Updating the applicable IRM sections as needed

Reviewing training modules

Responding to inquiries

Tax due from original filing.

Partial agreement.

Taxable amended return.

Assessment made after the notice of deficiency was mailed.

Credit balance on the transcript as a result of an unassessed advance payment. (See IRM 8.17.3.6 for definition of "unassessed advance payment" .)

Credit balance on the transcript as a result of a frozen refund.

Payments made with an unprocessed return as a result of Substitute for Return (SFR) or Automated Substitute for Return (ASFR) proceedings.

Additional withholding credits allowable by Appeals or Counsel.

Overpayment created as a result of a decrease in tax liability (overassessment). "Overassessment" refers to when line 21 of Form 5278 or line 14 of Form 4549 or Form 4549-A reflects a decrease.

Taxpayers may claim large refundable credits which may be "frozen" by the Campus pending examination of the return.

The taxpayer may have made a payment after the mailing of the 90-day letter that has not been assessed.

A credit balance on the transcript may be due to an interim payment.

Delinquent return assessed after the notice of deficiency was mailed.

Payment assessed after the notice of deficiency was mailed.

An amended return assessed after the notice of deficiency was mailed.

Assessment based on a signed waiver.

Jeopardy assessment: A jeopardy assessment is made in situations where prior to the assessment of a deficiency or tax, it is determined that collection of such deficiency or tax would be endangered if regular assessment and collection procedures are followed.

Termination assessment: Termination assessments are very similar to jeopardy assessments except that under the provisions of IRC 6851, they are made only for the current or immediately preceding taxable year and can be made at any time prior to the due date for filing those years' returns.

Prompt assessment: A prompt assessment is made if collection appears to be at risk and the intention is to protect the government’s interest and revenue. See IRM 4.4.25, Quick Assessments, and IRM 5.1.4, Jeopardy, Termination, Quick and Prompt Assessments, for more information.

Form 3608 (Found in the "Counsel Resources" section on the Appeals TCS web site).

Copy of notice of deficiency letter, or include the date of notice of deficiency letter and list penalties by code section.

Computations - Attach either RGS settlement computations or a copy of the notice of deficiency tax computation.

The attorney should advise their manager that they think a statement of account is required for their case and why the statement of account is needed. The manager needs to approve or disapprove the request.

If approved, the approval needs to be in writing and the attorney needs to forward the approval to the applicable TCS manager. The communication to TCS needs to indicate why a statement of account is requested for that case.

The TCS manager will review the approval. If the TCS manager does not agree with the reasons given for why a statement of account is needed, the TCS manager should discuss the concerns with the Counsel manager in an attempt to reach a consensus as to whether a statement of account is needed. If a consensus cannot be reached, TCS will prepare the statement of account. Afterward, the TCS manager should elevate their concerns through the management chain of the TCS manager.

Enter amount of the return tax assessment shown on the transcript.

This is generally the TC 150 amount, unless the special format for refundable credits such as earned income credit and additional child tax credit is used. See IRM 8.17.3.3.5 for details of this format.

Enter the amount assessed for a delinquent return filed after the SFR proceedings have begun, whether the return was assessed before or after the issuance of the notice of deficiency. The assessment is generally posted with a TC 290.

Enter the amount and date of each additional assessment shown on the transcript.

Additional assessments might include assessments of partial agreements, amended returns, and the assessment of payments received after the notice of deficiency was issued.

Generally do not include assessments of penalties not shown in the notice of deficiency, and do not include interest assessments. However see IRM 8.17.3.5 for additional information.

Show amounts and dates of overassessments, including abatements, from the current transcript.

Generally do not include overassessments of penalties not shown in the notice of deficiency, and do not include interest abatements. However see IRM 8.17.3.5 for additional information.

Use the due date of the return for payments made on or before the due date, such as withholding tax, estimated tax payments, credit elects, credit transfers, etc. (Any amounts withheld, paid as estimated income tax, or otherwise paid prior to the return due date are considered to have been paid on the due date of the return.)

