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.

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: