971, use the correct TRNS-DT on REQ77: TC 971 AC 001 indicates reprocessing TC 150; use the return received date on TXMOD for the TRANS-DT TC 971 AC 002 indicates reprocessing TC 976; use the posted TC 976 date on TXMOD for the TRANS-DT TC 971 AC 017 indicates a processed return is being reprocessed to this period; date depends on whether the original TC 150 is being reprocessed or the TC 976 Note: If the tax return was posted to an earlier tax period with an incorrect date, or to a later tax period whose due date has not yet arrived, use a timely received date for the return as the transaction date of the TC 971 AC 017. After completing all of the above: Void the notice. Input the appropriate history item on IDRS for notice disposition (e.g., CP102VOID). Attach Form 13596 to the front of the return and release with the NRPS package. Clerical will route the Form 13596 to Receipt and Control for processing.

# Reprocessing/Adjusting E-filed Returns

3.14.2.6.18.1 (01-01-2016) Reprocessing/Adjusting E-filed Returns Use CC TRDBV or CC BRTVU if TRDBV is unavailable, to verify return information in lieu of requesting an Electronic File (ELF) return (hard copy print.) Caution: CC TRDBV or CC BRTVU prints cannot be sent to the taxpayer. Only obtain a hard copy of the Electronic File (ELF) return if it must be reprocessed or re-input. For tax years before 1998, use CC ESTAB or CC ELFRQ. Note: ELFRQ may only be used in the SPC that processed the electronic return and the Form 8453-P (Form 1065). On returns submitted via the Legacy e-File program, use CC TRPRT for requesting graphic (form image) prints. The TRPRT graphic will be available nationwide regardless of where the return was filed. The TRPRT print is not considered the original return. The print will be labeled TRPRT PRINT DO NOT PROCESS. However, when the return must be reprocessed, the TRPRT print will be used. On returns submitted via the MeF e-File program, use the EUP (Employee User Portal) to obtain prints to be used for the reprocessing of the returns. If an adjustment is made as the result of case closure, use Blocking Series 05/15 (non-refile DLN) for BMF. Do not use Blocking Series 18. Caution: Use Universal IDRS to verify that no one else is taking action on the account. Request Form 8453-P, if needed. When using: CC ESTAB, enter Form 8453-P needed in the remarks section CC ELFRQ, use action 2 Information (e.g., loose forms, schedules, and correspondence) may not be attached to an Electronic File (ELF) return. File the information using TC 290 in block series 05/15 (non-refile DLN). Do not use an attachment or association form. Electronic File (ELF) may forward Forms 3465 to the Accounts Management (Adjustments) Function with a problem annotated. Take normal adjustment action. Follow local editing procedures. Route the case to the Processing Function and request a new DLN. Zero out the module. (See Figure 3.14.2-6, Checklist for Return Reprocessing.)

# Case Resolution

3.14.2.7 (01-01-2024) Case Resolution The term case resolution refers to actions that need to be taken on the tax account in order to resolve a case. There are several different elements that comprise case resolution some of which are: Preventing Refunds Controlling Cases Monitoring Overage Report Entity Adjustments Tax Adjustments Credit Transfers Notice Disposition Correspondence Note: This list includes examples of case resolution actions. Not all items are required on every case. This list is not all encompassing.

# Refund Intercepts using Command Code (CC) NOREF

3.14.2.7.1 (01-01-2026) Refund Intercepts using Command Code (CC) NOREF Use CC NOREF to input all refund intercept requests. The preferred method is the Stop Refund tool in IAT. Note: To intercept an International refund, input the DLN of the TC 846 as the LOC code on the NOREF screen. CC NOREF will establish a case control base on TXMOD. Maintain an open IDRS case control base on all NOREF cases until all actions have posted and the refund has been released. See Figure 3.14.2-8 IDRS CC NOREF input. Intercept refunds on overpaid cases if account actions will decrease the overpayment. Make the necessary adjustment in cycle. If after the account actions are taken the account will remain overpaid and the taxpayer should receive a refund, post delay any adjustment or credit transfer by at least one cycle. Be sure to leave your case control in Background ("B" ) or Monitoring ("M" ) status; monitoring the case until the all actions have posted and any remaining refund has been released. See IRM 3.14.2.7.3, Controlling Cases, for more information. The cutoff for BMF Refunds utilizing CC NOREF is Thursday 4:00 PM (Eastern Time). Refer to the table below in IRM 3.14.2.7.1 (9) for exact dates and times. Starting in 2026, BMF refunds will be identified as direct deposit or paper. NOREF input is different and requires a field for the type of refund. Direct deposit refunds will be released one cycle earlier than paper refund checks. Therefore, direct deposit refunds only have a one week interception timeframe. Since direct deposit refunds are already accelerated, they are not subject to accelerated cycle NOREF bypass procedures. Direct deposit refunds will have the following indicators: on CC TXMOD a Refund Schedule Number (RSN) directly below the TC 846, with a Z in the 11th position, on CC TXMOD and CC BMFOLT a DD 9 will appear near margin either on the same line as the TC 846 or the next line, on CC BMFOBT and CC TRDBV the bank routing number and the bank account number receiving the direct deposit will display. When a direct deposit refund must be stopped, input 9 for the refund type in the last field if performing a manual NOREF. Direct deposit refunds that have been rejected and will be released on paper will have the following indicators: a TC 971 AC 850 and / or an indication of CP 153, Electronic Funds Transfer (EFT) Refund Not Allowed - Refund Mailed, on CC BMFOLT or CC TXMOD. Input 0 for the refund type in the last field if performing a manual NOREF. Paper refund timelines will not change, and will continue to be eligible for refund intercept for two weeks. Paper refunds will also continue to be subject to accelerated cycles. Paper refund, posted TC 846 appearance, will not change. When no RSN or bank routing number is visible and no other indication of direct deposit mentioned above is on the account, input 0 for the refund type in the last field if performing a manual NOREF. Refer to the table below in IRM 3.14.2.7.1 (9), CC NOREF CUT OFF Table, for exact NOREF cutoff dates for each type of refund. CC NOREF cannot be used to intercept paper refunds for MFT 02 (Form 1120) and MFT 05 (Form 1041) during accelerated refund cycles. During these cycles, the refund checks are mailed one week early to reduce credit interest paid on the refund. Follow normal review procedures in conjunction with Erroneous Refund procedures (see IRM 3.14.2.7.2.1, Erroneous Refunds). See the table below for paper refund accelerated cycles. Form Type MFT Accelerated Cycle 1120 Series 02 202615 1041 Series 05 202619 1120 Series 02 202628 1120 Series 02 202641 CC NOREF cannot be used with any definers for BMF, except NOREFM. NOREFM updates the Refund Information File if a check was not intercepted. See IRM 3.14.2.7.2, Reconciling Refund Deletion Requests, for more information. See the table below for CC NOREF manual input format. Caution: As of 2026 NOREFD in no longer available due to programming updates. If a NOREF was input in error, input a REQ54 TC 290 .00 HC 3 PD 1 in cycle, to release the refund as soon as possible. CC NOREF Format Example: NOREF C#,Cycle#N,B,RFDL 10-digit TE#, * (Use*,* TE does own NOREF and on current date) Leave this line blank TC 846 Amount Location Code (from TXMOD PRIMARY-LOC> first two digits) XX (Refund Deletion Code) 0 or 9 (paper or direct deposit) Figure 3.14.2-8 IDRS CC NOREF InputThe Figure shows the format needed to input CC NOREF on IDRS. First line, upper left corner, contains only Command Code NOREF.Second Line shows C#,20XX01N,B,RFDL. C# establishes the control base. The next four digits are the year. The next two digits are the cycle. The next entry is N. N is for notice. If the case is a Transcript use T. The next entry is B for the case control status code (M is also acceptable). The next entry is RFDL which is the IDRS category code for refund delete.Third line shows 10-digit TE number and the date. 0000012345, 010120XX. (The * will generate today's date for the control base.)Fourth line is blank.Fifth line is 1,000.00, the TC 846 Amount the same as the refund amount.Sixth line is 11, the Location Code from TXMOD PRIMARY-LOC> first two digits.Seventh line is 84, Refund Deletion code. Eighth line is 9, designating the refund as direct deposit. A paper refund would be an input as 0. Please click here for the text description of the image. This chart contains a list of Refund Deletion Codes. Code Reason for Delete 00 No Signature 13 Schedule D 21 Other Income 22 Total Income 31 Total Adjustments to Income 32 Adjusted Gross Income 34 Tax Computation 38 Investment Credit 39 Foreign Tax Credit 43 Total Credits 45 Minimum Tax on Alternative Tax 51 Withholding 52 Estimated Tax Payments 56 Tax on Special Fuels and Oils (Form 4136) 58 Total Payments 75 Taxable Income 77 Credit Elect 78 Payment with Return 79 Incorrect Tax 80 Manual Refund 81 Phone Request to Stop Refund 82 Bad Check 83 FTD Payment 84 Misapplied Credit 85 Correspondence with Taxpayer 86 Assessment to Post 87 Duplicate Filing 88 670 Verification 89 Transfer Payment to Another Period 90 No Document 99 All Other Reasons Use the chart below for the 2026 CC NOREF CUT OFF day and time. *Indicates a shortened NOREF timeframe. Reminder: MFT 02 and MFT 05 have accelerated cycles throughout the year when refunds cannot be intercepted. See IRM 3.14.2.7.1 (6), Paper Refund Accelerated Cycle Table, above for accelerated cycle data for these cases. Cycle Direct Deposit Refund Cut Off Day and Time 4:00 PM ET Paper Refund Cut Off Day and Time 4:00 PM ET 202603 01/29/2026 02/05/2026 202604 02/05/2026 02/12/2026 202605 02/12/2026 02/19/2026 202606 02/19/2026 02/26/2026 202607 02/26/2026 03/05/2026 202608 03/05/2026 03/12/2026 202609 03/12/2026 03/19/2026 202610 03/19/2026 03/26/2026 202611 03/26/2026 04/02/2026 202612 04/02/2026 04/09/2026 202613 04/09/2026 04/16/2026 202614 04/16/2026 04/23/2026 202615 04/23/2026 04/30/2026 202616 04/30/2026 05/07/2026 202617 05/07/2026 05/14/2026 202618 05/14/2026 05/21/2026 202619 05/21/2026 05/28/2026 202620 05/28/2026 06/4/2026 202621 06/4/2026 06/11/2026 202622 06/11/2026 06/18/2026 202623 06/18/2026 06/25/2026 202624 06/25/2026 07/02/2026 202625 07/02/2026 07/09/2026 202626 07/09/2026 07/16/2026 202627 07/16/2026 07/23/2026 202628 07/23/2026 07/30/2026 202629 07/30/2026 08/06/2026 202630 08/06/2026 08/13/2026 202631 08/13/2026 08/20/2026 202632 08/20/2026 08/27/2026 202633 08/27/2026 09/03/2026 202634 09/03/2026 09/10/2026 202635 09/10/2026 09/17/2026 202636 09/17/2026 09/24/2026 202637 09/24/2026 10/1/2026 202638 10/1/2026 10/8/2026 202639 10/8/2026 10/15/2026 202640 10/15/2026 10/22/2026 202641 10/22/2026 10/29/2026 202642 10/29/2026 11/5/2026 202643 11/5/2026 11/12/2026 202644 11/12/2026 11/19/2026 202645 11/19/2026 11/25/2026* 202646 11/25/2026* 12/3/2026 202647 12/3/2026 12/10/2026 202648 12/10/2026 12/17/2026 202649 12/17/2026 12/21/2026*

# CC NOREF Activity Code

3.14.2.7.1.1 (01-01-2026) CC NOREF Activity Code CC NOREF creates an activity code in the format, ppxxxxxxyy. See CC NOREF Activity Code chart below: Abbreviation Activity Code RR Initial Refund Intercept Request RD Intercept Request Deleted RC Intercept Request Correct RM Intercept Request Missed xxxxxx TC 846 (refund) posting cycle yy Refund Deletion Code refer to IRM 3.14.2.7.1 Refund Deletion Codes list above.

# Reconciling Refund Deletion Requests

3.14.2.7.2 (01-01-2026) Reconciling Refund Deletion Requests A Control D report will be generated weekly showing a detailed record of all NOREF actions. Conduct research on the following applicable report(s) to determine if any refunds initiated by the SPC Notice Review area were not held. These will appear in the "Status" column as "Not Held" See SPC Refund Deletion Report chart below. SPC Report Name Austin 160-3R-18 Brookhaven 160-3R-19 Cincinnati 160-3R-17 Fresno 160-3R-89 Kansas City 160-3R-09 Memphis 160-3R-49 Ogden 160-3R-29 Philadelphia 160-3R-28 SPC Totals Summary 160-3R-15 Use CC NOREFM to update the IDRS account information for the refunds that were not held. The Regional Financial Center issues a listing of refund cancellations (refund deletions) that indicates which refunds were canceled and which were issued due to a failed refund cancellation. Follow the table for actions based on whether the refund was held or not. If a Refund Was Then Not Held Change activity to RM. Stopped The TC 841 will post in three to four weeks. The Category Code will automatically change from RFDL to 841P. Follow the Erroneous Refund procedures in IRM 3.14.2.7.2.1, Erroneous Refunds, on any refunds that are determined to be erroneous.

# Erroneous Refunds

3.14.2.7.2.1 (01-01-2026) Erroneous Refunds This section provides information on processing erroneous refunds. The IRS sometimes issues a refund to a taxpayer who is not entitled to the money. When this occurs, the refund is known as an Erroneous Refund. See IRM 21.4.5, Erroneous Refunds, for more detailed instructions on classifying and processing Erroneous Refunds and for procedures not listed below. An Erroneous Refund is defined as any receipt of money from the IRS to which the recipient is not entitled. This definition includes all erroneous payments to taxpayers, even if the non-entitlement could not have been known at the time of the refund. The taxpayer may or may not have made an intentional misstatement of income or credits to the IRS. When an erroneous refund is identified, determine the appropriate erroneous refund category : Category A1: involves the following types of taxes: income tax, estate tax, gift tax and excise tax. The Category A1 erroneous refund occurs when the tax liability has been understated due to an error on either a tax assessment or on an adjustment to the tax liability and the error results in a refund. See IRM 21.4.5.5.1, Category A1 Erroneous Refunds, for more information. Category A2: involves errors on refundable or non-refundable credits that are subject to deficiency procedures. See IRM 21.4.5.5.2, Category A2 Erroneous Refunds, for more information. Category B: involves the overstatement of Federal income tax withholding credits or estimated income tax payments on a return or a claim for refund. See IRM 21.4.5.5.3, Category B Erroneous Refunds, for more information. Category C: involves Business Master File (BMF) accounts and taxes reported on forms such as Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, Form 941, Employer's QUARTERLY Federal Tax Return, Form 943, Employer's Annual Tax Return for Agricultural Employees, Form 944, Employer's ANNUAL Federal Tax Return, and Form 945, Annual Return of Withheld Federal Income Tax. The erroneous refund can result from an error made by the taxpayer or by the IRS. See IRM 21.4.5.5.4, Category C Erroneous Refunds, for more information. Category D: include any erroneous refund that is not included in any other erroneous refund category. See IRM 21.4.5.5.5, Overview of Category D Erroneous Refunds, for more information. Duplicate Manual Erroneous Refunds (DMERs) are created anytime a manual refund (TC 840) and a computer-generated refund (TC 846) or two manual refunds are issued for the same overpayment, one of which the taxpayer is not entitled to receive. See IRM 21.4.5.5.6, Duplicate Manual Erroneous Refunds (DMER), for more information. Note: See IRM 21.4.5.5, Erroneous Refund Categories and Procedures, for more information on erroneous refund categories and procedures. The following situations may cause or create an erroneous refund. This list is not all encompassing and other causes and effects do exist. A misapplied payment is a payment applied to the wrong TIN. The misapplied payment overpays the account, causing an erroneous refund. A taxpayer's designated payment posts to the correct TIN but the wrong type of tax or tax year. A credit refund, of any type, if the taxpayer is not entitled. Return of court ordered restitution. An incorrect tax assessment, such as an incorrect use of Hold Codes or Priority Codes causing an incorrect refund. An incorrect tax adjustment causing an erroneous refund. Two taxpayers file refund returns, using the same TIN, and the refund goes to the wrong taxpayer. A taxpayer fraudulently or by mistake, receives refunds from more than one TIN for the same tax period. A taxpayer receives a manual refund (TC 840) and a computer- generated refund (TC 846) for the same overpayment. A taxpayer files a claim on a lost check, receives a replacement check, finds the original check and cashes both. A taxpayer makes an advance payment against a pending tax increase, and the money refunds before tax assessment posts. Incorrectly computed interest. A direct deposit is applied to the wrong taxpayer's account due to IRS error. (Owner of account may or may not be known.) Improper release of the TC 700 (false credit), U Freeze. See Document 6209 Section 8 Chapter 2 for a complete description of TC 700. Note: On Category D Erroneous Refunds, the Submission Processing Accounting/Erroneous Refund Unit (A/ER), inputs a TC 700 to remove the erroneous refund amount on Master File and the account is reestablished in Accounting. This action is taken to prevent administrative collection action (liens or levies) from occurring on the erroneous refund liability. Do not release the TC 700 credit. Statute Barred Refunds. Taxpayer receives erroneous Health Care Tax Credit (HCTC). Erroneous refund procedures are not necessary in the following situations: A signature is missing. Credit elect requested by the taxpayer has refunded. In a situation where an error found in Notice Review increases the original tax (TC 150) and there was not a previous tax decrease, treat the tax increase as a regular turnaround case instead of an erroneous refund. Make the adjustment using Blocking Series 00 (non-income tax returns) or 77 (income tax returns) with Hold Code 0. Apply Label 16 to the current cycle notice and allow the next adjustment notice to generate. Route returns that need to be reprocessed that also have an erroneous refund to Accounts Management and follow the procedures listed below: Order the return if it is not already with the case. Complete Form 5101, Examination Referral Slip, explaining the erroneous refund and the reason for the adjustment. Void the notice. Recharge and route the case to Accounts Management. Once an Erroneous Refund has been identified, it must be categorized to decide what further actions will be taken. The most common categories worked in Notice Review are A1, A2 , B, C, and D. Note: Input TC 971 action code AC 663 on the erroneous refund module, regardless of the category. AC 663 is used for reporting purposes. Refer to IRM 21.4.5-1, TC 971 AC 663 - Identifying Erroneous Refunds, for input instructions. See Erroneous Refund Categories chart below. If Then the Category is Example The Erroneous Refund relates to TCs 150, 29X, and/or 30X and the MFT is not01, 09, 10, 11, 12, 16, or 88 A1 See, IRC 6211 (b) (2) and IRM 21.4.5.5.1. , Category A1 Erroneous Refunds. Note: Refer to Exam for deficiency processing. (Only refer cases if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do not pursue. 1. The IRS lowered the tax when originally processing the Form 1120. 2. Incorrect tax assessment or incorrect adjustments (TC 29X or TC 30X), on a Form 1120X. The erroneous refund relates to disallowed EITC, TCs 764, 766 OR 768 or disallowed refundable or nonrefundable tax credits A2 This was an IRS error. See IRC 6211 (b) (2) and IRM 21.4.5.5.2, Category A2 Erroneous Refunds. Note: Refer to Exam for deficiency processing. (Only refer cases if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, do not pursue. The taxpayer income tax return not claiming any EIC. An error was made during processing and IRS allowed $600.00 in EIC causing a refund of $800.00. TP contacts IRS explaining that they are not entitled to the credit. The Erroneous Refund relates to taxpayer overstatement of withholding (TC 80X) or ES payments (TC 66X). B See IRM 21.4.5.5.3, Category B Erroneous Refunds. The taxpayer claimed withholding of $1,000.00 on Form 1041 and the supporting documentation only states $500.00. The Erroneous Refund relates to TCs 150, 29X, and/or 30X and the MFTs are 01, 09, 10, 11, 12, 16 or 88. C See IRM 21.4.5.5.4, Category C Erroneous Refunds. Note: Refer to Exam for deficiency processing. 1. The IRS makes an incorrect tax assessment (TC 150) on Form 940 or Form 941. 2. The IRS makes an incorrect adjustment to tax (TC 29X or TC 30X) on Form 940 or Form 941. The Erroneous Refund relates to any error not included in the above categories. D See IRM 21.4.5.5.5, Overview of Category D Erroneous Refunds. 1. A misapplied payment (TCs 6XX). 2. Incorrect refundable credits (HCTC) or other credits not included in Category B. 3. TC 840 and TC 846 posted for the same overpayment, or 4. Refunds issued after expiration of the Statute of Limitations, or 5. Entity errors. Category A1 :Rebate Erroneous Refunds Note: All employees with access to IAT must use the IAT ERRF Tool to process erroneous refunds. This tool is programmed for use with all ERRF categories. For more information, see IAT Job Aids. Do not input the adjustment. Mark the disposition in OLNR as L. Add the appropriate erroneous refund label to the notice. See the Erroneous Refund Labels chart below. If Then The entire refund is erroneous Use Label 15. You were issued an erroneous refund due to a processing error. Please return the uncashed check or a substitute payment. A part of the refund is erroneous Use Label 16. We sent you a refund in error. The correct amount of the adjustment is $____. You will receive a separate notice explaining the correction. We apologize for any inconvenience this may have caused you. If any offsets have occurred due to the erroneous credits, reverse the offsets and make sure they remain frozen. Input history item CATA1/XXXM or IDRS. (XXX=CP#) Recharge the paper return to Exam using CC ESTABDT. Input a TC 971 action code AC 663. See IRM Exhibit 21.4.5-1 , TC 971 AC 663 - Identifying Erroneous Refunds, for more information. Prepare Form 5101, Examination Referral Slip, showing the adjustment action to be taken. Staple the Form 5101 to the front of the return (or to a print of CC BRTVU for Electronic File (Electronic File (ELF) returns)below the Entity. See Figure 3.14.2-9, Form 5101. Staple a copy of TXMOD to the front of the return (or to the back of the BRTVU print for Electronic File (ELF) returns). Route the Erroneous Refund package to Exam. Figure 3.14.2-9 Form 5101The Form 5101 is used by Notice Review personnel to transfer cases to various functions such as Exam or Accounts Management. The form requires the tax examiner to fill out TIN, Tax period, MFT and give a description why the case is being referred.Picture shows Form 5101 Reason Referred field check marked box "other" and open fill-in with the following information "Erroneous Refund Category A1. Assessment information below. Include a brief statement of the error and the TC 846 date."Action Taken field shows "Adjustment has been made" with check marked box with TC 290 and $500.00From: (Name or Organization title) field shows "Employee Name"Examiner Number field shows "IDRS Employee Number"Location field shows "Notice Review/Team/Stop Please click here for the text description of the image. Category B : Non-rebate Erroneous Refunds for income tax returns. Caution: If the IRS caused the overstated amount (key input error or misapplied payments), this case is considered a Category "D" (Non-rebate) case. Follow procedures for Category D cases. Mark the disposition in OLNR as L. Add the appropriate erroneous refund label to the notice. If the notice has already been mailed, skip this step. (See Erroneous Refund Labels chart below). If Then The entire refund is erroneous Use Label 15. You were issued an erroneous refund due to a processing error. Please return the uncashed check or a substitute payment. A part of the refund is erroneous Use Label 16. We sent you a refund in error. The correct amount of the adjustment is $____. You will receive a separate notice explaining the correction. We apologize for any inconvenience this may have caused you. Input the adjustment on IDRS with Hold Code 0. Use the return (or a print of BTRVU for Electronic File (ELF) returns) as a source document. Attach adjustment tag to return/BRTVU and refile as usual. If any offsets have occurred due to the erroneous credits, reverse the offsets and make sure they remain frozen. Category C: Rebate Erroneous Refunds limited to MFTs 01, 09, 10, 11, 12,16 or 88. Caution: If the IRS caused the overstated amount (key input error or misapplied payments), this case is considered a Category D (Non-rebate) case. Follow procedures for Category D cases. Mark the disposition in OLNR as L. Add the appropriate erroneous refund label to the notice. See Erroneous Refund Labels chart below. If Then The entire refund is erroneous Use Label 15. You were issued an erroneous refund due to a processing error. Please return the uncashed check or a substitute payment. A part of the refund is erroneous Use Label 16. We sent you a refund in error. The correct amount of the adjustment is $____. You will receive a separate notice explaining the correction. We apologize for any inconvenience this may have caused you. Input the adjustment on IDRS with Hold Code 0. Use the return (or a print of BTRVU for Electronic File (ELF) returns) as a source document. Attach adjustment tag to return/BRTVU and refile as usual. Category D: Non-rebate Erroneous refunds. See IRM 21.4.5.6.1, Account Actions For Category D Erroneous Refunds, for more information. Mark the disposition in OLNR as L. Add the appropriate erroneous refund label to the notice. See Erroneous Refund Labels chart below. If Then The entire refund is erroneous Use Label 15. You were issued an erroneous refund due to a processing error. Please return the uncashed check or a substitute payment. A part of the refund is erroneous Use Label 16. We sent you a refund in error. The correct amount of the adjustment is $____. You will receive a separate notice explaining the correction. We apologize for any inconvenience this may have caused you. If the erroneous refund involves misapplied payments, reverse the payment(s) on IDRS using ADC/ADD24. Input a TC 570 on the debit side of the credit transfer to suppress a CP 260. Transfer the credit only if it belongs to another taxpayer. If the erroneous refund is due to an incorrect tax or credit, input the adjustment with a Hold Code 3. Use a copy of the return or a print of BRTVU for Electronic File (ELF) returns as a source document. Attach the adjustment tag to the source document. If any offsets have occurred due to the erroneous credits, reverse the offsets. Input TC 470 on REQ77 with closing code 93, Posting Delay Code 1. This holds notices for 26 cycles. Send 510C Letter to tell the taxpayer of the erroneous refund. Input TC 844 on REQ77. Do not input until after the TC 846 date. See TC 844 Decision Table below. If Then Input The taxpayer is not at fault and the amount of the refund is $50,000.00 or less TC 844 Extension Date: Use the date of input of 510C Letter plus 5 working days Transaction Date: Use the date of TC 846 Freeze Release Amount: Erroneous part of the refund (including any erroneous credit interest) Remark: Erroneous Refund The taxpayer is at fault or the amount of the refund is more than $50,000.00 TC 844 Transaction Date: The date of TC 846 Remarks: Erroneous Refund Complete Form 12356, Erroneous Refund worksheet. See IRM 21.4.5.6.2, Preparing Form 12356, Erroneous Refund Worksheet, for more information. Attach a print of TXMOD, a copy of the 510C Letter, a copy of the payment voucher or check (if caused by a misapplied payment), and any other pertinent documentation to Form 12356. If the adjustment involves withholding, attach a copy of the return (or BRTVU for Electronic File (ELF) returns). Route the Erroneous Refund package to Accounting. If sending the original return, recharge the document.

