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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:

ARPA – Excess Advance Premium Tax Credit (APTC) Repayment Relief

Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States

Section 9662 of the American Rescue Plan Act (ARPA), enacted on March 11, 2021, provides economic relief to taxpayers who would otherwise be required to increase their tax liability by the amount of excess Advance Premium Tax Credit (APTC) received.

The rule requiring the repayment of excess APTC has been suspended for tax year 2020 only.

Form 8962, Premium Tax Credit, is used to determine the correct amount of credit and compute any excess APTC the taxpayer received. Taxpayers are being instructed not to file this form when filing the tax year 2020 return.

A systemic relief process will be used to correct certain accounts for taxpayers who filed their tax year 2020 return prior to the enactment of ARPA. Certain cases in IDTVA inventory were excluded from this process:

Accounts with a -A Freeze on the tax year 2020 module

Accounts excluded from the unemployment income tax systemic relief process

Taxpayers who filed their tax year 2020 return prior to the enactment of ARPA are not required to file an amended return to receive this relief.

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

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