Note:

The Installment Amount Due will be equal to the applicable percentage (8% in years 1-5, 15% in year 6, 20% in year 7 and 25% in year 8) of the most recently posted TC 971 AC 114 amount unless a prior payment paid a portion of the installment amount that is due for the reporting year, in which case the Installment Amount Due will be less than the applicable percentage (8% in years 1-5, 15% in year 6, 20% in year 7 and 25% in year 8) of the most recently posted TC 971 AC 114. If a previous payment paid all the installment due for the reporting year, then the Installment Amount Due on the notice should be zero.

If there is a remaining IRC 965 tax liability, research to ensure all designated IRC 965 payments were properly applied to the appropriate module and accounted for. If an IRC 965 designated payment was misapplied, transfer the credit to the appropriate module and retype the notice to include the correct Total Unpaid IRC Section 965 Amount and/or Installment Amount Due.

If there was no IRC 965 inclusion and/or IRC 965(h) election made and the TC 971 AC 114 and/or the TC 766 CRN 263 were input in error, take to a lead to input the appropriate reversals in accordance with IRM 3.14.2.6.5.4.1, IRC 965(h) Adjustment Procedures, and void the notice.

If the TC 971 AC 114 amount is less than the TC 766 CRN 263, void the notice.

If the TC 971 AC 114 and TC 766 CRN 263 amounts are correct and the notice module has a credit balance, void the notice.

If the 965 liability has been accelerated due to failure to timely pay installments, void the notice. See table below for more details.

If

Then

There is a history item on TXMODA of 965ACCEL and/or the net 76X CRN 263 transactions on the module equal zero

Void the notice.

There is an open control base and one of the following history items is on TXMOD: L6154, 965/L6154, 6154SNT

Ensure the 965 amounts on the module are accurate and match the notice. If so, print the notice.

If an adjustment is needed to the module, contact the employee with the open control prior to making any adjustment and retype the notice accordingly.

If there is an indication of a transfer agreement on the module and you are unable to determine the accuracy of the notice, refer the case to the lead who will contact SB/SE Brookhaven for assistance. See the table below for information on how to identify transfer agreements on IRC 965 modules.

Transaction Code

Meaning

TC 971 AC 507

An unreversed TC 971 AC 507 indicates an approved IRC 965 Transfer Agreement. This transaction creates an MFT 83 Transferee module which mirrors the Transferor’s module. Once established any payment made towards the transferred 965 liability will be recorded on both modules until it is paid in full. TC 971 AC 507 links the transferor and transferee accounts.

TC 76X CRN 337 RC 160

Indicates a payment made to a mirrored account. This transaction code is used to cross reference (mirror) payments made towards 965(h) installments to the joint and severally liable, transferee and transferor accounts.

MFT 83

Indicates an IRC 965 liability was transferred. MFT 83 is the transferee’s module and IRC 965 payments/credits on this account should mirror the IRC 965 payments/credits on the transferor’s 965 inclusion year module until the 965 tax liability is paid in full.