# Manual Refunds

3.14.2.7.2.2 (01-01-2025) Manual Refunds A manual refund is an IDRS generated refund request (TC 840). It is exception processing. When possible, allow the system to generate the TC 846 refund as appropriate. Do not initiate a manual refund if a generated refund will be released within (2) cycles except under conditions outlined in IRM 21.4.4.3, Why Would A Manual Refund Be Needed?,. Thorough analysis of the case is required before requesting a manual refund as it can greatly increase the possibility of a duplicate refund situation and can increase the processing cost of issuing a refund to the taxpayer. Refer to the Manual Refund Decision Table below for assistance in determining whether a manual refund is appropriate. If Then A refund must be issued before or instead of computer generated refunds (TC 846) as outlined in IRM 21.4.4.3, Why Would a Manual Refund Be Needed?,. Issue a manual refund. A refund was intercepted to verify unclaimed payments; the documents were unavailable and the taxpayer did not respond to requests for clarification Issue a manual refund for the substantiated payments if needed after following Credit Discrepancy - Excess Credits, IRM 3.14.2.6.7.2. Example: A taxpayer claims three verified payments of $2,000 and an additional payment of $2,260 that cannot be verified. Because the total of the verifiable payments exceed $5,000, issue a manual refund for $6,000. Do not refund the $2,260 payment that cannot be verified. A refund is for $100 million or more An account with an overpayment of $100 million or more requires that a manual refund be issued because a TC 846 will not generate. Assign these cases to a work leader the same day they are received in the unit. See IRM 3.14.2.6.1.6 ($100 Million Refunds) for more information. The refund is for a prior year return with an original name line that has changed Issue a manual refund in the taxpayer's current name. Caution: Do not take any action on a case controlled by the Technical or Taxpayer Advocate Service (TAS) Functions. Contact the controlling area and take action only if instructed by the area to do so. Before requesting an IDRS refund: Make sure that a computer-generated refund will not generate. Intercept the refund (TC 846). Be sure the case is complete and correct before issuing a manual refund. To avoid the generation of a TC 846: When an adjustment is input and a manual refund is being requested, a Hold Code (HC) 1 (if original notice was mailed), 2 (as appropriate) or 4 (as appropriate) must be input with the adjustment. If HCs are not input by the initiator, the Accounting function will reject the request back to the initiator. Do not use HC 0 or 3 when inputting a credit adjustment and initiating a manual refund. HC 0 and 3 will not hold the credit and will allow a systemic refund or offset to generate. Note: If multiple adjustments are required, a HC 1, 2 or 4 must be used on all adjustments. Use a TC 570 on a credit transfer. If a TC 570 is not input on the debit side of the credit transfer to establish a -R freeze, the credit transfer will release the -K freeze (established by using the HC 1, 2, or 4 on the adjustment) and a systemic refund (TC 846) will be generated. Form 3753, Manual Refund Posting Voucher and Form 5792, Request for IDRS Generated Refund, are used to request a manual refund. See IRM 3.14.2.7.2.2.2, Initiating Manual Refunds, for more information.

# Manual Refund Research

3.14.2.7.2.2.1 (01-01-2021) Manual Refund Research Obtain all necessary documents. Use the IDRS research Command Codes to review the taxpayer's account for a debit balance on another module. Do not transfer credit to satisfy a balance due if the assessed liability on TXMOD is less than ≡ ≡ ≡ ≡ and the accrued liability on INTST is less than ≡ ≡ ≡ ≡ ≡. All Freeze Codes must be addressed before a manual refund is issued. Refer to IRM 3.14.2.6.6 , Reviewing Notices With Freeze Codes, for additional Freeze Code information. Do not transfer payments/credits to a module containing a freeze code that would prevent the computer from offsetting credits unless it is certain the payments belong on the debit module. Note: For Z- Freeze, refer to IRM 3.14.2.6.6.28 for complete instructions. For parent-subsidiary cases, only research the parent EIN for open liabilities. Large Corp cases are identified on TXMOD as <LARG-CORP>, These notices should be routed to the Large Corp/Technical Function in the center. Do not transfer money to accounts in Installment Status 14. Decide whether to allow credit interest. See IRM 3.14.2.7.2.2.3, Computing Credit Interest On Manual Refunds. See IRM 21.4.4.4, What Research Is Required?, for additional guidance on the account research required prior to requesting a manual refund.

# Initiating Manual Refunds

3.14.2.7.2.2.2 (07-07-2023) Initiating Manual Refunds Manual refunds are requested using Form 3753, Manual Refund Posting Voucher or Form 5792, Request for IDRS Generated Refund. Once prepared and signed, Forms 3753 and/or 5792 are routed to the Submission Processing Accounting function where the manual refund will be scheduled and certified. Note: Digital signatures are required on Form 3753 and Form 5792. See IRM 3.17.79.3.5.5 , Manual Refund Digital Signature Requirement, for the required authorized digital signature format. The manual refund document must be prepared using the Integrated Automation Technology (IAT) Manual Refund Tool. Form 3753, Manual Refund Posting Voucher, is designed for non-IDRS input. Systemic refunds can now be generated in IDRS (TC 846) for refunds under $100 million, unless a manual refund is required. When a manual refund of $100 million or more is required, Form 3753 must be used. For additional information on Form 3753 and how to complete it, see IRM 21.4.4.5.2, Preparation of the Form 3753, Manual Refund Posting Voucher. Form 5792, Request for IDRS Generated Refund (IGR), is used with CC RFUND to request an IDRS refund. This form cannot be used to request manual refunds of $100 million or more. Refer to IRM 21.4.4.5.1, Preparation of Form 5792, IDRS Generated Refund for more information on completing Form 5792. Refer to IRM 21.4.4.5.1.1, IDRS Generated Refund CC "RFUND" for additional information on inputting CC REFUND. Caution: Form 5792 must be sent forward the same day the RFUND command is input. All manual refunds will be sent to Accounting via email or saved to an established shared drive file. When referring cases to the Accounting function, ensure the following steps are taken: When sending the manual refunds to the Accounting Function, the email or file on the shared drive will consist of two attachments. One attachment will be the Form 5792 or Form 3753 and the second attachment will consist of the supporting documentation. There can be no other documents attached to the Form 5792 or Form 3753. Each document must be saved by a specific naming convention. Example: The naming convention for the Form 5792 and Form 3753 attachment will use: Name Control, Last 4 digits of the TIN/EIN, Tax Period and document identifier. The naming convention for the supporting documentation will use: Name Control, Last 4 digits of the TIN/EIN, Tax Period and Doc identifier. Refer to the Naming Convention Table below: Type of Attachment Naming Convention Naming Convention for More than One Form/Attachment Form 5792 MOUS 1234 202112 5792.pdf MOUS 1234 202112 5792_1.pdf Form 3753 MOUS 1234 202112 3753.pdf MOUS 1234 202112 3753_1.pdf Supporting Documentation MOUS 1234 202112 5792 Doc.pdf or MOUS 1234 202112 3753 Doc.pdf MOUS 1234 202112 5792 Doc_1.pdf or MOUS 1234 3753 Doc_1.pdf Note: See IRM 21.4.4-4, Accounting Function - Manual Refund Team Contact Information, to determine the proper email address to send your manual refund request. Take all necessary action to prevent an erroneous refund or erroneous notices from generating. In the remarks area of the Form 5792 or Form 3753, include the taxpayer's TIN, the tax period, and the transaction code where the supporting document will be filed. If a manual refund will be issued to an address other than the Master File address, explain the different address in the remarks area and indicate where the supporting documentation will be filed. Input the Return Processable Date (RPD) on IDRS if the correspondence was received after the Return Due Date. See the Changing the Correspondence Date chart below for more information. If Then A CC REQ54 adjustment is needed Include the Return Processable Date with that adjustment. Use Hold Code 1 or 4, if necessary. A CC REQ54 adjustment is not needed Use CC REQ54 to input the Return Processable Date. Input a TC 290 .00, Blocking Series 15, NSD, and a Hold Code 4. Attach a copy of the IDRS screen prints for the following Command Codes: COMPA, ENMOD, TXMODA, RFUNDR, REQ54/ADJ54, credit transfers (if input), and any additional supporting documents, as required by your local Accounting Branch. Submit the completed Form 5792 or Form 3753 to your team lead/manager for digital signature.

# Computing Credit Interest on Manual Refunds

3.14.2.7.2.2.3 (01-01-2025) Computing Credit Interest on Manual Refunds Credit interest is mandatory on an overpayment or refund if certain conditions specified in the Internal Revenue Code (IRC 6611) are met. Compute credit interest using CC COMPA, CC COMPAC and/or CC COMPAG. The IRS currently approves and supports the use of IDRS (e.g., CC COMPA) and a commercial off-the-shelf (COTS) software program, Interest Net by Decision Modeling, Inc., which is commonly referred to as ACT/DMI, to perform manual interest computations. See IRM 20.2.4, Overpayment Interest, for more details. An overpayment is defined as an amount paid in excess of the tax liability. Tax liability includes tax, penalties and interest. Interest is paid on the available net overpayment. Generally, no interest is allowed for overpayments on an original return if the overpayment is refunded within 45 days of the later of the return due date, return received date, or the date the return was received in processable form. If the return is not in processable form, suspend the 45 day interest-free period. The return or case is not considered to be in processable form until, among other requirements, all the required information, correspondence, or supporting documentation needed to permit the mathematical verification of tax liability shown on the return is received. The start date for the 45 day interest-free period, for these cases, is the correspondence received date (CRD). See IRM 20.2.4.6, Unprocessable Returns, for more information. To determine whether the 45-day period has been met, consider these dates: The original return due date (determined without regard to any extension of time for filing the return). The original return received date (used when the return is received after the return due date, determined without regard to any extension of time for filing the return) The date the original return was received in processable form (Return Processable Date (RPD), or Correspondence Received Date (CRD) may be present). Note: The Manual Refund scheduled Date cannot be a Saturday, Sunday, or Holiday. Reminder: Night shift employees must use local procedures for correct Manual Refund schedule dates. To calculate the correct To and From dates see IRM 21.4.4.6, Other Manual Refund Requirements. Use the appropriate CC COMPA definer to compute credit interest for the period decided above (To and From dates). See the COMPA Definer Decision Chart below. If Then Credit interest before 1/1/99 for a Non-Corporate taxpayer Compute using COMPAC Credit interest on or after 1/1/99 for a Non-Corporate taxpayer Compute using COMPA or COMPAD. Credit interest before 1/1/95 for a Corporate taxpayer, regardless of the overpayment amount (See IRM 20.2.4.9 , Special Credit Interest Rules for Corporations, for the definition of a Corporate taxpayer.) Compute using COMPAC Credit interest on or after 1/1/95 for a Corporate taxpayer and the overpayment amount is less than or equal to $10,000 Compute using COMPAC Credit interest after 12/31/94 for a Corporate taxpayer and the overpayment amount is greater than $10,000, or the GATT threshold has previously been met (See IRM 20.2.4.10.2, Determining the GATT Threshold.) Compute using COMPAG (GATT). Note: Add the COMPAC (first $10,000) with the GATT interest (over $10,000) for the total interest allowed

# Controlling Cases

3.14.2.7.3 (01-01-2026) Controlling Cases Some cases in Notice Review require monitoring until all transactions, manual and systemic, are complete. This monitoring is done with a control base in IDRS. A case control or control base is opened, or established in IDRS in different ways. The most common way to establish a case control or base is systemically. A control base is automatically established with the input of NOREF. The preferred NOREF input method is IAT Stop Refund tool but both IAT and manual input of NOREF will create a control base. Reminder: Case controls on a NOREF case cannot be closed until all actions have been performed, posted and the TC 841 has posted. A control base is automatically established by inputting a REQ54/ADJ54 adjustment. ADJ 54 input of A, B, or M in the CASE-STS-CD> field will leave an open control base. If C is input a base will display as closed but can still be viewed in TXMOD. However, a C or closed base will not appear on the weekly Overage Report in Control D. A control base is automatically established by input of a credit transfer. Input of A, B, or M in the Debit Status or Credit Status field in IAT will leave an open control base. If C is input a base will display as closed but can still be viewed in TXMOD. However, a C or closed base will not appear on the weekly Overage Report in Control D. A control base can be input manually utilizing CC ACTON. ACTON is input in the upper left hand corner of IDRS, overlaying TXMODA. Clear the remainder of the line. On the next line enter C#,ACTIVITY,B,OURV and then clear the remainder of the line. (The # establishes the next number of control base. If this is the first control being opened on the module 01 will be the count after transmittal. ACTIVITY section allows 10 characters. B is the case status. OURV is Output Review, the original name for Notice Review. If the case required a NOREF use RFDL for Refund Delete). On the next line enter *,* (First * assigns to TE who is inputting and second * is the current date. Either of these fields can be input manually, for instance if assigning to a different tax examiner (e.g. 0926162586,*). Page up or transmit. Go back to TXMODA; review the control base for correctness before exiting the case. Establish a control base on IDRS for all cases held in suspense past the notice cycle (H disposition in OLNR). This will cause the case to appear on the weekly Overage Report. This aged listing should be reviewed each week. The Control D report job name to review the Overage Report (aged list) is CCA4243*. Caution: Do not hold a notice without pre-approval from Headquarters staff unless otherwise indicated in this IRM. Reminder: All control bases must remain open until all actions have been taken (including notice disposition)and all refunds have been released to the taxpayer if applicable. Monitor the overage listing so the case can be worked and closed within one week of the TC 841 posting. After one week, the case will count as an aged case. (See IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.) Note: These cases can be worked in the current cycle by using a posting delay code. Monitor the account and maintain the "B" status. If a case is controlled by another tax examiner in "A" status only and action needs to be taken: Contact the tax examiner with the open control to decide who will resolve the case. Exception: Contact is not necessary if the open control is assigned to a clerical unit. (Clerical units are often identified by all zeroes in the last 5 digits of the employee number (i.e., XXXXX-00000), although numbers other than zero may also be used.) This means the case has not been assigned to a tax examiner in another area and can be worked per Notice Review procedures. If the other tax examiner agrees to accept the case, transfer the case and close your control base. Use CC ESTABDT to recharge the return if paper and in Notice Review. Route the return and all pertinent documents to the other area tax examiner. Note: Include documentation of your discussion as part of the case.

# Documenting Adjustment Cases

3.14.2.7.4 (01-01-2024) Documenting Adjustment Cases Leave a legible working trail and/or Action Trail when making adjustments. If your SPC has written in-house agreements which vary from the instructions below, you may follow them. See the table below for documenting adjustments. If Then The return or other documents, such as a taxpayer letter, is available as a source document (SD) Attach an explanation, which might include calculations, worksheet prints, or screen shots of REQ54, etc., to the document to leave a paper trail for other TEs to follow. Make sure to use the correct blocking series and associate the document and adjustment back to files. Enter the explanation in the remarks section of the CC REQ54 or credit transfer screen. A document is not available as a source document (NSD) Enter a complete explanation of the adjustment in the remarks section of the CC REQ54 or credit transfer screen on IDRS.

# Entity Adjustments

3.14.2.7.5 (01-01-2026) Entity Adjustments Notice Review can only adjust certain entity errors. Review section IRM 3.14.2.6.1.1.3, Name and Address, before considering an entity adjustment to determine if an adjustment is needed, and if it can be performed by Notice Review or must be routed to the Entity Control Unit. Caution: Never update a prior year name line with current processing year information. Before adjusting, or routing if required, determine if the entity error is critical or non-critical. This determination identifies if a refund deletion (CC NOREF) is required. An entity error is considered critical when the taxpayer will not receive the refund (or be able to cash the check) and notice unless an entity adjustment is made. Caution: Delete the refund (CC NOREF) only if the taxpayer will not receive or not be able to cash a paper check. Direct deposit refunds that have been validated in IDRS will never have critical entity errors. See below for direct deposit indicators. An entity error is considered non-critical when the taxpayer will receive the notice and refund, if applicable, as addressed (including the ability to cash a paper refund check). Reminder: Even non-critical entity errors should be corrected on the entity tab in OLNR and IDRS (if routing to Entity Control is not required). If the taxpayer has requested their refund via direct deposit, verify the direct deposit will be processed using BMFOLT direct deposit codes. Do not delete the refund (NOREF) for a critical entity error unless BMFOLT codes indicate the taxpayer will not receive a direct deposit. The BMFOLT field, DIR DEP CD, indicates if a direct deposit was requested by the taxpayer and if the direct deposit was validated and will occur. Below is a list of common direct deposit codes. A valid direct deposit will be received by the taxpayer if the field number is 10. See BMFOL DEFINER T RESPONSE SCREEN BMFOL Definer T - Tax Module Response Screen field 48 for more information. Blank - Taxpayer did not provide direct deposit information 10 - Routing Transit Number and Depositor Account Number present with a significant refund. Direct deposit will be received by the taxpayer. 21 - Invalid Routing Transit Number because non-numeric or all zeroes. 23 - Invalid Routing Transit Number because the first two digits are invalid. 42 - CAF Return (Power of Attorney is present). 50 - Rejected by the bank. If per IRM 3.14.2.6.1.1.3, Name and Address, Notice Review cannot do the adjustment. The case must be routed to the Entity Control Unit. Follow the steps below before routing: If the entity error is identified as critical per the criteria above, input a CC NOREF to delete the refund. In OLNR, mark notice with "H " and notify the lead. Request the return if not available. Make a copy of the NRPS quick print notice and the return entity section. Route the copies to the Entity Control Unit per local procedures, including a request to review and update entity. Once the Entity Control Unit has performed the necessary updates, they will route the information back to Notice Review per IRM 3.13.2.2, BMF Entity - General, paragraph (3). Review ENMOD to ensure the entity correction has been input and is either pending or posted. Caution: If no changes are pending or posted in IDRS, refer the case to your lead or manager for communication with the Entity Control Unit. It the entity case is non-critical proceed to OLNR and update the entity on the notice using the information from the Entity Control Unit and ENMOD. If the case is a critical entity error and the ENMOD entity change is pending but has not posted, input a REQ54/ADJ54 TC 290 .00 with a posting delay code of 1 to allow time for the TC 841 to post and the credit to return to the module from the deleted TC 846. The TC 290 .00 posting will remove the P- freeze allowing the refund to release. Using the information from Entity Control and ENMOD correct the entity on the notice in OLNR. Reminder: Maintain an IDRS control base on all NOREF cases until all actions have posted and the refund has been released. If the case is a critical entity error, and the ENMOD entity change has posted then input a REQ54/ADJ54 TC 290 .00 with no posting delay code. The TC 290 .00 posting will remove the P- freeze allowing the refund to be released. Using the information from Entity Control and ENMOD updates correct the entity on the notice in OLNR. Reminder: Maintain an IDRS control base on all NOREF cases until all actions have posted and the refund has been released. If the taxpayer account contains a critical error, the taxpayer will not be able to cash a paper check (and will not be receiving direct deposit) and Notice Review is allowed to make the correction: Stop the refund (NOREF). Correct the name and/or address in IDRS and OLNR in cycle. Caution: The Integrated Automation Technologies (IAT) tool is mandated to be used by Notice Review to make address changes. Be sure to correct all misspelled or transposed information. See the IAT Job Aids, Address Job Aid, for more information. Release the refund by inputting REQ54/ADJ54 TC 290 .00 with a posting delay of 1 to allow time for the TC 841 to post and the credit to return to the module from the deleted TC 846. The TC 290 .00 posting will remove the P- freeze allowing the refund to be released. Reminder: Maintain an IDRS control base on all NOREF cases until all actions have posted and any remaining refund has been released. If the taxpayer account contains a non-critical error and Notice Review is allowed to make the correction, correct the name and/or address in IDRS and OLNR in cycle. If the address is international, see IRM 2.4.9-18. for IDRS input. In OLNR, if international address updates are needed completed the following fields: Enter the correct street address in the Foreign Street Address field, Enter the city in the Street Address field, Enter the country in the City field, Enter a period (.) in the State field, and Leave the ZIP code field blank.

# Tax Adjustments

3.14.2.7.6 (01-01-2025) Tax Adjustments Input CC REQ54 on IDRS to generate ADJ54, which is used to correct the tax, penalty, interest, refundable credits, income, and other information. Do not access IDRS CC REQ54 until all CRNs, IRNs and dollar amount adjustments have been calculated including the expected final module balance. The following sections give TEs instructions for Blocking Series, Reasons Codes, Priority Codes and Source Codes. For more information refer to Document 6209 Section 8C and IRM 21.5.1, General Adjustments, and IRM 21.5.2, Adjustment Guidelines. For International Tax Adjustments refer to IRM 21.8.2, BMF International Adjustments. For Forms 706, 706-NA, 709 and 709-NA, refer to IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions, for routing procedures.

# Blocking Series

3.14.2.7.6.1 (01-01-2025) Blocking Series The Blocking Series (BS) indicates whether a DLN will be a refile or a non-refile DLN. When an incorrect Blocking Series is used on an adjustment, the Files Function will return the source document and adjustment printout (Form 5147) for correction. Use Blocking Series 00 when entering an adjustment that uses the original return as the source document. The original return will be renumbered using the adjustment DLN. Line through the original DLN on the return unless local procedures dictate otherwise. Use Blocking Series 15 when adjusting Electronically Filed Returns or cases that do not use the original return as the source document (e.g., adjustment to penalties, interest, or to release a freeze). Exception: Blocking Series 17 is used for Form 1041, MFT 05 when making an adjustment that does not use the original return as the source document. The original return will not be renumbered. Do not line through the original DLN. Use Blocking Series 77 when entering an adjustment that uses the taxpayer's original, amended, superseding, or supplemental return as the source document and the result of the adjustment will be a tax amount greater than the tax reported by the taxpayer. The use of blocking 77 or 78 (see below) will set a -G Freeze or extend an existing one, allowing the taxpayer 60 days from the 23C Date of the notice to appeal the assessment, known as math error appeal rights. Use of blocking series 77 or 78 also suspends Collection activity for 12 cycles. Exception: Use Blocking Series 78 instead of 77 when adjusting Electronically Filed Returns, or adjustments without the paper document when math error appeal rights need to be granted due to a tax increase greater than the taxpayer's reported amount.

# Reason Codes

3.14.2.7.6.2 (01-01-2024) Reason Codes Reason Codes appear on IDRS to describe adjustment or other changes made to taxpayers account. Reason Code 062 is valid for penalty abatements/adjustments, based on reasonable cause Reasonable cause codes are used in the 4th position of RSN-CDS field in the REQ54/ADJ54 format When adjusting FTD penalties, Penalty Computation Codes 003, 011, 041, 042, 043,044 and 045, are used in the 1st position of the RSN-CDS field in the REQ54/ADJ54 format See Document 6209 for additional valid 4th position Penalty Reason Codes Caution: Do not enter Source Codes, Reason Codes, or Item Reference Numbers on a TC 290 .00 input to release a P- Freeze.

# Hold Codes

3.14.2.7.6.3 (01-01-2026) Hold Codes Use a Hold Code for one or both of the following reasons: To prevent a refund by freezing an overpayment (hold code 1 or 4) To suppress the Adjustment Notice (CPs 210 or 220) (hold code 3 or 4) Use a Hold Code 0 when the taxpayer needs to receive an adjustment notice and the overpayment should not be frozen. The table below explains some reasons to use a hold code 0. If an Then the taxpayer needs an Adjustment notice to explain Adjustment will create a second refund The adjustment and the second refund. Original notice was mailed in error The change to the taxpayer. Notice Review may only use the Hold Codes in the table below: Hold Code Prevents Notice Prevents Refund Description 0 No No Use when no other hold code is needed. 1 No Yes Sets a -K Freeze to hold the overpayment until one of the following: Doc Code 24 or 34 credit transfer posts. A TC 830 or TC 820 posts. A Doc Code 51 TC 300 posts. The module balance becomes zero or a debit. A TC 29X or TC 30X posts. Caution: The -K Freeze will not be set if any of these conditions post in the same cycle as the adjustment with the Hold Code. Example: A Doc Code 24 transfer posting in the same cycle as a CC REQ54 adjustment needs a TC 570 to hold the credit. 3 Yes No Use when retyping or voiding the original notice to reflect an adjustment other than a math error increase in the taxpayer's liability. 4 Yes Yes Use when the original notice will be retyped or voided because of an adjustment that will result in an overpayment, and the overpayment is to be held. Sets a -K Freeze. See Hold Code 1, above. Note: IRC 6303 requires a notice of assessment and demand for payment after the making of an assessment. A retyped notice cannot meet this criteria because it is dated prior to the date of the assessment, therefore, hold code 3 or 4 should not be used when increasing tax above the amount shown on the taxpayer's return as originally filed. For additional information, see Hold Codes & Notices, IRM 20.1.2.2.10.

# Priority Codes

3.14.2.7.6.4 (01-01-2024) Priority Codes Priority Codes bypass certain unpostable checks. Use Priority Code 1 when entering a CC REQ54 adjustment on an account with a -L Freeze (open TC 420 or 424). Note: Use Priority Code 1 if both 1 and 8 are required to adjust an account. Use Priority Code 4 to: Release the -Q Freeze when inputting TC 290 .00 This allows the credit to refund Use Priority Code 8 when entering: A TC 29X adjustment within $10.00 of a previous adjustment to bypass UPC 328 Condition RC 1. Exception: Priority Code 8 is unnecessary if the previous TC 29X is a TC 29X .00 with Priority Code 6.

# Return Processable Date (RPD)

3.14.2.7.6.5 (01-01-2024) Return Processable Date (RPD) A return is not considered complete and processable until all taxpayer information needed to permit the mathematical verification of a tax liability shown on the return (such as missing signatures, Form 1310, or any missing forms or schedules) is received. When the taxpayer sends the necessary correspondence, enter the correspondence received date in the RET-PROC-DT field on IDRS to update the Return-Processable-Date field on CC TXMOD. This will also restrict credit interest for 45 days. Future computations of credit interest will be figured from the date of the Correspondence Received Date (CRD) or the Return-Processable-Date Field.

# Credit Reference (CRN) and Item Reference Numbers (IRN)

3.14.2.7.6.6 (01-01-2024) Credit Reference (CRN) and Item Reference Numbers (IRN) CRN and IRN are sometimes used interchangeably, when discussing adjustments. IRNs (also known as Item Adjustment Codes) are used to adjust tax, wages and general ledger information recorded in IDRS. CRNs are used to adjust applicable credits. CRNs and IRNs are input in IDRS in the CD field of CC ADJ54 the response screen from the input of CC REQ54. A maximum of four credit reference numbers can be input at one time on MFTs 02, 05, 33, 34 and 61. All other MFT's accept a maximum of eight credit reference numbers. Review IRNs and CRNs carefully before transmitting REQ54 adjustments. Forgetting a trailing minus or an incorrect input of cents (as applicable) can cause adjustments to unpost. If you have further questions on credit and item reference numbers for adjustments, see the following subsections for specific CRN and IRN numbers by Form and MFT. In addition, for more information see IRM 21.7, Business Tax Returns and Non-Master File Accounts and Section 8C of the Doc 6209.

# CRNs/IRNs for Forms 706, 706-NA (MFT 52) and Forms 709 and 709-NA (MFT 51)

3.14.2.7.6.6.1 (01-01-2025) CRNs/IRNs for Forms 706, 706-NA (MFT 52) and Forms 709 and 709-NA (MFT 51) Form 706, U.S. Estate Tax Return, is used for the estates of decedents who were either U.S. citizens or U.S. residents at the time of death. Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return, is used for the estate of a nonresident, not a citizen of the U.S. if the part of the gross estate situated in the U.S. together with the gift tax specific exemption and the amount of adjusted taxable gifts exceeded $60,000 at date of death. Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return, is used to report transfers subject to the Federal gift and certain generation-skipping transfer (GST) taxes and figure the tax, if any, due to those transfers. Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United State, is used to report transfers subject to the Federal gift and certain generation-skipping transfer (GST) taxes and figure the tax, if any, due to those transfers from a Nonresident Not a Citizen of the United States. Do not adjust Forms 706, 706-NA, 709 or 709-NA. Route to Cincinnati SB/SE per IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions.

# CRNs/IRNs for Form 720 (MFT 03)

3.14.2.7.6.6.2 (01-01-2026) CRNs/IRNs for Form 720 (MFT 03) Form 720, Quarterly Federal Excise Tax Return, is used to report liability by IRS number and to pay excise taxes levied on specific services and the manufacturing and sale of certain items. The items are identified by an IRS Abstract Number on the return. When the tax is adjusted on Form 720 the IRS Abstract Number must be adjusted also. Note: If Abstract 133 (PCOR) is adjusted, the Specified Health Insurance Policies Average Number of Lives (SHIP) and Applicable Self-Insured Health Plans (ASIHP) fields must be reviewed for a possible adjustment. For example: If the PCOR tax liability is reduced to zero, the SHIP and ASIHP fields must also be reduced to zero. See Doc 6209 Form 720- All IRS Abstract numbers and IRM 3.14.2.6.15.1, Special Review-Patient Centered Outcomes Research (PCOR) Review on Form 720, for specific adjustment information.

