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

Reminder:

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

Ensure the ASED on the account is adjusted to reflect the appropriate date based on the new valid return. When the ASED on the impacted module is expired, a transaction date one day prior to the expiration must be used when inputting the TC 560 to prevent Unpostable Code 178-2.

If the victim is a secondary filer on a joint return:

Input TC 594 CC 084 on the secondary TIN to cross reference the primary TIN if one has not systemically generated already.

Reverse the TC 971 AC 522, if one is present, with MISC Code "OTHER" on the primary TIN/joint account only when the primary taxpayer wasn’t a victim.

When all of the following conditions are met, the identity theft issue does not affect tax administration. The case will be closed with a TC 971 AC 504 upon completion of any actions necessary to resolve the case:

The only invalid return(s) on the module are rejected attempts to file (no invalid returns accepted)

Form 14039 was received

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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