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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

Use the appropriate Post Delay and Hold Codes, as applicable.

(6) Recertification indicators are on the taxpayer’s account (CCs ENMOD and IMFOLE):RECERT-IND - Displays the indicator used to identify what recertification is required for.CC ENMOD:

TXPD> - Identifies the tax year the ban was set.

EL-TXPD> - Identifies the tax year the ban will be lifted.

RECRT TXPD> - Identifies the tax year the ban was set.

ELG TXPD> - Identifies the tax year the ban will be lifted.

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Identity theft returns that were audited by Exam can result in the placement of recertification indicators that will negatively impact the valid taxpayer if left unresolved.

Review the account to determine if the credit disallowed was included on a return determined to be invalid.

If the disallowance is related to an IDT return, the recertification indicator must be reversed. This includes cases where the valid taxpayer files a return claiming the same credits for different dependents. Refer to IRM 4.19.14.7, Recertification, for additional guidance.

Use the appropriate Action Code below to reverse the indicator(s):•Earned Income Tax Credit (EITC) - Input TC 971 AC 056.•Child Tax Credit/Additional Child Tax Credit (CTC/ACTC) - Input TC 971 AC 161.•American Opportunity Credit (AOTC) – Input TC 971 AC 160.

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

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