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

One closing letter may be issued to address all additional information the taxpayer needs (i.e., how to claim RRC and details about the AdvCTC).

When it is determined IDT (or IJE) affected EIP 1 and/or EIP 2, the tax year 2020 Recovery Rebate Credit (RRC) must also be addressed when the 2020 module reflects tax return information. When it is determined IDT (or IJE) affected EIP 3, the tax year 2021 RRC must also be addressed when the 2021 module reflects tax return information. Refer to IRM 25.23.4.20.4, Recovery Rebate Credit (RRC) - Identity Theft (IDT) Case Research, and IRM 25.23.4.20.5, Recovery Rebate Credit (RRC) - Adjustments, for additional information. When the affected module does not reflect tax return information, continue with the procedures in the applicable reference(s):

IRM 25.23.4.20.3.1, Economic Impact Payment (EIP) - Adjustments - EIP 1/EIP 2

IRM 25.23.4.20.3.2, Economic Impact Payment (EIP) - Adjustments - EIP 3

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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