Example:

The taxpayer claims they were incarcerated. If supporting documentation was not provided and no information can be obtained using CC FTBOL, a determination based on incarceration cannot be made. Request supporting documentation from the taxpayer by telephone and/or by mail to obtain the necessary information.

If you are unable to obtain additional information but the identity theft allegation can be verified, allow the claim.

Cases where a taxpayer is alleging IDT and the CSED has expired can be identified by the CSED expiration date and a TC 608 on the module.

When the invalid return meets streamline criteria, follow normal procedures to resolve the case, unless an exception applies:

If the module is in retention and the valid taxpayer has not filed a return, do not bring the module out of retention unless there are payments or offsets that need to be transferred or refunded to the valid taxpayer. Take all actions to update the taxpayer’s entity and mark the account with an identity theft indicator, as appropriate.

If the module is active and a TC 534 is present, an adjustment input will unpost. If the valid taxpayer did not file the return and there are no payments or offsets that need to be transferred or refunded to the valid taxpayer, follow procedures in IRM 25.23.4.11.3, Action Required If Not Moving Specific Year Account Information.