# CRNs/IRNs for Form 940 (MFT 10)

3.14.2.7.6.6.3 (01-01-2024) CRNs/IRNs for Form 940 (MFT 10) Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, is used to report employer annual Federal Unemployment Tax Act (FUTA) tax. FUTA tax, together with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both federal and state unemployment taxes. The only items adjusted on Form 940 are TC 29X and FUTA wage and tax amounts. All increases and decreases in tax and wages must use reference alphas in conjunction with the state indicated on the return. Use the appropriate alpha below followed by the state code. "W" is used to increase or decrease the wages posted for Form 940. "T " is used to increase or decrease the taxes posted for Form 940. Example: To adjust wages posted for Missouri on Form 940 the CD field of the adjustment is WMO. The total of the tax reference "T " amounts must equal the TC 290 or the TC 291 tax adjustment.

# CRNs/IRNs for Form 941 (MFT 01)

3.14.2.7.6.6.4 (01-01-2024) CRNs/IRNs for Form 941 (MFT 01) Form 941, Employer's QUARTERLY Federal Tax Return, is used to report the employer share and employee share of social security tax and Medicare tax, withheld federal income tax, and, if applicable, withheld Additional Medicare tax. All increases and decreases in tax must use reference numbers for employment tax returns. See the table below for Form 941 item reference numbers. Reminder: The sum of the reference numbers 111, 112, and 113 must equal the TC 290 or TC 291 amount. The sum of the reference numbers 104 through 110 must equal 113. Number Definition 004 Taxable Social Security Wages 005 Taxable Social Security Tips (Form 941 only) (FITP) 007 Adjusted total of Social Security/Medicare taxes 073 Taxable Medicare Wages and Tips 074 Taxable Wages & tips subject to Additional Medicare Tax withholding 079 ETE/ETAP IRC 3509 Rate 104 Special additions to federal income tax 105 Special additions to social security and Medicare tax 106 Current quarter fractions of cents 107 Current quarters sick pay 108 Current quarters adjustments for tips and group life insurance 109 Current years income tax withholding adjustments 110 Prior quarters social security and Medicare taxes 111 Total income tax withheld 112 Total social security and Medicare tax 113 Total adjustments 114 Section 3121(q) Notice and Demand - Tax due on unreported tips (Form 941 only), tax period 201103 and later 119 Qualified Small Business Payroll Tax Credit for Increasing Research Activities NOTE: For ease of reference, this credit is generally referred to as the QSB Research Credit. 280 COVID-19 CARES Act - 2302 Payment Deferral Credit 290 Work Opportunity Credit (for tax periods after 201112) 296 COVID-19 CARES Act - Employee Retention Credit, effective 04/01/2020 - 12/31/2020 299 COVID Sick & Family Leave Credit - For 2020 only

# CRNs/IRNs for Form 943 Series (MFT 11)

3.14.2.7.6.6.5 (01-01-2026) CRNs/IRNs for Form 943 Series (MFT 11) Form 943, Employer's Annual Tax Return for Agricultural Employees, series returns are filed by agricultural employers to report income tax withheld and social security and Medicare taxes on wages paid to farm workers, including household employees working in a private home on a for-profit farm. On all Form 943 series adjustments, all increases and decreases in tax must use reference numbers for employment tax returns. See the table below. Reminder: The sum of the reference numbers 003 and 007 must equal the TC 290 or TC 291 amount. Number Definition 003 Adjusted Total of Income Tax Withheld 004 Taxable Social Security Wages 007 Adjusted total of Social Security/Medicare taxes 073 Taxable Medicare Wages and Tips 074 Taxable Wages & tips subject to Additional Medicare Tax withholding 119 Qualified Small Business Payroll Tax Credit for Increasing Research Activities NOTE: For ease of reference, this credit is generally referred to as the QSB Research Credit. Caution: For Form 943 series, IRN 119 is only valid for tax periods 201712 and later. 185 Adjustment to Withheld Social Security/Medicare tax -only used on Form 943 series adjustments for fractions of cents and third-party sick pay. 280 COVID Deferral Amount -See IRM 3.14.2.6.4.10, COVID-19 Related Employment Tax Relief, for more information. 290 Work Opportunity Credit (for tax periods after 201112) 296 COVID Employee Retention Credit- For 2020 only 299 COVID-19 FFCRA Sick and Family leave Credit, effective 04/01/2020 - 12/13/2020. Formerly COBRA premium assistance credit (for tax year 2009 through 03/31/2020)

# CRNs/IRNs for Form 944 (MFT 14)

3.14.2.7.6.6.6 (01-01-2024) CRNs/IRNs for Form 944 (MFT 14) Form 944 was designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes are $1,000 or less) will file and pay these taxes only once a year instead of every quarter. On all Form 944 series adjustments, all increases and decreases in tax must use reference numbers for employment tax returns. See the table below. Reminder: The sum of the reference numbers 111, 112, and 113 must equal the TC 290 or TC 291 amount. The sum of 104, 105, 106, 109 and 110 must equal 113. Number Definition 004 Taxable Social Security Wages 007 Adjusted total of Social Security/Medicare taxes 073 Taxable Medicare Wages and Tips 074 Taxable Wages & tips subject to Additional Medicare Tax withholding 079 ETE/ETAP IRC 3509 Rate 104 Special additions to federal income tax 105 Special additions to social security and Medicare tax 106 Current quarter fractions of cents 107 Current quarters sick pay 108 Current quarters adjustments for tips and group life insurance 109 Current years income tax withholding adjustments 110 Prior quarters social security and Medicare taxes 111 Total income tax withheld 112 Total social security and Medicare tax 113 Total adjustments 114 Section 3121(q) Notice and Demand - Tax due on unreported tips (Form 941 only), tax period 201103 and later 119 Qualified Small Business Payroll Tax Credit for Increasing Research Activities NOTE: For ease of reference, this credit is generally referred to as the QSB Research Credit. 280 COVID-19 CARES Act - 2302 Payment Deferral Credit 290 Work Opportunity Credit (for tax periods after 201112) 296 COVID-19 CARES Act - Employee Retention Credit, effective 04/01/2020 - 12/31/2020 299 COVID Sick & Family Leave Credit - For 2020 only

# CRNs/IRNs for Form 945 (MFT 16)

3.14.2.7.6.6.7 (01-01-2024) CRNs/IRNs for Form 945 (MFT 16) Form 945, Annual Return of Withheld Federal Income Tax, is filed by payers of non-payroll payments to report income tax withheld. See the table below. Reminder: The sum of the reference numbers 003, 008 and 184 must equal the TC 290 or TC 291. Number Definition 003 Adjusted total of income tax withheld (AITW) 008 Backup Withholding (BUWH) 184 Adjustment of Withheld Income Tax (ATWH)

# CRNs/IRNs for Forms 990 (MFT 67) and 990-T (MFT 34)

3.14.2.7.6.6.8 (01-01-2024) CRNs/IRNs for Forms 990 (MFT 67) and 990-T (MFT 34) Form 990, Return of Organization Exempt From Income Tax, is used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033. See the table below for item reference numbers needed for adjustments. Number Definition 151 Failure to Distribute Income 152 Excess Business Holdings 153 Investments which Jeopardize Charitable Purpose 154 Taxable Expenditures 182 Excess Grass Roots Contributions 183 Excess Lobbying Contributions 213 Tax on Political Expenditures 214 Tax on Disqualifying Lobbying Expenditures 391 Issue Price 411 Date of Issue 412 Maturity Date Form 990-T, Exempt Organization Business Income Tax Return, is an Income tax return filed by exempt organizations with unrelated business income. Use the item reference numbers in the table below to adjust. Note: Anytime taxable income is changed due to an adjustment, use IRN 886 to correct the taxable income. When decreasing taxable income, use IRN 886 with a minus (-) after the money amount. Number Definition 221 Partnership tax assessment amount 222 Partnership interest amount

# CRNs/IRNs for Form 1120 (MFT 02) and Form 1041 (MFT 05)

3.14.2.7.6.6.9 (01-01-2024) CRNs/IRNs for Form 1120 (MFT 02) and Form 1041 (MFT 05) Form 1120 , U.S. Corporation Income Tax Return, is used to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation. Form 1041, U.S. Income Tax Return for Estates and Trusts, is an income tax return filed by a fiduciary for every domestic estate or domestic trust for which they act. Form 1041 and 1120 can be adjusted with the below IRNs. Number Definition 221 Partnership tax assessment amount 222 Partnership interest amount 263 IRC Section 965

# CRNs/IRNs for Form 4720 (MFT 50)

3.14.2.7.6.6.10 (01-01-2024) CRNs/IRNs for Form 4720 (MFT 50) Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC, is used by private foundations, foundations managers, and disqualified persons to compute certain excise taxes which may be due under IRC 42. See the table below for the necessary item reference numbers. Number Definition 151 Failure to Distribute Income 152 Excess Business Holdings 153 Investments which Jeopardize Charitable Purpose 154 Taxable Expenditures 182 Excess Grass Roots Contributions 183 Excess Lobbying Contributions 213 Tax on Political Expenditures 214 Tax on Disqualifying Lobbying Expenditures

# CRNs/IRNs for Form 5329 in Conjunction with Form 1041 (MFT 05)

3.14.2.7.6.6.11 (01-01-2024) CRNs/IRNs for Form 5329 in Conjunction with Form 1041 (MFT 05) Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, can be can be adjusted with the IRNs in the table below. Number Definition 160 Tax on Excess Contributions. 162 Tax on Excess Accumulation 233 Tax on Medical Savings Accounts (MSA) 235 Education IRA 1997 and later 236 Roth IRA 1997 and later 237 Prohibited Tax Shelter Transaction Caution: The sum of the 160 and 162 amounts must balance to the TC 29X amount.

# Credit Transfers

3.14.2.7.7 (01-01-2026) Credit Transfers The use of IAT is mandated for inputting credit transfers in IDRS. Exception: An accounting general ledger credit transfer is required to transfer a TC 620 payment from an MFT 50 to the correct module, due to programming issues, this credit transfer must be done by completing Form 2424, Account Adjustment Voucher. Use the TC 620 payment date and amount for both the TC 622 and TC 620, debit and credit sides of the transfer. Route the completed form and supporting documentation to the accounting team associated with the SPC for the payment DLN. See IRM 21.7.7.7.4.1.1.2, Form 2424 Instructions, for more information. Use IAT Tool Fill Forms to assist in completing Form 2424. Use a credit transfer to move credits from one tax module to another. Keep the following in mind when transferring a credit: Check TXMOD and BMFOL to make sure the credit is available for transfer and has not previously been transferred, offset or refunded. Do not transfer a pending credit unless it has posted on BMFOLT. Not all transaction codes are valid for all MFTs. Use the Document 6209 to verify transaction codes from MFT to MFT transfers. Change payment transaction codes in the IAT tool as needed. Example: A TC 620 extension payment misapplied to MFT 78 that needs to be transferred to MFT 52 requires a TC change since TC 620 is not valid for MFT 52. The date of the debit reversal must be exact if transferring a payment, because any discrepancy will cause an unpostable. Note: ADD/ADC24 can be used to change the date of the TC 610 when required. (Use Override Code 2) Money amounts must be exact unless splitting a payment. Note: Any credit amount input greater than the posted credit will cause an unpostable. When transferring two or more credits with the same date, and the credit reversals amounts are exact matches of the posted credit transactions, they may be transferred in any order. When splitting two or more credits with the same date, input the transaction from the largest to smallest to avoid creating an unpostable. Note: The computer will look for and reverse an exact match before it will split a payment. If there is no match, the first payment with a sufficient amount will be split. Reminder: For Notice Review when inputting a credit transfer you are not required to make it a source document to associate to files. There are three Credit Transfer Doc Codes. Use them in conjunction with the credit transfer Command Code format ADDnn/ADCnn, where nn is the Document Code. Each Document Code identifies the different types of credits to be moved: Use Doc Code 24 to transfer a single payment, a lump sum, an overpayment, or to reverse an offset. Both the debit and credit sides of the transfer post in two or three cycles (depending on the day of input), unless a Posting Delay Code is used. Use Doc Code 34 to transfer up to four payments at once. The debit side of the transfer posts in two or three cycles (depending on the day of input). The credit side posts one cycle later. Caution: When using Doc Code 34 in conjunction with other Doc Codes (24, 48, or 54), make sure that the multiple transactions will all post in the same cycle. Use a Posting Delay Code "1" on the credit side of both the 24 and 48 transactions and on CC ADJ54 to prevent erroneous notices, offsets, and refunds. Use Doc Code 48 to transfer or reverse Credit Elect. Both the debit and credit sides of the transfer post in the same cycle unless a Posting Delay Code is used. Both sides normally post in two or three cycles, depending on the day of input. Be aware of timing issues unique to Doc Code 34 transfers. The credit side of a Doc Code 34 transfer posts one cycle after: A CC REQ54 adjustment Both sides of Doc Code 24 and 48 transfers The debit side of a Doc Code 34 transfer A CC REQ77 transaction Note: If the credit side of a Doc Code 34 transfer needs to post in the same cycle as any of the above transactions, use a Posting Delay Code 1 on your CC REQ54 adjustment immediately after the IDRS field POSTNG-DLAY-CD>__ to avoid erroneous notices, offsets, and refunds. A credit transfer affects two different tax modules unless the only purpose of the transfer is to change the payment date. The debit side, which always appears on the upper part of the screen, reflects the module the credit will be transferred from (ADD). The credit side, which always appears on the bottom part of the screen, reflects the module the credit will be transferred to (ADC). The last module requested with CC TXMOD (the primary module) decides which command code to use to move the credit. To reduce the chance for errors, use the notice module as the primary module. Decide if the module shown on the IDRS screen is to be debited or credited. See the table below. If the module is to be Then use Credited CC ADCnn (nn=Doc Code 24, 34, or 48). Debited CC ADDnn (nn=Doc Code 24, 34, or 48). When reversing an offset, the debit and credit sides may have different dates. Input an Override Code 2 when using different dates. Use the TC 826 date for the TC 821 and the TC 706 date for the TC 701. Reverse multiple offsets separately. Do not lump them together. Use a Posting Delay Code to delay the posting of a transaction by up to six cycles. See the table below for standard posting delay codes if not other transactions are being performed. If the Transfer is Doc Code Then use a Posting Delay Code 24 or 48 1 34 2 When transferring a credit into a zero balance (full-paid) module, or a balance due module that will create an overpayment, use a Bypass Indicator 1 on the credit side of the transfer to prevent an Unpostable Condition. A Bypass Indicator 1 is not needed on Forms 990, 1041, and 1120, and as long as it is still within one year of the original tax period ending date. To hold a credit (prevent the credit from refunding or offsetting), enter a Credit Freeze Code 1 on FRM 34 (CR-FR>). On DRT 24, enter TC 570 as the secondary transaction immediately after the second TC>_ on the credit side of the transfer. The posting of TC 570 will set a -R Freeze Code on the module. Never leave an unnecessary -R Freeze on a module. Input TC 571 on CC REQ77 with the appropriate Posting Delay Code to reverse TC 570 and release -R Freeze if any remaining credit will refund after the credit posts. IAT will use the correct reversal Transaction Codes when transferring payments. See IRM 21.5.8-1, Transaction Codes and Reversals. Some examples are: TC 662 to reverse TC 660 or 430 TC 672 to reverse TC 670 TC 821/701 to reverse TC 826/706 Note: See Document 6209, Section 8A, for a complete list of transaction codes. TCs 640, 670, and 700 must have a two-digit Designated Payment Code (DPC) used only for terminal input. (See Document 6209, Section 11, Document 6209 Section 11 Designated Payment Codes) Use of a DPC on all posting vouchers is now mandatory with Transaction Codes 640, 670, 680, 694, 690, and 700. When transferring these payments, input 00 on the credit side of the Doc Code 24 or 34 screen immediately after DESG-PYMT-CD>__ unless the payment has another code (01-14 or 99). A TC 820 or 830 on a Doc Code 24 or 48 transfer will release -K and P- Freezes. Make sure the transfer does not inadvertently release a freeze and cause an erroneous refund. When transferring a credit into a module and a tax adjustment is also needed, use either a HC 4 or a posting delay code 1 to prevent an erroneous refund and/or notice. If a misapplied credit posted to a settled module (containing a TC 150), input a TC 570 on the debit side of the transfer to suppress the CP 260 if transferring the credit will leave a debit balance of $5.00 or more, and the taxpayer does not need to receive a notice. If transferring a credit into the notice module will resolve the credit discrepancy with no other misapplied credit, do not input a TC 570 on the credit transfer. Use CC REQ54/ADJ54 to input a TC 290 .00 with Hold Code 3 to prevent an adjustment notice. If transferring a TC 650, 660 or TC 670 into a module will create an overpaid condition, See IRM 3.14.2.6.1.7.2.2 (Preventing Unpostable Transactions) to avoid creating an unpostable condition. Use a Bypass Indicator 1 on the Doc Code 24 or 34 IDRS screen, if necessary. If the credit will be held and not refunded, input a TC 570 as a secondary transaction on the credit side of a Doc Code 24 transfer or a Credit Freeze Code 1 on the credit side of a Doc Code 34 transfer.

# Penalty Recomputations Caused by Credit Transfers

3.14.2.7.7.1 (01-01-2016) Penalty Recomputations Caused by Credit Transfers When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers. Transferring timely credits into a module containing a TC 166 (FTF penalty), TC 176 (ES Penalty), TC 186 (FTD Penalty), or TC 276 (Failure to Pay) will cause these penalties to recompute and generate an adjustment notice CP 210/220. Other penalties may also recompute but will not generate an adjustment notice. Review CC PIEST or INTST to decide whether the penalties will recompute. (See IRM 3.14.2.6.17.7 , Estimated Tax (ES) Penalty.) Note: You may need to manually address Estimated Tax Penalty. When transferring timely payments into the module to resolve an ES or FTD discrepancy condition causes the TC 166, TC 176, TC 186 or TC 276, to recompute, input a TC 290 .00 in Blocking Series 05/15 using a Hold Code 3 to prevent the CP 210/ CP 220. If the credit transfer is under Doc Code 34, use a Posting Delay Code 1 on the TC 290 so both adjustments will post in the same cycle. If the credit transfer is under Doc Code 24 or 48, a Posting Delay Code is unnecessary. Both sides of the credit transfer will post in the same cycle as the CC REQ54 transaction.

# Command Code (CC) STAUP

3.14.2.7.8 (01-01-2019) Command Code (CC) STAUP Use CC STAUP to interrupt the normal IDRS balance-due notice routine (CP 5XX collection series) and delay, accelerate, or skip notices. This will generate a history item on the module and change the campus status to 48. Note: Follow instructions contained in each section to determine if a CC STAUP is necessary. When adjusting a balance-due account and the account will remain in balance due status: Retype the original notice. Use Hold Code 3 on the adjustment to suppress an adjustment notice. Note: Hold Code 3 will not accelerate IDRS balance-due notices. When a module contains one or more pending payments (AP, PN, UP, CU, or TEP) that will cause FTF or ES penalty recomputation, enter CC STAUP for 9 cycles to allow the taxpayer adequate time to respond to the recomputation notice. A STAUP will automatically release after nine cycles if there has never been an open control on the module. If a control is opened on the module after STAUP is input, it will release nine cycles after the control base is closed. A STAUP will never remain for more cycles than the number originally input. Use CC STAUP when a balance due account requires corrective action that cannot be accomplished within the notice cycle. Delay CP 50X notices by inputting CC STAUP for 9 cycles. After working the case, input CC STAUP with the same status used in the initial STAUP for 9 cycles. Use the cycles indicated in the chart below for this input: If the Original Notice was Then input CC STAUP for Labeled 5 cycles Retyped 6 cycles Do not accelerate notices by skipping statuses using CC STAUP. Input the next status and the number of cycles that IDRS would normally delay the next notice. Caution: Use the current status (other than 19 or 21) if the IDRS notice is voided or mailed erroneously. Check the History Section of the module. Check for any Pending transactions or any current Status 48. Caution: Never use CC STAUP to update the Status to 22 for zero cycles. This causes the account to immediately become TDA. Input CC STAUP for 9 cycles when routing a balance due case or its correspondence to another area. Never input CC STAUP for fewer cycles than the normal interval to the next notice. Be aware of the posting cycles of each notice, especially if using the same status. A STAUP cannot be input when: The Collection Statute Expiration Date (CSED) is within 6 months of expiring. An Account is in Status 22, 24, 26, 64, 60, 71, or 72. A STAUP will only prevent an erroneous IDRS notice if it is input by the Friday before the erroneous notice is scheduled to generate (10 days before the 23C Date). If the Campus status has just updated, it is too late to use CC STAUP. Note: If a STAUP is input before the 23C Date, the notice will be selected for review on the IDRS Notice Review Register under the category 48 Status Update and will be voided. If the same notice needs to be regenerated, input CC STAUP in the same SC Status. If an erroneous notice has been mailed, send an apology letter instructing the taxpayer to disregard the notice and that either the case has been resolved or that a correct notice will be sent, whichever is appropriate. If the Campus Status is blank or 99, the account is out-of-region. Use Universal Access to input CC STAUP.

# Extensions

3.14.2.7.9 (01-01-2026) Extensions IRC 6081 provides that the Secretary of the Treasury may grant a reasonable extension of time for filing any return, declaration, statement, or other document. Additionally, it provides that, except for taxpayers who are abroad, no such extension shall be for more than 6 months. Check for a misapplied extension of time to file (TC 460) that belongs on another account. Caution: The Form 709 is also extended, if the taxpayer obtains an extension of time to file a calendar year individual income tax return (e.g., Form 1040) using Form 4868. This does not apply to Form 709-NA. Use CC REQ77 to input a TC 462 to remove the extension from the incorrect account. Note: See Exhibit 3.14.2-12 Deleting Extensions Using FRM77, for more information. Use CC REQ77 to input a TC 460 to post the extension on the correct account. See Exhibit 3.14.2-11, Adding Extensions Using FRM77. Input the Extension Date (use the latest extension date), the Transaction Date (use the received date of the extension), the DLN-CD: • Enter 20 for MFTs 02, 33 and 34 • Enter 45 for MFTs 05 and 06 Note: If penalties will recompute to zero, input a TC 290 .00 with a Hold Code 3 to suppress the recomputation notice. Input only one TC 460. Retype, label, or void the notice according to the effect that the posted TC 460 will have on the module. The TC 460 will cause a recomputation of the FTF penalty (TC 166 if posted) if the return is filed before five months after the extended due date.

# Notice Disposition

3.14.2.7.10 (01-01-2026) Notice Disposition Computer Paragraph (CP) notices are the most common form of communication with the taxpayer regarding their account. A notice must have accurate and timely information. All TEs are responsible for understanding the tax module conditions that generate a notice, the notice elements, and what effect any change to the module will have on a notice. Note: Notices that are retyped, labeled, or mailed must be released in the notice cycle. The taxpayer should receive a notice when there is: A debit balance on the module A math error on the return An Estimated Tax (ES) payment discrepancy Penalty and interest assessed on the module A change to the taxpayer's original figures for tax, credits, or penalties An overpayment offset to another module A reduced Credit Elect Notice elements can help describe the conditions which characterize a notice. The principal element types most viewed in Notice Review are: Overpayment Balance due Even balance Credit discrepancy Math Error Adjustment of tax, credits, and penalties Reduced credit elect Offset to other modules, accounts, or government agencies If a tax return is processed and meets math error criteria, even if the refund or balance due is what the taxpayer expects, the appropriate math error notice will generate. The exception would be if the notice module is adjusted back to the taxpayer's original figures. Then the notice would be voided. Note: If an incorrect notice was mailed to the taxpayer, you must send the taxpayer the appropriate C-Letter explaining the correction and apologizing to the taxpayer. For special situations, contact your work lead. Every tax examiner who inputs: An adjustment (CC REQ54) must decide (before inputting the adjustment) whether to allow an adjustment notice to generate or not An adjustment or credit transfer that will cause the FTF, FTD, FTP, or ES Penalties to recompute must decide if another notice will or should generate Note: Proper use of Hold Codes is important during the adjustment process. (See IRM 3.14.2.7.6.3 , Hold Codes.) Proper use of the Local Control File (LCF) is important when a Hold Code or a TC 570 cannot be used to prevent another notice. See IRM 3.14.2.5.4.1 , NRP97 Input Information. Consider how the adjustments made to the notice module will affect the notice elements when determining whether to print, void, retype, or label an original notice. An adjustment notice, CP 210 or 220 will generate when: A Doc Code 54 or 47 adjustment posts with no Hold Code or with a Hold Code 1 A payment is transferred into or out of a module and FTF, FTD, FTP (decrease only, TC 277) or ES Penalties will assess or recompute only a decrease (TC 277) will generate an adjustment notice A payment is transferred out of a settled (Full Paid) credit balance module and creates a balance due (generates a CP 260) If an account action will generate another notice, label the original notice. If the original notice must be voided or retyped, prevent the next notice: Use Hold Code 3 with a CC REQ54 adjustment to prevent another notice. Use Hold Code 4 to prevent a notice and to prevent an overpayment from refunding. Use a TC 570 on the debit side of a credit transfer to prevent a CP 260 from generating on a settled module. Use CC REQ54 to input a TC 290 .00, Blocking Series 05,15 or 17 for Form 1041, Hold Code 3, to prevent an adjustment notice from generating on a penalty recomputation caused by a credit transfer. Time the adjustment to post in the same cycle as the credit transfer. Note: Use a Posting Delay Code 1 if the credit transfer was a Doc Code 34. Exception: An adjustment with a Hold Code 3 will not suppress a CP 260. See IRM 3.14.2.7.7 (Credit Transfers), regarding procedures when inputting multiple corrective actions (such as a tax adjustment and a credit transfer or an in and out credit transfer). Any tax examiner reviewing a pending transaction on the notice module must decide: Which penalties will recompute? Which notices will generate? Should the notices be mailed? Will the notice module be overpaid, refunding, underpaid, or even-balance? What is the proper disposition of the original notice? Review the CC BMFOL notice module for the posting of pending credit or debit transactions If a transaction posts on CC BMFOL, any recomputation of penalties and interest will also show on that module. However, any balance showing on CC BMFOL is computed to the date indicated on that module and will not be used on a retyped or labeled notice. Use CC INTST or CC COMPA/COMPAF. If a transaction is posted on CC BMFOL, any refund or offset occurring as a result will also generate a notice. Note: Use CC BMFOL to verify the result of a pending transaction whenever possible. When making any adjustment to an account, review all affected associated notice modules as part of the resolution process. Tax Examiners are responsible for the disposition of all affected associated notices in addition to the selected notice module.

# Notice Disposition Categories

3.14.2.7.10.1 (01-01-2016) Notice Disposition Categories There are six Notice Disposition categories: PRINT VOID RETYPE LABEL ENTITY HOLD Note: If you are intercepting a refund on the Notice Module, the correct disposition would be PI, VI, RI, LI, or TI for a Transcript. History Items are required when taking action on your notice account. If your account is not presently available on IDRS, do not input a CC ACTON to input a history item

# Printing Notices

3.14.2.7.10.2 (01-01-2016) Printing Notices Print the notice when: All the notice elements are correct, no adjustment is pending, and no correction will be made to the account. There is a requirement to print the notice. Note: Do not input a history item on IDRS for mailing a notice.

# Voiding Notices

3.14.2.7.10.3 (01-01-2026) Voiding Notices Void the notice when: The taxpayer does not need to receive the notice information. Example: Returning to the taxpayer's original tax figures and the resulting refund is what the taxpayer expected or there is no balance due. Caution: If the module is zero but the taxpayer is not getting the refund or credit elect they expected, print the notice. After the adjustment action, the account will have no math error or ES discrepancy. It will be an overpaid, or an even balance, or have a balance due of less than ≡ ≡ ≡ ≡ ≡ ≡. The adjustments must match the taxpayer's figures, and any incorrect refund will be deleted or the module will be an overpaid balance, which will either result in a refund or a credit elect as the taxpayer expected. It would cause a misunderstanding by the taxpayer. Reprocessing a return. (Use Hold Code 4 on the tax adjustment.) If voiding the original notice, prevent the next notice from generating by inputting a CC REQ54 with a TC 290 .00 with a hold code 3 at the same time as the credit transfer (if credit transfer is CC ADD34 use posting delay code of 1 on ADJ54) or use the Local Control File to intercept and void any future adjustment notice. See IRM 3.14.2.5.4.1, CC NRP97 Input Information. Do not void an Adjustment Notice unless one of the following is true: The original notice was voided and the conditions in Printing Notices are not met. The original notice is retyped to include the corrected information. If the original balance due notice was voided in error and the next CP 210/ CP 220 is selected, release the CP 210/ CP 220 with the current notice module information. If the taxpayer contacts Customer Service to inquire why a previous notice was not sent, the Customer Service Representative will be able to read the account history and explain the account activity to the taxpayer.

