Example:

A taxpayer’s regular tax is $5,000. The transition tax is $25,000. The TC 150 is $30,000. Because 8 percent of the transition tax is due in year one ($25,000 x .08 = $2,000), a TC 766 is posted for $23,000.

Small Business/Self-Employed (SB/SE), Accounts Management, and Notice Review leads can input adjustments on IRC 965 accounts. These manual adjustments and systemic adjustments appear the same on IDRS. These adjustments can be identified with CRN 263 with the corresponding TC 766 or TC 767 as applicable.