Note:

Because penalties may be assessed when timely credit is transferred out of the module, Local Control File may be used to obtain the CP 260 or Adjustment notice. This will ensure the correct penalty amounts are included on a typed settlement notice.

Allow the Refund under any of the following circumstances:

The taxpayer requested the credit to be refunded.

The refund is caused by an action not requiring verification, such as an abatement of interest or penalty, or a valid Doc Code 24 or 34 credit transfer.

TC 700 or TC 706 posted to the module and another TC 670 is causing the refund.

Notice history indicates a bill was issued on the account for the refunding amount, but the module has since been satisfied.