25.15.7  Compliance Campus Functions (Cont. 1)

25.15.7.5 
Special Handling

25.15.7.5.10  (07-17-2009)
Estate Cases

  1. If the RS is deceased and the estate is filing Form 8857, Request for Innocent Spouse Relief, the personal representative, trustee, executor, administrator, receiver, or guardian's signature is required.

    1. Proceed with screening. Send Form 56, Notice Concerning Fiduciary Relationship, for authorization to represent the estate and verify the estate is still open.

    2. Request copy of will, if not present.

    3. Letters for non-qualified/disallowed cases should be sent to the deceased’s last known address or to the taxpayer’s authorized personal representative’s address.

25.15.7.5.11  (07-17-2009)
Deceased NRS

  1. If the NRS is deceased, follow case building procedures. IRM 25.15.7.6, Case Building - General.

  2. Send Letter 3659C with an open paragraph requesting a complete copy of the will (if the taxpayers were still married at the date of death). Add the following paragraph: "We are required by law to contact both taxpayers (or their estates). Please send a complete copy of your deceased spouse's will (if there is one)."

    Note:

    A POA filed while the NRS was alive is no longer valid. A representative must complete Form 56, Notice Concerning Fiduciary Relationship, to represent the estate.

  3. IRM 25.15.9.1.12, Decedents, for additional information regarding a deceased NRS.

25.15.7.5.12  (05-17-2010)
Collection Due Process

  1. First Read and Full Scope employees should follow IRM 25.15.7.10.2.3 Form 12153, Request for a Collection Due Process or Equivalent Hearing.

25.15.7.5.13  (07-17-2009)
Amended Return

  1. A balance due amended return is considered an underpayment case. Relief is only available under IRC 6015(f).

    Note:

    If an amended return is filed (prior to issuance of a Statutory Notice of Deficiency) and the amended return satisfies all issues raised by AUR or Examination, consider it an underpayment case. If the amended return does not satisfy all the issues, the difference is worked as an understatement case.

  2. Date stamp Form 1040, U.S. Individual Income Tax Return, or Form 1040X, Amended U.S. Individual Income Tax Return, and Form 8857, Request for Innocent Spouse Relief.

  3. Work these cases within seven days upon receipt. Review the Form 1040, or Form 1040X to determine the correct action. If the Form 1040 or Form 1040X is to be sent to Submission Processing, forward the original to the appropriate campus after making a copy of Form 1040 or Form 1040X. Note on the copy in red ink that it is a copy and the action taken with the original and the date you took the action. Keep with the case file.

25.15.7.5.14  (02-19-2013)
Current Filed Return - Overpayment Offset After Claim Filed

  1. If the RS’s overpayment from a current return was offset after the date the claim was filed, determine if the overpayment needs to be refunded. Ensure the TC 971 AC 065 (L- freeze) has posted on the year for which relief was requested.

    Note:

    For purposes of determining the date of payment when there is a TC 706 (offset of overpayment from the RS's account) use the cycle the offset posted. Prior to January 1, 2012, Monday's date is considered the first day of the cycle and the date the offset occurred. Effective January 1, 2012, the cycle format is YYYYCCDD. The posting date is determined by the last two digits of the cycle.
    01 = Friday
    02 = Monday
    03 = Tuesday
    04 = Wednesday
    05 = Thursday

    1. If RS's overpayment was from a non-joint return, refund the payment.

      Exception:

      If the RS resided in a community property state for the year RS claimed the refund, refer the case to the Technical Team to determine if the overpayment can be refunded. Update ISTS to Stages 01, 02 (if necessary), 03 and 06. The activity for Stage 06 is "OTHER" . Add a comment entry of "TO TECH" on ISTS.

    2. If RS's overpayment was from a joint return filed with a different spouse, refund the payment.

    3. If RS's overpayment was from a joint return filed with the NRS, do not refund the payment. If the RS is granted relief he/she can complete an injured spouse form to claim his/her portion of the refund.

