Hold Codes

Use a Hold Code for one or both of the following reasons:

To prevent a refund by freezing an overpayment (hold code 1 or 4)

To suppress the Adjustment Notice (CPs 210 or 220) (hold code 3 or 4)

Use a Hold Code 0 when the taxpayer needs to receive an adjustment notice and the overpayment should not be frozen. The table below explains some reasons to use a hold code 0.

If an

Then the taxpayer needs an Adjustment notice to explain

Adjustment will create a second refund

The adjustment and the second refund.

Original notice was mailed in error

The change to the taxpayer.

Notice Review may only use the Hold Codes in the table below:

Hold Code

Prevents Notice

Prevents Refund

Description

0

No

No

Use when no other hold code is needed.

1

No

Yes

Sets a -K Freeze to hold the overpayment until one of the following:

Doc Code 24 or 34 credit transfer posts.

A TC 830 or TC 820 posts. A Doc Code 51 TC 300 posts.

The module balance becomes zero or a debit.

A TC 29X or TC 30X posts. Caution:

3

Yes

No

Use when retyping or voiding the original notice to reflect an adjustment other than a math error increase in the taxpayer’s liability.

4

Yes

Yes

Use when the original notice will be retyped or voided because of an adjustment that will result in an overpayment, and the overpayment is to be held. Sets a -K Freeze. See Hold Code 1, above.