The payments made on or before the due date of the return may be listed separately, combined into categories (for example, all estimated tax payments totaled and shown as one amount) or all payments made by the due date of the return can be totaled, and shown as one amount on the statement of account.

Whether the payments were assessed or unassessed.

If the taxpayer designated the allocation of the payment.

If the payment was a cash bond or IRC 6603 deposit.

Refundable credits that are included in the definition of a statutory deficiency per IRC 6211(b)(4) include earned income credit (EIC), the refundable additional child tax credit (ACTC), first time homebuyer credit, recovery rebate credit, fuel tax credit, etc. See IRM 8.17.5.17.2, Adjustments to Refundable Credits Included in the Statutory Deficiency, for a complete list of IRC 6211(b)(4) refundable credits.

Adjustments to these credits require a special format per IRM 8.17.3.3.5 .

If the format in IRM 8.17.3.3.5 is used, then the IRC 6211(b)(4) refundable credits aren't entered in the payments section on the statement of account.

If additional withholding credits not shown on the transcript are allowed and a statement of account is prepared, include the amounts on the statement of account in the payments section using the due date of the return.

It is helpful to include a notation that these withholding credits are in addition to the amounts shown on the transcript.

Enter refund amounts such as TC 846 (computer generated refund) or TC 840 (manual refund).

Enter overpayment credits transferred to another account. The most common transaction codes are TC 826 or 820 and TC 836 or 830.

The use of the word "Credit" on Form 3623 in the "Refunds or Credit" section does not mean withholding credits, earned income credit, additional child tax credit, advance on child tax credit, rate reduction credit, or any other refundable credit.

List each refund or credit separately by date and transaction code (TC). (A TC 836 would be listed separately from a TC 846, even if they both have the same date, since they are different types of transactions.) It is not necessary to describe the type of refund or credit on the statement of account.

Do not show on Form 3623 any overpayment interest amount (TC 770 or TC 776) included in a TC 840 or TC 846 refund total. Any refundable interest (TC 770 or TC 776) included in the TC 840 or TC 846 totals must be subtracted before entering the remaining TC 840 or TC 846 amount on the Form 3623.

When the refund or credit is posted before the return due date, the actual date on the transcript or the return due date can be entered on the statement of account.

Various legislation over the years has been enacted to provide taxpayers with advance refunds. The most recent advance refund was the Economic Stimulus Payment (ESP). These advance refunds are seldom adjusted. They are posted with a TC 766, and the CRN identifies the type of credit.

Include the TC 766 advance refund amount as a payment in the payments section of the statement of account.

Include the related TC 846 refund amount in the "Refunds or Credit" section of the statement of account.

Generally the date to include on statement of account for any of these advance refunds is the date shown on the transcript for the TC 766 amount, not the due date of the return.

Tax Year Ended - Enter any tax year that has an overpayment. It can be an overpayment in tax or an overpayment in a penalty, or both.

Year – This field may be omitted since Counsel's stipulations no longer include the year of the IRC. If completed, enter "1986" . This field is for the latest complete revision of the Internal Revenue Code, which is considered to have been in 1986.

Section - The applicable IRC sections must be entered at the bottom of Form 3623. IRC 6512 gives the Tax Court authority to determine an overpayment. IRC 6511 imposes the limitation on the amount of the overpayment. See Exhibit 8.17.3-2. This exhibit provides an explanation of the overpayment code sections to use for statements of account.

Date Return Filed - Obtain the date from the transcript. For Substitute for Return (SFR) or Automated Substitute for Return (ASFR) cases, you can indicate that the taxpayer did not file a return by using "SFR" , "ASFR" , "No return filed" , or "None" .

Date Agreement Signed - This is the date the Form 872, Consent to Extend the Time to Assess Tax, or Form 872-A, Special Consent to Extend the Time to Assess Tax, was countersigned by the IRS, not the date the taxpayer signs the form. The AO or Counsel may need to provide the TCS with this information.

Statute Extended To - Obtain this date from the statute extension Form 872. If Form 872-A was used, just enter "872-A" instead of a date. The AO or Counsel may need to provide the TCS with this information.

