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

Exception:

Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States

An offset Bypass Refund (OBR) indicator may be used to bypass outstanding debts when economic hardship exists or based on certain TC 520 closing codes.

The availability date of an overpayment is determined by the payment(s) and or credits(s) of which it is comprised. Refer to the table below for additional considerations:

Consideration

Details

(1) Credit interest availability date(s)

The refund due to the taxpayer may need to include credit interest. Computation of the availability date of an overpayment is determined by the payment(s) and or credits(s) of which it is comprised.

Prepayment credits (payments made before the due date of the return) are deemed paid as of the due date of the return (determined without regard to any extension of time to file) whether the return is timely or late filed. Interest on overpayments based on prepayment credits is generally allowed from the later of the return due date or delinquent return received date. See IRM 20.2.4.4.1, Availability Dates for Overpayments-Payment and Credit Types, for additional information.

(2) Multiple refundable payments

An overpayment can be made up of multiple payments and or credits and may have more than one availability date.

See IRM 20.2.4.4.1, Availability Dates for Overpayments-Payment and Credit Types.

Also see IRM 20.2.4.4.2, Availability Dates for Overpayments-Released Credits.

Form 5792 is prepared when requesting an IDRS refund. This form cannot be used to issue refunds of $100 Million or more. Forward the manual refund form to the technical lead or designated individual for review, according to the routing instructions for your site. Attach necessary documentation. Refer to the checklist in Exhibit 21.4.4-3, Manual Refund Checklists.

The technical lead or designated individual will:

Review the manual refund for accuracy, and

Forward to the approver for the final review and signature.

Once approved, Form 5792 and all required documentation will be sent to Accounting.

Effective June 20, 2023, responsibility for all manual refund monitoring is now performed at the Headquarters level. IDT skilled employees issuing manual refunds will also monitor for posting to ensure the taxpayer’s identity theft issue is fully resolved.

The CII case can be closed with an IDRS control created to monitor when no further account actions are needed.

Update the activity for the IDRS control to "MNREF/###" . (### represents the Julian Date).

Monitor to ensure the TC 840 and TC 770 (if applicable) post correctly to IDRS.

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.