Form 3623 with a Frozen Refund, and EIC and ACTC AdjustmentsThis is a Form 3623 Statement of Account with a Frozen Refund, and Earned Income Credit (EIC) and Additional Child Tax Credit (ACTC) Adjustments. This is for the tax year 12/31/2003.A statement of account is required because there is an overpayment due to a frozen refund. IRM 8.17.3.2.5 addresses how to prepare a statement of account when adjustments are made to refundable credits that are included in the definition of a statutory deficiency per IRC 6211(b)(4). EIC and ACTC are IRC 6211(b)(4) refundable credits. When adjustments are made to refundable credits that are included in the definition of a statutory deficiency per IRC 6211(b)(4), the revised liability line is computed by decreasing the corrected income tax liability amount by the amount of the corrected refundable credits. The assessment (tax on return) line is computed by decreasing the the assessed tax per return by the amount of the assessed refundable credits. These computations are shown in a footnote at the bottom of the statement of account.The revised liability line of $(2,501) less the assessment (tax on return) line of $(4,323) results in a deficiency of $1,822. Payment of $1,150 on 4/15/04 is reduced by refunds or credits on 4/15/04 of $1,449 for payments of $(299).There is an overpayment of $(2,202) computed by subtracting payments of $(299) from revised liability of $(2,501).The footnote at the bottom of the statement of account shows how the revised liability amount of $(2,501) is computed. The total corrected tax liability of $0 is reduced by the correct EIC of $1,565 and the correct ACTC of $936 for a revised liability for the statement of account of $(2,501).The footnote at the bottom of the statement of account shows how the assessment (tax on return) amount of $(4,323) is computed. The tax shown on return of $0 is reduced by the EIC shown on the return of $4,024 and the ACTC shown on the return of $299 for a tax on the return assessment amount for the statement of account of $(4,323).