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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

Reminder:

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

When the return is filed MFJ, the closing letter must be issued in the names of both taxpayers.

(5) A fraudulent or compromised POA is involved,

Refer to IRM 21.3.7.5.5.3, How to Report a Compromised or Potentially Compromised CAF Number.

(6) The taxpayer’s statement indicates someone else changed information using the Child Tax Credit Update Portal (CTCUP),

EIP and/or Advanced Child Tax Credit (AdvCTC) may be impacted. Refer to IRM 25.23.4.21, American Rescue Plan Act (ARPA), and its subsections to determine impact and appropriate account actions.

(7) The taxpayer’s statement indicates someone else obtained healthcare coverage in their name and IDRS CC TXMOD reflects an amount in the PTC-EXP-AMT> field located in the posted return information section,

Tax Related IDT: If a math error is set when a valid tax return is processed or an invalid tax return posted first, resolve the account as a tax related IDT issue.

Non-Tax-Related IDT: If an invalid tax return is not present and valid tax return figures are not recomputed as a result of the "PTC-EXP-AMT>" , resolve the account as a non-tax-related IDT issue.

(8) Inadvertent disclosure of sensitive information for the valid taxpayer,

Avoid inadvertent disclosure of account information, even after verifying the taxpayer’s identity in cases where they may be impacted by external business, preparer data breach, or tax preparation software misuse. The external business/preparer is responsible for advising the taxpayer of the incident. See IRM 25.23.4.8.2.4, Identity Theft (IDT) with External Business/Preparer Data Breach Involvement, and IRM 25.23.4.8.2.5, Identity Theft (IDT) with Tax Preparation Software Misuse, and applicable subsections for additional information.

Refer to IRM 10.5.4, Incident Management Program, if unauthorized inadvertent disclosure has occurred.

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

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