Exception:

If the CN owner (or the spouse of the CN owner) filed a Form 8379, Injured Spouse Allocation, refer to table scenario (14) for additional information.

(6) Offsets

When the tax module reflects tax offsets and/or TOP offsets, refer to IRM 25.23.4.10.3 , Identity Theft with Offsets.

(7) Payments

Determine who made the payments.

Determine if the payments are available for refund or offset. See IRM 25.23.4.6.2.1, Statute Research.

Streamline: If made by the invalid taxpayer, move the payment to Excess Collections. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

Non-Streamline – No Move (with credit balance): If made by the invalid taxpayer OR made by the valid taxpayer and not refundable, move the payment to Excess Collections. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

Non-Streamline – Move: If made by the invalid taxpayer, move the payment to the IRSN module

(8) Economic Impact Payment (EIP) or Recovery Rebate Credit (RRC)

When EIP and/or RRC are impacted due to the filing of an invalid return, refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) – General, and its applicable subsections.

(9) American Rescue Plan Act (ARPA)

Unemployment Compensation Tax Relief

Advanced Child Tax Credit (AdvCTC)

Excess Advance Premium Tax Credit (APTC) Repayment Relief

When relief provided under ARPA provisions may be impacted, refer to IRM 25.23.4.21, American Rescue Plan Act (ARPA) – General, and its applicable subsections

(10) First Time Home Buyer Credit (FTHBC)

When FTHBC may be involved:

When a math error was set for the recapture of FTHBC and the CN owner did not receive FTHBC, see IRM 21.6.4.4.17.4, Manually Adjusting the Recapture amount.

When an invalid return claiming FTHBC was received, refer to IRM 21.6.3.4.2.10.7, First-Time Homebuyer (FTHBC) – Adjusting Accounts.

(11) Affordable Care Act (ACA)

When adjusting an account for TY 2014 or later:

Compute the Premium Tax Credit (PTC) and all related data elements. See IRM 21.6.3.4.2.12.4, Tools for Accessing ACA-Related Taxpayer Data, and IRM 21.6.3.4.2.12.7, Adjusting the Account.

Determine the taxpayer’s liability for the Shared Responsibility Payment (SRP). See IRM 21.6.4.4.20.3, Shared Responsibility Payment Overview, and IRM 21.6.4.4.20.3.1, Shared Responsibility Payment Adjustments.

(12) Combat Zone

Combat Zone accounts are identified by a -C Freeze and indicate the taxpayer is or was in a designated combat zone. The -C Freeze remains on the account even after the taxpayer is no longer in the combat zone. When a -C Freeze is present, additional research is required to determine the taxpayer’s combat zone status.

Research IDRS CC IMFOLE for the Combat indicator on Line 11 to determine the correct action to take.

Combat Indicator: 1 – The taxpayer is still serving in a combat zone. Any compliance activity, such as assessing or collecting tax, is prohibited. However, if the taxpayer has other issues or requests information, you may work these other issues and contact the taxpayer, if needed.

Combat Indicator: 2 – The taxpayer is no longer in a combat zone. Follow normal procedures to resolve the case.

(13) Discriminant Index Function (DIF) Score

Determine if the TC 976/977 return meets criteria for DIF scoring.

See IRM 21.5.2.4.23.6, Discriminant Index Function (D9F) SCORE or CLASSIFICATION “Send Return(s) to Examination for Review”. Do not refer Form 1040-EZ.

If DIF score criteria is met, all adjustment actions must be input prior to referring the case to Exam. Use Priority Code (PC) 1 on your adjustment.

Cases routed for DIF score are controlled to Examination and placed in suspense until it is returned by the Examination Classifiers or by the current established expiration period (e.g., 180 days). See IRM 21.5.1.5.1, CII General Guidelines, for additional information.

(14) Injured Spouse (Form 8379)

If the CN owner (or the spouse of the CN owner) filed an injured spouse claim, and:

You do not have the skill set to resolve the case – Do not attempt to issue a refund. Open a new CII case with Category Code "DMFC" . Assign the case to the IDRS number located on the Accounts Management Site Specialization Temporary Holding Numbers listing located on SERP. For the required fields, input the Doc Type as "Injured Spouse Claim" , use Program and Function Code "ADJ-710-97140" , "Priority 2" , and reason "Form 8379 attached" .