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

A return filed by the invalid taxpayer that includes income earned by the valid taxpayer may appear to be filed by the valid taxpayer.

Return Preparer Misconduct (RPM) claims indicating the taxpayer authorized a preparer to file their original return but did not authorize a preparer to file an amended or duplicate return on their behalf (CAT 1) will be treated as taxpayer-initiated identity theft claims. Resolution of these cases will include nullification of the invalid amended or duplicate return and the input of TC 971 AC 501.

Once the amended or duplicate return is determined to be invalid, identify the appropriate process to resolve the account - streamline or non-streamline. See IRM 25.23.4.8.2, Streamline Identity Theft (IDT) Case Identification and Processing, and IRM 25.23.4.7, Non-Streamline Identity Theft (IDT) Case Processing, for additional information.

Follow the applicable procedures in the table below based on your determination.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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