Skip to content
ChatProjectCodes

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

The taxpayer called to inquire on the status of their case. While conducting account research, the assistor located a TC 971 AC 123 MISC "PREPARER CONTACT" posted on CC ENMOD. The assistor proceeded to advise the taxpayer they were a victim of identity theft due to being involved in a preparer data breach. The assistor should not have informed the taxpayer of the data breach incident as the tax preparer is responsible to do so, and the presence of a TC 971 AC 123 MISC "PREPARER CONTACT" on a taxpayer’s entity does not confirm identity theft.

(5) For refund-related issues, see the table below:

If

Then

(1) An erroneous refund was issued to the SSN owner,

Refer to IRM 21.4.5.6, Category D Erroneous Refund Procedures, for additional information.

(2) An erroneous levy payment posted,

Refer to IRM 25.23.10.7.2.6.5, Identity Theft and Disposition of Levy Proceeds, for additional guidance.

(3) An FMS TOP Offset occurred,

Refer to IRM 25.23.4.10.3.2, Identity Theft with TOP Offsets.

(4) A refund is due,

Allow the refund to be released systemically, unless an exception applies. See IRM 25.23.4.10.10, Identity Theft (IDT) - Manual Refunds, for situations that require a manual refund. When it is necessary to issue a manual refund, include Hold Code (HC) 4 in the adjustment. When the valid return meets DIF score criteria, issue the manual refund before sending the return to be DIF scored.

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.