Date Deficiency Notice Mailed - This is the “Letter Date” field on the notice of deficiency Letter 894 and Letter 901. The AO or Counsel may need to provide the TCS with this information.

Date Claim Filed - Complete when a valid claim for refund was filed before the notice of deficiency was issued. The AO or Counsel may need to provide the TCS with this information.

Amount of Claim - Use the amount of refund requested on a valid claim for refund filed before the notice of deficiency was issued that has not been allowed. For a frozen refund case, use the amount of refund shown on the taxpayer’s return. (Use the amount of refund shown on the taxpayer's return even if part of the claimed refund has already been refunded.)

Total overpayment is barred - See IRM 8.17.3.3.6.

CDP case IRM 8.17.3.3.7 .

If the total overpayment or deficiency is barred and a footnote included on the Form 3610 or the tax computation form, then no notation on Form 3623 is required.

However if a statement of account is prepared, the barred amount may be notated with an asterisk (*) and a footnote added to Form 3623. The following is an example of the footnote on Form 3623 for a barred overpayment case:

The total amount may be asterisked (*) and a short summary of the barred amount added to the bottom of the Form 3623. The following is an example of the summary for a case when only part of the overpayment is barred:

When there is an overpayment for a CDP case, the TCS is not required to complete the section at the bottom of Form 3623. The Settlement Officer, AO or Counsel attorney will need to determine the information to include in the stipulation.

Notations to indicate a barred overpayment or deficiency are not required on a statement of account prepared for a CDP case. The Settlement Officer, AO or Counsel attorney will need to determine the appropriate information to include in the stipulation.

Income tax return

Date of birth of any dependents (if applicable)

Household income (including income of those dependents whose income meets the income tax return filing threshold)

Months during the taxable year the taxpayer was or was not covered by insurance including dependents (if applicable)

Form 1095-A, Health Insurance Marketplace Statement (if applicable)

Form 1095-B, Health Insurance Coverage (if applicable)

Form 1095-C, Employer-Provided Health Coverage (if applicable)

Form 8965, Health Coverage Exemptions (if applicable)

If the IRS is holding a cash bond made under Rev. Proc. 84-58 and not subsequently designated as a deposit under IRC 6603:

If the IRS is holding a cash bond deposit on 10/22/2004, treat the deposit as made on 10/23/2004 for purposes of IRC 6603 if the taxpayer provides a written statement before 05/27/2005 which identifies the amount as a deposit under IRC 6603.

In the case of a deposit that is made after October 22, 2004, and before March 28, 2005, treat the deposit as made on the date remitted for purposes of IRC 6603(d) if the taxpayer provides a written statement before 05/27/2005 which identifies the amount as a deposit under IRC 6603.

In the case of a deposit in the nature of a cash bond previously made pursuant to Rev. Proc. 84-58 where the taxpayer’s statement is received on or after 05/27/2005, treat the date the Service receives the written statement as the date the amount is deposited for purposes of IRC 6603(d).

Use the wording similar to the following on deposits made under IRC 6603 on or after the March 28, 2005 effective date of Rev. Proc. 2005-18:

A cash bond is present if a 900 - 999 appears in digits 9, 10 and 11 of the DLN next to the TC 640 amount. It looks similar to the following:

Remittances submitted after October 22, 2004, identified by taxpayers as IRC 6603 deposits are processed and posted in the same manner as the Service previously processed a cash bond remittance. Deposits are identified by a TC 640, Blocking Series 999 and Designated Payment Code (DPC) 12.

See IRM 20.2.4.8.1, Cash Bonds, and IRM 20.2.4.8.2, IRC 6603 Deposits, for additional information.

Because IRC 6603 deposits are processed and posted in the same manner cash bond deposits were previously processed, identifying deposits on a transcript that have been converted from cash bond deposits to IRC 6603 deposits requires a careful analysis of the case file.

Review the case file for the written statement that the taxpayer must submit to convert these previously posted cash bonds to IRC 6603 deposits.

The Appeals Officer or Counsel Attorney may need to contact the taxpayer to obtain additional information to verify if a cash bond deposit was converted to an IRC 6603 deposit, and the date of the conversion.