Example:

A Taxpayer’s account contains a TC 150 and a TC 976. The account also reflects a TC 922. An invalid/valid determination is made per IRPTR/IDRS data. The taxpayer’s claim indicates a return was fraudulently filed for them but makes no mention of the issues proposed in the CP2000 notice. The TC 976 return doesn’t include all of the underreported income. The underreported income appears to be valid, but it is unclear if the underreported income is included in the identity theft claim. A Letter 5064C is sent inquiring why the U/R income was not included on the taxpayer’s return. The taxpayer never responds to the Letter 5064C. The case would not be closed as NORPLY even though the taxpayer did not respond to the Letter 5064C. There is still enough information to make determinations on the returns that were filed. The TC 150 would be nullified and the TC 976 processed. Due to the taxpayer not responding, no adjustment would be made to the AUR assessment except to abate any income that is included on the TC 976 return. A Letter 4674C would be sent informing them an AUR assessment remains on their account since they did not respond to our letter. The account would be marked with a TC 971 AC 501.

Specialty Resolution only - If the taxpayer provides falsified or altered documentation, when returning the case to the Compliance function, suggest the case be referred to the Campus Fraud Coordinator (CFC) as a potential fraud referral.

When reversing an existing IDT indicator and the secondary date is for a tax year that is more than 7 years old CC REQ77 will not accept the year. Prepare Form 4442 and email ITVA HQ using the subject line: Reverse IDT Indicator (or similar). Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Do not suspend your case. For more information, see IRM 25.23.2.3.8.1, Command Code REQ77 Secondary Date and Old Case Year Issue.