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

When a taxpayer is reporting an identity theft incident related to a Small Business Administration (SBA) Loan applied for using their name and/or TIN, do not refer the case to BMF IDT. These cases will be treated as non-tax-related identity theft. Update the category code to IDT4, and refer to IRM 25.23.3.2.3, Self-Identified - Non-Tax-Related Identity Theft - IDT4 Overview.

(9) Frivolous Return Program (FRP)

FRP is no longer part of Compliance. FRP was moved under the RICS Organization in October 2014. See IRM 25.25.10.19, Coordination with Program Stakeholders, for additional information. Cases with FRP Involvement should be referred to the FRP team under the RICS Organization. These cases can be identified with one or more of the following:

A TC 971 AC 089 on the year in question

A Civil Penalty MFT 55 with a penalty reference number (PRN) 543 or 666

A TC 420 with or without a TC 300 with the Project Code 310 or 313

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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