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

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Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States

If the taxpayer is entitled to a refund resulting from payments on the account, a manual refund may be necessary. Refer to IRM 25.23.4.10.10 , Identity Theft (IDT) - Manual Refunds.

When Notices of Federal Lien (NFTL) are filed on liabilities, the IRS does not notify the credit bureaus. The credit bureaus research public filings and, in certain cases, may place NFTL information on taxpayer credit reports.

When a CSED expires, liens are automatically released. The IRS is not required to report to the credit bureaus when liens are released. A Form 1099-C, Cancellation of Debt, will not be issued to the taxpayer in this situation.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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