Indicate taxpayer's phone number and whether taxpayer can provide a copy of Form 8379. Community property allocations are dependent upon whether the states recognized community property rights for same-sex marriage. Middle Class Tax Refund | FTB.ca.gov - California If you work at a remote call site and you don't have access to CIS or do not work injured spouse allocations, transfer the call to Application 35 using ACD = 92035 or IUP = 1035. Some Economic Impact Payments "(EIPs)" needed to be recalculated or reversed and returned by the Bureau of Fiscal Service (BFS). Under these rights taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service. A BPI is needed on these refunds, but is limited to BPI 0 and 3. TOP offsets on condition 1 scrambled SSN cases are reversed only if the wrong taxpayers money offset to the debt. If there is no DEBTOR-TIN shown, the taxpayer with the primary TIN is the debtor. BPI 7 generates on all refunds when no other condition or manual input results in the use of another BPI and the creditor agency has obtained relief from the automatic bankruptcy stay. If there is no TC 150 in the correct tax period: Reprocess the return to the correct tax module. 2) Processing any case other than injured spouse, The posted offset(s) is to Agency Code 02 and is more than 5 months old, 3) Processing any case other than injured spouse, The posted offset(s) is to Agency Code 02 and is 5 months old or less, Reverse the offset(s). See IRM 21.4.6.5.8.9, Form 8379, No Consideration Procedures, for instructions on what to include in the letter. Normal Interest rules apply when considering credit interest if all or part of the credit is subsequently refunded. 807. Request the taxpayer provide a signed copy of the Form 8379. Refund eligible for TOP offset to the Office of Child Support Enforcement and an automatic bankruptcy stay is in effect or when the creditor agency has obtained relief from the automatic stay. See IRM 21.6.6.2.54.1 Account Adjustments for the UCE. If a refund was issued and Earned Income Tax Credit (EITC) or other refundable credits (e.g. Inform the taxpayer that a note has been added to their case and they should allow 30 days to process. Use hold codes 1, 2 or 4 when creating an overpayment on an IDRS adjustment that changes the tax, credits, or payments to hold an overpayment from offsetting. Coronavirus Tax Relief, Recovery Rebate Credit and Economic Impact Inform the taxpayer that a note has been added to their account and to allow 30 days to process. Even if you owe student loans, you still can get your tax refund due to the Covid-19 pandemic. See IRM 21.4.6.5.10, Allocation of Injured Spouse Form 8379. Interest should be figured based on each taxpayers share of the TETR refund claimed on the original return. See IF/AND/THEN Chart in paragraph (5) below. If the address on ENMOD is different than the address on the Form 8379 contact the taxpayer either by phone or correspondence to verify their address. This occurs when an input TC 766 reverses a TC 898 with a debtor TIN. Often, the spouse is aware that an offset will take place and wants to know how to get his/her share of the refund. Both offsets must be subtracted from the original refund amount, TC 840/TC 846, to determine how much of the refund the taxpayers received. Calculate each spouse's share at a rate of 6.2 percent up to $400.00 for each spouse. See IRM 21.4.2.4, Refund Trace Actions. When the interest payment is present on a tax module, including its associated accrued interest amount (also posted as TC 776), and the sum was offset with TC 898, compute TC 766 as follows: Compare the injured spouses share of the joint return overpayment with the total return overpayment, determining its percentage rounded to the fifth decimal point.Example: The total of the 2019 joint return overpayment for the taxpayers is $9,500, of which $4,200 is the injured spouses share. RC 3 results from an attempt to post a TC 898 when the amount is greater than the TC 840/TC 846 with the same dates. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights. A returned refund check resulting from a Form 8379, Injured Spouse Allocation, has posted to the account (P Freeze). 807 intends that income, deductions, personal exemptions, credits, and payments shown on the joint return be allocated to the spouse to whom they belong. Honor an Offset Bypass Refund (OBR) hardship request. The "B" indicator is set when both IRS and TOP debt indicators are present. (I) Credit Interest Freeze, sometimes set by the posting of TC 150, CCC U, indicating no reply by taxpayer to IRS letter requesting missing information. See IRM 25.15.5.2 Community Property States. Prior to re-sequencing an account to a temporary number or different valid TIN, reverse any TC 898 on the "from" account if it is within 6 years from the date of original offset. The late return received date, the date of the overpayment (as determined in the preceding table), or the return processable date. California is providing broad assistance to small businesses and employers impacted by coronavirus / COVID-19, including tax deferral, loan advances, paycheck protection, debt relief, and tax filing extensions. Manual copying is not required in instances in which a correspondex letter would systemically be sent to both addresses. If a response is not received, follow IRM 21.4.6.5.8.9 , Form 8379 No Consideration Procedures. Resolve Combat Zone cases, see IRM 21.4.6.5.16, Combat Zone Cases. Return processable date (RPD) (date return was received in processable form). Before reversing any offset to Office of Child Support Enforcement (Agency Codes 1 and/or 2), see IRM 21.4.6.4.2.4, Child Support TOP Offsets. 2. The following example shows a posted TC 766, TOP offset reversal, for $550.00, resulting from an injured spouse allocation form filed by the secondary taxpayer. See IRM 21.4.6.5.12.3, TC 766 Reject Listing, for information on denied TOP reversal requests. This prevents a TOP offset to any debts owed by the secondary filer. Use HC 4 for TOP offset reversals that will result in a credit balance on the tax module. .For both federal tax debts and TOP debts, if the IRS receives the Form 8379 from the non-debtor spouse and it wasnt filed within the applicable IRC 6511 period for the claim for refund, send a 916C letter and advise the taxpayer that the IRS cannot process the allocation because Form 8379 was not submitted timely. This allows TOP to offset the refund to any debt owed by the secondary spouse and it prevents TOP from offsetting the refund to any debt owed by the primary spouse. If there is an outstanding IRS obligation for the primary or secondary taxpayer, compute the Injured Spouse refund. Reverse tax offsets in the opposite order in which they occurred. Refer to IRM 21.6.4.4.17.1, Recapture of First-Time Homebuyer Credit (FTHBC), for guidelines on the recapture. Take necessary action if refund was not received and follow refund trace procedures. The OTN begins with a "1" if the offset was for a primary taxpayer and a "2" if the offset was for a secondary taxpayer. See IRM 21.5.6.4.4, -B Freeze, IRM 21.5.2.3, Adjustment Guidelines Research, and IRM 21.5.3.4, General Claim Procedures to resolve the -B Freeze. After all adjustments have posted, attempt to merge the accounts again. See IRM 21.4.6.4.2.11, Netting TOP Offsets and Reversals. Follow the chart below to determine how much each spouse is entitled to. If this notation is not included in the remarks section, the manual refund will be rejected.

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