Married taxpayers who previously filed as Married Filing Separately (MFS), single, or Head of Household (HOH) may file a joint return within three years from the due date of the original return without regard to extensions, provided the Service did not mail either spouse a notice of deficiency for which a petition was filed in the U.S. Tax Court, and neither spouse has commenced a law suit or entered into a closing agreement or offer-in-compromise.

"No Consider" the change to joint if the following conditions exist:

Return the claim to the taxpayer with the appropriate "C" letter, requesting the necessary information if:

If there is a tax increase/credit decrease adjust the account and send a letter to the taxpayer to request the missing information. Refer to IRM 21.5.3.4.1 for additional guidance.

Research for the filing of both returns. It is not necessary to request the returns if the joint return information can be verified from research.

If there is an open TC 420 on either spouse's account, follow IRM 21.5.3.4.7, Processing Claims and Amended Returns with Examination Involvement .

If either account contains an Economic Stimulus Payment (ESP), see IRM 21.6.3.6.7.4, Separate to Joint/Joint to Separate.

Verify math on the joint return and recompute the tax, if necessary. Determine if an estimated tax penalty needs to be assessed or recomputed using the joint liability.

Update the DUPOL database. See IRM 21.6.1.6, Command Code DUPED and DDBCK, for more information.

Update the secondary taxpayer's address if there is a change on the joint return.

For any statute related issues, see IRM 21.6.1.4.4., "Statute of Limitations" Procedures for Separate to Joint.

The filing of a joint return subsequent to separate return(s) may affect the Assessment Statute Expiration Date (ASED). The Service will have at least one year from the actual filing of a joint return to make an assessment, IRC §6013(c)4.

Determine if the extended ASED is imminent. See IRM 25.6.1.9.4.4, Joint Return After Separate Return, for specific instructions on conditions which extend the ASED.

Send any Separate to Joint case with a tax increase to the Statute Unit for manual assessment if within 90 days of the extended ASED.

Married taxpayers may file separate returns on or before the due date of their originally filed joint return (with regard to any extension of time to file).

Disallow all claims postmarked after the due date except:

If the taxpayer has not allocated a previously received refund:

If only one taxpayer is requesting the change, and the other taxpayer has income and/or credit:

The joint election is potentially invalid if the individuals were not legally married or if the return contains a forged signature.

Allow claims if the marriage was not legal under local law (even if the claim is received after the due date) if the following is present:

Take the following action when one spouse to a joint return claims that his or her signature was forged:

Allocation means the taxpayer must designate which wages, deductions, withholding, tax liability, etc., belong to each taxpayer.

Return the claim to the taxpayer if a determination can not be made because the taxpayer does not submit an allocation. See IRM 21.5.1.4.3, Incomplete Inquiry.

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Accept the allocations as specified below:

The separate tax method allocates liabilities by dividing the joint liability into separate liabilities.

Subtract the taxpayer’s share of the new joint liability from the taxpayer’s separate payments to arrive at the overpayment amount.

Manually refund the proportionate share of the overpayment to the spouse filing the claim.

Route the return to the Collection Operations when one spouse is discharged of a tax liability in a bankruptcy proceeding and a joint return was filed.

In 2005, California law expanded the rights and obligations of individuals entering into a California domestic partnership for state property law purposes. In 2006, the IRS ruled that an individual who is a registered domestic partner (RDP) in California must report all income earned from performance of personal services.

Effective January 1, 2007, California extended community property treatment to RDPs. Thus beginning in 2007, California treats the earned income of RDPs as community property as both property law purposes and state income tax purposes.

In a Chief Counsel Advice Memorandum issued in May of 2010 (CCA 201021050), it was determined that the federal tax treatment of community property should apply to California RDPs. For tax years beginning after December 31, 2006, a California RDP must report one half of the community income, whether received as compensation for personal services or income from property, on his or her federal income tax return.

RDPs in Nevada and Washington are subject to their state's community property laws.

RDPs may, but are not required to, file an amended return for the tax periods 2007, 2008 and 2009 to report their income in accordance with the position with CCA 201021050 that RDPs must each report half of their community property. For 2010 and subsequent years, RDPs must each report half of their community income.

