Reminder:

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.

Input an adjustment to fully back out the account.

If there is a resulting credit from payments on the module, determine if a refund is allowable. See IRM 25.23.4.6.2.1(6), Statute Research.

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

(4) Valid/Invalid

Account has not been adjusted:

Input TC 290 .00 with BS 05 and RC 139.

Input an adjustment to the original valid return figures, as allowed.

If there is a resulting credit from payments on the module, determine if a refund is allowable. See IRM 25.23.4.6.2.1(6), Statute Research.

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

Regardless of the determination made, when non-streamline criteria is met, determine if the invalid return will be moved to the IRSN module or if it meets No Move criteria. See IRM 25.23.4.11, Non-Streamline – Determining When Specific Year Account Information Must Be Moved, and its applicable subsections. After taking all required actions, including monitoring, when necessary, continue to paragraph (10) to close the case.

Refer to the table below to identify and complete required actions prior to closing the case:

Action

Details

(1) EITC Recertification Indicator

If the EITC Recertification Indicator was placed on the account because of an invalid return, reverse the indicator. See IRM 4.19.14.7(6), Recertification, for additional guidance.

(2) Balance Due

TC 470 CC 90 Input

When the corrective adjustment will full pay the balance due, no additional actions is required.

When the corrective adjustment will result in a valid balance due, input TC 472 to resume collection activity.

A balance due remains. Input TC 472 to allow normal collection activity to continue (i.e., balance due notices, etc.).

See IRM 25.23.4.12.1, Collection Activity - Form 14394, to determine if follow up is required.

See IRM 25.23.4.12.2, Collection Activity – Form 13794 Additional Actions Required – Lien, to determine if follow up is required.

(3) Closing Letter

CN Owner

Ensure an appropriate closure letter is issued when a valid address can be located.

Issue Letter 4675C from the IRSN account when a SC address was not used for the taxpayer’s address. Do not include the CN in the correspondence.

(4) Identity Theft Indicator

Input the appropriate identity theft indicator:

Taxpayer Identified (TC 971 AC 501) – See IRM 25.23.2.6.1, Closing Taxpayer Initiated Identity Theft Affecting Tax Administration – TC 971 AC 501

IRS Identified (TC 971 AC 506) – See IRM 25.23.2.6.3, Closing IRS Determined Identity Theft Affecting Tax Administration – TC 971 AC 506.

Impacted years identified through CCA – See IRM 25.23.4.6.4, Complete Case Analysis.