Note:

Specific Review Credit Elect: If a Credit Elect (TC 836) has offset from the notice module to the next module (TC 716), and a debit balance results when a misapplied payment is transferred, reverse the amount of offset needed on the notice module. Reverse offset with TC 832/712.

Specific Selection Key Review: Follow applicable procedures above to review, research and resolve CPs 267/268:

Selection Keys 01 or 03 - CP 267 overpaid for $250,000.00 or more: If the taxpayer claimed at least a $1,000,000.00 but less than $10,000,000.00 refund initiate a manual refund to avoid additional credit interest. If additional unclaimed credits remain on the module, do not release the Q- Freeze. Retype the notice to reflect the unclaimed payments. (Do not address the $1,000,000.00 manual refund because the taxpayer is expecting it.) However , if the refund is questionable in nature and taxpayer intent cannot be decided, print the notice.

Selection Key 11: The overpayment amount is equal to or greater than 100 times the tax liability - verify tax amount for decimal error, transposition error, or transcription error. If the tax is incorrect, adjust on CC REQ 54. For Forms 941, 943, 944, and 945, compute FTD penalty on CC FTDPN and assess if penalty amount is ≡ ≡ ≡ ≡ ≡ ≡ or more. See IRM 3.14.2.6.7.1.3, Decimal Point Errors Review and Correction, for more information.

Selection Key 18: TC 186 and Schedule Indicator Code (SIC) 1 with Schedule B attached to return - Ensure the criteria for SIC 1 is met. If the liability schedule has been disregarded incorrectly or transcription errors are found, verify addition on the Schedule B. If the schedule is valid, compute the FTD penalty on CC FTDPN and adjust penalty according to the computation.

Selection Key 34 - Select if the overpayment amount is equal to the TC 716/TC 710 +/- $10.00 before penalty and interest. If so, release credit and apply Label 22.

Selection Key 12: The overpayment amount is between $500.00 and $24,999.99 and no other CP 267 / CP 268 selection criteria are met.

Selection Key 36: When the CP 267 / CP 268 notice amount is $500.00 or more and a TC 766 or TC 806 is present.

Notice Disposition:

Void if returning to taxpayer's figures.

Void if TC 976 or TC 971 (AC 010) is posted or pending.

Print if no changes are made, no action is taken on the account, or if a determination to transfer or release the overpayment cannot be made.

Retype CP 267 / CP 268 to the appropriate notice based on corrective actions taken on the module and: * If a math error is found, add the appropriate TPNC(s), that clearly states the taxpayer’s error, to the retyped notice (CP 268 or other math error notice as appropriate if no credit discrepancy remains). * OLNR will populate the fields depending on which notice the CP 267 /CP 268 is being converted. * Use a Hold Code 3 or 4 on an adjustment to prevent another notice when retyping the original notice or use CC NRP97 to intercept the next notice with the Local Control File. See IRM 3.14.2.5.4, NRPS Local Control File, and IRM 3.14.2.5.4.1, NRP97 Input Information for directions. * Use CC ACTON to enter a history item on IDRS when retyping, voiding and/or labeling a notice. If retyping to a different notice, include both CP numbers in the history item, such as CP267TO161 as an example. * If a balance due notice is held past the notice cycle, update the pay by date to the current cycle pay by date. Update the balance due, penalties, and interest to the 23C date. Refer to the Posting Cycle Chart in the BMF Notice Review Job Aid 2533-701. * For additional instructions refer to IRM 3.14.2.7.10, Notice Disposition.

Apply Label 22 in OLNR only when releasing a credit elect TC 716/710, TC 700 credit from another module, rolled payments(s) or transferred in payments(s), COBRA, or HIRE credit TC 766. (See IRM 3.14.2.6.8 (10), Q- Freeze Retype Condition Chart).