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

Julie Henson has the following income:• Wages of $52,000• Unemployment compensation of $12,000$52,000 + $12,000 = $64,000 (AGI)$64,000 − $12,000 = $52,000 (MAGI)Julie Henson qualifies to exclude up to $10,200 of unemployment income. Julie will report the following:• Wages of $52,000• Unemployment compensation of $1,800• AGI of $53,800

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. Open identity theft cases will be excluded from this process.

Accounts excluded can be identified by a TC 971 AC 123 with MISC "IDTVACASE" (IDTVA case is open) systemically posted to IDRS CC IMFOLE.

Upon resolution of an IDT case that was excluded, a TC 971 AC 123 with MISC "IDTVACLSD" (IDTVA case has been resolved) will be systemically posted to IDRS CC IMFOLE.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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