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

Taxpayers who were over 65 at the time the return was due, are allowed the higher standard deduction amount.

If it is determined that the taxpayer is due a refund, issue a closing letter instructing the taxpayer to file a return. Advise the taxpayer of the statute of limitations for receiving a refund. See IRM 25.6.1.8, Original Delinquent Returns, for additional guidance on refunds. If the Masterfile status is 02 or 03, input a TC 590 CC 078.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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