Note:

Refer to Exam for deficiency processing.

1. The IRS makes an incorrect tax assessment (TC 150) on Form 940 or Form 941. 2. The IRS makes an incorrect adjustment to tax (TC 29X or TC 30X) on Form 940 or Form 941.

The Erroneous Refund relates to any error not included in the above categories.

D See IRM 21.4.5.5.5, Overview of Category D Erroneous Refunds.

1. A misapplied payment (TCs 6XX). 2. Incorrect refundable credits (HCTC) or other credits not included in Category B. 3. TC 840 and TC 846 posted for the same overpayment, or 4. Refunds issued after expiration of the Statute of Limitations, or 5. Entity errors.

Category A1 :Rebate Erroneous Refunds