Amended returns for 2007 and subsequent could be received for these RDP taxpayers. The only documentation that is required is the community property worksheet listed in Pub 555 or a copy of the partner's return showing the allocation, and a reference on the claim that the taxpayer is a RDP.

If the community property worksheet is not attached and the claim is for a refund, please follow the “No Consideration” procedures listed in IRM 21.5.3.4.6.3 No Consideration Procedures.

If the community property worksheet is not attached and the claim is for a tax assessment, please follow the IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing.

If a taxpayer (RDP) files an amended return, there is no need to verify if the other domestic partner filed a claim to reduce or claim additional income.

When adjusting the partner's account with a tax decrease, input a TC 170 .00 to restrict any erroneous ES penalty assessment.

If the taxpayer writes or calls in because they received an incorrect notice about ES penalty assessment when the tax was decreased, abate the penalty and apologize to the taxpayer for the error.

A taxpayer is allowed only one exemption regardless of the number of returns on which he/she is listed. A dependent child may not claim his/her exemption when filing a return if eligible to be claimed on the parent’s return.

A taxpayer must furnish a correct/valid Taxpayer Identification Number (TIN) for every exemption claimed. This number may be a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), or an Adoption Taxpayer Identification Number (ATIN). See IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS) and IRM 3.13.5.24, Assignment of Internal Numbers, for additional information.

Taxpayers will be considered to have omitted a correct TIN if Social Security Administration (SSA) information indicates the social security number being used belongs to an individual who was deceased prior to the beginning of the tax year for which it is being used.

CC DM1DT overrides an SSA DOD. After using CC DM1DT, the DOD field on CC INOLE will be replaced with the IRS DOD.

Dependents, such as children and other relatives, must meet certain eligibility criteria. For TY 2005 and subsequent years, a dependent is either a qualifying child or a qualifying relative. Refer to Publication 17, Your Federal Income Tax (For Individuals), Part One, Chapter Three, Personal Exemptions and Dependents, for dependency qualifications.

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent , or similar statement must be attached that releases the child's exemption to the non-custodial parent.

The IRS will allow exemptions for primary, secondary or dependents identified as either"Amish" , " Mennonite" or "Exempt — Form 4029" , even if the individual does not have a valid TIN. If the exemption for such an individual was improperly NOT allowed during original processing, adjust the account.

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Taxpayers claiming a "religious or conscience-based" objection to obtaining a TIN will be allowed the dependent exemption or related credits (except for EIC) when they provide specific documentation listed in paragraph 2 of the Letter 3050C.

Taxpayer is allowed one exemption for each qualifying person listed on the return. Allow one exemption for:

The exemption allowance is different for each year. Refer to the year of the tax return for the correct amount.

The exemption deduction begins to phase out when the AGI exceeds the following amounts:

The amount for each exemption is reduced by 2% for each $2,500 ($1,250 for MFS), or fraction thereof, in excess of the applicable threshold.

The Economic Growth and Tax Relief Reconciliation Act of 2001 repealed the exemption phaseout, beginning in 2006. The phaseout was reduced by 1/3 in 2006, 2/3 in 2008 and is fully eliminated in 2010.

Effective for tax year 2010, the phase out for exemptions was eliminated.

If a valid TIN is not provided for the primary taxpayer, the secondary taxpayer, or the dependents, the exemption is disallowed for the person listed with the invalid TIN. If the exemption was disallowed during initial processing, a math error taxpayer notice code (TPNC) appears on the module.

For tax year 1996 and subsequent, unreliable data may be shown in the exemption field on CC TXMOD, RTVUE, and IMFOL screens.

If the taxpayer submits correspondence indicating someone used his/her SSN or the SSN of a dependent, refer to IRM 21.6.2.4.2.2, Taxpayer Inquiries Involving Questionable Ownership of a Primary or Secondary TIN on a Filed Return.

If the taxpayer submitted an original return for the IRS to compute, CP 51 was issued. Math error TPNCs set by the Error Resolution System (ERS) will not print on the notice. Take this into consideration if taxpayer replies.

