Note:

Your prior history research is limited to 2 years.

TC 846 is present on the account

Follow instructions above in IRM 3.14.2.6.7.2 (13), Credit Discrepancy - Excess Credits.

Prior history indicates taxpayer is liable for tax and payments are posted to the module

There is no posted or pending TC 976 on the module and TC 846 is not present

Void the notice.

Input a REQ77 TC 570 to set the -R freeze.

Add ELF150ZERO as an additional History Item.

Prior history indicates taxpayer is liable for tax and payments are posted to the module

There is no posted or pending TC 976 on the module and TC 846 is present

Void the notice.

Delete the refund using CC NOREF.

Input a REQ77 TC 570 to set the -R freeze.

Close base and input ELF150ZERO as Case Activity (history).

Prior history indicates taxpayer is liable for tax and payments are posted to the module

If a pending or posted TC 976 is on the module and no TC 846 is present

Void the notice.

Add ELF150ZERO as an additional History Item.

Research indicates there is a partial offset of the refund and a CP 138 has generated in the same cycle as the notice cycle

There is no posted or pending TC 976 on the module and a TC 846 is present

Print the notice and the CP 138. Do not reverse the offset.

Use the table below to determine if the refund should be released to the taxpayer.

If:

Then:

The excess credit is timely and in line with other posted credits in the module and does not belong on any other module

Allow the refund to release and print the notice.

The excess credit is an unclaimed Credit Elect (TC 716 or TC 710)

Allow the refund to release and print the notice.

The excess credit is an extension payment that does not belong on another module

Allow the refund to release and print the notice.

Information on the return explains the excess credit or indicates the taxpayer is requesting a refund for the amount of the excess credit

Allow the refund to release and print the notice.

CCC F- Final Return and payments or credits are not posted on next module

Allow the refund to release and print the notice.

There is no indication an amended return will post to the notice module

Allow the refund to release and print the notice.

The excess credit is an unclaimed Credit Elect (TC 716 or TC 710)

Allow the refund to release and print the notice.

The excess credit is an extension payment that does not belong on another module

Allow the refund to release and print the notice.

Information on the return explains the excess credit or indicates the taxpayer is requesting a refund for the amount of the excess credit

Allow the refund to release and print the notice.

Form 1120/1120-S - Specific Review:

If an MFT 02 return has been filed with a TC 150 .00 and a TC 610 payment is refunding, it may be a Form 1120-S. In some instances, a Form 1120-S may not have tax liability, and the income reported is taxed to the shareholders on their individual tax returns (Schedule K-1).