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Penalty Recomputations Caused by Credit Transfers

Internal Revenue Manual Part 3. Submission Processing · 2026-10-03 edition · updated 2026-10-04 · United States

When inputting a credit transfer follow instructions in IRM 3.14.2.7.7, Credit Transfers.

Transferring timely credits into a module containing a TC 166 (FTF penalty), TC 176 (ES Penalty), TC 186 (FTD Penalty), or TC 276 (Failure to Pay) will cause these penalties to recompute and generate an adjustment notice CP 210/220. Other penalties may also recompute but will not generate an adjustment notice.

Review CC PIEST or INTST to decide whether the penalties will recompute. (See IRM 3.14.2.6.17.7 , Estimated Tax (ES) Penalty.)

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▸Contents — Internal Revenue Manual Part 3. Submission Processing
Internal Revenue Manual Part 3. Submission Processing

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