# Entity Only Disposition

3.14.2.7.10.4 (01-01-2024) Entity Only Disposition The Entity disposition is to be used when entity information is the only change required on the notice. It is not to be used in conjunction with any other notice disposition. Entity changes include name and address corrections, as well as manual intervention (CAF/RAF Mismatches) changes. For more information on CAR/RAF, see IRM 3.14.2.5.3, Manual Intervention CAF/RAF/MM/SC. Note: Entity Disposition can also be used for associated notices. Resolve an entity issue as follows: Update the entity on IDRS with the IAT Address Tool. Select Disposition E and correct the address information on the OLNR Entity display screen. Note: For more information see IRM 3.14.2.6.1.1.3, Name and Address, and IRM 3.14.2.7.5, Entity Adjustments. Route major entity changes to Entity Control for necessary action using local control procedures.

# Retyping Notices

3.14.2.7.10.5 (01-01-2026) Retyping Notices Retype a notice when changes to the notice module requires the updating of the notice elements to correctly reflect the updated tax module information. Listed are some of the conditions which require a retype of the original notice: An adjustment to the taxpayer's original figures increases tax or decreases credits The original balance due amount is increased An adjustment to the notice module changes the module balance from balance due to overpaid An adjustment to the notice module changes the module balance from overpaid to balance due The original TPNC(s) requires correction The original refund interest allowed is reduced or no longer applicable Example: A CP 210 generated and the amount refunding was requested as a credit elect. If the credit is transferred to another module, the interest shown on the notice will be incorrect. The notice must be retyped to (1) remove the credit interest amount; (2) deduct the erroneous credit interest from the overpayment amount; and (3) apply Label 7 to notice before mailing. Retype a notice to a CP 173 when the computer assessed an ES Penalty and there is no ES discrepancy or math error on an overpaid module. Use a Hold Code when retyping the original notice to prevent the next notice or use the Local Control File to intercept the next notice. Use CC ACTON to enter a history item on IDRS when retyping a notice. If retyping to a different notice, include both CP numbers in the history item, such as CP112to161 as an example. If a Balance Due Notice is held past the notice cycle, update the Pay by date to the current cycle Pay by date. Update the balance due, penalties, and interest to the 23C date. Change the balance due amount only if there is a ≡ ≡ ≡ ≡ or greater increase over the original balance due. Use CC INTST to obtain an updated balance when no restrictive conditions exist on IDRS. Use CC ACTON to enter a history item on the notice module, e.g., UPDTECP__ or RETYPCP__. Also input a CC STAUP for 6 cycles on Balance Due Notices. Caution: Change the Pay by date printed on a CAF Mismatch notice only when the Pay by date printed on the original taxpayer notice is also changed. The CAF Mismatch notice must always be an exact duplicate of the taxpayer copy. (See IRM 3.14.2.6.1.2 , Manual Intervention Centralized Authorization File (CAF) and Reporting Agents File (RAF). The date printed on the notice is the 23C Date (current cycle assessment date). This date is rarely changed. Exception: If you delete a refund to cover an adjustment, change the notice date to match the 23C Date of the adjustment. Use the posting cycle calendar in Document 6209 to decide the 23C Date for the posting of the adjustment. In all other cases do not change the notice date. The 23C Date decides the assessments of penalty and interest, collection notices, and TDA issuances. The computer will not recognize a notice date change. The computer does recognize an additional tax assessment, which starts a new collection time period. Sometimes a stuffer is included in the envelope with a notice to give additional information to the taxpayer. These stuffers are identified by an alpha code at the top of the notice. The most common stuffer is the 746 which explains Math Error Appeal Rights. It is identified by an "A" at the top of the notice. This code must be present on a retyped notice if it was on the original notice. It must also be on the notice if a tax increase above the taxpayer's figures was input in Blocking Series 77 or 78 DLN, using CC REQ54. (See IRM 3.14.2.7.6.1, Blocking Series.) If other codes were on the original notice, include them on the retyped notice. If a multi-page notice is retyped, use local procedures to correct the erroneous information on the notice. Do not retype the notice if there is a only a change to the name or address on the notice and all other information is correct. See IRM 3.14.2.7.10.4 for Entity Only information.

# Labeling Notices

3.14.2.7.10.6 (01-01-2024) Labeling Notices Under certain conditions, a label may be used to update information on the notice or to notify the taxpayer to expect additional account actions. Select the computer-generated label from the list in OLNR that will be reflected in the drop-down menu whenever you select the disposition "L" for Label to for a notice that requires additional information to be conveyed to the taxpayer but Retype is not appropriate. Some labels require fill-in information which must be completed using the correct form number and period ending in Month, Day, and Year format. Example: Form 1120 for tax period ending Dec. 31, 2023. Use caution when applying a label for a pending (AP, PN, RS, UP, CU, or TP) credit transaction. A TC 650 or TC 660 pending on the NRPS contents page that overpays the notice module and is dated later than the last day of the tax period may not post to the notice module due to computer rollover analysis. (A TC 650/660 .00 will be displayed on BMFOLT to indicate a credit has rolled when attempting to post to the module.) If the payment overpays the module, but does not appear on BMFOLT as a posted payment, decide if the payment will post. If the payment will post to the notice module, label the notice. If unable to decide, do not use a label. If a pending transaction is unpostable, do not apply a label if unable to determine if the transaction will post, instead print the notice. If the transaction is RS, TP, or UP, CC INTST will not reflect the penalty computation for FTP and interest. If the correct balance on the module is required, use CC COMPAF to figure the correct FTP amount and CC COMPA to figure the correct interest amount. Reminder: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Always label a notice when the tax is being increased above the taxpayer's original figures. Select Label 1 for notice disposition. Note: Do not void a CP 161 or CP 861 if fully paid by credits that offset (TC 706) into the notice cycle. A CP 138 will generate from the Losing module. Note: Do not label if the offset partially pays the module in full. A CP 138 will generate from the losing module The labels shown in this text have been approved for the situations listed. A label must not be used for any other situation unless the label conveys the correct information to the taxpayer. SPC management has the option of requiring a notice to be retyped instead of labeled. Headquarters must approve any additional labels before use. The labels in the following sections IRM are approved for use by Notice Review TEs.

# Label 1

3.14.2.7.10.6.1 (01-01-2024) Label 1 Label 1 : We're making an adjustment to your account. You will receive a separate notice explaining the correction. Use Label 1 when: the notice module has a pending (AP, PN, CU, UP, or RS) Doc Code 54 or 47 adjustment, with either a Hold Code 0 or Hold Code 1 that was input by another area. the notice module has a pending (AP, PN, CU, UP, or RS) Doc Code 54 or 47 adjustment, if a hold code 2 with a Doc Code 24 pr 34 credit transfer is posting in the same cycle. Note: If the above referenced adjustment was input by a Notice Review TE, refer the notice to that TE for proper notice disposition. If the Notice Review TE is unavailable label or retype as appropriate based on the hold code used. Do not use label 1 when a pending TC 976 or 977 (amended return) is on the tax module. Accounts Management will initiate all required correspondence. Caution: A TC 290 .00 without a credit transaction code or TC 806/807 will not generate an adjustment notice.

# Label 2

3.14.2.7.10.6.2 (01-01-2025) Label 2 Label 2: We applied an additional credit of [$0.00] to your account. You will receive a separate notice reflecting this credit in 3 – 4 weeks. Use Label 2 when a credit transaction is pending (AP, PN, CU, UP, RS or TP) and does not show on the notice and all the following applies: Caution: If the payment pending in the NRPS package is a TC 650 or TC 660 review BMFOLT to verify the payment will post (A rolled payment will post on BMFOLT as TC 650/660 for .00). If the payment will post to the notice module use Label 2. If the payment will not post do not label the notice. an adjustment notice will generate to the taxpayer. the resulting balance on the notice module will be a reduced balance due. Failure to File (TC 166), Failure to Deposit (TC 186), or Estimated Tax (TC 176) penalties will recompute or Failure to Pay (TC 276) will decrease. Reminder: Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice. Also, use Label 2 if the notice being reviewed is a settlement notice and an adjustment notice is being generated in the next cycle and the deadline has passed for intercepting the next notice using the Local Control File (LCF) which is Thursdays at 12 PM Local Time. See IRM 3.14.2.5.4, NRPS Local Control File for more information. Do not use Label 2 when there is a pending credit and the following are all true: No math error or credit discrepancy will remain Returning to taxpayer figures Module balance is overpaid or even balance Note: If all above are true then void the notice. Do not use Label 2 if the notice being reviewed is a CP 260 and an adjustment notice is being generated in the next cycle. Void the CP 260 and allow the next notice to generate to the taxpayer. Also, do not use Label 2 if the notice being reviewed is a settlement notice and an adjustment notice is being generated in the next cycle and the next notice can be intercepted using the Local Control File. Instead, using LCF intercept the next adjustment notice. Also retype the current cycle notice to include all the information from the updated module information.

# Label 3

3.14.2.7.10.6.3 (01-01-2024) Label 3 Label 3: We applied a credit of [$0.00] to your account. Your new balance is [$0.00]. Use Label 3 when all the following applies: The notice module is currently in balance due status. Payments or credits are pending (AP, PN, UP, CU, TP or RS) but are not showing on the notice. The resulting balance on the notice module will be a reduced balance due. Failure to File (TC 166), Failure to Deposit (TC 186), Failure to Pay (TC 276), or Estimated Tax (TC 176) penalty will not recompute. Another notice will not generate. Use INTST or COMPA to compute the new balance for the label fill-in. Caution: ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

# Label 4

3.14.2.7.10.6.4 (01-01-2024) Label 4 Label 4: We applied a credit of [$0.00] to your account. Your account has a credit of [$0.00]. Use Label 4 when all the following applies: Payments or credits are pending (AP, PN, UP, CU, TP or RS) but are not showing on the notice module. The notice module is in balance due status or an overpayment is frozen and not refunding. The resulting balance on the notice module will be an overpayment. Failure to File (TC 166), Failure to Deposit (TC 186), Failure to Pay (TC 276), or Estimated Tax (TC 176) penalties will not recompute. Therefore, another notice will not generate.

# Label 5

3.14.2.7.10.6.5 (01-01-2024) Label 5 Label 5: Due to a processing error, you did not receive the correct refund. You will receive an additional refund in 3 – 4 weeks. Use Label 5 when all the following applies: The module has a posted refund (TC 846). A CC REQ54 adjustment is being input and will result in an additional refund. The adjustment is input in the current cycle with a hold code "0" . This will cause another adjustment notice (CP 210) to generate. Note: Do not stop the current cycle refund.

# Label 6

3.14.2.7.10.6.6 (01-01-2024) Label 6 Label 6: We applied a credit of [$0.00] to your account. If you don't owe any other taxes, you will receive a refund in 3 – 4 weeks. Use Label 6 when all the following applies: The module has a posted refund (TC 846). Payments or credits are pending (AP, PN, UP, CU, TP or RS) but are not showing on the notice module (including credits just transferred into the notice module). There will be an additional refund from the notice module. Failure to File (TC 166), Failure to Deposit (TC 186), Failure to Pay (TC 276), or Estimated Tax (TC 176) penalties will not recompute. Therefore, another notice will not generate. Note: Do not stop the current cycle refund. Caution: Do not use this label for a pending Doc 47 or Doc 54 adjustment. See IRM 3.14.2.7.10.6.5 Label 5.

# Label 7

3.14.2.7.10.6.7 (01-01-2024) Label 7 Label 7: The overpayment of [$0.00] was applied to Form [XXXX] for tax period ending [MM-DD-YYYY]. Example: The overpayment of $5,000.00 was applied to Form 941 for tax period ending 03-31-2025. Use Label 7 when all the following applies: The notice module is overpaid. A credit elect (TC 830) or lump-sum offset (TC 820) is shown as pending (AP, PN, UP, CU, TP or RS) for the same EIN or, a debit transaction for a payment (TC 652, 662, 612, 672, 622,642) is pending (AP, PN, UP, CU, TP or RS) for the same EIN and the module is in even or credit balance. Do not use label 7 if: A payment, credit elect or lump-sum offset is being transferred to a different TIN. If the TIN is different retype the notice. The notice module is changing from an overpayment to a balance due, stop the refund and retype the notice. Note: If a debit transaction is pending on a CP 210 or CP 220 refer to , IRM 3.14.2.6.14.5, CP 210 (CP 910) and CP 220 (CP 920) with Pending Debit Transactions, for notice disposition.

# Label 8

3.14.2.7.10.6.8 (01-01-2024) Label 8 Label 8: According to our records, the credit you claimed has already been refunded. Use Label 8 when: The taxpayer is claiming a credit or payment(s) that refunded in a prior quarter, prior year or from a different MFT than the notice module. The notice is chosen under Selection Key 31. Note: IDRS research is not required if the refunded credit or payment does not appear in the NRPS package.

# Label 9

3.14.2.7.10.6.9 (01-01-2024) Label 9 Label 9: This notice was returned undeliverable. Additional penalties and interest have accrued on your account. The current balance due is [$0.00]. To avoid additional penalties and interest, please pay by [MM-DD-YYYY]. Label 9 is used when a balance due notice is returned undeliverable from the U.S. Postal Service and the date of the notice is more than 7 days before the current date. Label 9 is not used in OLNR. This label is affixed to a paper notice that has been returned to the IRS for improper address information. Use CC INTST or CC COMPA to recalculate penalties and interest for the correct label fill-in for balance due. The "Interest To" and the "Payment Due" dates are both the current 23C date plus 10 days.

# Label 10

3.14.2.7.10.6.10 (01-01-2024) Label 10 Label 10: Please pay by [MM-DD-YYYY] to avoid additional penalties and interest. Label 10 is used when a balance due notice is returned undeliverable from the U.S. Postal Service and the recomputed balance due changes ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Label 10 is used in conjunction with Label 11 when the taxpayer needs to receive a new pay-by-date on an undeliverable notice. Caution: Do not use Label 10 in conjunction with Label 9.

# Label 11

3.14.2.7.10.6.11 (01-01-2024) Label 11 Label 11: Your notice was originally mailed on the date of this notice, however, it was returned undeliverable. Label 11 is used when: An even balance or information notice is returned undeliverable from the U.S. Postal Service and the recomputed balance due changes or In conjunction with Label 10 on certain balance due notices. See IRM 3.14.2.7.10.6.10, Label 10, for more information. or In conjunction with Label 12 with TC 846 on the notice module. See IRM 3.14.2.7.10.6.12, Label 12, for more information.

# Label 12

3.14.2.7.10.6.12 (01-01-2024) Label 12 Label 12: Due to a processing error, your refund check may be delayed. Use Label 12 when an overpaid notice (with a TC 846 on the notice module) is returned undeliverable from the U.S. Postal Service. Always use Label 11 in conjunction with Label 12.

# Label 13

3.14.2.7.10.6.13 (01-01-2024) Label 13 Label 13: This notice is being sent to you in place of the incorrect notice(s) you received. We apologize for our error and any inconvenience this may have caused you. Use Label 13 when all the following applies: A notice was mailed to the taxpayer with incorrect information. The notice will be retyped and/or labeled to reflect the correct information. Note: Use STAUP to delay the generation of collection notices until the taxpayer can receive the correct labeled notice.

# Label 14

3.14.2.7.10.6.14 (01-01-2024) Label 14 Label 14: The payment of [$0.00] was applied to the balance due on Form [XXXX] for tax period ending [MM-DD-YYYY]. Use Label 14 when all the following applies: The notice module is overpaid or refunding. A payment claimed on the notice module has posted or will post to a different module with the same TIN. The receiving module for the payment is in balance due status.

# Label 15

3.14.2.7.10.6.15 (01-01-2024) Label 15 Label 15: You were issued an erroneous refund due to a processing error. Please return the uncashed check or a substitute payment. Label 15 is used on cases when the refund cannot be intercepted and the full amount of the refund sent to the taxpayer is erroneous.

# Label 16

3.14.2.7.10.6.16 (01-01-2024) Label 16 Label 16: We sent you a refund in error. The correct amount of the adjustment is [$0.00]. You will receive a separate notice explaining the correction. We apologize for any inconvenience this may have caused you. Label 16 is used on cases when the refund cannot be intercepted and only part of the refund sent to the taxpayer is erroneous. The amount fill-in for this label should state the amount the taxpayer needs to pay.

# Label 17

3.14.2.7.10.6.17 (01-01-2026) Label 17 Label 17: We will send you an additional refund, if you don't owe other taxes. Use Label 17 when all the following applies: The notice module is refunding. There is a pending TC 29X or TC 30X with Hold Code 3. The pending adjustment results in an additional refund. Do not use Label 17 if: A freeze code is present on the notice module that will prevent any overpayment from refunding. Debit transactions are pending (AP, PN, UP, CU, TP or RS) and when posted will result in a balance due status on the notice module.

# Label 18

3.14.2.7.10.6.18 (01-01-2024) Label 18 Label 18: A credit of [$0.00] has been added to your account. You will receive an additional notice reflecting the credit. Your installment privilege will be reinstated. Only use Label 18 when a credit transaction is pending (AP, PN, CU, UP, RS or TP) and does not show on the notice and all the following applies: An adjustment notice will generate to the taxpayer. The resulting balance on the notice module will be an overpayment or even balance. Failure to File (TC 166), Failure to Deposit (TC 186), or Estimated Tax (TC 176) penalties will recompute or Failure to Pay (TC 276) will decrease. Reminder: Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice.

# Label 19

3.14.2.7.10.6.19 (01-01-2025) Label 19 Label 19: Your extension of time to file is currently being processed. Any penalty charged will be adjusted accordingly. You will receive a corrected notice in 3 – 4 weeks. Use Label 19 when all of the following applies: An extension (TC 460) is pending (AP, PN, CU, UP, RS or TP) on the notice module. A previously posted FTF Penalty (TC 166) or Daily Delinquency Penalty (TC 238) will recalculate and generate an adjustment notice. Caution: TC 238 will not adjust is Correspondence Code 22, 23, or 24 is present on the module. Do not adjust this penalty. The notice module will be in balance due status or an overpayment amount that does not match the taxpayer refund amount. Use Label 19 on CP 162 with a pending TC 460 when: The FTF will recalculate and An adjustment notice will generate in the next cycle and The CP 162 is reviewed after the LCF cutoff period, which is Thursdays at 12 PM Local Time. Do not use Label 19 on CP 162 with a pending TC 460 when: An additional adjustment notice can be intercepted using the LCF (See IRM 3.14.2.5.4, NRPS Local Control File and IRM 3.14.2.5.4.1, NRP97 Input Information)and The TC 166 will be reduced or abate completely. Intercept the next notice and retype or void the CP 162 as appropriate.

# Label 20

3.14.2.7.10.6.20 (01-01-2024) Label 20 Label 20: We are transferring the credit of [$0.00] to your Form [XXXX] for the period ending [MM-DD-YYYY]. An additional credit of [$0.00] is also being applied to this account. You will receive a separate notice reflecting this credit in 3 – 4 weeks. Use Label 20 when all of the following applies: A payment is being transferred from the notice module to a different module with the same TIN and another credit will be applied to the notice module. The debit and credit transactions will post in the same cycle. Failure to File (TC 166), Failure to Deposit (TC 186), or Estimated Tax (TC 176) penalties will recompute or Failure to Pay (TC 276) will decrease. Reminder: Failure to Pay (TC 276) will not recalculate if the payment is late and dated within the same monthly period as the 23C date of the notice. Another notice will generate.

# Label 21

3.14.2.7.10.6.21 (01-01-2024) Label 21 Label 21: We are transferring a credit of [$0.00] to your Form [XXXX] for the period ending [MM-DD-YYYY], and a credit of [$0.00] to your Form [XXXX] for the period ending [MM-DD-YYYY]. Use Label 21 when all of the following applies: Two different payments (or credits) are pending (AP, PN, CU, UP, RS or TP) on an overpaid notice module. The payments (or credits) are being transferred to two different modules with the same TIN. The notice is a CP 210. Before using Label 21: Ensure the pending transactions are correct and the credits/payments have not previously been transferred out. Ensure the module has sufficient credit available for a TC 820 or TC 830 to properly post. Caution: Delete any refund if the credit will refund before the transfer can post. Retype the notice if other actions have caused the module to change to balance due.

# Label 22

3.14.2.7.10.6.22 (01-01-2024) Label 22 Label 22: The overpayment on your account is a credit that was not claimed. If you do not owe other taxes, we will refund the overpayment amount in 3 to 4 weeks. Use Label 22 when all of the following applies: The notice is a CP 267 or 268. There is any type of unclaimed payment on the notice module that does not belong on another module. A CC REQ54 TC 290 .00 HC 3, Priority Code 4 has been input to release the Q- freeze and allow a refund.

# Label 23

3.14.2.7.10.6.23 (01-01-2024) Label 23 Label 23: We recently received a payment of [$0.00]. This notice doesn't reflect that payment in your balances. For updated account information, you may contact the above phone number. Use Label 23 when all of the following applies: A lead has approved the use of the label. There is a resequenced or unposted pending payment on the notice module. The interest on the notice is incorrect. There are no penalties that will recompute and another notice will generate.

# Label 24

3.14.2.7.10.6.24 (01-01-2024) Label 24 Label 24: The amount due or overpayment in the summary takes into account the penalty you entered on line 16 of Form 8978, even though that amount is not itemized within the summary. Use Label 24 when: Reviewing a partnership return and Form 8978 is included with penalty information from Part V.

# Holding notices

3.14.2.7.10.7 (01-01-2025) Holding notices The Hold Disposition in OLNR is used when complete information is not available to determine the correct disposition of the notice. If the lead feels more research is necessary to ensure a correct notice is sent to the taxpayer, the lead will contact the Notice Review Headquarters analysts to inform them of the reason for the held notice. When inputting a disposition of H, open a control base in IDRS on the notice module and enter a STAUP for 9 weeks. Once the issue resulting in the hold disposition has been resolved, reduce the STAUP to the appropriate number of weeks so that a collection (series 50X) notice is mailed to the taxpayer in the appropriate time frame. Refer to IRM 3.14.2.7.8, Command Code (CC) STAUP, for instructions on how to use Command Code STAUP. Example: Use hold disposition if it appears the return has posted to an incorrect module and the requested return is not received before cycle closeout. Reminder: The IDRS control base must be closed when all actions have been taken and the correct notice disposition has been decided. When an error is identified by quality they must input an H Disposition to ensure a correct notice is sent to the taxpayer. If necessary, the TE will correct the notice in OLNR to issue a corrected notice.

# Signature Request Letter Process

3.14.2.7.11 (01-01-2024) Signature Request Letter Process If an overpaid return is missing a signature and guidelines in paragraph 4 of IRM 3.14.2.6.1.1.6, Signatures, are not met then research ENMOD and/or the tax return to identify if correspondence was sent requesting a signature. If correspondence was sent to the taxpayer requesting a signature during pipeline processing (before Notice Review) process the case as normal. Do not correspond. If there is no indication a signature was requested previously: stop the refund mark the notice in cycle if possible (If not, request approval to hold the notice.) send a 143C letter Use the IAT letter tool to input the 143C letter with necessary paragraphs. Example: A complete 143C letter could include paragraphs: E, K, S, T, U and 3. See the Correspondex Letter Repository for specific letter information including paragraph requirements for each letter at the bottom of the appropriate letter document. A correspondence case must be controlled and held in a suspense file (as determined by P&A, manager or lead at each site) for 45 days while awaiting the taxpayer's reply. Input STAUP if necessary per IRM 3.14.2.7.8, Command Code (CC) STAUP. If the response is received in 45 days: remove the case from the suspense file resume processing the case mark the notice disposition (if not already done) release the refund using TC 290 .00 HC 3 Caution: If the reply was received after the normal or extended Return Due Date, overlay the RET-PROC-DT> field with the received date of the reply to set a new 45-day interest-free period. close the control base Reminder: Documents received with (and including) the correspondence need to be associated with the original paper return. Associate to files. If the response is not received in 45 days: remove the case from the suspense file. resume processing the case if possible. mark the notice disposition (if not already done). input a TC 290 .00 HC 4 to set the -K freeze per correspondence guidelines. Note: Do not release the refund. If a response is received after 45 days. Complete Form 3465, Adjustment Request, and route the taxpayer correspondence and any other information to Accounts Management.

# International Overview

3.14.2.8 (01-01-2025) International Overview This section contains specific instructions for reviewing International returns and CP notices. However, the use of the rest of this IRM is also required for working International return notices. Review of International and domestic notices follow the same basic instructions but due to the differences in form type some additional steps must be take for International return notice review.

# Related References

3.14.2.8.1 (01-01-2026) Related References Publications relating to International issues can be used as technical reference material. Following is a list of the most common publications used. Pub 15, (Circular E) Employer's Tax Guide Pub 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad Pub 519 , U.S. Tax Guide for Aliens Pub 514 , Foreign Tax Credit for Individuals Pub 515 , Withholding of Tax on Nonresident Aliens and Foreign Entities Pub 570 , Tax Guide for Individuals With Income From U.S. Territories Pub 597 , Information on the United States - Canada Income Tax Treaty Pub 850 , English-Spanish Glossary of Tax Words and Phrases used in Publications by the IRS The following manuals can give additional information on International returns: See IRM 3.12.13, Employment Tax Returns See IRM 3.12.16, Corporate Income Tax Returns See IRM 3.12.106, Estate Tax Returns - Paper Correction Processing See IRM 21.8.2, BMF International Adjustments See IRM 3.21.25, Miscellaneous Tax Returns

# Program Responsibility

3.14.2.8.2 (01-01-2025) Program Responsibility International related documents are processed primarily in the Ogden Submission Processing Center (OSPC) who has the responsibility for reviewing notices and transcripts. Kansas City Submission Processing Center (KCSPC) processes Forms 706-NA and 709-NA.

# International Documents

3.14.2.9 (01-01-2016) International Documents An international document is: a return with a foreign address. a return with income from a foreign source.

# BMF International Tax Returns

3.14.2.9.1 (01-01-2025) BMF International Tax Returns Most International Tax Returns are processed at the OSPC, however Forms 706-NA and 709-NA are processed at the KCSPC. International Employment Tax Returns include but are not limited to: 940(sp), Employers' Annual Federal Unemployment Tax - Puerto Rico (MFT 10). 941(sp), Employers' Quarterly Federal Tax Return - Puerto Rico (MFT 01). 941-SS, Employers' Quarterly Federal Tax Return - Virgin Islands, Guam, American Samoa, Commonwealth of Northern Marianna Islands (MFT 01). 943(sp), Employers' Annual Tax Return for Agricultural Employees Puerto Rico (MFT 11). 944(sp), Employers' Annual Federal Tax Return - Puerto Rico (MFT 14). 944-SS, Employers' Annual Federal Tax Return - Virgin Islands, Guam, American Samoa, Commonwealth of Northern Marianna Islands (MFT 14). Note: To correct errors on previously filed employment forms, taxpayers must use the corresponding X forms: Form 941X, and 944X. International Corporation Tax Returns include but are not limited to: Form 1120 with Forms 1118, 5712, 5712-A, 5735, 5471, 5472 and Schedule P. Form 1120-F, U.S. Tax Return of a Foreign Corporation (MFT 02). Forms 1120-FSC and Form 8279 (FSC election), U.S. Income Tax Return of a Foreign Sales Corporation (MFT 02). Foreign Withholding Tax Returns include but are not limited to: Form 1042, Annual Withholding Tax Return for U.S. Income for Foreign Persons (MFT 12). Foreign Estate Tax Returns: Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States (MFT 52). Foreign Gift Tax Return Form 709-NA , United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States (MFT 51).

# General International Information

3.14.2.9.2 (01-01-2025) General International Information Basic review of international returns varies slightly from domestic. Documents are compared to the computer generated documents, computer paragraph notice and information contained within OLNR system. Follow all domestic BMF Notice Review procedures for International notices and transcripts in addition to any special review items mentioned in each sub-section of IRM 3.14.2.9, International Documents, for the form type being reviewed.

