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.