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:
Identity Theft (IDT) - Setting the Math Error
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
A math error may be identified during the process of math verifying the valid return. Refer to the following IRMs for detailed explanations of what is and is not a math error:
IRM 21.5.4.2, What is a Math Error?
IRM 21.5.4.2.1, What is Not Considered a Math Error?
A math error will be set when the result of recomputation of figures on a tax return shows more tax and/or less credits than the taxpayer expected resulting in an increased balance due or decreased refund amount.
Math verify the valid tax return. Confirm the figures on forms and/or schedules attached are calculated correctly and match the entries on the applicable line of the tax return.
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