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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

The following deductions will be computed using the full amount of the taxpayer’s unemployment benefits prior to reduction by any exclusion amount:• Taxable Social Security Benefits• IRA Deduction• Student Loan Interest Deduction• Nontaxable Amount of Olympic or Paralympic Medals and USOC Prize Money• The exclusion of Interest from Series EE and I U.S. Savings Bonds issued after 1989 (Form 8815)• The exclusion of Employer-Provided Adoption Benefits (Form 8839)• Tuition and Fees Deduction (Form 8917)• The deduction of up to $25,000 for active participation in a Passive Rental Real Estate Activity (Form 8582)

When it is determined the eligibility criteria has been met, the unemployment compensation will be reduced by the allowable amount for the filing status but not below zero. If the taxpayer has not applied this relief, the taxpayer’s return figures must be recalculated. Recalculation will include total tax and may include non-refundable and/or refundable credits included on the return. Document your determination in a CII case note.

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

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