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:
Economic Impact Payment (EIP) - Account Balancing Adjustments
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
When manually adjusting EIP to resolve a non-streamline identity theft case or Invalid Joint Election (IJE) case, the account may need to be "balanced" by moving the EIP refund to the cross-reference account.
When a refund is moved to the cross-reference account:
The credit must be adjusted on both accounts.
A TC 971 AC 195 must be manually updated to ensure IDRS reflects the correct amount of EIP received when a TC 971 AC 199 will not be systemically placed on the account.
Manual adjustments may generate a systemic TC 971 AC 199 that can be found on IDRS CC IMFOLE. The MISC field will reflect:
REBADJ - EIP allowed or increased (TY 2021 only)
REVREB - EIP reversed or reduced (TY 2020 and 2021)
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