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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

Do not include a paragraph requesting a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, when working dependent related IDT case types and a closing letter is being issued to the reporting person determined as an unauthorized third party. See IRM 25.23.4.8.4.2, Dependent Related Identity Theft (IDT) – Non-Streamline Research, for additional information.

For paragraph *, include the following special paragraph: "We will reply directly to the taxpayer listed in your inquiry when we have completed our investigation into the identity theft claim. We won’t send you any further correspondence regarding this matter, because our records show you are not authorized to receive confidential tax information for the taxpayer listed in your inquiry."

For paragraph P, include the following special paragraph: "We must have a valid Form 2848, Power of Attorney and Declaration of Representative, or a valid Form 8821, Tax Information Authorization, on file to provide you with confidential tax information for this taxpayer. For more information about these forms, visit our website at www.irs.gov/forms-instructions."

When issuing a letter, ensure the correct paragraphs are used to inform the taxpayer of the status of their account based upon the facts and circumstances of the case. Also see additional items below:

If appropriate, include multiple tax years by manually inputting the tax year in the empty boxes. Up to eight (8) tax years can be input in a Letter 4674C and eight (8) tax years can be input in a Letter 5064C.

For cases created from a transcript (i.e., IDT8/IDS8) or IRS initiated (i.e., IDT3/IDS3), do not use an opening paragraph that indicates a claim was received.

For credit transcript cases (i.e., IDT6/IDS6), when a closing letter is required, follow applicable procedures for the original case type (i.e., taxpayer identified or IRS initiated).

If there is a valid Power of Attorney (POA) or third-party representative, verify the Centralized Authorization File (CAF) information is current. Refer to the table below for letter requirements.

IF

AND

THEN

(1) The POA or third-party representative is authorized to receive a letter,

They are already on the CAF,

The "CAF Copy" field on CC LPAGE will remain blank. The system will complete an LPAGE automatic check and will send a copy of the letter.

(2) The POA or third-party representative is authorized to receive a letter,

They are not on the CAF,

Select "Y" in the "CAF Copy" field on CC LPAGE to manually issue a copy to the POA or third-party representative.

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

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