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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 multiple invalid returns are present, each return must be considered and addressed separately. Resolution of the CN account may include any combination of streamline and/or non-streamline scenarios.

Scenario

Actions

(1) One Invalid Return

Complete Form 12810 to move the invalid return. Attach the completed form to your CII case. See paragraphs (3)-(5) below.

Open a monitor control base on the IRSN account. See paragraph (7) below.

After the tax account information has posted on the IRSN module, input the applicable Item Reference Numbers (IRNs) on the IRSN account (i.e., IRN 888, 896, etc.).

Input the appropriate cross reference indicators:CN: TC 971 AC 001 cross referencing the IRSN.IRSN: TC 971 AC 017 cross referencing the CN.

(2) Invalid/Valid

Complete Form 12810 to move the invalid return. Include TC 402. Attach the completed form to your CII case. See paragraphs (3)-(5) below.

Open monitor controls for the CN and IRSN accounts. Monitor the CN account for the posting of TC 402. See paragraph (7) below.

After TC 402 posts, correct the CN module. See paragraph (6) below for additional information.

After the tax account information has posted on the IRSN module, input the applicable Item Reference Numbers (IRNs) on the IRSN account (i.e., IRN 888, 896, etc.).

Input the appropriate cross reference indicators:CN: TC 971 AC 001 cross referencing the IRSN.IRSN: TC 971 AC 017 cross referencing the CN.

(3) Valid/Invalid

Complete Form 12810 to move the invalid return. Include TC 402 if the account was previously adjusted to the invalid return figures. Attach the completed form to your CII case. See paragraphs (3)-(5) below.

Open monitor controls for the CN and IRSN accounts. Monitor the CN account for the posting of TC 402. See paragraph (7) below.

After TC 402 posts, correct the CN module, if necessary. See paragraph (6) below for additional information.

After the tax account information has posted on the IRSN module, input the applicable Item Reference Numbers (IRNs) on the IRSN account (i.e., IRN 888, 896, etc.).

Input the appropriate cross reference indicators:CN: TC 971 AC 002 cross referencing the IRSN.IRSN: TC 971 AC 017 cross referencing the CN.

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

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