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

If a Form 14039 was submitted by the taxpayer, input a TC 971 AC 501.

Issue a closing Letter 4674C, if necessary. See IRM 25.23.4.18.1, General IDTVA Letter Procedures, for additional information.

(10) There is a TC 150 return posted, an unpostable TC 971 AC 111, and a TC 971 AC 506 with MISC "WI AM OTHER" or "WI PRP OTHER1" ,

The TC 150 DLN and TC 971 AC 111 DLN match, and

AMS notes indicate an ID Theft determination was made, and

There is a TC 976/977 return (-A Freeze).

Accept the determination made for the TC 150 return.

Determine if the TC 976/977 is a valid return.

If the TC 976/977 is a valid return, follow the applicable procedures in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns.

If the TC 976/977 is not a valid return, follow the applicable procedures in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns.

Do not input another IDT indicator.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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