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

(Refund related IDT): The taxpayer files their 2018 return expecting a refund. When the taxpayer calls to check on the status of their refund, they are informed it has been applied to a balance owed for the 2012 tax return filed. The taxpayer submits Form 14039, Identity Theft Affidavit explaining the first time they filed a return was for tax year 2017.

Tax offsets must be resolved as part of the corrective actions for Identity Theft and RPM cases and will be treated as payments in most cases. For more information on credit availability for refund or offset, see IRM 25.6.1.10.3.3.2, Limitations on the Amount of a Claim. See IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF), for procedures related to credits that are not refundable and credits that are refundable but have been moved to XSF in error. Do not input a tax offset reversal unless criteria in (4), (5), or (6) is met.

Get a plain-English answer with a citation back to this text.

Ask AI about this code

Export this section

▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.