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

Effective cycle 202150 and later, all returned/rejected AdvCTC payments will be systemically reversed.

When the taxpayer returns an AdvCTC payment, the account will be credited with a TC 670 (DPC 063) on the tax year 2021 module.

The earliest unreversed matching amount and transactions (on the tax module and entity) will be systemically reversed.

When the returned AdvCTC repayment amount is more than the earliest unreversed matching amount, subsequent amounts and transactions (on the module and entity) will be systemically reversed until the repayment is exhausted.

Taxpayers who are victims of identity theft (IDT) may experience delays in receiving AdvCTC payments. When you have determined the taxpayer is a victim of IDT for tax year 2020 or 2019, or the claim is related to non-receipt of AdvCTC payments, a determination of impact to AdvCTC payments must be made. 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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