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.