The tyrosine phosphatase TC48 interacts with and inactivates the oncogenic fusion protein BCR-Abl but not cellular Abl

► BCR-Abl interacts with and is a substrate of tyrosine phosphatase, TC48. ► TC48 mediated dephosphorylation of BCR-Abl at Y1127 and Y1294 causes its inactivation. ► c-Abl, or its active variants are not dephosphorylated and inactivated by TC48. ► TC48 expression inhibits growth and enhances STI571 sensitivity of K562 cells.