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

The -C Freeze remains on the account even after the taxpayer is no longer in the CZ. When working a case that contains a -C Freeze, additional research is required to determine the taxpayer’s CZ status. Research CC IMFOLE for the Combat indicator on Line 11 to determine the correct action to take based on the following:Combat Indicator: 1 – Taxpayer is still serving in a Combat Zone. Any compliance activity (i.e., assessing or collecting tax, etc.) is prohibited. However, other issues or requests for information may be worked.Combat Indicator: 2 – The taxpayer is no longer in a Combat Zone. Follow normal procedures to work the case.

There is a balance owed on the CN module. See IRM 25.23.4.11.1, Collection Statute Expiration Date Expired or Imminent, to determine if the module meets the exception for treatment as No Move.

The tax year account has an overpayment that must be refunded. The CN owner is due a refund from the module being reviewed.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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