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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

Each return in question must be considered and addressed separately.

If the case involves an amended return, follow procedures in IRM 25.23.4.10.5 , Amended or Duplicate Returns and Identity Theft (IDT). If the case images include an unprocessed or amended return, see the applicable reference below:

IRM 25.23.4.6.5.2, Unprocessed Documents

IRM 25.23.4.10.5, Amended or Duplicate Returns and Identity Theft (IDT)

If necessary, update the entity (i.e., current address, telephone number, filing status, etc.).

If the account reflects a balance due and was not previously protected to prevent balance due notices, tax offsets, and/or enforcement actions, take the necessary action to protect the account. See IRM 25.23.4.6(3), Research, Actions and Complete Case Analysis – Overview.

When the refund was issued to the invalid taxpayer:

Streamline: Move the lost/partially lost refund to the General Ledger GL 1545. See IRM 25.25.4.6, Reversing Identity Theft Lost Refunds.

Non-Streamline: Move the lost refund to the appropriate tax module for the Internal Revenue Service Number (IRSN) assigned. See IRM 21.5.2.4.23.10, Moving Refunds.

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

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