Example:

BMFOLT for the account being reviewed shows tax (TC 150) of $100.00 the previous year and $105.00 the year before that with matching payments from the taxpayer. This is a clear payment pattern.

Review payments claimed by the taxpayer and any underpaid tax amounts.

Review liability schedules on balance due modules (IDRS research is required).

Review the NRPS package for evidence of a previous transfer to or from another TIN (Research any other TIN on IDRS if found in the NRPS package).

Several payments may be misapplied between two or more modules.

Analyze the entire account (IDRS research is required).

Multiple credit transfers may be required. When inputting a credit transfer follow the instructions in IRM 3.14.2.7.7, Credit Transfers.

If the date of the overpayment is timely for a prior year or prior quarter return use Exhibits 13-29, for due date and payment information starting at Exhibit 3.14.2-13, Form 11-C Filing (MFT 63) Information, Due Date, and Wager Schedule, and ending at Exhibit 3.14.2-29, Form 2290 (MFT 60)Tax Rates - Return and Extension Due Dates, to decide if the payment belongs on the prior module (IDRS research is required).

Transfer a payment into a full paid module only if the transfer(s) will reduce penalty and/or interest, or if the transfer into the account will overpay the module and another misapplied payment will then be transferred to a different module. Otherwise, allow the refund to generate from the notice module. When inputting a credit transfer follow the instructions in IRM 3.14.2.7.7, Credit Transfers.

Research unclaimed credits that do not fit the payment pattern for the taxpayer. A payment pattern is the taxpayer’s history of payments reviewing for amounts and timeliness.

Research the payment using RTR.

If a payment is made on the Electronic Federal Tax Payment System (EFTPS), research for a correction to an incorrect module or tax type. See IRM 2.3.70 , Command Code EFTPS and Document 6209, Section 4, Chapter 8, EFTPS.

Verify that all unclaimed, refunding TC 670 payments belong to the taxpayer.