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

Manager/Lead concurrence may be required, refer to IRM 25.23.4.8, Identity Theft (IDT) Common Number (CN) Ownership and Case Processing Determinations, and its related subsections for additional information.

Math verify the valid return. See IRM 25.23.4.10.11, Identity Theft (IDT) - Setting the Math Error, for additional information.

If a refund is claimed or the adjustment will result in a credit balance from payments on the module, determine if a refund is allowable. See IRM 25.23.4.6.2.1(6), Statute Research.

Input an adjustment to the valid return figures, as allowable.

If the resulting credit cannot be refunded, see IRM 25.6.1.7.3, Excess Collection File (XSF) and Unidentified Remittance File (URF).

(2) One Invalid Return

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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