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:
Economic Impact Payment (EIP) - Adjustments - General
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
The credits and refunds of EIPs can be seen on the applicable tax module:
EIP 1/EIP 2: Tax year 2020 module (tax year 202101 – 202111 for fiscal year filers).
EIP 3: Tax year 2021 module (tax year 202201 – 202211 for fiscal year filers).
When systemic consideration of EIP determines the taxpayer is ineligible, CC IMFOLT will reflect a TC 290 .00 only.
Credits post with a TC 766 if adding/increasing the credit or TC 767 if removing/decreasing the credit. When adjusting the amount of EIP, the following Credit Reference Numbers (CRNs) will be used:
338 - The amount is attributable to the primary and secondary taxpayer, if applicable.
257 - The amount is attributable to qualifying children/allowable dependents.
The CRN(s) used to adjust EIP will be determined by the facts and circumstances of the case.
When inputting an adjustment to EIP using only CRN 338, the Reason Codes (RCs) used in the first and second positions must both be 000. This leaves the third position open for the RC that best describes the reason for the adjustment.
When inputting an adjustment to EIP that includes CRN 257, the RC in the first position must indicate the number of dependents associated with the adjustment (i.e., RC 002 would be used when there are 2 dependents involved). The second and third positions may be used for additional RCs related to the adjustment. A separate adjustment will be input to mark the account with RC 139.
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