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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

If any amount of the EIP was offset to a child support obligation, follow procedures in paragraph (4) below.

Input TC 971 AC 850.

Adjust the account to remove the EIP. Input TC 290 .00 with BS 05, SC 0, the appropriate CRN(s) and amount(s), RC(s), and HC 4. Post delay this adjustment by 1 cycle. If adjusting both EIP 1 and EIP 2, post delay the second adjustment by 2 cycles.

Input a second TC 290 .00 with BS 05, SC 0, HC 3, and RC 139. Post delay the adjustment by 2 cycles. If adjusting both EIP 1 and EIP 2, post delay the third adjustment by 3 cycles.

Follow procedures in IRM 25.25.4.6, Reversing Identity Theft (IDT) Lost Refunds, to resolve EIPs issued to the invalid taxpayer.

When the EIP was computed based on an invalid (IDT) return or invalid joint election (IJE) and the payment (in whole or part) was offset to a child support debt, take the following actions:

Determination for the Tax Year used for EIP Eligibility

Valid Taxpayer

Tax Year 2020 Module and Entity Actions

(1)

One return IDT

Invalid/Valid

Invalid/Invalid

The reporting taxpayer was listed as the primary taxpayer on an IJE return.

All of the original EIP was offset to a child support obligation, or

Some of the original EIP was offset to a child support obligation and only the reporting taxpayer received the portion of the original EIP in excess of the amount offset to child support.

Input TC 290 .00 with BS 05, SC 0, and HC 3. Use RC 139 for IDT cases. Use RC 099 for IJE cases.

Refer to paragraph (8) below for letter requirements.

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

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