Skip to content
ChatProjectCodes

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 RC 139 is not included with this adjustment, a separate TC 290 must be input to ensure the account reflects RC 139.

When it is determined the valid taxpayer has received more RRC than they are entitled to, including advance payments, the account must be adjusted to reflect the correct amount. Refer to the table below for case scenarios.

IF

AND

THEN

(1) The amount of RRC posted to the module is based on an invalid return,

Is not included in the amount the taxpayer received erroneously,

Reduce the RRC to zero.

(2) The amount of RRC posted to the module is based on an invalid return,

Is included in the amount the taxpayer received erroneously,

Determine if the amount in excess of what they are entitled to was received as advance payments or RRC on a return filed.• Advance payment: The amount in excess is not required to be repaid.• RRC on a return: The amount in excess was erroneously refunded. Refer to IRM 25.23.4.20, Economic Impact Payment (EIP) and Recovery Rebate Credit (RRC) - General, paragraph (23) for additional information.

RRC (Using CRN 256)

EIP 2 (Using CRN 338)

EIP 2 (Using CRN 257)

EIP 1 (Using CRN 338)

EIP 1 (Using CRN 257)

Get a plain-English answer with a citation back to this text.

Ask AI about this code
Export this section
▸Contents — Internal Revenue Manual Part 25. Special Topics
Internal Revenue Manual Part 25. Special Topics

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.