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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

For any non-streamline cases involving EIP 1 and/or EIP 2 that do not meet the scenarios described above, prepare and email a Form 4442 using the subject line: "EIP - Non-Streamline" (or similar) to ITVA HQ. Document all research completed in a CII case note and/or on Form 4442. Attach Form 4442 to your CII case. Suspend the case awaiting a response from ITVA HQ. Upon receipt, the account will be researched. A response on how to address the account will be received within 7 business days.

When EIP 1 and/or EIP 2 was computed based on an invalid return meeting invalid joint election (IJE) criteria and a child support offset is not involved, take the following actions

Determination for the Tax Year used for EIP Eligibility

CN Owner

Tax Year 2020 Module and Entity Actions

(1)

IJE - Reporting person was listed as the primary taxpayer.

Did not receive any portion of the EIP,

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. If TC 971 AC 850 was input, post delay this adjustment by 1 cycle.

Input TC 290 .00 with BS 05, SC 0, RC 139, and HC 3 (4 if issuing a manual refund). Post delay this adjustment by 1 cycle (2 cycles if TC 971 AC 850 was input). Refer to IRM 25.23.4.8.1.3.1, Invalid Joint Election Consideration, for additional information.

Create a Dummy tax year 2020 module for the secondary TIN. Follow procedures in IRM 21.5.2.4.23.10, Moving Refunds, to move the EIP to the 2020 module for the secondary TIN. Input TC 470 CC 90 with post delay 2 on the 2020 module for the secondary taxpayer. Refer to IRM 25.23.4.20.3.3, Economic Impact Payment (EIP) - Account Balancing Adjustments, to determine if additional actions are required to balance the accounts.

Refer to paragraph (8) below for letter requirements.

(2)

IJE

Did receive the EIP (in whole or in part),

If the reporting taxpayer received a portion of EIP, reduce the amount of EIP on the module to reflect the exact amount of EIP received by the reporting taxpayer. Input TC 290 .00 with BS 05, SC 0, the appropriate CRN(s) and amount(s), RC(s), and HC 4. If TC 971 AC 850 was input, post delay this adjustment by 1 cycle.

Input TC 290 .00 with BS 05, SC 0, RC 139, and HC 3 (4 if issuing a manual refund). Post delay this adjustment by 1 cycle (2 cycles if TC 971 AC 850 was input). Refer to IRM 25.23.4.8.1.3.1, Invalid Joint Election Consideration, for additional information.

If necessary, create a Dummy tax year 2020 module for the secondary TIN. Follow procedures in IRM 21.5.2.4.23.10, Moving Refunds, to move the EIP to the 2020 module for the secondary TIN. Input TC 470 CC 90 with post delay 2 on the 2020 module for the secondary taxpayer. Refer to IRM 25.23.4.20.3.3, Economic Impact Payment (EIP) - Account Balancing Adjustments, to determine if additional actions are required to balance the accounts.

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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