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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

If the taxpayer states they did not update the information using the CTCUP, see scenarios (3) and (4) below.

The payment was issued by direct deposit after the update occurred,

The valid taxpayer did receive the payment.

(2) The CTCUP was used to update the direct deposit information,

The payment was issued by direct deposit or paper check before the update occurred,

Use scenarios (5) - (8) below to determine who received the payment.

(3) The taxpayer states they did not use the CTCUP to update their direct deposit information or the taxpayer indicates an individual assisting them with using the tool input bank account information that does not belong to them,

The payment was issued by direct deposit after the update occurred,

The valid taxpayer did not receive the payment.

(4) The taxpayer states they did not use the CTCUP to update their direct deposit information or the taxpayer indicates an individual assisting them with using the tool input bank account information that does not belong to them,

The payment was issued by direct deposit or paper check before the update occurred,

Use scenarios (5) - (8) below to determine who received the payment.

(5) CTCUP was not used to update direct deposit information and one of the following determinations is made:

One return IDT

Invalid/Valid

Invalid/Invalid

IJE

The payment was issued by direct deposit,

The valid taxpayer did not receive the payment.

(6) CTCUP was not used to update direct deposit information and one of the following determinations is made:

One return IDT

Invalid/Valid

Invalid/Invalid

IJE

The payment was issued by paper check,

Review the address, including the cycle date of the last change, to determine who the payment was mailed to.

(7) CTCUP was not used to update direct deposit information and one of the following determinations is made:

Valid/Invalid

One valid return/no invalid return

Income-related IDT (no invalid return)

The payment was issued by direct deposit,

The valid taxpayer did receive the payment.

(8) CTCUP was not used to update direct deposit information and one of the following determinations is made:

Valid/Invalid

One valid return/no invalid return

Income-related IDT (no invalid return)

The payment was issued by paper check,

Review the address, including the cycle date of the last change, to determine who the payment was mailed to.

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

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