Letter should be sent to the name as it appears on ENMOD for the tax year that relief was requested.

Verify the address on the letter with the address on the Form 8857, Request for Innocent Spouse Relief. If the address is different, determine which address is more current, the one on IDRS Command Code ENMOD, INOLE, or Form 8857. If the Form 8857 address is more current, input an address change for the RS.

Mail letters for the NRS to the address on ENMOD. If it is returned as undeliverable, research for a better address on INOLES, ENMOD or Form 8857 and re-mail if one is found.

When the taxpayer is deceased and you do not know if there is an estate, address the letter to the estate of the taxpayer. On the first name line input "Estate of ...." No second name line is required.

If Form 3449, Referral Report, is received, provide updates every 30 days to the revenue officer. If no Form 3449 is received but there is an indication that the revenue officer wants to be kept apprised, provide update every 30 days.

Upon receipt of the Innocent Spouse claim, AUR/SCEB will:

The CCISO Innocent Spouse Coordinator will be available to help if necessary.

CCISO will:

If an innocent spouse claim is received during the 30 day period or before a Statutory Notice of Deficiency (SND) is issued, the following general procedures will be followed:

If AUR/SCEB determines there is no deficiency and the case is a "no change," follow the "no change" procedures. See IRM 25.15.7.4.4, AUR/SCEB No Change Case.

If the taxpayer signs the proposed deficiency and the SND was not issued, treat as an underpayment.

An innocent spouse claim may be filed after the SND is issued.

AUR/SCEB is responsible for monitoring the assessment statute expiration date (ASED) and making an assessment if the SND defaults.

If the SND defaults before the innocent spouse issue is resolved, AUR/SCEB will follow normal procedures for assessing the tax. CCISO will then make account corrections as needed after the final determination is made.

AUR/SCEB and CCISO will generally follow their normal procedures in addition to coordinating the following actions:

If AUR/SCEB determines that the case is going to be closed as a no change (no deficiency), they will:

When a claim is received:

Taxpayers must be contacted within 30 days after receipt of the innocent spouse relief request, per Action 61, see IRM 21.3.3.4.2.2Interim Responses.

If the taxpayer raises other issues, copy the correspondence and route to the appropriate area for resolution. Notate on the routing slip you are processing the innocent spouse claim. Document the case file that the correspondence was forwarded to the appropriate area.

If the claim information is insufficient to make a determination, contact the taxpayer by telephone or Letter 3659C to obtain the additional information. Advise the taxpayer to respond within 30 days or a determination will be made based on the information available. Suspend the case for 45 days.

Before reaching a determination, the examiner shall fully analyze all information available. This includes contacting the NRS, see IRM 25.15.3.3, Notification to Nonrequesting Spouse (NRS) per IRC § 6015(h).

Original documents should be copied and the copies maintained in the case file. Return the originals to the RS or NRS as appropriate. Use Form 3699, Return of Documents to Taxpayer, or appropriate letter.

Claims will be screened in IRS received date priority. Claims will be screened for:

Other categories include items listed below:

Identify all years shown on Form 8857 or specified in the RS’s correspondence. Address all years.

Check for RS’s signature. A photocopied signature is acceptable. An authorized Power of Attorney (POA) signature (per CFINK or Form 2848) on Form 8857 is considered a valid signature.

If the RS gives an incorrect TIN for the NRS and you can determine the RS’s intent, continue screening the claim.

Read the RS's correspondence to determine all years to consider. See IRM 25.15.7.11.11., Determining the Tax Year.

Identify and address all other issues.

Field referrals are cases identified for specific situations that need to be sent to the field office. To determine where the case will be sent, research under RS’s TIN using INOLES/ENMOD. The first two digits of the Primary Loc-Code is the RS’s field office. If the RS has a new address on Form 8857, determine the correct field office using the chart for the field offices. See http://win.web.irs.gov/innocentspouse/innocent_documents.htm for the field offices.

When there is a -Z or Z- freeze indicating CI, do not contact the taxpayer.

The Lead will contact CI and document the phone conversation in the case file. See Innocent Spouse website for the CI contact list.

You must get approval from CI before mirroring the account. See IRM 25.15.15.2.1(1), Exceptions to Mirroring Modules, for mirroring procedures.

Update ISTS and ISTSR Input Record to Stage 26 and follow-up every 90 days until the case can be worked.

Special handling is required when there is an indication the NRS is potentially abusive (physical, not emotional), and the case is being built.

The definition of an IRS employee case is an active IRS employee. Any retired federal employee is to be worked as a regular case, not as an IRS employee case. IRS employees are identified on ENMOD, TXMOD, or IMFOL as follows:

If you access an IRS employee account you must complete Form 11377-A, Inadvertent Taxpayer Data Access, with the reason for the access and give to your manager to be reassigned.

Take care to safeguard the identity of the IRS employee. Secure any item that names an IRS employee or indicates the presence of an IRS employee in a locked cabinet. All IRS employee cases need to be handled with strict confidence. Give special handling to the claim to avoid disclosure to anyone other than the employee authorized to work the case.

If a claim is non-qualified, follow normal procedures, no special handling is required.

If after screening the case it can not be disallowed or non-qualified, build the case.

If a claim is built or disallowed, See IRM 25.15.7.6.3.(13), IRS Employee Cases, and hand—carry to designated person. The designated person will open a control on IDRS and file the case in a secured locked cabinet.

