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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

Form 3245/3809 Reversals

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

In certain circumstances, it may be necessary to reverse previous actions taken that debited the GL 1545 account with the posting of a TC 841 or TC 700 to the tax account. For example, a duplicate TC 841, actual credit has been returned to the module, etc.

When it is determined by the originator or employee resolving a case that a TC 841 was initiated in error, a Form 3245, Posting Voucher - Refund Cancellation or Repayment, and Form 3809, Miscellaneous Adjustment Voucher, must be completed. The Form 3245 should be sent to Accounting to reverse the TC 841 with a TC 843 and the Form 3809 will be used to credit the GL 1545 account. Form 3245 and/or Form 3809 must include a brief explanation of the error and the DLN of the TC being reversed must be annotated on the forms. See Exhibit 25.23.4-2, Form 3245 Reversal, and/or Exhibit 25.23.4-3, Form 3809 Reversal, for proper annotations required for Form 3245/3809. In addition to this, 3 copies of Form 3809 and Form 3245 should be submitted when requesting a reversal and the originator should open a control base indicating "843 or 702 request" to prevent duplicate submissions to Accounting. Make sure the TC 841 to be reversed has posted to the taxpayer account before initiating the reversal action. Form 3245 and or/ Form 3809 should be forwarded to the Accounting function for numbering and journaling. The process of reversing the credits may take up to 8 weeks. If the credit cannot be seen as pending or posted, contact IDTVA P&A regarding the delay in processing the request. See IRM 3.17.80.2.7, Duplicate Identity Theft (IDT) TC 841 or TC 700 Posting Identified by Originators, for additional guidance.

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▸Contents — Internal Revenue Manual Part 25. Special Topics
Internal Revenue Manual Part 25. Special Topics

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