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4 - Erroneous AbatementThe timely filed TC 150 return for TY 2018 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $.00 and withholding of $2,500 which posted as a TC 976. Form 14039 is included with the return. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $5,000, and withholding of $6,000. A CP 2000 proposing a tax increase of $2,000 based on unreported income is issued to the valid taxpayer’s last known

Caution:

Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States

Verify all required actions were taken prior to closing a case as previous action. Review CII case notes and/or IDRS to determine if an interim letter was issued to the taxpayer before the case was moved to IDT inventory. If an interim letter was issued and the case will be closed as previous action, refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures.

If

And

Then

(1) If the transcript is the result of an unresolved credit remaining on the module,

The credit is no longer on the module,

Input a CII case note indicating the credit was previously resolved.

If a TC 971 AC 522 UNWORK is present, reverse it with a TC 972 AC 522 IRSERR.

Update your IDRS control with the activity "PRVACTN" .

Link the case to the original CII case and close.

(2) If the transcript is the result of an unresolved credit remaining on the module,

The credit has not been addressed,

The case cannot be closed as previous action. Follow procedures in IRM 25.23.4.6.6.2, Credit Transcripts Resolution, to correct the account.

(3) If the transcript is related to prior RIVO involvement,

The case cannot be closed as previous action.

Follow procedures in IRM 25.23.4.6.6, Credit Transcripts - IDT6/IDS6, to determine the appropriate actions to take.

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▸Contents — Internal Revenue Manual Part 25. Special Topics
Internal Revenue Manual Part 25. Special Topics

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