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

Form 1040 must be used when processing a dummy return. Forms 1040-A and 1040-EZ will unpost.

Follow procedures in IRM 25.23.4.6.5.2, Unprocessed Documents, to forward the valid return to SP for the posting of TC 976.

IDTVA-A skilled employees: After the TC 976 posts, refer to IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, and IRM 25.23.4.10.1 , Identity Theft (IDT) with Invalid Returns, for information related to non-streamline case processing. Follow the instructions in IRM 25.23.4.10.1, Identity Theft (IDT) with Invalid Returns.

IDTVA Specialty Functions employees: Follow procedures in IRM 25.23.10.6, Post Function Referral Procedures, to refer the case to DITA.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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