Exception:

An adjustment with a Hold Code 3 will not suppress a CP 260.

See IRM 3.14.2.7.7 (Credit Transfers), regarding procedures when inputting multiple corrective actions (such as a tax adjustment and a credit transfer or an in and out credit transfer).

Any tax examiner reviewing a pending transaction on the notice module must decide:

Which penalties will recompute?

Which notices will generate?

Should the notices be mailed?

Will the notice module be overpaid, refunding, underpaid, or even-balance?

What is the proper disposition of the original notice?

Review the CC BMFOL notice module for the posting of pending credit or debit transactions

If a transaction posts on CC BMFOL, any recomputation of penalties and interest will also show on that module. However, any balance showing on CC BMFOL is computed to the date indicated on that module and will not be used on a retyped or labeled notice. Use CC INTST or CC COMPA/COMPAF.

If a transaction is posted on CC BMFOL, any refund or offset occurring as a result will also generate a notice.