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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

Addresses on taxpayers’ accounts may have been updated multiple times throughout the pandemic. In an effort to ensure determinations of receipt are correct, it is suggested IDRS CC FINDS is used to compare address updates with the cycle date of the TC 846 for the refund in question. This CC provides a long-term history of the taxpayer’s address and cycle dates for each change.

If the source used to determine eligibility was SSA, RRB, SSDI, or VA, the EIP was issued as direct deposit or paper check to the valid taxpayer, depending on how the taxpayer normally receives their benefits.

Certain accounts not impacted by IDT are also required to be reviewed. Use the table below to determine who received the EIP when the source used to determine eligibility was the return information for tax year 2020, 2019, or 2018, the refund was issued or offset to child support, and the case is not impacted by identity theft. Refer to IRM 25.23.4.20.3, Economic Impact Payment (EIP) - Adjustments, for required case actions.

If

And

Then

(1) MXEN determination,

EIP was issued,

Refer to IRM 21.6.2.4.7, Economic Impact Payment (EIP) and Multiple Taxpayers Using the Same TIN.

(2) IJE determination,

EIP was issued by direct deposit,

The valid taxpayer did not receive their EIP, unless the payment was issued after the CTCUP was used by the reporting taxpayer to update the direct deposit information.

(3) IJE determination,

EIP was issued by paper check or pre-paid debit card,

Review the address, including the cycle date of the last change, to determine who the payment was mailed to.

EIPs issued on accounts with non-tax-related IDT and NO IDT determinations (excluding the scenarios in paragraph (7) above) may require specific actions to address the EIP. For additional information, refer to IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4, or IRM 25.23.4.10.8, No Identity Theft (NOIDT) Determinations, as applicable. When the taxpayer erroneously used the Non-Filers Tool and filed an additional return to correct their account, refer to IRM 21.5.3.4.17, Amended Economic Impact Payment (EIP) Return. Document your determination in a CII case note.

Refer to IRM 25.23.4.20.1, Economic Impact Payment (EIP) - Account Research, paragraph (6) for the reason codes that will be used for manual adjustments to EIP. These adjustments may also include reason code (RC) 000.

Manual adjustments using the CRNs for EIP create a systemic TC 971 AC 199 posted to the entity. The MISC field will reflect the following literals:

REBADJ - Additional EIP allowed

REVREB - EIP reversed or reduced

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

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