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 (IDT) - Manual Refunds
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
When resolving an identity theft case and the refund cannot be released systemically, it may be necessary to issue a manual refund. Do not issue a manual refund if:
A generated refund will be released within two (2) cycles, except under conditions outlined in IRM 21.4.4.3, Why Would a Manual Refund Be Needed?
There is a TC 971 AC 664 on the account - either AP, PN or posted. This transaction code indicates that either a direct deposit or paper manual refund has been issued.
The most common reasons an identity theft case may require a manual refund are:
Reason
Scenarios
(1) Receipt of a hardship request from the Taxpayer Advocate Service (TAS) using an Operations Assistance Request (OAR)
Request for the IDT skilled employee to issue a manual refund.
Request approval to issue the manual refund.
(2) Systemic limitations prevent a normal computer-generated refund
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