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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

Note:

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

Although the adjustment notice is suppressed, the taxpayer is issued a vendor notice approximately 15 days from the posting of the credit.

Married Filing Joint (MFJ) accounts will reflect the transactions on both the primary and secondary modules. The adjustment on the primary module will include the significant amounts, and the adjustment on the secondary module will post with .00 amounts.

MFJ accounts that included an Injured Spouse claim with the original return will reflect the transactions on both the primary and secondary tax year 2020 modules. Both taxpayers will be credited with half of the total EIP.

Taxpayers who are ineligible to receive an EIP can be identified by the adjustment posted to the module. The adjustment will include:

TC 290 .00

TC 766 CRN 338 .00

RC 1 and 2 will be 000; RC 3 will be populated

Systemic adjustments include unique Reason Codes (RC). Refer to the following table for additional information:

RC Position

Description

First Position

This RC identifies the number of children/allowable dependents for which the payment was computed.

RC 000-099

Second Position

This RC is associated with the children/allowable dependents in the first position.

RC 206 and 213

Third Position

This RC is associated with the primary and secondary taxpayer(s).

RC 200 - 203, 205, 206, and 209

Fourth Position

This RC indicates a deceased taxpayer.

RC 207

Refer to the table below to determine how the EIP was calculated:

Reason Code (RC)

Credit Reference Number (CRN)

Description

200

338

No payment due to AGI phase out.

201

338

No payment due to the taxpayer being claimed on another return.

202

338

No payment due to TIN issues (an invalid primary and/or secondary SSN, invalid due to assignment date, and TIN requirements not met). (For EIP 1 and EIP 2: A TC 971 AC 166 in the entity identifies SSNs used for non-work purposes.)

203

338

No payment due to the filing of Form 1040-NR, Form 1040-PR, or Form 1040-SS.

205

338

Systemic catch-all that identifies when a payment cannot be issued, such as a refund less than $1 or SSA/RRB deceased individual.

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

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