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.