# Extension of Time to File International Returns

3.14.2.9.3 (01-01-2026) Extension of Time to File International Returns For taxable years ending after July 31, 1990, filing deadlines which apply to Nonresident aliens and foreign corporations engaged in a U.S. trade or business or had a permanent establishment are listed below. Foreign corporations must follow the filing procedures for Form 1120-F and have 18 months to file after the due date of the return before losing deductions or credits. Nonresident aliens must follow the filing procedures for Form 1040-NR and have 16 months after the due date of the return to file before losing deductions or credits. Nonresident aliens and foreign corporations unsure about their status may file a protective return, protects the right to claim deductions (different than an extension to file) no later than the deadline. An extension of time to file the return affects the calculation of failure to file penalties, but not failure to pay.

# Foreign Investment in Real Property Tax Act (FIRPTA)

3.14.2.9.4 (01-01-2025) Foreign Investment in Real Property Tax Act (FIRPTA) The Foreign Investment in Real Property Tax Act (FIRPTA) was amended by the Deficit Reduction Act of 1984. This amendment added Section 1445 to Chapter 3, Subchapter A, of the Internal Revenue Code of 1954. Section 1445 requires the withholding of tax on dispositions of certain U.S. Real Property Interests (USRPI) by a foreign seller. Before FIRPTA, Nonresident aliens and foreign corporations were generally exempt from income tax on capital gains to the extent that they were not effectively connected with a U.S. trade or business. IRC 897 provides rules for the taxation, on sales or other dispositions of U.S. real property interests (including installment sales, exchanges, foreclosures, and deeds in lieu of foreclosure of U.S. real property interests), of nonresident alien individuals and foreign corporations. Gains (or losses) from the disposition of U.S. real property interests are treated as income effectively connected with a U.S. trade or business. In addition, Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REIT) with foreign investors are subject to the FIRPTA rules under IRC 1445 and IRC 897. Consequently, income tax is imposed on the net gains at marginal income tax rates. FIRPTA also imposed withholding tax provisions to ensure the collection of tax. Refer to IRM 3.21.261.1.1, Form 8288 Background and IRM 3.21.25 , Miscellaneous Tax Returns for more information. Verify Form 8288-A credit indicator sheet for credit claimed. Only one box must be checked. If not attached, forward to the FIRPTA unit. Review the account on IDRS due to the possibility of an erroneous duplicate credit (TC 766) for the same amount as a payment. Note: Form 8288 can be filed with an EIN, SSN or ITIN. If the return was filed with an SSN, or ITIN use File Source Code "V" for valid or "W" for invalid. It may be necessary to research under both the valid and invalid TINs for an erroneous duplicate credit. There should never be any generated refunds on Form 8288 (MFT 17).

# Withholding Tax on Foreign Partners - Form 8804, 8805, 8813, and 8288

3.14.2.9.5 (01-01-2026) Withholding Tax on Foreign Partners - Form 8804, 8805, 8813, and 8288 Form 8804, Form 8805 and Form 8813 are filed by non-publicly traded partnerships to report and pay Section 1446 withholding tax based on effectively connected taxable income allocated to foreign partners without regard to distribution. See IRM 3.14.2.9.7, Form 1042 / Form 1042-S Withholding on U.S. Source Income, for forms filed for withholding under section 1446(a) by publicly traded partnerships. Form 8804, Annual Return for Partnership Withholding Tax (Section 1446), shows the total withholding of tax liability of the partnership. For more information concerning Form 8804, please refer to IRM 3.21.15, Withholding on Foreign Partners. Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, shows amount of effectively connected taxable income and withholding tax allocated to each foreign partner. Form 8805 must be attached to the foreign partners tax return for proper credit. Review for the credit as a TC 766 allowance and if needed make the necessary adjustment. Any U.S. person erroneously made subject to the withholding tax would also receive Form 8805 from a partnership and should attach to Form 1040 or Form 1120 for credit substantiation. Form 8813, Partnership Withholding Tax Payment Voucher (Section 1446), is used to transmit withholding tax payments from partnerships. Forms 8288 and 8288-A are filed to report and pay withholding tax due to the disposition by foreign persons of U.S. real property interests and interests in partnerships engaged in a U.S. trade or business. Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons, shows the amount subject to withholding and the total amount withheld by the transferee. Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons, shows the amount of withholding tax. A copy of Form 8288- A, stamped by the IRS, must be attached to the transferor (seller's) return for proper credit. Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests is also used to report withholding under IRC 1446(f) due to acquisition of partnership interests held by foreign partners, to the extent subject to tax under IRC864(c)(8). When a partnership determines a foreign partner sold their interest, without the buyer withholding 10% of the amount realized, the partnership is required to file Form 8288 (Part IV) and Form 8288-C, Statement of Withholding Under Section 1446(f)(4) on Dispositions by Foreign Persons of Partnership Interests Under Section 1446(f)(4). The partnership must withhold on "all distributions paid" to the buyer (new partner) until the partnership receives the certification from the buyer described in Treas. Reg. 1.1446(f)-2(d)(2) and then "until the 10%" of the amount realized on the transfer reduced by the amount withheld by the buyer (plus interest) is satisfied. This may result in multiple forms being filed for the same sell of partnership shares. The presence of a Transaction Code (TC) 971 with Action Code (AC) 741 with a total amount withheld in the memo field will post to the partnership's MFT 17 account. A new TC 971 AC 741 will post each time a new Form 8288 (Part IV) is processed. A TC 972 indicates a reversal of a TC 971. The payments associated with the TC 971 AC 741 will post to the buyers MFT 17 as TC 610. The TC 150 must be posted on the partner's (buyer) account before any overpayments are released. See IRM 3.21.25.17, Credit Verifying Form 8288-A (FIRPTA) and section 1446(f)(1) Credits, for additional information. In addition, credits claimed on Form 8288-C, Copy B, must be verified with the FIRPTA database prior to allowance. FIRPTA Credit verification is requested using Form 13698, International Credit(s) Verification Slip.

# CP Notices

3.14.2.9.6 (01-01-2025) CP Notices BMF International cases will generate with the same CP numbers as domestic cases with the exception of Spanish forms. Spanish forms will generate CP notices in the 800 and 900 number series. In addition, International notices will appear in OLNR with 8XXX batch numbers. See the table below for BMF Spanish CP notices and the corresponding English CP notice: Spanish CP Notice Number English Equivalent CP Notice Number Notice Information 801 101 MFT 10, Balance due, Math error 802 102 MFT 01, Balance due, Math error 811 111 MFT 10, Overpaid, Math Error 812 112 MFT 01, Overpaid, Math Error 834B 134B MFT 01, 10, 11 and 14 - Federal Tax Deposit(s) (FTD) Discrepancy - Balance Due 834R 134R MFT 01, 10, 11 and 14 - Federal Tax Deposit(s) (FTD) Discrepancy - Due a Refund 861 161 All MFTs, Balance due, no Math Error 910 210 All MFTs, Overpaid, Even, and Balance due adjustment 920 220 All MFTs, Overpaid, Even, and Balance due adjustment

# Form 1042 / Form 1042-S Withholding on U.S. Source Income

3.14.2.9.7 (01-01-2026) Form 1042 / Form 1042-S Withholding on U.S. Source Income Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, is the annual tax return filed by withholding agents to report withholding tax liability and tax withheld on U.S. source income paid to certain nonresident aliens, foreign partnerships and foreign corporations. In addition, with respect to foreign persons who hold interests in publicly traded partnerships (PTPs), these forms are used to report section 1446(a) withholding by PTPs on distributions of effectively connected taxable income and section 1446(f) withholding on the dispositions of interests in PTPs engaged in a U.S. trade or business. Form 1042-S , Foreign Person's U.S. Source Income Subject to Withholding, is filed to report foreign person's U.S. income subject to withholding and withholding tax liability. Note: Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, is processed with a File Location Code 60, Tax Class 5 and Document Code 02 for paper documents. A signed Competent Authority Letter is acceptable in lieu of a Form 1042-S. The Competent Authority Letter must be signed and state the withholding amount allowed and the correct tax year. Form 1042-S must be filed on or before March 15th. Taxpayers may request a 30 day extension of time to file Form 1042-S by filing a completed Form 8809, Application for Automatic Extension of Time to File Information Returns. An additional 30 day extension may be requested by filling out a second Form 8809. Note: The Form 8809, does not extend the time for filing Form 1042. A Form 7004 maybe used to file an extension for Form 1042.

# Form 1042 Filing Requirements

3.14.2.9.8 (04-03-2023) Form 1042 Filing Requirements Form 1042 is filed by individuals, corporations, and partnerships having control, receipt custody, disposal, or payment of interest, dividends, rent, salaries, etc., to the extent that such items constitute gross income from U.S. sources for nonresident alien individuals, foreign partnerships, or foreign corporations. Form 1042 also serves as a transmittal. Form 1042 must be filed on or before March 15th of each year. Forms 1042 are filed whether or not any tax was withheld or required to be withheld (i.e., income was exempt from withholding). The dollar amount of withheld taxes determines the frequency of deposits. Refer to the table below for requirements for withholding payments. If Then undeposited taxes of $2,000 or more at the end of any quarter-monthly period. deposit within three banking days after the end of the quarter-monthly period. (Quarter-monthly periods end on the 7th, 15th, 22nd and last day of the month.) undeposited taxes of $200 or more but less than $2,000 at the end of the month. deposit by the 15th day of the following month. undeposited taxes of less than $200 at the end of the year deposit via FTD or remit with Form 1042 on or before March 15 in the following year of tax year.

# Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

3.14.2.9.9 (11-05-2019) Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Form 1042 is the annual tax return used by withholding agents to report and pay tax due on income derived from sources in the United States. Form 1042 is an annual calendar year return due by March 15th and cannot be filed as a fiscal year return. This form is similar to Form 945, Annual Return of Withheld Federal Income Tax. Currently Form 1042 (MFT 12) is processed only at the Ogden SPC. Form 1042 is processed using a Tax Class of 1, a Doc Code of 25 and one of the following File Location Codes (FLC): FLC 29 - If the withholding agent is located within the U.S. FLC 60 - If the withholding agent is located outside of the U.S. FLC 78 - If the withholding agent is located in one of the U.S. territories or the Commonwealth of Puerto Rico. See IRM 3.21.110 for Processing Form 1042 Withholding Returns, and IRM 3.22.110, Processing Form 1042 Withholding Returns, for Code and Edit and Error Resolution specific steps for withholding returns. The statutory period of limitations on assessment generally expires 3 years from the due date or received date of the return whichever is later.

# Reviewing Notices for Form 1042

3.14.2.9.10 (01-01-2026) Reviewing Notices for Form 1042 Verify entity for a possible address change. Verify all credits including credit elect and excess FTD payments. Note: Deposits with TC 620 may have incorrect FTD penalties. See IRM 20.1.4-8, Form 1042 Deposit Requirements for All Periods, for more information. Compare notice with IDRS with emphasis on CP/TRNS 193, TC 976, A- Freeze for additional actions. If necessary, input a CC STAUP for 15 cycles and forward to Accounts Management using local control procedures. If an address was corrected and there is an overpayment which will be refunded, intercept refund and prepare a manual refund. Follow the decision table below. If Then withholding agent located within the U.S. Form 1042 processed with File Location Code (FLC) 29. withholding agent located outside of the U.S. FLC is 60. withholding agent located in U.S. Territory FLC is 78. only action is to change location code Do not intercept the refund. Note: When adjusting BMF international tax accounts using CC REQ54, or transferring credits using CC ADD24 or ADD34 or ADD48, input a filing location code (FLC) of 60 or 78 according to the primary location code shown on TXMOD or ENMOD. Retype notice for correct address, location code and taxpayer's account. Research for missing payments. Q Transcript Review: Input TC 570 on modules reflecting a Q to prevent incorrect notices and/or erroneous refunds.

# CP 107, Balance Due Form 1042

3.14.2.9.11 (01-01-2025) CP 107, Balance Due Form 1042 CP 107 is a balance due notice generated from a math error. Validate error with a math verification. If the taxpayer's original figures are correct on their return, then adjust the taxpayer's account to reflect those original figures. The notice can be voided if the account is an even balance or returns to the taxpayer's refund figures. If no math error remains after the adjustment and the account is in balance due status retype to a CP 161.

# CP 117, Overpayment Form 1042

3.14.2.9.12 (01-01-2016) CP 117, Overpayment Form 1042 A CP 117 is an overpayment notice generated from a refund. Validate error with a math verification. If the taxpayer's original figures are correct on their return, then adjust the taxpayer's account to reflect those original figures. The notice can be voided.

# Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States

3.14.2.9.13 (01-01-2026) Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States The executor of the estate of a decedent who was a nonresident not a citizen is required to file Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, if the fair market value of the decedent's gross estate situated in the United States on the date of death exceeds $60,000, reduced by the amount of adjusted taxable gifts made by the decedent after December 31, 1976. See Sections 2101-2107, 2203, 6018(a)(2). Note: For decedent's dying on or before December 31, 1976, Form 706-NA was required to be filed if the fair market value of the decedent's gross estate situated in the United States exceeded $30,000. For decedent's dying on or before November 13, 1966, the filing threshold was $2,000. Unless an extension of time to file is granted, Form 706-NA is due 9 months after the decedent's date of death (or, if that numeric date doesn't exist, the last day of the ninth month). See Section 6075(a). Example: If date of death is May 31 of the current year, the due date of Form 706-NA is February 28 of the next year. Taxpayers may request an automatic 6-month extension of time to file using Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. If the executor is out of the country and already received a 6-month extension, an additional extension of time to file may be requested by filing a second Form 4768 and attaching a written explanation. SB/SE Chief of Estate and Gift Tax, Director, Campus Compliance Operations, Cincinnati, SB/SE Director Advisory & Insolvency, Collection Advisory Estate Tax Lien Group Manager, can approve extensions of time for filing, per IRM 1.2.2.15.4, Delegation Order 25-4 (Rev. 1) (formerly DO-116, Rev. 7), Authority to Grant Extensions of Time to File Income and Estate Tax Returns.

# Form 709-NA, United States Gift (and Generation-Skipping Transfer) of Nonresident Not a Citizen of the United States Tax Return

3.14.2.9.14 (01-01-2026) Form 709-NA, United States Gift (and Generation-Skipping Transfer) of Nonresident Not a Citizen of the United States Tax Return Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, is used to report gifts made after December 31, 2023. Form 709-NA has the same MFT (51) as the other Forms 709, but it has a DLN document code of 08. Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, is used to report transfers subject to the Federal gift and certain generation-skipping transfer (GST) taxes and figure the tax, if any, due to those transfers from a Nonresident Not a Citizen of the United States. Form 709-NA is due April 15 following the calendar year when gifts were made. If a donor makes a gift in the year that they died then the following apply: If the estate is required to file an estate tax return and the taxpayer died before July 15, the gift tax return is due when the estate tax return is due (Form 706, nine months after the Date of Death plus extensions). If the estate is required to file an estate tax return and the taxpayer died after July 14, the gift tax return (Form 709-NA) is due April 15 of the following year. If no estate tax return is required to be filed, the due date for the Form 709-NA is April 15, 20XX of the following year.

# Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

3.14.2.9.15 (01-01-2026) Form 1120-F, U.S. Income Tax Return of a Foreign Corporation Every foreign corporation must file a Form 1120-F or Form 1120-FSC if the corporation: Engages in a trade or business in the U.S. during any time within the taxable year. Has income from U.S. sources which is not effectively connected with the operation of a trade or business within the U.S and for which the tax liability has not been satisfied by withholding at source. Has income effectively connected with (or treated as effectively connected with) a U.S. trade or business. Has overpaid U.S. income tax and is requesting a refund. Claims the benefit of deductions or credits. Claims that an income tax treaty overruled or modified any provision of the IRC with respect to income it derived during the year and such position is required to be disclosed on included Form 8833 under IRC 6114. Note: This list does not include all situations. Gross income from U.S. sources not effectively connected with a U.S. trade or business is subject to a 30% tax rate or such lower tax specified by a tax treaty or U.S. domestic law. Deductions are not allowed against income not effectively connected with the operation of a trade or business within the U.S.

# Filing Requirements

3.14.2.9.16 (11-04-2021) Filing Requirements Follow the table below to determine the return due date. If Then foreign C Corporation has an office or place of business within the U.S. for tax years beginning after 2015, the due date is the 15th day of the 4th month following the tax year. Exception: for tax years beginning before 2026, if the taxable year ends on June 30 (or if the return is for a short period that ends on any day in June), the due date is the 15th day of the 3rd month following the close of the tax year. foreign C Corporation has an office or place of business within the U.S. for tax years ending prior to January 1, 2016, the due date is the 15th day of the 3rd month following the tax year. foreign corporation does not have an office or place of business within the U.S. must file on or before the 15th day of the 6th month following the tax year.

# Payment of Tax Due

3.14.2.9.17 (01-01-2023) Payment of Tax Due A corporation must make estimated tax payments if the tax liability will be $500 or more. If liability less than $500, payment is due at the time the return is due. Payment of tax depends upon whether or not the corporation has an office or place of business in the United States. A foreign C Corporation that maintains an office or place of business in the U.S. pays all tax liability by the 15th of the 4th month following the tax year, but if certain conditions are met, the corporation is granted an automatic extension until the 15th day of the 6th month following the close of the taxable year to file the income tax return and to pay the tax. A foreign corporation that does not maintain an office of place of business in the U.S. must pay all their tax liability by the 15th day of the 6th month following the tax year. Payments are made directly to the IRS and are not governed by depository requirements.

# Withholding Credits

3.14.2.9.18 (01-01-2026) Withholding Credits Withholding credits claimed on Form 1120-F are shown on line 5i. FIRPTA and section 1446(f) credit on Form 8288-A (requires verification). Partnerships credits on Form 8805: If Form 8805 attached and less than ≡ ≡ ≡ ≡ ≡, accept without verification. If credit is more than ≡ ≡ ≡ ≡ ≡, verify with FIRPTA unit. Withholding at source on Form 1042-S [tax certification required (e.g., Form W-8BEN-E)]. U.S. income tax withheld (Form 1099 and statement that corporation is exempt from backup withholding required). Withholding credits claimed on Form 1120 FSC are shown on lines 2g and 2h. Withholding at source on Form 1042-S. (Research EIN of withholding agent to ensure Form 1042 filed to report at least the amount of credit claimed.) U.S. Income tax paid (withholding statement must be attached). Form 1099 for credit for amounts claimed for backup withholding reported on line 2h (withholding statement must be attached).

# Effectively Connected/Non Effectively Connected Income

3.14.2.9.19 (01-01-2026) Effectively Connected/Non Effectively Connected Income If a foreign corporation is engaged in a U.S. trade or business, all income, gain, or loss that is derived from sources within the United States, other than certain investment income, is treated as effectively connected income (ECI). U.S. Source Fixed, Determinable, Annual, Periodical (FDAP) income as well as gain or loss from the sale or exchange of capital assets, can be treated as effectively connected income if the item meets either an asset-use test or a business activities test. For example, interest, rents and royalties may be ECI. Section II of Form 1120-F is used to compute the taxable income or loss on effectively connected income. Non-effectively connected income is income not effectively connected with a trade or business in the United States. Section I of Form 1120-F is used to report gross amounts of taxable income, rate of tax, and tax withheld on income not effectively connected with the conduct of a U.S. trade or business in the United States. Form 1120-F filers are subject to estimated tax payments if anticipated ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Payments will be made using the depository method of payment.

# Form 1120-FSC, Income Tax Return of a Foreign Sales Corporation

3.14.2.9.20 (01-01-2025) Form 1120-FSC, Income Tax Return of a Foreign Sales Corporation Form 1120-FSC, Foreign Sales Corporation (FSC), is filed to report a foreign sales corporation's income, gains, deductions, credits, and tax liability. The MFT is 02 and the filing requirement code is 15. A corporation must have elected to be treated as a Foreign Sales Corporation (FSC), or small FSC, by filing Form 8279 prior to October 1, 2000, and the election must still be in effect. No new election can be made using Form 1120-FSC. FSC must be organized under the laws of certain qualifying foreign countries or possession of the United States excluding Puerto Rico. Foreign corporations electing FSC status may not claim the benefits of any U.S. tax treaty. An FSC that is a member of a controlled group must check the box on line 1 of Schedule J of the 1120-FSC and attach Schedule O of Form 1120. If Schedule J is not complete or controlled group box is not checked, a math error results with an increase to the applicable maximum corporate tax rate. FSC must give a corrected apportionment plan in order to allow reduced tax rate.

# Replies to Computer Paragraph Notices

3.14.2.10 (01-01-2024) Replies to Computer Paragraph Notices Notice Review does not process replies to Computer Paragraph notices. If a reply is received in Notice Review, route it to the local ICT area for scanning.

# Taxpayer Notice Codes (TPNCs)

3.14.2.11 (01-01-2024) Taxpayer Notice Codes (TPNCs) See the following sections to review the available TPNCs for each form. All forms generating a Math Error CP will also allow TPNC 90, open fill-in paragraph. See TPNC 90 Literals in the TPNC 90 Literals-Copy and Paste Job Aid.

# Form CT-1 MFT 09 TPNCs

3.14.2.11.1 (02-05-2024) Form CT-1 MFT 09 TPNCs See the list of taxpayer notice codes for Form CT-1 ,Employer's Annual Railroad Retirement Tax Return, in IRM 3.12.13-37, Taxpayer Notice Codes for Form CT-1.

# Form 11-C MFT 63 and Form 730 MFT 64 TPNCs

3.14.2.11.2 (01-01-2024) Form 11-C MFT 63 and Form 730 MFT 64 TPNCs See the list of taxpayer notice codes for Form 11-C, Occupational Tax and Registration Return for Wagering, and Form 730, Monthly Tax Return for Wagers, in IRM 3.12.23.2.11, Taxpayer Notice Codes (TPNCs).

# Form 706 MFT 52 TPNCs

3.14.2.11.3 (01-01-2024) Form 706 MFT 52 TPNCs See the list of taxpayer notice codes for Form 706, U.S. Estate Tax Return, in IRM 3.12.263.3.12.3, TPNCs and Their Notice Messages for Form 706.

# Form 706-NA MFT 52 TPNCs

3.14.2.11.4 (01-01-2024) Form 706-NA MFT 52 TPNCs See the list of taxpayer notice codes for Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return, in IRM 3.12.263.3.12.4, TPNCs and Their Messages for Form 706-NA.

# Form 709 MFT 51 TPNCs

3.14.2.11.5 (01-01-2024) Form 709 MFT 51 TPNCs See the list of taxpayer notice codes for Form 709, United States Gift (and Generation - Skipping Transfer) Tax Return, in IRM 3.12.263.3.12.5, TPNCs and Their Messages for Form 709.

# Form 709-NA MFT 51 TPNCs

3.14.2.11.6 (01-01-2025) Form 709-NA MFT 51 TPNCs See the list of taxpayer notice codes for Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, in IRM 3.12.263.3.12.6, TPNCs and Their Messages for Form 709-NA.

# Form 720 MFT 03 and Form 2290 MFT 60 TPNCs

3.14.2.11.7 (01-01-2024) Form 720 MFT 03 and Form 2290 MFT 60 TPNCs See the list of taxpayer notice codes for Form 720, Quarterly Federal Excise Tax Return, and Form 2290, Heavy Highway Vehicle Use Tax Return, in IRM 3.12.220.2.16, Taxpayer Notice Code (TPNC).

# Form 940 MFT 10 TPNCs

3.14.2.11.8 (02-05-2024) Form 940 MFT 10 TPNCs See the list of taxpayer notice codes for Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, in IRM 3.12.154-16, Taxpayer Notice Codes.

# Form 941 MFT 01 TPNCs

3.14.2.11.9 (02-05-2024) Form 941 MFT 01 TPNCs See the list of taxpayer notice codes for Form 941, Employer's QUARTERLY Federal Tax Return, in IRM 3.12.13-35, Taxpayer Notice Codes for Form 941.

# Form 943 MFT 11, Form 944 MFT 14, and Form 945 MFT 16 TPNCs

3.14.2.11.10 (02-05-2024) Form 943 MFT 11, Form 944 MFT 14, and Form 945 MFT 16 TPNCs See the list of taxpayer notice codes for Form 943, Employer's Annual Tax Return for Agricultural Employees, Form 944, Employer's ANNUAL Federal Tax Return, and Form 945, Annual Return of Withheld Federal Income Tax, in IRM 3.12.13-36, Taxpayer Notice Codes for Forms 943, 944 and 945.

# Form 990-PF MFT 44 TPNCs

3.14.2.11.11 (02-05-2024) Form 990-PF MFT 44 TPNCs See the list of taxpayer notice codes for Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, in IRM 3.12.12-11, Form 990-PF Taxpayer Notice Codes (TPNC).

# Form 990-T MFT 34 TPNCs

3.14.2.11.12 (02-05-2024) Form 990-T MFT 34 TPNCs See the list of taxpayer notice codes for Form 990-T, Exempt Organization Business Income Tax Return, in IRM 3.12.12-13, Form 990-T Taxpayer Notice Codes (TPNC).

# Form 1041 MFT 05 TPNCs

3.14.2.11.13 (01-01-2024) Form 1041 MFT 05 TPNCs See the list of taxpayer notice codes for Form 1041, U.S. Income Tax Return for Estates and Trusts, in IRM 3.12.14-35, Taxpayer Notice Codes for Form 1041.

# Form 1042 MFT 12 TPNCs

3.14.2.11.14 (01-01-2024) Form 1042 MFT 12 TPNCs See the list of taxpayer notice codes for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, in IRM 3.22.110.21.17, Field TPNC - Taxpayer Notice Code (TPNC).

# Form 1065 MFT 06 TPNCs

3.14.2.11.15 (01-01-2025) Form 1065 MFT 06 TPNCs The Form 1065, U.S. Return of Partnership Income, is no longer an information only return. See the list of taxpayer notice codes for Form 1065 in IRM 3.12.15-27, Taxpayer Notice Codes (TPNC).

# Forms 1120, 1120-C, 1120-F, 1120-H, 1120-L, 1120-PC, 1120-REIT & 1120-RIC MFT 02 TPNCs

3.14.2.11.16 (01-01-2024) Forms 1120, 1120-C, 1120-F, 1120-H, 1120-L, 1120-PC, 1120-REIT & 1120-RIC MFT 02 TPNCs See the list of taxpayer notice codes for Form 1120, U.S. Corporation Income Tax Return, Form 1120-C, Form 1120-C, U.S. Income Tax Return for Cooperative Associations, Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, Form 1120-H, U.S. Income Tax Return for Homeowners Associations, Form 1120-L, U.S. Life Insurance Company Income Tax Return, Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts, and Form 1120-RIC, U.S. Income Tax Return For Regulated Investment Companies, in IRM 3.12.251-30, Form 1120 and Form 1120 Series - Taxpayer Notice Codes (TPNCs).

# Form 1120-FSC, 1120-ND, and 1120-SF MFT 02 TPNCs

3.14.2.11.16.1 (01-01-2024) Form 1120-FSC, 1120-ND, and 1120-SF MFT 02 TPNCs See the list of taxpayer notice codes for Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons, and Form 1120-SF , U.S. Income Tax Return for Settlement Funds (Under Section 468B), in IRM 3.12.16.3.4.1, Taxpayer Notice Codes (TPNCs).

# Form 1120-POL MFT 02 TPNCs

3.14.2.11.16.2 (02-05-2024) Form 1120-POL MFT 02 TPNCs See the list of taxpayer notice codes for Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, in IRM 3.12.12-12, Form 1120-POL Taxpayer Notice Codes (TPNC).

# Form 1120-S MFT 02 TPNCs

3.14.2.11.16.3 (02-05-2024) Form 1120-S MFT 02 TPNCs See the list of taxpayer notice codes for Form 1120-S, U.S. Income Tax Return for an S Corporation in IRM 3.12.217-26, Taxpayer Notice Codes (TPNC).

