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

Example:

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

For TY 2019, the timely filed TC 150 return is determined to be invalid and moved to an IRSN. The valid taxpayer files their original return (posted TC 976) on 6/1/2021 reporting income from 2 employers. The valid taxpayer files a second return (posted TC 976) on 7/15/2021 reporting income from 3 employers. This income is verifiable on CC IRPTR. The ASED will be set based on the valid taxpayer’s original return on 6/1/2021. The account will be adjusted to the allowable figures on the TC 976 return dated 7/15/2021.

Adjust the CN account to the correct return figures, as allowable.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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