If the return was not full-paid or overpaid.

If there is a record of an additional assessment having been made without a record of payment.

Refund-only Form 1331, Notice of Adjustment and strictly credit and abatement Form 1331 should be blocked separately. If there is a combination refund, credit or abatement on the Form 1331, Notice of Adjustment this is blocked separately from either of the above. Form 1331 should be completely filled out, with the exception of the schedule number and date certified, down to and including the "Total abated and credited" line. The name and address and refund amount should be typed in and all other information should be either typed or written with a pen. They should be neatly prepared without corrections or deletions. The first name line on Estate Tax cases must show the name of the person to receive the check. A transcript of the account may be used for the record of assessment.

Compute the interest allowable on refunds, using the applicable space on the back of Form 1331, Notice of Adjustment. Enter in the "date" column the date to which interest is computed on the overpayment. Allowable interest is computed from the paid date or the due date, whichever is later, to the schedule date if a refund is involved, or the due date of the other account if a credit is involved.

If the account is not paid, the overpayment is entered as an abatement on the Form 1331, Notice of Adjustment. A copy of the ULC or a certified transcript of account is to be stapled to the reverse side of Form 1331, Notice of Adjustment for the account to be abated and to the posting copy. If the account is in "Notice" status, the list week is to be shown.

If the account is paid but there are other outstanding accounts for the same taxpayer, the overpayment is entered as a credit on Form 1331, Notice of Adjustment. This will normally result in an accrual of interest or an abatement of interest on the account receiving the credit. If the account receiving the credit is another NMF account and there is enough credit to apply to accrued interest, the interest can be accrued on Form 1331, Notice of Adjustment by entering it in the credit column, circling the amount in red on the posting copy, and entering code "Al" adjacent to the interest figures. When overpayments are credited to written off accounts, use code "TA" adjacent to the figure in the credit column and circle in red the amount on the posting copy of Form 1331, Notice of Adjustment. For credits applied to outstanding liabilities, enter on separate lines in the "Amount Credited" column that part of the unpaid liability, tax, penalty, and interest which are to be satisfied from the current overpayment. The status of the NMF account must be entered on the posting copy of Form 1331, Notice of Adjustment. If an abatement of interest is involved, it is necessary to prepare a Form 1331-B, Notice of Adjustment to decrease the interest on the other account.

If the overassessment is on an account that is paid in full, and there are no other outstanding accounts for the taxpayer, the overpayment is scheduled for refund.

If interest was assessed on the account that has an overpayment, interest should be decreased proportionately unless a restricted condition prohibits it. An exception is encountered when an Estate Tax Form 706, U.S. Estate Tax Return assessment is paid by treasury bonds. In these situations send a copy of page 1, of Form 706 to the service center Accounting Branch with a memorandum giving all pertinent information. Interest will not be computed on these cases.

Assessment: Interest is computed on the assessment from the due date of the deficiency to the date the overpayment was available. Any amount not covered by credit will have interest computed in the normal manner. If the available date of the overpayment is before the due date of the assessment, no interest is due on the assessment.

Overpayment: Allowable interest is computed on the overpayment from the paid date or the due date of the return, whichever is later, to the due date of the deficiency. If the deficiency is due before the available date of the overpayment, no interest is allowed on the overpayment unless the overpayment is greater than the assessment(s). Then, interest is allowed on the balance in the normal manner. Interest is allowed on the overpayment applied to interest assessed on a deficiency for another period to the date the interest is assessed, except no interest can be allowed past the schedule date.