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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

The input of an additional TC 971 AC 528 is only necessary when the IP PIN field shows 0 on CC ENMOD/IMFOLE or a TC 971 AC 523 posted after the input of the TC 971 AC 528. See IRM 25.23.4.8.4, Dependent Related Identity Theft (IDT) - General, for additional information.

If

Then

(1) The victim filed a return that has been processed or states they filed a paper return that has not completed processing,

Input TC 971 AC 501 or TC 971 AC 506 "OTHER" on the dependent’s entity. Refer to IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 and IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506, for additional information.

Input a TC 971 AC 528 with the MISC Field Code "WI IP DEPND" on ENMOD using CC REQ77. Use January 1st of the current year for the Secondary Date to signify the processing year.

If there is an active tax module for the year in question under the dependent’s TIN and there is a valid TC 150 return posted, input TC 290 .00 with BS 05, SC 0, RC 139, and HC 3.

If the reporting person is someone other than the dependent or the case is closed with TC 971 AC 506, refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, to determine what closing letters must be issued and what information can be provided to the reporting person.

Document all account actions in a CII case note.

(2) The victim has not filed a return or an attempt to e-file was rejected and a paper return has not been filed,

Input TC 971 AC 501 or TC 971 AC 506 "OTHER" on the dependent’s entity. Refer to IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration - TC 971 AC 501 and IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration - TC 971 AC 506, for additional information.

Input a TC 971 AC 528 with the MISC Field Code "WI IP DEPND" on ENMOD using CC REQ77. Use January 1st of the current year for the Secondary Date to signify the processing year.

Refer to IRM 25.23.4.17, Determining Tax Liability/Form 2209 Instructions, to determine if the taxpayer has a filing requirement and the appropriate actions to take.

If the reporting person is someone other than the dependent or the case is closed with TC 971 AC 506, refer to IRM 25.23.4.18.1, General IDTVA Letter Procedures, to determine what closing letters must be issued and what information can be provided to the reporting person.

Document all account actions in a CII case note.

When the victim is listed as a dependent on a return determined to be invalid (this may be a TP identified or IRS identified case), follow the procedures in the table below:

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

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