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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

Repayment of any amount of EIP the taxpayer received in excess of the amount they are entitled to will not be requested. This includes an offset to a child support debt.

(2)

One return IDT

Invalid/Valid

Invalid/Invalid

The reporting taxpayer was listed as the primary or secondary taxpayer on an IJE return

Some of the original EIP was offset to a child support obligation and only the non-owner of the CN received the portion of the original EIP in excess of the amount offset to child support.

Reduce the amount of EIP on the module to reflect the exact amount of EIP applied to the child support obligation. Input TC 290 .00 with BS 05, SC 0, the appropriate CRN(s) and amount(s), RC(s), and HC 4.

For IDT cases, input a second TC 290 .00 with BS 05, SC 0, HC 3, and RC 139. Post delay the adjustment by one cycle.

For IDT cases meeting streamline criteria, follow procedures in IRM 25.25.4.6, Reversing Identity Theft (IDT) Lost Refunds, to resolve the partially lost EIP issued to the invalid taxpayer.

For IDT cases meeting non-streamline criteria, create a Dummy tax year 2020 module for the IRSN. Follow procedures in IRM 21.5.2.4.23.10, Moving Refunds, to move the EIP to the 2020 module for the IRSN. Refer to IRM 25.23.4.20.3.3, Economic Impact Payment (EIP) - Account Balancing Adjustments, to determine if additional actions are required to balance the accounts.

For IJE cases, create a Dummy tax year 2020 module for the other TIN. Follow procedures in IRM 21.5.2.4.23.10, Moving Refunds, to move the EIP to the 2020 module for the other TIN. Refer to IRM 25.23.4.20.3.3 , Economic Impact Payment (EIP) - Account Balancing Adjustments, to determine if additional actions are required to balance the accounts.

Refer to paragraph (8) below for letter requirements.

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

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