  2. To refund the payment, input credit transfer or prepare Form 3465, Adjustment Request, and document activity record with actions taken.

25.15.7.5.15  (02-19-2013)
Math Error

  1. Math error due to overstated withholding is considered an underpayment.

  2. Math error due to overstated estimated tax payments is considered an underpayment.

  3. Math error due to overstated excess social security and tier 1 RRTA tax withheld is considered an underpayment.

  4. Math error due to tax figured incorrectly is considered an understatement.

  5. Math error due to rebate credits being disallowed is considered an understatement.

  6. Math error due to exemptions being disallowed is considered an understatement.

  7. Math error due to Earned Income Tax Credit (EITC) not being allowed because the adjusted gross income exceeds the maximum for EITC is considered an understatement.

  8. Math error due to EIC being disallowed because Form 8862, Information to Claim Earned Income Credit After Disallowance, was missing must be considered on a case—by—case basis to determine whether it is an underpayment or understatement. Any questions should be referred to the Headquarters analyst.

  9. Math error due to Schedule D (Capital Gains and Losses) tax worksheet figured incorrectly is considered an understatement.

  10. Math error due to social security benefits figured incorrectly is considered an understatement.

  11. Math error due to Schedule A (itemized deduction sheet) which is not attached is considered an understatement.

  12. Math error due to student loan interest deduction disallowed is considered an understatement.

25.15.7.5.16  (02-19-2013)
Open Automated Underreporter (AUR) and Compliance Campus Examination Operations (CCEO) Cases in Status 10 or Greater

  1. Open AUR and CCEO cases in Status 10 or greater will remain in the CCISO to be worked. See IRM 25.15.7.3.1, Identifying Automated Underreporter (AUR) and Examination Cases, to determine if the AUR or CCEO case is open.

    Note:

    Check TXMOD to ensure there are no pending transactions.

  2. If the AUR or CCEO case is still open, follow IRM 25.15.7.6.1, Case Building - AUR/Exam Case.

  3. If the Process Code(PC) indicates the TC 922 is closed, taxpayer has not been contacted, there is no PC, or the PC is 03 with no other number, continue screening.

  4. If the PC is 66, input TC 971 AC 065 and contact the AUR servicing center for details on processing the claim. The definition of PC 66 indicates Disagreed - Appeals Request - to Campus Examination (no acknowledgement letter). There will be situations where a claim that started in AUR will be completed by CCEO. The contact with AUR will dictate how the claim will be built and worked.

  5. If you have multiple years, keep the AUR year and the non-AUR year(s), which are being built, in separate case files. Place copies of everything, i.e., Form 8857 correspondence, etc. in the non-AUR file. Keep all case files together. Any year that can be disallowed or non-qualified will be separated.

25.15.7.6  (02-19-2013)
Case Building - General

  1. The following actions should be taken on all cases being built for a determination. Notate the primary TIN first and the secondary TIN below the primary TIN on the left side of the folder.

  2. Open IDRS control base.

  3. Update ISTS and ISTSR Input Record through the appropriate stage. Update each year on ISTS and ISTSR Input Record:

    1. Stage 01 with the earliest IRS received date.

    2. Stage 02 if received from another campus/Area Office.

    3. Stage 03 with date the claim was stamped into the IS team.

    4. Stage 04 date the administrative file was requested. If PANES case, input history item on IDRS.

    5. Stage 06 date the administrative file was requested for case being built for the field or if the case has been built but can’t be worked right away i.e., —O Freeze indicating a disaster case.

      Note:

      If there is no —O Freeze or there is information from the taxpayer or POA that it is okay to proceed, continue processing.