ESTAB for the administrative file; in the remarks area identify the appropriate employee who should receive the administrative file and that it is an IRS employee.

Update ISTS and ISTSR Input Record, Stage 04 with Activity "IRSEMP" .

Place in appropriate folder.

Send Letter 3284C to NRS.

Send Letter 3659C if required.

Control case using activity IRSEMP8857, Status A, Category INSP or INSS on TXMOD.

Give case to the Lead or Manager in the appropriate team. Cases will be filed and maintained by date order in a secure locked cabinet.

When all necessary information (returns and replies) is received, update ISTS and ISTSR Input Record to Stage 05. Control on TXMOD to IDRS number assigned for employee cases and hand—carry to the appropriate manager or designated person.

If no additional information is received from the taxpayer work the case as a No Reply.

After issuing the preliminary determination letter hand-carry the case to the Closing Technician. The case will be kept in a secured locked cabinet and the Closing Technician will issue the final determination letter.

At purging, the Closing Technician will:

When the claim is ready to be forwarded to Processing, hand-carry to the Processing Team Lead or Manager. Do not remove the appropriate folder.

If the case is to be transferred, complete a transmittal and send Letter 86C when transferring the case to any office other than Appeals. Issue Letter 4144C when transferring the case to Appeals. Place the claim in a white security envelope (confidential info) and write "Employee Case" in red on the envelope. Recharge all documents and complete all updates to ISTS and forward to the IRC § 6015 coordinator in the appropriate area.

When there is a congressional inquiry on a case, place the case in the appropriate folder and give to the Lead. Congressional cases will be identified by a letter from a representative or senator regarding the problems with the tax account.

Input TC 971 AC 065.

If the RS alleges forgery and it is a qualified claim follow case building procedures. See IRM 25.15.7.7, Case Building - General.

If the RS alleges forgery and it is a nonqualifying claim look for a statement from the RS addressing the forgery issue. If a statement has not been included:

If the RS alleges forgery and it is a nonqualifying claim look for a statement from the RS addressing the forgery issue. If a statement has been included, apply the tacit consent factors. See IRM 25.15.7.11.13.5.1, Tacit Consent Factors.

If the RS alleges forgery and it is an untimely claim look for a statement from the RS addressing the forgery issue.

Address any other issues raised by the RS.

Update ISTS.

Update AMS/IDRS.

A return may contain an invalid joint election if the filing status is joint but the return was processed without a signature or if the taxpayer states he/she did not sign the return and there is no indication of intent to file a joint return. The following situations could be determined to be an invalid joint election:

A return may contain an invalid joint election if the taxpayer filed a joint return, but had no legal right to file jointly. This situation occurs when the taxpayers were not married the year the joint return was filed. If the taxpayer seeks to invalidate the joint election the taxpayer must submit verification, e.g. court documents, showing the couple was divorced for the tax period involved. The taxpayer must provide an allocation of all income, credits, and payments. See the table below for the list of states and if they recognize common law marriages:

When the case is a potential "invalid joint election" :

If the RS requested relief for a year where there is no joint return and the RS filed a return with a filing status 3 (married filing separately), check to see if the RS lived in a community property state for the year requested. If this is the case, develop as an IRC § 66 case rather than an IRC § 6015 case.

A community property issue can also be identified if the RS filed as filing status 1 (single) or 4 (head of household), their correspondence indicates community income was reported on the return and there is a balance due or payments applied to a previous balance. Do not consider community property if filing status is 2 (married filing joint).

Community property cases will be worked at CCISO:

If the RS requested relief for a year and there is no issue to consider under IRC § 66(c), See IRM 25.15.7.8.6.

If the RS indicates or you identify an account problem, and a correction to the account issue will resolve the Innocent Spouse Relief request; clearly identify the issues. Follow case building procedures, See IRM 25.15.7.7, Case Building - General, with the following exceptions:

If the RS indicates or you identify an account problem and there is no innocent spouse issue (case is non-qualifying), prepare Form 4442 stating "Non-qualifying Innocent Spouse claim. No Innocent Spouse issue. Account issue needs to be addressed."

If payments from the RS were erroneously applied to the joint module after the RS’s CSED had expired, prepare Form 3465 to move whole account to NMF 20. Make a note to refund any open RSED payments to RS (verify these payments ). If a refund is involved, put case in appropriate folder. Refer to the Processing Team.

If the RS only requests an abatement of the penalties, e.g., failure to file, failure to pay, estimated tax, accuracy-related and fraud penalties, or interest, and there is no innocent spouse issue, i.e. non-qualified claim, forward the request to the Accounts Management Operations where the taxpayer filed their return and request they process as a Form 843 claim. Penalties and interest are not separate items that a RS can get relief from under IRC § 6015. Instead penalties and interest flow from the underlying tax. Thus, if a RS is eligible for relief from tax, the RS is also eligible for relief from corresponding penalties and interest. But if a RS is not eligible for relief from the tax, the RS also remains liable for the penalties and interest. Although no relief is available separately for penalties under IRC § 6015, under the right circumstances penalties can be abated for reasonable cause or pursuant to other penalty relief provisions. Send Letter 86C advising RS the case was transferred.

When there is a valid Innocent Spouse claim as well as an account problem:

If there is an indication of a PDT, proceed with case as usual. Nothing should be notated in the case file regarding PDT. If a phone call or letter from the taxpayer making threats is received, refer to the Lead or manager, who will contact the Treasury Inspector General for Tax Administration (TIGTA).