Note:

Always use appropriate Hold Code to prevent another notice from generating.

Compare the tax on Federal Insurance Contributions Act (FICA) wages with adjusted total of FICA taxes.

Check for possible processing errors such as: FICA adjustment on withholding not recognized during processing and created a balance due notice for twice the amount.

On Form 941, if the difference between the overpayment on the account and the credits claimed by the taxpayer is the same as the TC 716 (prior year credit) amount, verify no payments are misapplied. Once all payments are researched and no other issues are identified, intercept the refund and adjust the account. The Form 941 has been transcribed incorrectly. The taxpayer’s claim of credit elect from the prior year on the form has been transcribed as an additional credit, TC 766.

Review other accounts for TC 706 (BMF) for possible offsets.

If TC 826 present in module and action offsets part or all of credit to another module but actually belongs on another tax period, reverse TC 826. Void or retype the offset notice, CP 138 or 838.