Note:

If a TC 650 or 660 is pending and the payment is dated later than the last day of the notice module, the payment may roll to the next period or into the FTD module. Check CC BMFOLT; a TC with a dollar amount .00 indicates the credit rolled while attempting to post. If the rolled payment belongs on the notice module, then transfer the payment back into the notice module. Decide if other payments will be transferred out and excess credit released.

If

Then

The taxpayer indicates on their return to apply credit to the next quarter (year)

Manually transfer the amount requested and void/retype the notice as appropriate.

There is no indication because the return does not show either a refund or credit elect box is checked.

Print the notice.

If the CCC is set to E but there is no credit available or the balance on the return is zero.

Print the notice.

If a TC 670 and TC 570 with the same DLN created the overpayment, look for an incoming correction to the original return (i.e., pending TC 976, TC 971 (AC 010) or pending TC 150). If present, void the notice. If not present, print the notice.

Researching CP 267 / CP 268

Use the NRPS notice module data (including liability schedule, if available) to decide which credit(s) or part of a credit created the excess credit discrepancy. Subtract the total credits claimed on the return from the actual total credits posted.

If prior history indicates the taxpayer should be liable for tax but the notice module contains a TC 150 for $.00 and not all fields in BRTVU are $ .00, you must follow procedures to set a -R Freeze on the account. See the case processing table below and IRM 3.14.2.6.7.2(13), Credit Discrepancy - Excess Credits, for more information.

Case Processing

1. If CCC F, do not set the -R Freeze

2. Print the notice in cycle

3. Input REQ77 TC 570

Review other NRPS modules to decide if the unclaimed credit on the notice module is claimed or belongs on another module.

Review the return (if included in the NRPS package) for any explanation of the unclaimed credit.

Research the NRPS package and the return (if included in the NRPS package) for any indication of another TIN. If another TIN is found, research IDRS to decide if the unclaimed credit belongs on the other TIN.

If a payment(s) rolled or was transferred in from another module or TIN creating the overpayment, verify there is no balance due or pending assessment on that module or TIN. If a -A Freeze is on the losing module, do not release the Q- Freeze. Print the notice. (Requires IDRS research.)

If the date of the overpayment is timely for an earlier tax period or is timely and the payment amount is in-line for another MFT, research to decide if the payment belongs on the earlier tax period or other MFT. (Requires IDRS research if the prior tax module or other MFT is not on NRPS.)

Compare the tax liability data on the notice module with credits posted on other modules. If the tax matches credits posted timely on another module, decide if the return posted to an incorrect tax period and should be reprocessed. (Refer to IRM 3.14.2.6.18 Reprocessing Returns.)

If a payment does not appear to belong to the taxpayer, use RTR or CC EFTPS definer E to verify that the payment belongs to the taxpayer. Review the check and voucher (if applicable) for an indication of another TIN or for correct posting of the payment. Follow instructions below for Q- Freeze resolution and notice disposition.

Resolving CP 267 / CP 268 Q- Freeze - Releasing Q- Freeze:

If the overpayment is caused by a rolled payment and the module that the credit rolled from now has a -A freeze or pending TC 976, print the CP 267. Do not release the credit (Q- freeze).

Input TC 290 .00, Blocking Series 15 or 17 for MFT 05, HC 3, PC 4, NSD, on CC REQ54 to release the Q- Freeze if the overpayment amount is $10.00 or more in the following situations listed in the table below:

IF AN UNCLAIMED OVERPAYMENT IS CAUSED BY

THEN RELEASE THE CREDIT AND

Credit Elect TC 716/710

TC 700 credit from another module

Rolled payment (99 in DLN)

Payment transferred in (Doc 24/34)

COBRA Premium Assistance Credit TC 766

HIRE Credit TC 766

Apply Label 22. The TE must look for the actual, specific, unclaimed overpayments that are exact or within $10.00 of the overpayment.