Note:

Remember Form 8765 must be forwarded to the correct SPC based on the DLN of where the money was applied.

Input a CC STAUP for 9 cycles on balance due modules. This will prevent the generation of a notice while the transfer is being processed.

After requesting application of payment, treat the notice as if payment(s) will be applied to the module.

If the refund statute has expired, the application to move credits from Excess Collections File (XSF) must not exceed the tax liability, interest, and penalties. There can be no refund or credit elect. Timely payments will abate all but taxpayer-reported assessed penalties. However, timely payments will result in the abatement of taxpayer-reported assessed estimated tax penalties which can be identified with a TC 170 with a DLN that matches the return DLN. If the module contains a TC 170 with a DLN that matches the return DLN, use CC ADJ54 to post TC 170 .00 to prevent abatement of the taxpayer-reported assessed estimated tax penalty.

Follow local procedures if the notice module is a statute year, before routing it to the Excess Collection unit.

Figure 3.14.2-2

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The instructions for Form 8765 are as follows:

Source of Credit: Select the IDRS Control File where the credit is located. Choices are XSF or URF.

Application Type: Use M when the credit is to be applied to a Masterfile account (use N when credit is to be applied to a Non-Masterfile account or use T when the credit is to be applied to a general account rather than to a taxpayer’s account).

File Control Number: Must match the number shown on the XSF or URF record. Attach an IDRS print of CC XSINQ or CC URINQ.

Notice Indicator: Check only if Letter 2349G is to be sent to the taxpayer.