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:
Identity Theft with TOP Offsets
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
Service-wide guidance for addressing accounts with a TOP offset is located in IRM 21.4.6.4, Refund Offset Research.
There are two types of refund offsets:
Federal tax offset
Treasury Offset Program offset (effective 01/11/1999)
Bureau of the Fiscal Service initiates refund offsets to outstanding federal agency debts or child support, State Income tax obligations, and Unemployment Compensation debts. These offsets appear on the module as:
TC 898 or TC 971 AC 598 (manual input of TOP offset record) with an Offset Trace Number (OTN), an offset amount, and a debtor-TIN field, if the offset is secondary spouse
OTN - Starting with 1 indicates primary taxpayer debt
OTN - Starting with 2 indicates secondary taxpayer debt
Command Code (CC) INOLE contains debt liability indicators based on information received from the Bureau of the Fiscal Service. The indicators are used to identity a Federal tax debt TOP debt, or both. You must thoroughly research for any outstanding Federal tax or TOP debts. Always attach the INOLES for both spouses identifying the debt indicator at the time the case is worked. Include BMF screens when there is an X-REF EIN. The debt indicators are:
(I) IRS Debt
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