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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

These procedures are not intended for valid returns moved to MFT 32 in error.

This procedure is limited to cases requiring expedite processing due to economic burden. All other IDT cases will be routed using established procedures.

TAS will continue to complete the preliminary research on these cases before they are routed and will ensure ALL the following criteria are met:

The issue is ID theft

The OAR is a Criteria 1-4 Economic Burden Case

The case contains an unprocessed original return with the case. See IRM 25.23.4.6.5.2, Unprocessed Documents, for additional information

All other preliminary research is completed

The unprocessed return has an IRS received date stamp when submitting to IDTVA-A, or is received in IDTVA-A within one day of receipt in TAS. All required documentation must be attached. If there is no IRS received date stamp, the date the OAR is received by IDTVA-A will become the IRS received date for the return.

If the return is already on CII, the received date will be the date the return was received in ICT

Before processing the case, employees will follow normal procedures to determine CN ownership.

If the case does not meet IDT criteria, per IRM 25.23.4, IDTVA Paper Process, or the OAR should have been sent to an area outside of the IDTVA Directorship, the employee will reject the OAR back to the assigned TAS caseworker per the IDTVA SLA Addendum and complete page 2 explaining why the OAR is being rejected.

If the case is complete and CN ownership has been validated, employees should adjust the account per procedures in IRM 25.23.4, IDTVA Paper Process. Please update the ASED as required.

The IDTVA-A Directorate will work these cases and follow specific guidance provided by SP Accounting to process the manual refund, per guidance in IRM 21.4.4.3, Why Would A Manual Refund Be Needed, and the following:

If there is no IRS received date stamp, the date the OAR is received by IDTVA-A will become the IRS received date for the return.

A copy of the unprocessed return, depending on your determination, will be submitted along with an IDRS print to show the credit.

IDTVA-A will send the original return to SP per local procedures, to expedite the processing of the TC 976 document. See IRM 25.23.4.6.5.2, Unprocessed Documents, for additional information.

IDTVA-A will monitor the case for additional closing actions needed (i.e., the posting of the TC 976 that will generate a -A freeze and the posting of the TC 841/TC 840).

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

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