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

Adjustment to EIP 1 and EIP 2 must be input separately. When adjusting both EIP 1 and EIP 2, post delay the second adjustment by one cycle.

When making a positive adjustment to EIP with HC 4, the manual input of TC 971 AC 195 entity transaction is required:

Input TC 971 AC 195 on the "to" account using the "from" account TC 971 AC 199 entity information for the transaction date and MISC fields of the EIP being moved.

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▸Contents — Internal Revenue Manual Part 25. Special Topics

Internal Revenue Manual Part 25. Special Topics

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