Dual status returns filed by taxpayers in the Philadelphia Campus;

Civil Cases where a court decision has resulted in a refund to the taxpayer, are to be processed as normal on the appropriate voucher. The documents reflecting the court decision will be used as the authority for requesting the refund;

Refunds on Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax.

Refunds on Forms 1120, 1120S, or 1041 when the 45-day interest-free period is in jeopardy. Local guidelines should determine if a minimum tolerance should be considered for manual refunds involving the 45-day interest free situation;

Instances when a refund check is to be issued in a name or address other than that of the taxpayer, but is not a permanent change.

Refund of erroneous credit elect only when a hardship has been established;

Refunds which show the husband and wife’s last names are different;

Refunds of $10 million and over, (including allowable interest.) These refunds require the use of Form 3753.

Written taxpayer requests for refunds of less than one dollar. These refunds require the use of Form 5792.

Congressional inquiries concerning processing delays, and the IRS is at fault.

Offset Bypass Refunds (OBRs), if it is decided the taxpayer will suffer a significant hardship. You must use TC 971 with Action Code 36 in this situation.

TAO (Taxpayer Advocate Office) cases that meet TAO criteria and processing delays are incurred.

Treasury Offset Program (TOP) Injured Spouse Claims.

Gasohol Claims; a manual refund must be input no later than the 15th day after receipt of the claim to meet the 20-day processing time frame.

Hardship requests for refund of Master File overpayments. These requests must be accompanied by a written request or statement from the taxpayer. Discretion must be used in determining whether an actual hardship exists and warrants the extra cost of a manual refund. Hardship is imminent bankruptcy, failure to meet payroll, or other situations of similar magnitude. All managers are responsible for ensuring these criteria are not abused;

Cases on which the statute of limitations for refund is about to expire;

Tentative carryback allowances in jeopardy of meeting the 90-day processing period or the 45-day interest free period. The Tax Equity and Fiscal Responsibility Act (TEFRA), effective October 4, 1982, extends the 45-day interest free period to include carryback claims as well as tax returns. Any large claim in jeopardy of meeting the 45-day tolerance should be considered for manual refund issuance. Local guidelines should determine if a minimum tolerance should be considered for manual refunds involving the 45-day interest free situation.

See IRM 21.4.4, Manual Refunds , for more examples.

the taxpayer has no outstanding tax liabilities that must be satisfied;

a manual refund has not already been initiated through another campus;

a computer generated refund has not already been issued or is in the process of being issued;

the Refund Statute Expiration Date (RSED) has not expired. The RSED is generally three years from the Return Due Date (RDD) for prepaid credits if a return was filed, or two years from the payment due date for other payments whichever is later. If a return is not filed, then the RSED is two years from the date the tax is paid.

the account is not a "Large Corp" followed by a two digit campus indicator. If present, do not initiate a manual refund without contacting the Technical Unit at the campus.

Write OBR or Offset Bypass Refund in red at the top of the refund request.

Input the TC 971, Action 036. The transaction date must match the TC 840 date.

Attach copies of all evidence substantiating excess credit, such as a copy of the return, EIC schedule, verification of TINs, Form 4549 (Revenue agent’s report), etc.

Monitor the account and take any necessary action to stop computer generated refunds, reverse offsets, and/or take subsequent action to prevent erroneous refunds. See IRM 21.4.6 and IRM 3.17.79 for full requirements on OBRs.