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.