A taxpayer may respond to a math error concerning the number of exemptions allowed on the original return. Or the taxpayer may file a claim (amended/duplicate/informal) to request a change to exemptions.

Verify the validity of the name(s) and TIN(s) submitted by taxpayer. For a math error reply, the dependent with the missing/invalid TIN is recorded on RTVUE.

If taxpayer makes a statement, asks a question, or indicates a misunderstanding of an exemption math error notice:

If taxpayer responds to a math error notice within 60 days, refuses to obtain/provide the correct information and requests the account adjustment be made (after a full explanation of the legislative provisions was given), follow unsubstantiated math error procedures in IRM 21.5.4.4.5, Math Error Unsubstantiated Protest Processing.

When changing the number of exemptions (or adjusting credits requiring TIN validation for allowance), See IRM 21.6.1.6, Command Code DUPED and DDBCK, for more information.

When the primary taxpayer’s TIN is invalid, the taxpayer may receive a CP 54 and/or a math error notice. Written responses to CP 54 notices that do not involve EIC math errors are worked in Entity. If taxpayer attaches correspondence in response to a math error notice or attaches correspondence inquiring about a math error issue, Accounts Management will work the response. Process CP 54 responses with error involvement as follows:

Taxpayer may provide a different name or primary TIN.

To change the exemptions, the taxpayer must:

Review the claim for Examination criteria.

Changes to the exemptions change the taxable income. Change the exemptions on the Master File as follows:

When changing the number of exemptions, see IRM 21.6.1.6, Command Code DUPED and DDBCK, for procedures on updating the Duplicate TIN database (DUPOL).

Refer to IRM 21.5.3.4.6, No Consideration and Disallowance of Claims and Amended Returns, for claim rejection and disallowance information.

A custodial parent may release his/her claim to a child’s exemption. The custodial parent:

The noncustodial parent must:

Upon receipt of a math error notice response concerning a missing or incomplete Form 8332 (or similar statement) take the following actions:

Upon receipt of the completed Form 8332:

If taxpayer provides the appropriate documentation, allow the exemption as follows:

CC DUPED must be used to update the Duplicate TIN database (DUPOL) when processing current year (i.e., from 1/1/10 to 12/31/10, only TY 2009 returns are updated):

See IRM 21.6.1.6.2, Command Code DDBCK, for the list of exceptions of when DDBCK can not be used.

CC DUPED should not be used to update DUPOL if the taxpayer is:

Command Code DUPED does not replace masterfile account action. Appropriate account transactions are still required.

Do not disclose DUPED data. Taxpayers are not entitled to know who else has claimed the dependent exemption or EIC credit.

See IRM 2.4.53, Command Code DUPED, for information on the input of the command code.

Command Code DDBCK must be used when processing TY 2008 and subsequent:

Always use CC INOLES to verify the TIN/NAME/DOB before using CC DDBCK. Even though CC DDBCK will validate age and TIN/Name information when the taxpayer is claiming additional dependents and/or credits requiring TIN validation, it will not provide an error message unless EIC is involved and then only if ME 653 is present or the taxpayer is claiming EIC for the first time.

When processing an amended return/ Form 8862 and EIC is being increased, Command Code DDBCK will identify account conditions which require Exam involvement (See IRM 21.6.3.4.2.7.17 , EITC and Command Code DDBCK).

DDBCK must be used when the following is being allowed or removed:

Exceptions for when CC DDBCK can not be used:

CC DDBCK does not update DUPOL on cases when the response includes "Follow IRM" , "Selected" , or "Send as CAT A" .

Input Category Code "EICN" in the category code field when working a case and:

When the Category Code is "EICN" input:

For cases involving an increase to EIC, see IRM 21.6.3.4.2.7.17, EITC Increases and Claims for Abatement, for information on the appropriate "Category Code" , "Claim Amount" , and "SCHED-C" indicator to enter.

Take the following account action per DDBCK:

Response screens addressing the action to be taken will be displayed after the appropriate data is input. For DDBCK input, refer to IRM 2.4.58, Command Code DDBCK / DDBCV / DDBCS, for additional information.