# Form 4720 MFT 50 and Form 5227 MFT 37 TPNCs

3.14.2.11.17 (02-05-2024) Form 4720 MFT 50 and Form 5227 MFT 37 TPNCs See the list of taxpayer notice codes for Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC, and Form 5227, Split-Interest Trust Information Return, MFT 37 in IRM 3.12.12-14, Form 4720 - Taxpayer Notice Codes (TPNC).

# Form 5330 MFT 76 TPNCs

3.14.2.11.18 (01-01-2024) Form 5330 MFT 76 TPNCs See the list of taxpayer notice codes for Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, in IRM 3.12.22.10.17.1, Field TPNC Invalid Conditions.

# Form 8752 MFT 15 TPNCs

3.14.2.11.19 (01-01-2024) Form 8752 MFT 15 TPNCs See the list of taxpayer notice codes for Form 8752, Required Payments or Refund Under Section 7519, in IRM 3.12.249.4.16, Field 01-N, Taxpayer Notice Code (TPNC).

# CP Notice Descriptions

Exhibit 3.14.2-1 CP Notice Descriptions BMF CP Notices By Type and Module Status CP Number Form Number CP Type Overpaid/Even/Balance Due 101 940, 940-EZ MATH ERROR BALANCE DUE 102 941, 941C, 941SS, 941X, 943, 943X, 944, 944SS, 944X, 945, 945X MATH ERROR BALANCE DUE 103 CT-1, CT-1X MATH ERROR BALANCE DUE 104 720 MATH ERROR BALANCE DUE 105 11-C, 229, 730, 706, 706-NA, 709, 709-NA MATH ERROR BALANCE DUE 106 990PF, 4720, 5227 MATH ERROR BALANCE DUE 107 1042 MATH ERROR BALANCE DUE 111 940, 940-EZ MATH ERROR OVERPAID 112 941, 941C, 941SS, 941X, 943, 943X, 944, 944SS, 944X, 945, 945X MATH ERROR OVERPAID 113 CT-1, CT-1X MATH ERROR OVERPAID 114 720 MATH ERROR OVERPAID 115 11-C, 2290, 730, 706, 706-NA, 709, 709-NA MATH ERROR OVERPAID 116 990PF, 4720, 5227 MATH ERROR OVERPAID 117 1042 MATH ERROR OVERPAID 123 CT-1, CT-1X MATH ERROR EVEN BALANCE 1¢-99¢ 124 720 MATH ERROR EVEN BALANCE 1¢-99¢ 125 11-C, 2290, 730, 706, 706-NA, 709, 709-NA MATH ERROR EVEN BALANCE 1¢-99¢ 126 990-PF, 5227, 5330 or 4720 MATH ERROR EVEN BALANCE 1¢-99¢ 127 1042 MATH ERROR EVEN BALANCE 1¢-99¢ 128 ALL BMF FORMS OFFSET BALANCE DUE 131 990-T, 1041, 1065, 1120 (all) MATH ERROR EVEN BALANCE 1¢-99¢ 131A 990-T, 1041, 1065, 1120 (all) MATH ERROR BALANCE DUE $1-$4.99 CP Number Form Number CP Type Overpaid/Even/Balance Due 132 990-T, 1041, 1065, 1120 (all), 8804 MATH ERROR BALANCE DUE 133 990-T, 1065, 1041, 1120 (all), 8804 MATH ERROR OVERPAID 134B 720, 940, 941, 943, 944, 945, 1041,1042, 1120 series, CT-1 CREDIT DISCREPANCY BALANCE DUE 134R 720, 940, 941, 943, 944, 945, 1041, 1042, 1120 series, CT-1 CREDIT DISCREPANCY OVERPAID 138 ALL BMF FORMS Adjustment OFFSET OVERPAID 141C 990, 990-EZ, 990-PF Late and Incomplete Filing Penalty BALANCE DUE 141I 990, 990-EZ, 990-PF Incomplete Filing Penalty BALANCE DUE 141L 990, 990-EZ, 990-PF Late Filing Penalty BALANCE DUE 145 ALL BMF FORMS CREDIT ELECT OVERPAID 147 1041, 1120 (all), 990 SERIES CREDIT ELECT ADDITIONAL AMOUNT APPLIED OVERPAID 161 ALL BMF FORMS NO MATH ERROR BALANCE DUE 162 1065 FAILURE TO FILE ELECTRONICALLY PENALTY BALANCE DUE 162A 1065, 1066, 1120-S LATE FILING PENALTY BALANCE DUE 162B 1065, 1120-S INCOMPLETE FILING PENALTY BALANCE DUE 173 990-T, 1041, 1120 (all) ES PENALTY ASSESSED OVERPAID 210 ALL BMF FORMS ADJUSTMENT OVERPAID/EVEN/ BALANCE DUE 215 CT-1, CT-1X CIVIL PENALTY OVERPAID/EVEN/ BALANCE DUE 220 ALL BMF FORMS ADJUSTMENT OVERPAID/EVEN/ BALANCE DUE 220J ACA 4980H ESRP ADJUSTMENT OVERPAID/EVEN/ BALANCE DUE 225 ALL BMF FORMS MISSING PAYMENT APPLIED OVERPAID/EVEN/ BALANCE DUE 233J ACA ESRP ADJUSTMENT OVERPAID/EVEN/ BALANCE DUE 247A 1041, 1120 series, 990-T IRC 965 NOTICE AND DEMAND BALANCE DUE 247B 1041, 1120 series, 990-T IRC 965 NOTICE AND DEMAND BALANCE DUE 247C 1041, 1120 series, 990-T IRC 965 NOTICE AND DEMAND BALANCE DUE 256 1041, 1120 series, 990-T IRC 965(H) INSTALLMENT REMINDER INSTALLMENT REMINDER 260 ALL BMF FORMS CREDIT REVERSAL BALANCE DUE 267 ALL BMF FORMS EXCESS CREDITS NON MATH ERROR OVERPAID 268 ALL BMF FORMS EXCESS CREDITS WITH MATH ERROR OVERPAID 380 ALL BMF FORMS TRANSCRIPT OVERPAID 384 ALL BMF FORMS TRANSCRIPT OVERPAID 386 ALL BMF FORMS TRANSCRIPT OVERPAID 388 ALL BMF FORMS TRANSCRIPT OVERPAID

# Common BMF Forms

Exhibit 3.14.2-2 Common BMF Forms Common BMF Forms Form Form Title Tax Period MFT Due Date Payment Types Overpaid Bal. Due Even Non Math Error CP 11-C Occupational Tax and Registration Return for Wagering Annual Month 07 63 July 1 $50.00 or $500.00 115 105 125 161 706 U.S. Estate Tax Return 00000 52 9 months after Date of Death Tax paid by due date or installments 115 105 125 161 706-NA U.S Estate of nonresident not a citizen of the United States 00000 52 9 months after Date of Death - 115 105 125 161 709 U.S. Gift Tax Return Calendar Year 51 April 15- extension from Form 1040 applies - 115 105 125 161 Form 709-NA, U.S. Gift Tax Return, of a Nonresident Not a Citizen of the United States calendar or fiscal 51 Certain rules apply IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions. - 115 105 125 161 720 Quarterly Federal Excise Tax Return Quarterly 03 Last day of the month following the end of the quarter. FTD Monthly or Semi-Weekly 114, 268 104 124 161 730 Tax on Wagering Monthly 64 Last day of month following the month in which the taxable income is earned. - 115 105 125 161 940, 940-EZ Federal Unemployment (FUTA) Tax Return Calendar Year 10 January 31 Quarterly FTD 111, 268 101 121 161 941 Employer's Quarterly Income Tax Return Quarterly 01 One Month Quarter End FTD on Various Schedule 112, 268 102 122 161 943 Employer's Annual Tax Return for Agricultural Employees Calendar Year 11 January 31 Monthly or Semi-Weekly FTD 112, 268 102 122 161 944 Employer's Annual Federal Tax Return Calendar Year 14 January 31 FTD on Various Schedule 112,268 102 122 161 945 Annual Return of Withheld Income Tax Calendar Year 16 January 31 FTD on Various Schedule 112, 268 102 122 161 1041 Estates and Trusts Income Tax Return Fiscal Year 05 15th day of the 4th month After Tax Period Quarterly ES Payments 133, 268 132 131 161 1065 U.S. Partnership Fiscal Year 06 15th day of the 3rd month After Tax Period No Tax Due 133, 268 132 131 161, 162 1120 See Exhibit 3.14.2-24 through Exhibit 3.14.2-28 , for specific information for each Form 1120 U.S. Corporation Income Tax Fiscal Year 02 15th day of the 4th month After Taxable Year Quarterly ES Payments 133, 268 132 131 161 2290 Heavy Vehicle Use Tax Return Annual Month 07 60 1 Month After Tax Month End TC 610 or 670 115 105 125 161 8752 Required Annual Payment Under Sec. 7519 Annual 15 May 15 - Transcript - - -

# BMF Notices and Refund Transcripts Table

Exhibit 3.14.2-3 BMF Notices and Refund Transcripts Table BMF Notices And Refund Transcripts Table CP Number Output CP Type CAF/RAF NRPS: Select NRPS: MRS NRPS: LCF Notes or Form 101 101 Math Error (ME)/Balance Due Yes Yes Yes Yes 940, 940-EZ 102 102 Math Error (ME)/Balance Due Yes Yes Yes Yes 941, 943, 944, 945 103 103 Math Error (ME)/Balance Due Yes Yes Yes Yes CT-1 104 104 Math Error (ME)/Balance Due Yes Yes Yes Yes 720 105 105 Math Error (ME)/Balance Due Yes Yes Yes Yes 11-C, 706, 706-NA, 709, 709-NA 730, 2290 106 106 Math Error (ME)/Balance Due Yes Yes Yes Yes 5227, 4720 107 107 Math Error (ME)/Balance Due Yes Yes Yes Yes 1042 108 108 Inquiry Yes No No No FTD 109 109 Inquiry Yes No No No EIN/name 111 111 Math Error (ME)/Overpay Yes Yes Yes Yes 940, 940-EZ 112 112 Math Error (ME)/Overpay Yes Yes Yes Yes 941, 943, 944, 945 113 113 Math Error (ME)/Overpay Yes Yes Yes Yes CT-1 114 114 Math Error (ME)/Overpay Yes Yes Yes Yes 720 115 115 Math Error (ME)/Overpay Yes Yes Yes Yes 11-C, 706, 706-NA, 709, 709-NA 730, 2290 116 116 Math Error (ME)/Overpay Yes Yes Yes Yes 5227, 4720 117 117 Math Error (ME)/Overpay Yes Yes Yes Yes 1042 120A 120A Notification Yes No No No - 123 123 Math Error (ME)/Even Balance Yes Yes No Yes - 124 124 Math Error (ME)/Even Balance Yes Yes No Yes 720 125 125 Math Error (ME)/Even Balance Yes Yes No Yes 11-C, 706, 706-NA, 709, 709-NA, 730, 2290 126 126 Math Error (ME)/Balance Due Yes Yes Yes Yes 5227, 4720 127 127 Math Error (ME)/Even Balance Yes Yes No Yes 1042 CP Number Output CP Type CAF/RAF NRPS: Select NRPS: MRS NRPS: LCF Notes or Forms 128 128 Offset/Balance Due Yes Yes No Yes Associated if another CP is selected 130 130 Notification Yes No No No - 131 131 Math Error (ME)/Even Balance Yes Yes No Yes 1120-S, 1041, 1065, 1120-C, 990-T 131A 131A Balance Due Yes Yes Yes Yes 1120-S, 1041, 1065, 1120-C, 990-T 132 132 Math Error (ME)/Overpaid Yes Yes Yes Yes 1041, 1065, 1120-C, 990-T 133 133 Math Error (ME)/Overpaid Yes Yes Yes Yes 1120-S, 1041, 1065, 1120-C, 990-T 134B 134B FTD/ES Payment Discrepancy Notice (Balance Due) Yes Yes Yes Yes 1120 series, 720, 940, 941, 944, 943, 945, 1041, 1042 134R 134R FTD/ES Payment Discrepancy Notice (Refund) Yes Yes Yes Yes 1120 series, 720, 940, 941, 944, 943, 945, 1041, 1042 135 135 Service Center No No No No - 138 138 Offset to Balance Due Yes Yes No Yes Associated if another CP is selected 139 139 Notification Yes No No No - 141C 141C Balance Due Yes No No No 990, 990-EZ, 990-PF 141I 141I Balance Due Yes No No No 990, 990-EZ, 990-PF 141L 141L Balance Due Yes No No No 990, 990-EZ, 990-PF 142 142 Notification Yes No No No - 143 143 Notification Yes No No No - 145 145 Credit elect Yes Yes No Yes Associated if another CP is selected 147 147 Subsequent credit elect Yes Yes No Yes - 151 151 Notification No No No Yes - 152 152 Notification Yes No No Yes - 153 153 Notification No No No No - 155 155 Service Center No No No No - 156 156 Notification Yes No No Yes - 160 160 Reminder Balance Due Yes No No No - 161 161 Balance due Yes Yes Yes Yes ALL 162 162 FTF ELF Yes Yes Yes Yes 1065 162A 162A FTF Penalty Balance Due Yes Yes Yes Yes 1065, 1066, 1120-S 162B 162B Missing Information Penalty Balance Due Yes Yes Yes Yes 1065, 1120-S 163 163 Reminder Balance Due Yes No No No - 164 164 Service Center files No No No No - 165 165 Bad check penalty Yes No No No - 166 166 Insufficient funds Yes No No No - 169 169 Inquiry Yes No No No - CP Number Output CP Type CAF/RAF NRPS: Select NRPS: Categories NRPS: MRS NRPS: LCF Notes or Forms 170 170 Service Center No No - No No - 171 171 Notification Yes No - No No - 172 172 Notification No No - No No - 173 173 ES Penalty Assessed Reduced refund Yes Yes A/B/E/H Yes Yes 1120-S, 1041, 1120-C, 990-T, 174 174 Inquiry Yes No - No No 940, 940-EZ 177 177 AKPFD Yes Yes A/B/H Yes Yes - 178 178 Inquiry Yes No - No No - 180 180 Inquiry Yes No - No No - 181 181 Inquiry Yes No - No No - 182 182 Inquiry Yes No - No No 1120-S, 1041, 1120-C, 990-T 183 183 Inquiry Yes No - No No 720 185 185 Service Center No No - No No TC 690 187 187 Service Center Exam No No - No No Notice to Exam 188 188 Notification Yes No - No No Impact 190 190 Notification Yes No - No No Impact 191 191 Service Center Accounting No No - No No - 192 192 Service Center No No - No No - CP Number Output CP Type CAF/RAF NRPS: Select NRPS: Categories NRPS: MRS NRPS: LCF Notes or Forms 193A 193 Service Center Adjustment No No - No No - 194 194 Service Center Accounting No No - No No - 195 195 Service Center Adjustment No No - No No - 198 198 Service Center No No - No No - 199 199 Service Center Entity No No - No No - 200 200 Service Center Entity No No - No No - 201 201 Service Center Entity No No - No No - 202 202 Service Center Entity No No - No No - 207 207 Notification Yes Yes - Yes Yes - 208 208 Service Center Adjustment No No - No No - 210 210 Adjustment Yes Yes A/F/H Yes Yes May be balance due, even or overpaid 215 215 Civil penalty Balance Due Yes Yes A/H No Yes - 220 220 Adjustment Balance Due Yes Yes A/F/H Yes Yes Keys 04/06 only 220J 220J ACA Notice Yes No - No Yes - 225 225 Credit Transfer Yes Yes A/H Yes Yes Keys 03/04/06/10/40/46/70/74 only. 230 230 Combined Annual Wage Reconciliation (CAWR) Adjustment Yes No - No No - 231 231 Service Center Accounting Yes No - No No - 233 233 Service Center Exam No No - No No - 233J 233J ACA Notice Yes No - No Yes - 234 234 Service Center Adjustment No No - No No - 240 240 Combined Annual Wage Reconciliation (CAWR) Adjustment Yes No - No No - 247A 247A Balance Due Yes Yes A/B/H Yes Yes 1120 series, 1041, 990-T 247B 247B Balance Due Yes Yes A/B/H Yes Yes 1120 series, 1041, 990-T 247C 247C Balance Due Yes Yes A/B/H Yes Yes 1120 series, 1041, 990-T CP Number Output CP Type CAF/RAF NRPS: Select NRPS: Categories NRPS: MRS NRPS: LCF Notes or Forms 250C 250C Notification Yes No - No No 944 251 251 Combined Annual Wage Reconciliation (CAWR) Even balance Yes No - No No Status code 26 posting 252 252 Combined Annual Wage Reconciliation (CAWR) Balance due Yes No - No No Final notice 253 253 Combined Annual Wage Reconciliation (CAWR) Overpay Yes No - No No Requests Forms W-2 254 254 Notification Yes No - No No - 255 255 Combined Annual Wage Reconciliation (CAWR) Inquiry Yes No - No No - 256 256 Reminder Notice Yes Yes A/B/H Yes Yes 1120 series, 1041, 990-T 259A 259A Notification (TDI Notice) Yes No - No No 990, 990-EZ 259B 259B Notification (TDI Notice) Yes No - No No 990-PF 259C 259C Notification (TDI Notice) Yes No - No NO 990-PF 259D 259D Notification (TDI Notice) Yes No - No No 990-T 259E 259E Notification (TDI Notice) Yes No - No No 990 259F 259F Notification (TDI Notice) Yes No - No No 5227 259G 259G Notification (TDI Notice) Yes No - No No 1120-POL 260 260 Credit Removal Yes Yes A/D/H/I Yes Yes - 261 261 Notification Yes No - No No - 262 262 Notification Yes No - No No - 263 263 Notification Yes No - No No - 264 264 Notification Yes No - No No - 265 265 Notification Yes No - No No - 266 266 Notification Yes No - No No 2553 267 267 Overpay Yes Yes A/B/C/H Yes Yes 940, 941, 943, 944, 720, 1042, 1120, 1120-C 268 268 Math Error (ME)/Overpay Yes Yes A/B/C/H Yes Yes 940, 941, 943, 944, 720, 1042, 1120, 1120-C 270 270 Service Center Adjustment/Exam No No - No No - 275 275 Notification Yes No - Yes No - 278 278 Service Center No No - Yes No - 284 284 Service Center No No - No No - 293 293 Service Center Exam No No - No No - 295 295 Service Center/Balance Due No No - No No 5500 295A 295A Service Center/Balance Due No No - No No 5500 296 296 Service Center Accounting No No - No No - 297 297 Levy Notification/Balance Due Yes No - No No - 297A 297A Levy Notification/Balance Due Yes No - No No - 298 298 Levy Notification/Balance Due Yes No - No No - 801 801 Math Error (ME)/Balance Due Yes Yes A/B/D/H/I Yes Yes 940(sp) 802 802 Math Error (ME)/Balance Due Yes Yes A/B/D/H/I Yes Yes 941(sp), 943(sp), 944(sp) 811 811 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 940(sp) 812 812 Math Error (ME)/Overpay Yes Yes A/B/E/H Yes Yes 941(sp), 943(sp), 944(sp) 834B 834B FTD/ES Payment Discrepancy Notice (Balance Due) Yes Yes A/B/D/E/H/I Yes Yes 940(sp), 941(sp), 943(sp), 944(sp) 834R 834R FTD/ES Payment Discrepancy Notice (Refund) Yes Yes A/B/D/E/H/I Yes Yes 940(sp), 941(sp), 943(sp), 944(sp) 838 838 Offset to Balance Due Yes No - No Yes Spanish only CP Number Output CP Type CAF/RAF NRPS: Select NRPS: Categories NRPS: MRS NRPS: LCF Notes or Forms 861 861 Balance due Yes Yes A/B/D/H/I Yes Yes 940(sp), 941(sp), 943(sp) 865 865 Bad check penalty Yes No - No No 940(sp), 941(sp), 943(sp) 874 874 Inquiry Yes No - No No 940(sp) 910 910 Adjustment Yes Yes A/F/H No Yes May be balance due, even or overpay backup withholding with FTD 920 920 Adjustment Balance Due Yes Yes A/F/H No Yes May be balance due, even or overpay backup withholding with FTD 380 (Million Dollar Notices) 380 Transcript No Yes G No No Refund $1,000,000 or more 384 (Refund Notices) 384 Transcript No Yes G No No Highly questionable refund 386 (Highly Questionable Refund) 386 Transcript No Yes G No No Highly questionable refund 388 (Refund with Interest) 388 Transcript No Yes G No No Refund with interest

# BMF Form Information (and Common IMF Forms) - Worked in Notice Review

Exhibit 3.14.2-4 BMF Form Information (and Common IMF Forms) - Worked in Notice Review FORM TITLE TYPE MFT TAX CLASS DOC. CODE PERIOD DUE DATE 11-C Special Tax Return & Application for Registry Wagering BMF 63 4 3 Annual Date business opens and then yearly thereafter on July 1 706 U.S. Estate Tax Return BMF 52 5 6 - 9 months after date of death 706-NA U.S Estate of nonresident not a citizen of the United States BMF 52 5 8 - 9 months after Date of Death 709 U.S. Gift Tax Return BMF 51 5 9 Calendar 15-Apr 709-NA U.S. Gift (and Generation-Skipping Transfer) Tax Return, of a Nonresident Not a Citizen of the United States BMF 51 5 8 Calendar See IRM 3.14.2.6.7.1.5, Estate and Gift Tax Forms, CP 105 and CP 115, Review and Routing Instructions, for specific information. 720 U.S. Quarterly Federal Excise Tax Return BMF 03 4 20 Quarterly Last day of month following end of quarter 730 Tax on Wagering BMF 64 4 13 Monthly Last day of month following earning period 940 Employer′s Annual Federal Unemployment (FUTA) Tax Return BMF 10 8 40 Calendar 31-Jan 941 Employer′s Quarterly Federal Tax Return BMF (W/H and FICA) 01 1 41 Quarterly Last day of month following end of the quarter 943 Employer′s Annual Tax Return for Agricultural Employees BMF (W/H and FICA) 11 1 43 Calendar 31-Jan 944 Employer's ANNUAL Federal Tax Return (annual liability less than $1000) BMF (W/H and FICA) 14 1 17,19 Calendar 31-Jan 945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) BMF (W/H) 16 1 97 FTD Pymt. 31-Jan 945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) BMF (W/H) 16 1 44 Annual 31-Jan 945 Annual Return of Withheld Federal Income Tax (from non-payroll payments on Forms 1099 and W-2G) BMF (W/H) 16 1 37 Annual 31-Jan 990 Return of Organization Exempt from Income Tax Exempt Organization 67 4 90 Calendar or Fiscal May 15 or 15th day of 5th month 990-PF Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation Exempt Organization 44 4 91 Calendar or Fiscal May 15 or 15th day of 5th month FORM TITLE TYPE MFT TAX CLASS DOC. CODE PERIOD DUE DATE 990-T Exempt Organization Business Income Tax Return Exempt Organization Corporation 34 3 93 Calendar or Fiscal April 15 or 15th day of 4th month 990-T Exempt Organization Business Income Tax Return Exempt Organization Domestic Addr. 34 3 93 Calendar or Fiscal May 15 or 15th day of 5th month 990-T Exempt Organization Business Income Tax Return Exempt Organization Foreign Addr. 34 3 93 Calendar or Fiscal June 15 or 15th day of 6th month 1040 (1040-A, 1040-SR, 1040-X) Individual Income Tax Return IMF 30 2 11, 12, 21, 22 Calendar or Fiscal April 15 or 15th day of 4th month 1041 U.S. Fiduciary Income Tax Return BMF 05 2 44 Calendar or Fiscal April 15 or 15th day of 4th month 1041A U.S. Information Return - Trust Accumulation of Charitable Amounts Exempt Organization (Information on Charitable Amts.) 36 4 81 Calendar or Fiscal April 15 or 15th day of 4th month 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons BMF (W/H) 12 1 25 Annual 15th day of 3rd month 1065 U.S. Partnership Return of Income BMF 06 2 65 Calendar or Fiscal March 15 or 15th day of 3rd month 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return BMF 07 3 60 Calendar March 15 1120 U.S. Corporation Income Tax Return BMF 02 3 10 Calendar or Fiscal April 15 or 15th day of 4th month for years beginning after 2015 1120 U.S. Corporation Income Tax Return BMF 02 3 11 Calendar or Fiscal April 15 or 15th day of 4th month for years beginning after 2015 1120-C U.S. Income Tax Return for Cooperative Association BMF 02 3 03 Calendar or Fiscal August 15 or 15th day of 8th month 1120-POL U.S. Income Tax Return of Political Organization BMF/Exempt Organization (Exempt if 501(c) box is checked) 02 3 20 Calendar or Fiscal April 15 or 15th day of 4th month 1120-S U.S. Small Business Corporation Income Tax Return BMF 02 3 16 Calendar or Fiscal March 15 or 15th day of 3rd month 2290 Heavy Vehicle Use Tax Return BMF 60 4 95 Period Beginning Option 1st use or 5,000 miles, then from 7/1 to 6/30 Last day of month following month first used and then yearly by August 31 3520 Annual Return to Report Transactions With Foreign Trusts and Receipts of Certain Foreign Gifts BMF 68 3 83 Calendar April 15 3520-A Annual Information Return of Foreign Trust With a U.S. Owner BMF 42 3 82 Calendar or Fiscal The 15th day of the third month after the end of the Trusts tax year - March 15 for a calendar year tax return 4720 Return of Certain Excise Taxes on Charities and Other Persons Under Chap 41 and 42 of the IRC Exempt Organizations 50 4 97 Calendar or Fiscal May 15 or 15th day of 5th month 5227 Split - Interest Trust Information Return Exempt Organizations 37 4 83 Calendar or Fiscal April 15 or the 15th day of the 4th month 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts IMF(IRA) 29 0 11, 12, 21, 22, 73 Calendar or Fiscal April 15 or the 15th day of the 4th month 5330 Return of Excise Taxes Related to Employee Benefit Plans Employee Benefit Plans (EP) 76 4 35 Calendar Various-for specific dates see IRM 3.11.22.3.12, Due Dates for Various Sections on Form 5330 5500 Annual Return/Report of Employee Benefit Plan Employee Benefit Plans (EP) 74 4 17, 19, 51 Calendar The return is due on the last day of the seventh month after the end of the plan year 8038-B Information Return for Build America Bonds and Recovery Zone Economic Development Bonds Exempt Organizations 85 3 85 Based on Date of Issuance 1 1/2 mos. after end of the calendar quarter the bond was issued 8038-G Information Return for Government Purpose Tax-Exempt Bond Issues Exempt Organizations 46 3 62 Based on Date of Issuance 1 1/2 mos. after end of the calendar quarter the bond was issued 8038-GC Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales Exempt Organizations 46 3 72 Based on Date of Issuance Separate Return: 1 1/2 mos. after end of quarter the bond was issued. Consolidated Return: Feb. 15 8038-T Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate Exempt Organizations 46 3 74 Based on Date of Issuance Date of Issue (line 6) + the number of months that coincide with the box checked on line 16 + 3 months = Due date 8038-TC Information Return for Tax Credit and Specified Tax Credit Bonds as the result of the new Hire bill Exempt Organizations 86 3 86 Based on Date of Issuance 1 ½ months after the end of the calendar quarter the bond was issued 8278/ Civil Penalty Assessment and Abatement of Miscellaneous Civil Penalties IMF 55 2 17,19 Calendar or Fiscal April 15 or the 15th day of the 4th month 8288 U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons BMF 17 1 40 Monthly 20th day after the Date of Transfer 8328 Carry forward Election of Unused Private Activity Bond Volume Cap Exempt Organizations 46 3 75 Annual February 15 8697 Interest Computation Under the Look-Back Method for Completed Long-Term Contracts Non-Master File 69 3 1-12 Same as the corresponding Form (can be used for interest owed the taxpayer or government) Filed with the related return on or before the due date (including extensions) of that return 8703 Annual Certification of a Residential Rental Project Exempt Organizations 84 3 1 Calendar March 31 after the close of the calendar year for which the certification is made 8752 Required Payments or Refund Under Section 7519 BMF 15 2 23 Calendar 4 1/2 mo. after end of taxable period 8804 Annual Return for Partnership Withholding Tax (Section 1446) BMF 08 1 29 Calendar or Fiscal 2 ½ month after the end of the Partnership tax year 8805 Foreign Partner's Information Statement of Section 1446 Withholding Tax BMF 08 1 46 Calendar or Fiscal-Same as 8804 Form 8805 is mailed as an attachment to Form 8804 and does not have its own individual due date 8813 Partnership Withholding Tax Payment Voucher (Section 1446) BMF 08 1 17, 19 Payments for Form 8804 The four installment payments must be made with Form 8813 by the 15th day of the 4th, 6th, 9th, and 12th months of the partnership's tax year. However, the payment may be made through Electronic Federal Trust Payment System (EFTPS) 8849 Claim for Refund of Excise Taxes (certain fuel related refunds such as nontaxable uses) BMF 40 4 17, 19 Request for Refund from fuel taxes paid on Form 720 or Form 4136 The claim must be filed within 3 years from the time the return for the second tax was filed or 2 years from the time the second tax was paid to the government, whichever is later 8871 Political Organization Notice of Section 527 Status Exempt Organizations 47 4 61 Origination Due within 24 hours of the date on which the organization was established 8872 Political Organization Report of Contributions and Expenditures Exempt Organizations 49 4 61 Varies The due date for Form 8872 varies depending on whether it's an election year or non-election year. The 527 organization can choose to file it's reports quarterly or monthly during election (Even Numbered) years or on a semiannual or monthly basis during non-election (Odd Numbered) years

