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20.2.8.3
(08-01-2006)
Manual Computations
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Do not unnecessarily restrict
accounts; ensure that TCs 340/341 and TCs 770/772 are used appropriately.
Management is required to perform random reviews of cases to verify that they
are being restricted/computed correctly.
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When manually computing interest,
always attach the computation and the reason for the action taken to the adjustment
source document.
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When abating interest or inputting a TC 340 for
zero amount, provide the reason on the adjustment source document.
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It is not necessary to input manual debit interest
restriction transaction codes (TC 34X) in ADJ54 or ADJ47 with a blocking series
that will create a refile DLN if sufficient documentation is
attached to the adjustment source document.
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All manual debit interest transactions input through
ADJ54 or ADJ47 must have an interest-to-date in the DB–INT–TO–DT
field (MMDDYYYY format).
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Use the non-restricting TC 190 for quick and prompt
assessments when Master File can compute the interest.
Note:
A reversal of a Gas Tax Credit(s) will require a manual
computation and restriction of interest if the taxpayer signed a Form 870,
Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and
Acceptance of Overassessment.
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Transaction code (TC) 342 removes the interest
restriction previously set by either a TC 340 or TC 341. TC 342 must be input
for zero amount. Master File will consider all posted TCs 19X, 34X, and 33X
amounts when assessing or abating additional interest as a result of a recomputation.
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TC 342 may NOT be input without
first securing the source document for the TC 340/341 that created the interest
freeze.
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The TC 342 may be input only if the TC 340/341 restriction
was unnecessary.
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A TC 340 .00 may indicate net rate interest netting.DO NOT INPUT TC 342.
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When inputting TC 342, it is not necessary to use
a blocking series that will create a refile DLN if sufficient
documentation is attached to the adjustment source document
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Attach a copy of the source document for the TC
340/341 to the TC 342 adjustment document.
Caution:
TC 342 will reverse
ALL restricted interest transactions on the module.
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