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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

The ASED does not apply on a case that has been determined a nullity. The return must be considered valid (verifiable/non-streamline for IDT) in order for the ASED to apply. Refer to paragraph (3)(b) of IRM 25.6.1.6.14, Criteria for Establishing a Statute of Limitation Period, for additional information. If the return is determined to be valid (verifiable/non-streamline for IDT), an IRSN should be assigned for the invalid taxpayer (Taxpayer B).

Take the following additional actions for the tax year(s) that will remain posted on the account. These additional actions listed in this paragraph apply ONLY to MXEN, IDT(X), IDS(X), IDI(X), SCRM, SSA2 cases. The bullet items listed here are related to the actions required on the "SSN" .

For the "from" tax year(s) account(s), the tax year(s) account(s) not being moved, change the name line on the tax year(s) to: "NOT FILED] NAMC" . "NAMC" here represents the name control of the taxpayer who owns the SSN. You will type in the name control of the SSN owner instead of typing in "NAMC" . Update the address, if applicable.

If the return that posted to the Common Number (CN), on the "from" account tax year has Self-Employment (SE) income, it must be addressed. Input CRN 878/CRN 895 and/or CRN 879/CRN 896 to zero out SE and Medicare income. Input CRN 892/CRN 899 to zero out tip income.

If an overpayment on the tax year account not being moved is over one-year old and attributable to the invalid return or payments made by someone other than the valid taxpayer (including levy payments), move such overpayment to excess collections.

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

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