# NRPS Selection Keys

Exhibit 3.14.2-5 NRPS Selection Keys For more information on acronyms in the table see IRM 3.14.2.1.6, Acronyms/Abbreviations/Definitions or the Acronym Database. KEY CATEGORY A - Special Handling Required (EXPLANATION) 01 Overpaid amount between $25,000 and $1,000,000. 03 Balance due or overpayment of $1,000,000.00 or more. 04 Balance due amount with penalty or interest amount of $25,000 or more. 06 Large Corporation. 08 Balance due of $100,000.00 or more, but less than $250,000.00. 10 Balance due or adjustment of $250,000.00 or more, but less than $1,000,000.00. 15 CP 225 with Debit/Credit transfer 16 IRC 965 Payment Identified with TC 670 DPC 64 18 CP 210/220 for MFT 03 and with a tax period of YYYY08 (BPD) or CP220/267B for MFT 79 with a tax period of YYYY09 (IPF repealed December 31, 2020. 19 Balance due between $75,000.00 and $100,000.00. 28 Corporate Examination Program (CEP) Cases. Worked by LB&I (76XX batches). 35 Void CP 267 when specific criteria is found on the tax module. 41 Select any CP with Master File Tax Code (MFT) 02 and form type 1120-C (Doc Code 03) 50 IRC 965 Return Identified with CCC "J" 51 Select if notice amount is an overpayment of $500.00 or more and a TC 766 or TC 806 is present. 56 Select if notice is a CP 134B/R or CP 834B/R. 75 Form 8752 (Master File Tax Code (MFT) 15). 76 Balance due notice with an Excess Collection situation. 77 Select if a CP 145 with a tax period of 200612 or later if: Master File Tax Code (MFT) 01 with a filing requirement set to MFT 14 or MFT 14 with a filing requirement set to MFT 01. 78 CP 267A for MFT 03 and with a tax period of YYYY08. KEY CATEGORY B - High Priority (EXPLANATION) 07 Form 706 (Master File Tax Code (MFT) 52)/Balance due or overpayment. NN Local control can be used to increase the priority of any other selection key to this level. 09 Taxpayer notice code 90. 53 Balance due: delinquency penalty and extension of time to file pending or potentially mis-posted extension of Time to File. KEY CATEGORY C - FTD ROLLOVERS (EXPLANATION) 11 CP 267 - the overpayment amount is equal to or greater than 100 times the tax liability - verify tax amount for decimal error, transposition error, or transcription error. 12 CP 267 for $200.00 or more, but less than $25,000.00, or CP 268 for $200.00 or more. 34 CP 267 and CP 268 select if the overpayment amount is equal to the TC 716 or TC 710 greater than or less than $10.00 before penalty and interest. 36 CP 267 and CP 268 select if the notice amount is $200.00 or more and a TC 766 or TC 806 is present. 71 CP 267 select if the notice amount is between $25,000.00 and $75,000.00. 72 CP 267 select if the notice overpayment amount is between $75,000.00 and $100,000.00. 83 CP 267 select if the notice overpayment amount is between $100,000.00 and $250,000.00 KEY CATEGORY D - Balance Due and Even Balance (EXPLANATION) 02 Remittance Processing System (RPS) discrepancy. 37 Select if notice is for MFT 01, 14, 10, 11, 16 and if the corresponding MF tax module does not contain a -A freeze and has no associated pending transactions and contains no TC 186, TC 27X and no interest assessment and combination of up to 5 TC 650 amount where the payment date is later than the ending date of the tax period and the combined amounts equal the notice amount greater than and less than $5.00. 38 Form 1120, when the underpaid tax plus pre-paid ES Penalty is equal to a pending credit transaction, or a credit amount, or the credit balance on another tax period. 39 Form 1120, the extension (FORM 7004) payment is posted to another open module (no TC 150). 40 The underpaid tax amount equals a posted credit transaction/balance due. 42 A refund has been intercepted on another module (TC 841) and notice is balance due. 43 The underpaid tax of $25.00 or more is within 10% of a credit balance on another tax period. 44 Underpaid tax is equal to 1 to 5 credit transactions pending or posted to another tax period. 45 A credit transfer (Document Code 24, 34, 48, or 58) is pending to the notice module. 46 An adjustment transaction (TC 29X or TC 30X) is pending to the notice module. 47 A credit amount equal to one-fourth of the tax liability amount on Form 2290 is posted to another tax period. 48 A Master File merge transaction (TC 001/011/04X) is pending to this TIN (Balance due Notice). 49 Balance due: amount claimed equals open credit balance or the sum of 1 to 5 pending or posted credits 52 A refund (TC 846) has generated this cycle on another tax period. (Notice is equal to or less than refund.) 54 Delinquency penalty (TC 166) was not assessed on a potentially delinquent return. 55 Acceptable reason for not filing a return (TC 590/591), is posted to the notice module. 57 The prior two tax periods have credit transfers (Doc. Code 24/34/48/58) cross-referenced to another TIN. 58 Balance due per taxpayer or Net Credit Claimed minus Total Credits amount is equal to a credit on open module. 59 Credit on an open module is available for offset. 70 A transaction is pending to the notice module. KEY CATEGORY E- Overpaid Notices (EXPLANATION) 60 Refund transcript indicator set. 61 Generated Refundable Credit (TC 766) equal to the Overpayment amount or 1 to 5 credit transactions. 62 Amount of overpayment (not including credit interest) is greater than 10 times the tax liability. 63 Overpayment is frozen due to backup withholding. 64 Form 1041 with a TC 806 (withholding) on the module. 65 Overpaid: refund amount equal 1 FTD credit posted to the notice tax period. 66 Form 941: the two prior tax periods (Modules) contain TC 29X or TC 976 transactions. (Trend of Tax Adjustments/Amended returns.) 67 Any overpaid notice not selected under another key. 69 Overpayment (Not including credit interest) equal to one posted subsequent payment (TC 670). 73 The prior two tax periods have credit transfers (Doc. Codes 24/34/48/58) cross-referenced to another TIN 74 An adjustment or a credit transfer (Doc. Code 24/34/48/58) is pending to the notice module. KEY CATEGORY F- Adjustment Notices (EXPLANATION) 60 Select an overpayment notice and the Refund Transcript indicator is set. Do not select if there is a BMF NRPS refund transcript already associated to the notice. 63 Select for Master File Tax Code (MFT) 16 only, select if Backup Withholding amount is significant. 79 Balance due notice, with a tax increase equal to a payment posted to another open module. 80 Balance due notice with a pending credit. 81 Overpaid notice with a pending debit. 84 Select if a Debit/Credit Transfer (DLN Document Code 24, 34, 48 or 58) transaction is pending for the same TIN, MFT and tax period as the notice. KEY CATEGORY G - Refund Transcripts (EXPLANATION) 20 Million dollar refund. 21 High questionable refunds. 22 Refund interest. 23 Million dollar refund for $10 million or more. 24 Pending debit transaction present. 25 Refund caused by subsequent payment (TC 670). 26 Refundable credit (TC 766) of $10.00 or more. 27 Any refund transcript not selected under another key. KEY CATEGORY H - Local Control 82 Select the percentage of notices requested that match the Local Control File (LCF) on CP Number, Master File Tax Code (MFT) and Math Error Code. (Taxpayer Settlement Notices only.) 90 Select if the notice matches the Local Control File (LCF) on any of the following: TIN or TIN and MFT or TIN, MFT and Tax Period. 91 Select if the notice matches the ERS DLN on the LCF using all 14 digits of the DLN. 92 Select if the percentage of notices requested that match the LCF on one of the following: CP Number or CP Number and ZIP Code range or CP Number and MFT or CP Number and Freeze Code. 93 Select if the balance due amount exceeds the amount on LCF but is less than $25,000.00. 94 Select if the notice DLN matches the 1 to 14 significant digits of the DLN on the LCF. 95 Select the percentage of notices requested that match the LCF on: CP Number and Penalty Code or CP Number, MFT, and Percentage. 96 Select if the notice matches the LCF on Employment Code and the notice amount exceeds the amount on the LCF. 97 Select the percentage of notices requested that match the LCF on Master File Tax Code (MFT) and Tax Period. KEY CATEGORY I - Low Priority Balance Due Notices 31 Credit claimed was refunded in prior period (either year or quarter) with the same Master File Tax Code (MFT) for amount greater than or less than $10.00.

# BMF NRPS Selection Report - NRP1420

Exhibit 3.14.2-6 BMF NRPS Selection Report - NRP1420 The exhibit shows the NRPS 1420 report. It is generated and available for Output Review at the same time as the NRPS packages. The first part of the report is a breakdown of current cycle and year to date, which identifies the CP volume input for selection and volume NRPS selected. The second part of the report is a breakdown by selection key within a CP number. The first part of the report contains columns with CP numbers, current cycle - input and selected, year to date -input and selected notice counts. The second part of the report contains columns for selection keys for current cycle and year to date key counts. Please click here for the text description of the image.

# Control D NRPS Appended Data Pending Transaction TEP-Tape Edit Processing File

Exhibit 3.14.2-7 Control D NRPS Appended Data Pending Transaction TEP-Tape Edit Processing File The following exhibit shows what information is contained in the TEP File. Transaction CodeTransaction DateTransaction AmountMFTTax PeriodName ControlTransaction Primary TINTransaction DLN Please click here for the text description of the image.

# Control D NRPS Appended Data Unpostable- GUF File - Generalized Unpostable Framework File

Exhibit 3.14.2-8 Control D NRPS Appended Data Unpostable- GUF File - Generalized Unpostable Framework File This exhibit shows the information contained in the Unpostable file that is found using Command Code UPTIN. The list below shows the field and their descriptionsTransaction CodeTransaction DateTransaction AmountMFTTax PeriodName ControlPrimary TINDLNUnpostable CodeCross Reference MFTCross reference tax periodCross reference TIN Please click here for the text description of the image.

# Control D NRPS Appended Data - Pending Resequencing File

Exhibit 3.14.2-9 Control D NRPS Appended Data - Pending Resequencing File The Resequence File exhibit shows a credit transfer transaction that is resequencing and the NRPS package fields contained in the file. This file shows:Transaction code of the payment.Transaction date of the payment.Transaction amount.MFT payment posted toTax period payment posted toName ControlNotice Primary Taxpayer Identification NumberTransaction Document locator numberCross-reference credit transfer MFTCross-reference credit transfer tax periodCross-reference credit transfer Taxpayer Identification Number Please click here for the text description of the image.

# Reference Chart for Retyping BMF Notices in OLNR

Exhibit 3.14.2-10 Reference Chart for Retyping BMF Notices in OLNR Form Selected/Original Notice Can be Retyped to: 940, 940-EZ CP 101 CP 111 or CP 161 941, 943, 944, 945 CP 102 CP 112 or CP 161 CT-1 CP 103 CP 113 or CP 161 720 CP 104 CP 114 or CP 161 11-C, 2290, 706, 706-NA, 709, 709-NA, 730 CP 105 CP 115 or CP 161 5527, 990-PF, 4720 CP 106 CP 116 or CP 161 1042 CP 107 CP 117 or CP 161 940, 940-EZ CP 111 CP 101 or CP 161 941, 943, 944, 945 CP 112 CP 102 or CP 161 CT-1 CP 113 CP 103 or CP 161 720 CP 114 CP 104 or CP 161 11-C, 2290, 706, 706-NA, 709, 709-NA, 730 CP 115 CP 105 or CP 161 5527, 990-PF, 4720 CP 116 CP 106 or CP 161 1042 CP 117 CP 107 or CP 161 CT-1 CP 123 CP 103, CP 113 or CP 161 720 CP 124 CP 104, CP 114 or CP 161 11-C, 2290, 706-NA, 709, 709-NA, 730 CP 125 CP 105, CP 115 or CP 161 5527, 990-PF, 4720 CP 126 CP 106, CP 116 or CP 161 8804, 1041, 1065, 1120(all), 990-T CP 131 CP 131A, CP 132, CP 133, CP 161 or CP 268 Note: If Elective Payment Election (EPE) indicator is present CP 161 is not a valid retype notice. See IRM 3.14.2.6.4.11.2, Elective Payment Election (EPE) Account and Notice Impact, for more information. 8804, 1041, 1065, 1120(all), 990-T CP 131A CP 131 CP 132, CP 133, CP 161 or CP 268 Note: If EPE indicator is present CP 161 is not a valid retype notice. 8804, 1041, 1065, 1120(all), 990-T CP 132 CP 131, CP 131A, CP 133, CP 161 or CP 268 Note: If EPE indicator is present CP 161 is not a valid retype notice. 8804, 1041, 1065, 1120(all), 990-T CP 133 CP 131, CP 131A, CP 132, CP 161, or CP 268 Note: If EPE indicator is present CP 161 is not a valid retype notice. All BMF Forms CP 134B CP 161, CP 210, CP 220 or CP 134R All BMF Forms CP 134R CP 161, CP 210, CP 220 or CP 134B All BMF Forms CP 161 CP 101, CP 102, CP 103, CP 104, CP 105, CP 106, CP 107, CP 111, CP 112, CP 113, CP 114, CP 116, CP 117, CP 123, CP 124, CP 125, CP 126, CP 127, CP 131, CP 131A, CP 132 or CP 133 1041, 990-T, 990-PF, 8804, 1120, 1120-SF, 1120-F, 1120-L, 1120-M, 1120-ND, 1120-FSC, 1120-RIC, 1120-REIT, 1120-PC, 1120-C CP 173 CP 161 All BMF Forms CP 210 CP 220 All BMF Forms CP 220 CP 210 1120 Series, 990-T, 1041 CP 247A CP 247B or CP 247C 1120 Series, 990-T, 1041 CP 247B CP 247A or CP 247C 1120 Series, 990-T, 1041 CP 247C CP 247A or CP 247B All BMF Forms CP 260 CP 101, CP 102, CP 103, CP 104, CP 105, CP 106, CP 111, CP 112, CP 113, CP 114, CP 115, CP 116, CP 131, CP 131A, CP 132, CP 133 or CP 161 All BMF Forms CP 267 CP 101, CP 102, CP 104, CP 111, CP 112, CP 114, CP 132, CP 133, CP 145, CP 161 or CP 268 All BMF Forms CP 268 CP 101, CP 102, CP 104, CP 111, CP 112, CP 114, CP 132, CP 133, CP 145, CP 161, or CP 267 940(sp) CP 801 CP 811 or CP 861 941(sp), 943(sp), 944(sp) CP 802 CP 812 or CP 861 940(sp) CP 811 CP 801 or CP 861 941(sp), 943(sp), 944(sp) CP 812 CP 802 or CP 861 All BMF Spanish Forms CP 834B CP 861, CP 910, CP 920 or CP 834R All BMF Spanish Forms CP 834R CP 861, CP 910, CP 920 or CP 834B All BMF Spanish Forms CP 910 CP 920 All BMF Spanish Forms CP 920 CP 910 Refund Transcripts can be converted to the appropriate CP as long as the MFT indicated on the transcript is valid for the respective CP. CPs that begin with 8 or 9 are Spanish notices. Any notice can be retyped to itself. For example, a CP 101 can be retyped to CP 101 to increase/decrease the balance due, add/subtract a payment, etc.

# Adding Extensions Using FRM77

Exhibit 3.14.2-11 Adding Extensions Using FRM77 The exhibit shows IDRS screen prints of Command Code REQ77 response screen FRM77, with the proper input to add a TC 460 extensionImage - FRM77 Format for Adding ExtensionsTC> Field - Enter 460 for adding an extension.Extension-Dt> Field - Enter extension date for the form being processed.DLN-CD> Field - For MFT 02, 33, and 34 enter 20. MFT 05 and 06 enter 45.Blank field row 14 - Enter remarks - "Add extension". Please click here for the text description of the image.

# Deleting Extensions Using FRM77

Exhibit 3.14.2-12 Deleting Extensions Using FRM77 Image - FRM 77 Format for Deleting an Extension - TC 462.The exhibit shows IDRS screen prints of Command Code REQ77 response screen FRM77, with the proper input to delete an extension using TC 462.TC> Field - Enter 462 to delete an extension.Blank field row 14 - Enter remarks - "Delete extension". Please click here for the text description of the image.

# Form 11-C Filing (MFT 63) Information, Due Date, and Wager Schedule

Exhibit 3.14.2-13 Form 11-C Filing (MFT 63) Information, Due Date, and Wager Schedule The Form 11-C, Occupational Tax and Registration Return for Wagering, is due on the date the business opens and annually on July 1 each year after. Extensions are not allowed. The table below is used to determine the Form 11-C, Line 2 Tax amount. The $50.00 tax applies if all wagers (including those accepted by an agent for another) are authorized under the laws of the state in which accepted. The $500.00 tax applies if wagers are accepted that are not authorized under the laws of the state. Note: The tax is payable for the period that begins July 1 of each year. If the taxpayer begins accepting wagers after July 31, the tax is prorated for the first year as outlined in the chart below. If You Start Accepting Wagers In $500 Tax $50 Tax July $500.00 $50.00 August $458.33 $45.83 September $416.66 $41.66 October $375.00 $37.50 November $333.33 $33.33 December $291.66 $29.16 January $250.00 $25.00 February $208.33 $20.83 March $166.66 $16.66 April $125.00 $12.50 May $83.33 $8.33 June $41.66 $4.16

# Forms 706 (MFT 52), 706-NA (MFT 52), Form 709 (MFT 51), and Form 709-NA (MFT 51) Return and Extension Due Dates

Exhibit 3.14.2-14 Forms 706 (MFT 52), 706-NA (MFT 52), Form 709 (MFT 51), and Form 709-NA (MFT 51) Return and Extension Due Dates Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return Estate of Nonresident Not a Citizen of the United States, filing due dates are based on date of death. Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States, filing due dates are annual tax returns due April 15. See the table below for return due date and extended due date information. See IRM 3.14.2.6.7.1.5, Estate and Gift tax Forms, CP 105 and CP 115, Review and Routing Instructions, for more information. These forms do not require estimated tax payments. Form MFT Return Due Date Extension Due Date 706 52 The day of the ninth calendar month after decedent's death numerically corresponding to day of calendar month on which death occurred. The extended due date for filing estate tax return may not be later than 15 months from date of the decedent's death, unless the executor is abroad. 706-NA 52 The day of the ninth calendar month after decedent's death numerically corresponding to day of calendar month on which death occurred. The extended due date for filing estate tax return may not be later than 15 months from date of the decedent's death, unless the executor is abroad. 709 51 4-15-20XX 10-15-20XX Any extension of time granted to file the taxpayer's calendar year income tax return (Form 1040) will apply to the 709. 709-NA 51 If no estate tax return is required to be filed, the due date is April 15, 20XX. If an estate tax return is required and the taxpayer died before July 15, 20XX, the tax return is due when the estate tax return is due (Form 706, nine months after the Date of Death plus extensions). If the taxpayer died after July 14, the gift tax return (Form 709-NA) is due April 15 of the following year. Extension applies when a Form 706-NA is also required then extended due date for filing estate tax return may not be later than 15 months from date of the decedent's death, unless the executor is abroad.

# Form 720 (MFT 03) Return Due Dates and Payment Information

Exhibit 3.14.2-15 Form 720 (MFT 03) Return Due Dates and Payment Information Form 720, Quarterly Federal Excise Tax Return, has very specific filing and payment requirements. See IRM 20.1.4.10, Form 720 Reporting Requirements, for more information. Extensions are not allowed. See the table below for return due dates. Quarter Return Due Date 20XX03 April 30 20XX06 July 31 20XX09 October 31 20XX12 January 31

# Form 730 (MFT 64) Return Due Dates

Exhibit 3.14.2-16 Form 730 (MFT 64) Return Due Dates Form 730, Monthly Tax Return for Wagers, is due each month and extensions are not allowed. These forms do not require estimated tax payments. The Failure to Deposit Penalty does not apply to this form. See the table below for return due dates. Period Ending Return Due Date January February 28 February March 31 March April 30 April May 31 May June 30 June July 31 July August 31 August September 30 September October 31 October November 30 November December 31 December January 31

# Form 940 (MFT 10) Payment and Return Due Dates and Extension Information

Exhibit 3.14.2-17 Form 940 (MFT 10) Payment and Return Due Dates and Extension Information Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, is an annual form due January 31st each year. A taxpayer requesting an extension of time to file his Form 940 must submit a formal letter to the IRS. Each formal letter must be reviewed and the taxpayer or his agent must be informed whether the application is granted or denied. The extension may not exceed 90 days. See the table below for payment due dates. Payment Due Dates 4/30 7/31 10/31 1/31

# Form 941 (MFT 01) Payment and Return Due Dates

Exhibit 3.14.2-18 Form 941 (MFT 01) Payment and Return Due Dates Form 941 , Employer's Quarterly Federal Tax Return (Withholding and FICA Taxes), is due on or before the last day of the calendar month following the end of a tax quarter, a form filed within the first 10 days following the due date is treated as timely if 100 percent of the tax amount has been timely deposited. Otherwise, penalties will be assessed for late filing. See the table below for return due dates and payment dates. No extensions are allowed for the Form 941. Tax Period Return Due Date Monthly Payment Due Dates Semi-Weekly Payment Due Dates 20XX03 4/30 2/15, 3/15, and 4/15 January- March 20XX06 7/31 5/15, 6/15, and 7/15 April-June 20XX09 10/31 8/15, 9/15, and 10/15 July-September 20XX12 1/31 11/15, 12/15, and 1/15 October-December

# Form 990 (MFT 67), 990-PF (MFT 44), 990-T (MFT 34) Estimated Tax Installment and Return Due Dates

Exhibit 3.14.2-19 Form 990 (MFT 67), 990-PF (MFT 44), 990-T (MFT 34) Estimated Tax Installment and Return Due Dates The Form 990, Return of Organization Exempt From Income Tax, Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, and Form 990-T, Exempt Organization Business Income Tax Return, (excluding Org. Code 3) are all due the 15th day of the 5th month after the tax period. These forms are for exempt organizations. Extensions are not allowed. See the table below for payment dates and return due dates. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Jan. 31 5/15 7/15 10/15 1/15 6/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 7/15 Mar. 31 7/15 9/15 12/15 3/15 8/15 Apr. 30 8/15 10/15 1/15 4/15 9/15 May 31 9/15 11/15 2/15 5/15 10/15 June 30 10/15 12/15 3/15 6/15 11/15 July 31 11/15 1/15 4/15 7/15 12/15 August 31 12/15 2/15 5/15 8/15 1/15 Sept. 30 1/15 3/15 6/15 9/15 2/15 Oct. 31 2/15 4/15 7/15 10/15 3/15 Nov. 30 3/15 5/15 8/15 11/15 4/15 Dec. 31 4/15 6/15 9/15 12/15 5/15

# Form 990-T (MFT 34 - With Org. Code 3) Estimated Tax Installment and Return Due Dates

Exhibit 3.14.2-20 Form 990-T (MFT 34 - With Org. Code 3) Estimated Tax Installment and Return Due Dates Form 990-T , Exempt Organization Business Income Tax Return, with Organizational Code 3, due the 15th day of the 4th month after the tax period. This form is for exempt organizations. Extensions are not allowed. See the table below for payment dates and return due dates. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Jan. 31 5/15 7/15 10/15 1/15 5/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 6/15 Mar. 31 7/15 9/15 12/15 3/15 7/15 Apr. 30 8/15 10/15 1/15 4/15 8/15 May 31 9/15 11/15 2/15 5/15 9/15 June 30 10/15 12/15 3/15 6/15 10/15 July 31 11/15 1/15 4/15 7/15 11/15 August 31 12/15 2/15 5/15 8/15 12/15 Sept. 30 1/15 3/15 6/15 9/15 1/15 Oct. 31 2/15 4/15 7/15 10/15 2/15 Nov. 30 3/15 5/15 8/15 11/15 3/15 Dec. 31 4/15 6/15 9/15 12/15 4/15

# Form 1041 (MFT 05) Estimated Tax Installment and Return Due Dates

Exhibit 3.14.2-21 Form 1041 (MFT 05) Estimated Tax Installment and Return Due Dates Form 1041 , U.S. Income Tax Return for Estates and Trusts, filers must make quarterly estimated tax payments, except during the first two taxable years. Extensions are requested on Form 7004 and grant the taxpayer a 5 1/2 month extension. Form 1041-N, U.S. Income Tax Return for Electing Alaska Native Settlement, Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts, and 1041 for a bankruptcy estate receive a 6 month extension. See the table below for payment dates and return due dates, including extensions. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date 5 1/2 Month Extended Due Date 6 month Extended Due Date Jan. 31 5/15 7/15 10/15 2/15 5/15 10/31 11/15 Feb. 28 (29) 6/15 8/15 11/15 3/15 6/15 11/30 12/15 Mar. 31 7/15 9/15 12/15 4/15 7/15 12/31 1/15 Apr. 30 8/15 10/15 1/15 5/15 8/15 1/31 2/15 May 31 9/15 11/15 2/15 6/15 9/15 2/28 (29) 3/15 June 30 10/15 12/15 3/15 7/15 10/15 3/31 4/15 July 31 11/15 1/15 4/15 8/15 11/15 4/30 5/15 August 31 12/15 2/15 5/15 9/15 12/15 5/31 6/15 Sept. 30 1/15 3/15 6/15 10/15 1/15 6/30 7/15 Oct. 31 2/15 4/15 7/15 11/15 2/15 7/31 8/15 Nov. 30 3/15 5/15 8/15 12/15 3/15 8/31 9/15 Dec. 31 4/15 6/15 9/15 1/15 4/15 9/30 10/15

# Form 1065 (MFT 06) Return and Extension Due Dates

Exhibit 3.14.2-22 Form 1065 (MFT 06) Return and Extension Due Dates Form 1065 , U.S. Return of Partnership Income, is generally required to have a tax year that conforms to the majority of its partners. The Form 1065 is due on or before the 15th day of the third month following the close of the tax year. An 6-month extension of time to file is granted if the taxpayer completes Form 7004 properly and submits it by the due date of the Form 1065. Estimated tax payments are not required. See the table below for return and extended due dates. Period Ending Return Due Date Extended Due Date January 4/15 10/15 February 5/15 11/15 March 6/15 12/15 April 7/15 1/15 May 8/15 2/15 June 9/15 3/15 July 10/15 4/15 August 11/15 5/15 September 12/15 6/15 October 1/15 7/15 November 2/15 8/15 December 3/15 9/15

# Form 1066 (MFT 07) Return and Extension Due Dates

Exhibit 3.14.2-23 Form 1066 (MFT 07) Return and Extension Due Dates Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, is a calendar year return. Taxpayers must file the federal income tax returns for a REMIC on or before the 15th day of March following the close of the calendar year. Taxpayers filing such returns made on the basis of a fiscal year must file on or before the 15th day of the third month following the close of the fiscal year. A 6-month extension of time to file Form 1066 is granted if the taxpayer completes Form 7004 properly and submits it by the due date of the Form 1066. Estimated tax payments are not required. See the table below for return, and extended due dates. Period Ending Return Due Date Extended Due Date January 4/15 10/15 February 5/15 11/15 March 6/15 12/15 April 7/15 1/15 May 8/15 2/15 June 9/15 3/15 July 10/15 4/15 August 11/15 5/15 September 12/15 6/15 October 1/15 7/15 November 2/15 8/15 December 3/15 9/15

# Form 1120 (MFT 02) Family Estimated Tax Installment Payment, Return, and Extension Due Dates (EXCLUDES 1120-C, 1120-F D3 not checked, 1120-POL, and 1120-S)

Exhibit 3.14.2-24 Form 1120 (MFT 02) Family Estimated Tax Installment Payment, Return, and Extension Due Dates (EXCLUDES 1120-C, 1120-F D3 not checked, 1120-POL, and 1120-S) Form 1120, U.S. Corporation Income Tax Return, is filed annually, by domestic corporations. The return is due on the 15th day of the fourth month after the end of the tax year. The due date chart below also applies to all Form 1120, except: 1120-C, 1120-F without box D3 checked, 1120-POL and 1120-S. See following exhibits for information on these forms. See the table below for payment dates, return, and extended due dates for Form 1120 (MFT 02) Family. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment RETURN Due Date 2016 & later Extended Due Date 2016 & later Jan. 31 5/15 7/15 10/15 1/15 5/15 10/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 6/15 11/15 Mar. 31 7/15 9/15 12/15 3/15 7/15 12/15 Apr. 30 8/15 10/15 1/15 4/15 8/15 1/15 May 31 9/15 11/15 2/15 5/15 9/15 2/15 June 30** 10/15 12/15 3/15 6/15 9/15** 3/15 July 31 11/15 1/15 4/15 7/15 11/15 4/15 Aug. 31 12/15 2/15 5/15 8/15 12/15 5/15 Sept. 30 1/15 3/15 6/15 9/15 1/15 6/15 Oct. 31 2/15 4/15 7/15 10/15 2/15 7/15 Nov. 30 3/15 5/15 8/15 11/15 3/15 8/15 Dec. 31 4/15 6/15 9/15 12/15 4/15 9/15 Exception: **June returns are excluded from the additional month.

