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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

Excess APTC adjustments may include the recalculation of total tax and credits included on the original return. Taxpayers will receive a notice if the adjustment results in a tax or credit change.

IRN 867- (negative): The amount will equal the amount of the APTC REPMT (IRN 868) located on IDRS CC IMFOLR.

SC: 3

RC: 152

When you have made a determination of identity theft or invalid joint election (IJE) for TY 2020, excess APTC must be addressed, if present. Document your determination in a CII case note.

When the TY 2020 valid return posted first, any excess APTC assessed must be reversed if the module was not included in the systemic relief process. Math verify the taxpayer’s return. Recalculate tax and credits claimed, if necessary. Input an adjustment to reverse the excess APTC using the following:

BS 05

SC 0

TC 290/291

IRN 867− (negative) for the amount posted with IRN 868 (located on IDRS CC IMFOLR)

RC 152 and RC 139

HC 3

When the TY 2020 valid return is a TC 976/977, math verify the taxpayer’s return. Ensure the taxpayer has not included excess APTC in the calculation of their total tax. Recalculate tax and credits claimed, if necessary. Input the adjustment following normal procedures based on the determination made.

Issue a closing Letter 4674C to advise the taxpayer of any changes made related to excess APTC.

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

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