Because banks underfund Form 945, standard 1099-OID claims trigger an automatic Algorithm 810 refund freeze. Operating under Revenue Procedure 2002-26 Section 3.01 and Treasury Regulation § 601.503(d), the fiduciary issues a Manual Fiduciary Command via Form 4506-T (PPS line). This command forces the IRS to reallocate required overpayment credits out of the bank’s Form 1120 corporate surplus directly into their underfunded Form 945 module (formula C = A – B), satisfying Algorithm 810 matching logic and releasing the funds via IRS TREAS 310 direct deposit.