# Form 1120-C (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates

Exhibit 3.14.2-25 Form 1120-C (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates Form 1120-C, U.S. Income Tax Return for Cooperative Associations, is due the 15th day of the 9th month after the tax period. Timely extension requests for Form 1120-C are due 8½ months after the tax period ends and are granted a 6-month extension*. See the table below for payment, return, and extended dates. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Extended Due Date Jan. 31 5/15 7/15 10/15 1/15 10/15 4/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 11/15 5/15 Mar. 31 7/15 9/15 12/15 3/15 12/15 6/15 Apr. 30 8/15 10/15 1/15 4/15 1/15 7/15 May 31 9/15 11/15 2/15 5/15 2/15 8/15 June 30* 10/15 12/15 3/15 6/15 3/15 *10/15 July 31 11/15 1/15 4/15 7/15 4/15 10/15 August 31 12/15 2/15 5/15 8/15 5/15 11/15 Sept. 30 1/15 3/15 6/15 9/15 6/15 12/15 Oct. 31 2/15 4/15 7/15 10/15 7/15 1/15 Nov. 30 3/15 5/15 8/15 11/15 8/15 2/15 Dec. 31 4/15 6/15 9/15 12/15 9/15 3/15 * The maximum extension time for Form 1120-C Corporations with fiscal years ending June 30 is 7 months from the due date of the return.

# Form 1120-F (MFT 02) Estimated Tax Installment and Return Due Dates

Exhibit 3.14.2-26 Form 1120-F (MFT 02) Estimated Tax Installment and Return Due Dates Form 1120-F , U.S. Income Tax Return of a Foreign Corporation, is filed by a a foreign corporation engaged in trade or business in the U.S., were effectively connected with a U.S. trade or business, or had income from any U.S source and its tax liability is not fully satisfied by withholding at that source. A foreign corporation that does not maintain an office or place of business in the United States must generally file Form 1120-F by the 15th day of the sixth month after the end of the tax year. See the table below for payments, return, and extended due dates (if applicable). Note: See below for Form 1120-F Box D3 not checked. Returns without Box D3 checked are due the 15th day of the 6th month following the date the tax year ended (BRTVU US OFFICE CODE: 2). Caution: If 1120-F Box D3 is checked, returns are due the 15th day of the 4th month following the date the tax year ended (BRTVU US OFFICE CODE: 1). See Exhibit 3.14.2-24, Form 1120 Family Estimated Tax Installment Payment, Return, and Extension Due Dates, for the correct due dates. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Extended Due Date- the following year -Box D3 not checked Jan. 31 5/15 7/15 10/15 1/15 7/15 1/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 8/15 2/15 Mar. 31 7/15 9/15 12/15 3/15 9/15 3/15 Apr. 30 8/15 10/15 1/15 4/15 10/15 4/15 May 31 9/15 11/15 2/15 5/15 11/15 5/15 June 30* 10/15 12/15 3/15 6/15 12/15 *7/15 July 31 11/15 1/15 4/15 7/15 1/15 7/15 August 31 12/15 2/15 5/15 8/15 2/15 8/15 Sept. 30 1/15 3/15 6/15 9/15 3/15 9/15 Oct. 31 2/15 4/15 7/15 10/15 4/15 10/15 Nov. 30 3/15 5/15 8/15 11/15 5/15 11/15 Dec. 31 4/15 6/15 9/15 12/15 6/15 12/15 * The maximum extension time for Form 1120-F with fiscal years ending June 30 is 7 months from the due date of the return.

# Form 1120-POL (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates

Exhibit 3.14.2-27 Form 1120-POL (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, filers may or may not be incorporated, and extension requests are due 3½ months after the tax period ends, regardless of tax period ending month. Timely extension requests for Form 1120-POL filers will be granted a 6-month extension, regardless of tax period ending month. See the table below for payment, return, and extended due dates. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Extended Due Date Jan. 31 5/15 7/15 10/15 1/15 5/15 11/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 6/15 12/15 Mar. 31 7/15 9/15 12/15 3/15 7/15 1/15 Apr. 30 8/15 10/15 1/15 4/15 8/15 2/15 May 31 9/15 11/15 2/15 5/15 9/15 3/15 June 30 10/15 12/15 3/15 6/15 10/15 4/15 July 31 11/15 1/15 4/15 7/15 11/15 5/15 August 31 12/15 2/15 5/15 8/15 12/15 6/15 Sept. 30 1/15 3/15 6/15 9/15 1/15 7/15 Oct. 31 2/15 4/15 7/15 10/15 2/15 8/15 Nov. 30 3/15 5/15 8/15 11/15 3/15 9/15 Dec. 31 4/15 6/15 9/15 12/15 4/15 10/15

# Form 1120-S (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates

Exhibit 3.14.2-28 Form 1120-S (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates Form 1120-S , U.S. Income Tax Return for an S Corporation, is due by the 15th day of the third month after the year end. See the table below for payment, return, and extended due dates. Timely extension requests (received on or before the due date of the return) will be granted a 6-month extension, regardless of tax period ending month. Tax Period Ending 1st Payment 2nd Payment 3rd Payment 4th Payment Return Due Date Extended Due Date Jan. 31 5/15 7/15 10/15 1/15 4/15 10/15 Feb. 28 (29) 6/15 8/15 11/15 2/15 5/15 11/15 Mar. 31 7/15 9/15 12/15 3/15 6/15 12/15 Apr. 30 8/15 10/15 1/15 4/15 7/15 1/15 May 31 9/15 11/15 2/15 5/15 8/15 2/15 June 30 10/15 12/15 3/15 6/15 9/15 3/15 July 31 11/15 1/15 4/15 7/15 10/15 4/15 August 31 12/15 2/15 5/15 8/15 11/15 5/15 Sept. 30 1/15 3/15 6/15 9/15 12/15 6/15 Oct. 31 2/15 4/15 7/15 10/15 1/15 7/15 Nov. 30 3/15 5/15 8/15 11/15 2/15 8/15 Dec. 31 4/15 6/15 9/15 12/15 3/15 9/15

# Form 2290 (MFT 60)Tax Rates - Return and Extension Due Dates

Exhibit 3.14.2-29 Form 2290 (MFT 60)Tax Rates - Return and Extension Due Dates The following table contains Form 2290 , Heavy Highway Vehicle Use Tax Return, Tax Rates for Non-logging Vehicles. This tax rate table reflects the tax rate by category "A-V" by month. For continuous use vehicles or new vehicles first used on public highways in July, the Form 2290 tax period starts July 1 and ends June 30 of the following year. If a vehicle is put into use during the tax year, the return is due by the last day of the month following the month of first use. The numbers below the months in the chart identify the tax period month. See IRM 3.14.2.6.9, CP 161 (CP 861) Balance Due Notice - Non-Math Error, for more information on processing CP 161 notice for Form 2290. Verify the tax period of the return using BRTVU page R2 to match to the tax rates in the exhibit below. If the TC 150 (tax amount) and the figure below do not match, a reprocess may be required. If MeF return follow IRM 3.14.2.6.18.1, Reprocessing/Adjusting E-filed Returns, and if a paper return request the document from files and follow IRM 3.14.2.6.18, Reprocessing Returns. Form 2290, Heavy Highway Vehicle Use Tax Return, is the only excise tax form allowing a request for an extension of time to file. Except for taxpayers abroad, the extension may be no more than 6 months. CATEGORY JULY (12) AUG (11) SEP (10) OCT (09) NOV (08) DEC (07) JAN (06) FEB (05) MAR (04) APR (03) MAY (02) JUNE (01) A 100.00 91.67 83.33 75.00 66.67 58.33 50.00 41.67 33.33 25.00 16.67 8.33 B 122.00 111.83 101.67 91.50 81.33 71.17 61.00 50.83 40.67 30.50 20.33 10.17 C 144.00 132.00 120.00 108.00 96.00 84.00 72.00 60.00 48.00 36.00 24.00 12.00 D 166.00 152.17 138.33 124.50 110.67 96.83 83.00 69.17 55.33 41.50 27.67 13.83 E 188.00 172.33 156.67 141.00 125.33 109.67 94.00 78.33 62.67 47.00 31.33 15.67 F 210.00 192.50 175.00 157.50 140.00 122.50 105.00 87.50 70.00 52.50 35.00 17.50 G 232.00 212.67 193.33 174.00 154.67 135.33 116.00 96.67 77.33 58.00 38.67 19.33 H 254.00 232.83 211.67 190.50 169.33 148.17 127.00 105.83 84.67 63.50 42.33 21.17 I 276.00 253.00 230.00 207.00 184.00 161.00 138.00 115.00 92.00 69.00 46.00 23.00 J 298.00 273.17 248.33 223.50 198.67 173.83 149.00 124.17 99.33 74.50 49.67 24.83 K 320.00 293.33 266.67 240.00 213.33 186.67 160.00 133.33 106.67 80.00 53.33 26.67 L 342.00 313.50 285.00 256.50 228.00 199.50 171.00 142.50 114.00 85.50 57.00 28.50 M 364.00 333.67 303.33 273.00 242.67 212.33 182.00 151.67 121.33 91.00 60.67 30.33 N 386.00 353.83 321.67 289.50 257.33 225.17 193.00 160.83 128.67 96.50 64.33 32.17 O 408.00 374.00 340.00 306.00 272.00 238.00 204.00 170.00 136.00 102.00 68.00 34.00 P 430.00 394.17 358.33 322.50 286.67 250.83 215.00 179.17 143.33 107.50 71.67 35.83 Q 452.00 414.33 376.67 339.00 301.33 263.67 226.00 188.33 150.67 113.00 75.33 37.67 R 474.00 434.50 395.00 355.50 316.00 276.50 237.00 197.50 158.00 118.50 79.00 39.50 S 496.00 454.67 413.33 372.00 330.67 289.33 248.00 206.67 165.33 124.00 82.67 41.33 T 518.00 474.83 431.67 388.50 345.33 302.17 259.00 215.83 172.67 129.50 86.33 43.17 U 540.00 495.00 450.00 405.00 360.00 315.00 270.00 225.00 180.00 135.00 90.00 45.00 V 550.00 504.17 458.33 412.50 366.67 320.83 275.00 229.17 183.33 137.50 91.67 45.83 The following table contains Form 2290 Tax Rates for Logging Vehicles. This tax rate table reflects the tax rate by category "A-V" by month. CATEGORY JULY (12) AUG (11) SEP (10) OCT (9) NOV (8) DEC (7) JAN (6) FEB (5) MAR (4) APR (3) MAY (2) JUNE (1) A 75.00 68.75 62.49 56.25 50.00 43.74 37.50 31.25 24.99 18.75 12.50 6.24 B 91.50 83.87 76.25 68.62 60.99 53.37 45.75 38.12 30.50 22.87 15.24 7.62 C 108.00 99.00 90.00 81.00 72.00 63.00 54.00 45.00 36.00 27.00 18.00 9.00 D 124.50 114.12 103.74 93.37 83.00 72.62 62.25 51.87 41.49 31.12 20.75 10.37 E 141.00 129.24 117.50 105.75 93.99 82.25 70.50 58.74 47.00 35.25 23.49 11.75 F 157.50 144.37 131.25 118.12 105.00 91.87 78.75 65.62 52.50 39.37 26.25 13.12 G 174.00 159.50 144.99 130.50 116.00 101.49 87.00 72.50 57.99 43.50 29.00 14.49 H 190.50 174.62 158.75 142.87 126.99 111.12 95.25 79.37 63.50 47.62 31.74 15.87 I 207.00 189.75 172.50 155.25 138.00 120.75 103.50 86.25 69.00 51.75 34.50 17.25 J 223.50 204.87 186.24 167.62 149.00 130.37 111.75 93.12 74.49 55.87 37.25 18.62 K 240.00 219.99 200.00 180.00 159.99 140.00 120.00 99.99 80.00 60.00 39.99 20.00 L 256.50 235.12 213.75 192.37 171.00 149.62 128.25 106.87 85.50 64.12 42.75 21.37 M 273.00 250.25 227.49 204.75 182.00 159.24 136.50 113.75 90.99 68.25 45.50 22.74 N 289.50 265.37 241.25 217.12 192.99 168.87 144.75 120.62 96.50 72.37 48.24 24.12 O 306.00 280.50 255.00 229.50 204.00 178.50 153.00 127.50 102.00 76.50 51.00 25.50 P 322.50 295.62 268.74 241.87 215.00 188.12 161.25 134.37 107.49 80.62 53.75 26.87 Q 339.00 310.74 282.50 254.25 225.99 197.75 169.50 141.24 113.00 84.75 56.49 28.25 R 355.50 325.87 296.25 266.62 237.00 207.37 177.75 148.12 118.50 88.87 59.25 29.62 S 372.00 341.00 309.99 279.00 248.00 216.99 186.00 155.00 123.99 93.00 62.00 30.99 T 388.50 356.12 323.75 291.37 258.99 226.62 194.25 161.87 129.50 97.12 64.74 32.37 U 405.00 371.25 337.50 303.75 270.00 236.25 202.50 168.75 135.00 101.25 67.50 33.75 V 412.50 378.12 343.74 309.37 275.00 240.62 206.25 171.87 137.49 103.12 68.75 34.37

# Types of Penalties and Interest

Exhibit 3.14.2-30 Types of Penalties and Interest Computer Generated TC Reversal Name of Penalty NRPS/OLNR Penalty Code Manual Input TC Reversal Adjustment Generated Notice TC 166 TC 167 Failure to File 01 TC 160 TC 161 YES TC 176 TC 177 Estimated Tax 02 TC 170 TC 171 YES TC 186 TC 187 Failure to Deposit 03, 11, 41, 42, 43, 44, 54, 55, 56, 57, 58 TC 180 TC 181 YES TC 196 TC 197 Interest None TC 340 TC 341 NO TC 238 TC 239 Daily Delinquency 10 TC 234 TC 235 YES TC 246 TC 247 Miscellaneous 28 TC 240 TC 241 YES TC 276 TC 277 Failure to Pay 07 TC 270 TC 271 YES TC 286 TC 287 Dishonored Check 04 TC 280 TC 281 YES TC 776 TC 777 Credit Interest None TC 770 TC 771 NO None None Fraud 05 TC 320 TC 321 YES None None Negligence 06 TC 350 TC 351 YES Once a penalty or interest is adjusted manually (REQ 54/47) it becomes restricted. The computer can no longer adjust that penalty or interest, and the transaction code must be manually addressed with any future adjustments. Exception: TC 190 is a manual interest transaction code and does not restrict the computer from generating either a correction TC 196/197, nor does it mean all future interest assessments must be manually computed. Exception: The Non-Restricting TC 340 is an enhancement to Master File programming to allow a systemic interest update on a tax module after interest has been manually computed, and it should be used whenever possible. (See IRM 20.2.5.6.3, Interest on Underpayments). This is especially useful for, but not limited to, the following situations: Multiple waiver dates Combination adjustments involving carrybacks (Form 2285) Disaster area adjustments Abatements due to a delay or error in a ministerial or managerial act Combat zone participants Multiple RC 6404(g) notice dates Rev. Rule. 99-40 Removing the large corporate underpayment (LCU) applicable date (i.e., 2% trigger date) for a tax module in which the LCU rate doesn't apply. Upon reviewing a Form 941 for Key 54 (see 3.14.2.6.15(4)) a Notice Review TE does a REQ 54 and assesses FTF penalty (TC 160). If an amended 941 is submitted and a TC 291 is done, a manual TC 161 must also be input. Manual adjustments with Hold Code 3 will suppress adjustment notices.

# Pending Transaction Flowchart - Applying Credit – Tax Examiner Manual Credit Transfer

Exhibit 3.14.2-31 Pending Transaction Flowchart - Applying Credit – Tax Examiner Manual Credit Transfer Title: Pending Transaction Flow Chart - Applying Credit – Tax Examiner Manual Credit TransferTitle: Applying Credit - Tax Examiner Credit Transfer Summary: This is a Pending Transaction Flow Chart used to decide Notice Disposition on cases with manual input of credit transfer(s). Start (A) This is the start of the Systemic (Rolled) Pending Credit Transfer flow chart. Process (a) Pending Systemic Credit Transfer Continue to Decision (1).Decision (1) Will penalties recompute? If Yes, Continue To Process (b) If No, Continue To Process (c)Process (c), Continue to Decision (4)Decision (4), Will the module be balance due or overpaid?If balance due, Continue to Process (d)If overpaid, Continue to Process (e)Process (d), Use Label 3. This is the end of the flow chart.Process (e), Use Label 4. This is the end of the flow chart.Process (b), Continue to Decision (2)Decision (2), Will the module return to the taxpayer's original figures? If Yes, Continue To Process (f)If No, Continue To Process (g)Process (g), Use Label 2. This is the end of the flow chart.Process (f) Continue to Decision (3)Decision (3), Is the account overpaid or balance due? If Yes, Continue To Process (h)If No, Continue To Process (i)Process (h), Void the original notice. Input TC 290 .00 Hold Code 3 to suppress and adjustment notice. This is the end of the flow chart.Process (i), Retype the notice to reflect additional credits and other information as appropriate. Convert the notice to CP 161 if necessary. This is the end of the flow chart. Please click here for the text description of the image.

# Pending Transaction Flow Chart - Systemic (Rolled) Pending Credit Transfer

Exhibit 3.14.2-32 Pending Transaction Flow Chart - Systemic (Rolled) Pending Credit Transfer Title: Pending Transaction Flow Chart Systemic (Rolled) Pending Credit Transfer Summary: This is a systemic pending credit transfer (rolled payment) transaction flow chart used to decide Notice Disposition on cases with systemic pending credit transfer(s). Start (A) This is the start of the Systemic (Rolled) Pending Credit Transfer flow chart. Process (a) Pending systemic Credit Transfer Continue to Decision (1).Decision (1) Will penalties recompute? If Yes, Continue To Process (b) If No, Continue To Process (c)Process (c), Continue to Decision 5Decision 5, Will the module be balance due or overpaid?If balance due, Continue to Process (d)If overpaid, Continue to Process (e)Process (d), Use Label 3. This is the end of the flow chart.Process (e), Use Label 4. This is the end of the flow chart.Process (b), Continue to Decision (2)Decision (2), Will the module return to the taxpayer's original figures? If Yes, Continue To Process (f)If No, Continue To Process (g)Process (g) Label 2. This is the end of the flow chart.Process (f) Continue to Decision (3)Decision (3), Is the account overpaid or balance due?If overpaid, Continue to Decision (4)If balance due, Continue to process (j)Process (j), Retype the notice to reflect additional credits and information as appropriate. Convert the notice to CP 161 if necessary. This is the end of the flow chart.Decision (4), Is it before Local Control File cutoff time, Thursday 12 PM EST of the current cycle? If Yes, Continue To Process (h)If No, Continue To Process (i)Process (h), Void the original notice. Use Local Control File to void any resulting adjustment notice. This is the end of the flow chart.Process (i), Use Label 2. This is the end of the flow chart. Please click here for the text description of the image.

# MFT 46, MFT 74, MFT 76 Required Plan Input and Command Code Limitations

Exhibit 3.14.2-33 MFT 46, MFT 74, MFT 76 Required Plan Input and Command Code Limitations MFT 46 (Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds), MFT 74 (Form 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan) and MFT 76 (Form 5330, Return of Excise Taxes Related To Employee Benefit Plans) have additional account data that must be input to complete IDRS research. To view these accounts a plan number must be input. MFT 74 and MFT 76 (Form 5330) will have only one plan number per tax period. MFT 46 may have multiple plan numbers for the same tax period. Only one plan number may be input at a time for research purposes. Review cases carefully to determine the correct information is being viewed. See below for specific IDRS input by command code. TXMODA - This table shows the input for TXMOD for MFT 46, MFT 74, and MFT 76. Example: Command Code Screen Input Input Information TXMODAXX-XXXXXXX OR TXMODAXXX-XX-XXXXV LINE 1 of IDRS is the EIN or SSN (V indicator for valid SSN) no spaces 46 000 20XX12 LINE 2 of IDRS MFT space Plan Number space Tax Period BMFOLT - This table shows the input for BMFOLT for MFT 46, MFT 74, and MFT 76. Example: Command Code Screen Input Input Information BMFOLTXX-XXXXXXX 7620XX12000 or BMFOLTXXX-XX-XXXXV 7620XX1200 LINE 1 of IDRS is the EIN or SSN (V indicator for valid SSN) space MFT Tax Period Plan Number (no spaces) MFREQC - This table shows the input for MFREQC for MFT 46, MFT 74, and MFT 76. Example: Command Code Screen Input Input Information MFREQCXX-XXXXXXX or MFREQCXXX-XX-XXXXV LINE 1 of IDRS is the EIN or SSN (V indicator for valid SSN) 46 20XX12 ZZZZ 000 LINE 2 of IDRS MFT space Tax Period space Name Control space Plan Number RECON - This table shows the input for RECON for MFT 46, MFT 74, and MFT 76. Example: Command Code Screen Input Input Information RECONXX-XXXXXXX or RECON XXX-XX-XXXXV LINE 1 of IDRS is the EIN or SSN (V indicator for valid SSN) 76 20XX12 ZZZZ 000 LINE 2 of IDRS MFT space Tax Period space Name Control space Plan Number REQ54 Note: Before leaving TXMOD, identify and retain the abstract number and computation number located on page 1 of TXMODA. These are required to adjust the account. Caution: COMPAE, COMPAS, INTST, and PIEST are not valid command codes for these MFTs.

# Julian Date Calendar (Perpetual)

Exhibit 3.14.2-34 Julian Date Calendar (Perpetual) Day Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Day 1 001 032 060 091 121 152 182 213 244 274 305 335 1 2 002 033 061 092 122 153 183 214 245 275 306 336 2 3 003 034 062 093 123 154 184 215 246 276 307 337 3 4 004 035 063 094 124 155 185 216 247 277 308 338 4 5 005 036 064 095 125 156 186 217 248 278 309 339 5 6 006 037 065 096 126 157 187 218 249 279 310 340 6 7 007 038 066 097 127 158 188 219 250 280 311 341 7 8 008 039 067 098 128 159 189 220 251 281 312 342 8 9 009 040 068 099 129 160 190 221 252 282 313 343 9 10 010 041 069 100 130 161 191 222 253 283 314 344 10 11 011 042 070 101 131 162 192 223 254 284 315 345 11 12 012 043 071 102 132 163 193 224 255 285 316 346 12 13 013 044 072 103 133 164 194 225 256 286 317 347 13 14 014 045 073 104 134 165 195 226 257 287 318 348 14 15 015 046 074 105 135 166 196 227 258 288 319 349 15 16 016 047 075 106 136 167 197 228 259 289 320 350 16 17 017 048 076 107 137 168 198 229 260 290 321 351 17 18 018 049 077 108 138 169 199 230 261 291 322 352 18 19 019 050 078 109 139 170 200 231 262 292 323 353 19 20 020 051 079 110 140 171 201 232 263 293 324 354 20 21 021 052 080 111 141 172 202 233 264 294 325 355 21 22 022 053 081 112 142 173 203 234 265 295 326 356 22 23 023 054 082 113 143 174 204 235 266 296 327 357 23 24 024 055 083 114 144 175 205 236 267 297 328 358 24 25 025 056 084 115 145 176 206 237 268 298 329 359 25 26 026 057 085 116 146 177 207 238 269 299 330 360 26 27 027 058 086 117 147 178 208 239 270 300 331 361 27 28 028 059 087 118 148 179 209 240 271 301 332 362 28 29 029 - 088 119 149 180 210 241 272 302 333 363 29 30 030 - 089 120 150 181 211 242 273 303 334 364 30 31 031 - 090 - 151 - 212 243 - 304 - 365 31

# Julian Date Calendar (For Leap Years Only)

Exhibit 3.14.2-35 Julian Date Calendar (For Leap Years Only) Day Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Day 1 001 032 061 092 122 153 183 214 245 275 306 336 1 2 002 033 062 093 123 154 184 215 246 276 307 337 2 3 003 034 063 094 124 155 185 216 247 277 308 338 3 4 004 035 064 095 125 156 186 217 248 278 309 339 4 5 005 036 065 096 126 157 187 218 249 279 310 340 5 6 006 037 066 097 127 158 188 219 250 280 311 341 6 7 007 038 067 098 128 159 189 220 251 281 312 342 7 8 008 039 068 099 129 160 190 221 252 282 313 343 8 9 009 040 069 100 130 161 191 222 253 283 314 344 9 10 010 041 070 101 131 162 192 223 254 284 315 345 10 11 011 042 071 102 132 163 193 224 255 285 316 346 11 12 012 043 072 103 133 164 194 225 256 286 317 347 12 13 013 044 073 104 134 165 195 226 257 287 318 348 13 14 014 045 074 105 135 166 196 227 258 288 319 349 14 15 015 046 075 106 136 167 197 228 259 289 320 350 15 16 016 047 076 107 137 168 198 229 260 290 321 351 16 17 017 048 077 108 138 169 199 230 261 291 322 352 17 18 018 049 078 109 139 170 200 231 262 291 323 353 18 19 019 050 079 110 140 171 201 232 263 293 324 354 19 20 020 051 080 111 141 172 202 233 264 294 325 355 20 21 021 052 081 112 142 173 203 234 265 295 326 356 21 22 022 053 082 113 143 174 204 235 266 296 327 357 22 23 023 054 083 114 144 175 205 236 267 297 328 358 23 24 024 055 084 115 145 176 206 237 268 298 329 359 24 25 025 056 085 116 146 177 207 238 269 299 330 360 25 26 026 057 086 117 147 178 208 239 270 300 331 361 26 27 027 058 087 118 148 179 209 240 271 301 332 362 27 28 028 059 088 119 149 180 210 241 272 302 333 363 28 29 029 060 089 120 150 181 211 242 273 303 334 364 29 30 030 - 090 121 151 182 212 243 274 304 335 365 30 31 031 - 091 - 152 - 213 244 - 305 - 366 31