Note:

TC 570 on the debit side of a credit transfer suppresses the CP 260 but does not suppress a CP 210 or CP 220. Hold Code 3 input on CC REQ54 does not suppress CP 260.

Use the NRPS package and IDRS to review CP 260 for possible resolution of the debit balance.

Check all other tax modules for a credit claimed on the notice module. If located and available for transfer, input the credit transfer. Check NRPS and the tax module on IDRS for pending (AP, PN, RS, UP, and TP ) transactions. Follow the table below for notice disposition and possible account actions.

If

Then

The credit will satisfy the debit balance (overpay, even balance, or balance due less than ≡ ≡ ≡ ≡)

Void the notice.

The credit will not satisfy the entire debit balance, and penalties will not recompute

Label the notice with Label 3. Input CC STAUP if necessary.

The credit will not satisfy the entire debit balance but penalties will recompute (TCs 166, 186, 176 or decrease TC 276)

Void the CP 260 and allow the next adjustment notice to generate to the taxpayer. Input CC STAUP if necessary.

If the credit is unpostable on the notice module or another module

Input CC STAUP for 9 cycles. Notify Unpostables by utilizing CCs UPTIN, UPDIS, and UPCASZ. Follow the above for correct notice disposition.

Check the tax module on NRPS and IDRS to decide if the credit needed has offset (TC 826/706). See the table below to determine account actions and notice disposition.

If

Then

TC 826 generated from another module in the notice cycle

1. Reverse enough of the offset to cover the debit balance (if available). 2. Transfer the credit to the notice module. 3. Void, retype or label the CP 260, as applicable. 4. Void CP 138. (Retype if only part of the offset was reversed.) Pull and void or retype CP 128 if it generates.

TC 826 offset in a prior cycle from the notice module or from another module

Do not reverse the offset unless the credit is refunding or available for reversal, because the taxpayer has previously received the CP 138 (notification of the offset).

TC 856 (offset of generated interest) and TC 776 (generated interest) are present and the offset is reversed.

Use CC ADD24 to reverse TC 856 with TCs 731/851. Then use CC REQ54 to reverse TC 776 with TC 772 (Hold Code 3).

Check the tax module for a prior cycle refund. Follow the table below for CP 260 notice disposition.

If

And

Then

The refund was deleted and the TC 841 will satisfy the debit balance

Void the CP 260 and input CC STAUP for 9 cycles. (STAUP is not required if TC 841 has posted on CC BMFOLT.)

The refund was deleted but the TC 841 will not completely satisfy the debit balance

A notice or a refund previously generated

Retype the CP 260 with the current account information.

The refund was deleted but the TC 841 will not completely satisfy the debit balance

A notice or a refund did not previously generate

Retype the CP 260 to the appropriate settlement notice.

The case control history shows a category 3913

Void or retype the CP 260 using the above criteria. Input CC STAUP for 9 cycles.

The refund (TC 846 was not deleted and a category 3913 is not present).

Print the CP 260.