Resolving Identity Theft (IDT) Cases

The following subsections provide guidance to address specific account conditions based on the determination made and the facts and circumstances of the module. Multiple references may be applicable for the same case.

When updating the ASED based on the valid taxpayer’s return, consider the following:

Input a TC 560 with DLN CD of 70 or 99 to prevent Unpostable Code 178-2. Use DLN CD 70 when correcting the ASED to a later date than the posted ASED. Use DLN CD 99 when correcting the ASED to an earlier date than the posted ASED.

If the valid taxpayer has filed two returns, and the second return is intended to be superseding, the ASED will be calculated using the received date of the first return. The account will be adjusted to the correct figures on the second return, as allowable.