    6. Add Time on Case label.

  4. Input TC 971 AC 065 on MFT 30, 31, or Non Master File (NMF) 20 as appropriate. Initial and date the ISTSR Input Record when TC 971 AC 065 is input. For additional information on TC 971 AC 065 see IRM 25.15.2.4.2, Innocent Spouse Indicator Transaction Code (TC) 971/972. TC 971 AC 065 will not be input in the following situations:

    • Non-qualifying claim unless a preliminary determination letter will be issued,

    • The case has been removed to retention or vestigial record,

    • Invalid joint election,

    • No return filed (no TC 150),

    • -Z or Z- freeze, and

    • Cases in Collection Status 29 (TC 400 on the module). The TC 971 AC 065 will not post to the MFT 30 account. TC 971 AC 065 will be put on the NMF account by preparing Form 3177, Notice of Action for Entry on Master File. Fax to appropriate NMF unit to input. Build ISTS on MFT 30 and note history "ASSMNT/NMF " . If multiple years are on NMF, complete a Form 3177 for each year.

      Note:

      TC 971 AC 065 is not required when there is not a need to stop collection activity (e.g., no balance due or no pending assessment when a claim is received). This can occur if the tax is full paid when the claim is filed, if the claim is an injured spouse claim, if the claim is unprocessable, or the claim is premature as there is no deficiency or underpayment.

  5. If the RS’s current filed return has a TC 570 holding the refund, research the account prior to reversing the TC 570 to determine if there is another reason for the hold besides the innocent spouse claim.

    1. A DLN with a 92 in the 9th and 10th positions indicates an injured spouse claim.

    2. See IRM 21.4.6.4, Refund Offset Research, for an explanation of debt indicators.

    3. A DLN with 999 in the 6th, 7th and 8th positions indicates a Taxpayer Delinquent Investigation (TDI)/Refund Hold.

      If you can clearly determine the TC 570 was input on the account because of the innocent spouse claim, release the hold by inputting a TC 571. Note action on ISTSR Input Record. Input TC 971 AC 065, at the same time input TC 571 with a PDC (Posting Delay Code) of 02.

  6. Issue Letter 3659C as appropriate to the RS unless community property is involved, then issue Letter 3662C.

  7. Issue Letter 3284C to NRS unless an IRC 66(c) claim is involved, then issue Letter 3665C. See IRM 25.15.7.2.1, Addressing Letters to the Taxpayer, for addressing letters to taxpayers when the last name has changed.

    Note:

    If the claim is for the NRS and you already have a claim for the RS it is not necessary to issue Letter 3284C, send an interim letter.

    1. Verify the address for the NRS by checking ENMOD and INOLES. If the address for the NRS is the same as the RS and you can determine that they no longer live together, check IRPTR for a more current address to the NRS.

    2. Document at the bottom of the ISTSR Input Record if Letter 3284C is sent to an address other than the address of record.

    3. Do not send Letter 3284C in the following instances: an IRC 66(c) case or a PANES case until PANES procedures have been followed.

  8. Requesting documents. Enter the date the administrative file was requested on ISTSR Input Record, Stage 04.

    1. Generally the controlling DLN is the document you will request when there is an understatement. The controlling DLN is shown on the second line of TXMOD. Be alert to the following TCs that can be the controlling DLN: 150, 290, 291, 300, 301, or 421. If a taxpayer is claiming forgery or there is an underpayment and the year is not available on RTVUE, request the original return.

      Note:

      If no administrative file is received after 45 days, purge the case to Full Scope. They may be able to work the claim without the document. If they are unable to work the claim without the document, they will do a special search.

    2. If the year you need to request is for an underpayment and the year is on RTVUE, you do not need to ESTAB for the controlling DLN, just print RTVUE.

    3. If the return was electronically filed within the last six years, do not ESTAB. Use IDRS Command Code TRPRT to obtain the Electronically Filed Return (ELF). ELF returns can be identified by the TC 150 DLN, see Document 6209IRS Processing Codes and Information. Research command code IMFOLI, the "Posted Returns" column will show ELF.

      Caution:

      If forgery is claimed, request the return. If the return was electronically filed, ESTAB for the Form 8453, U.S. Individual Income Tax Declaration for an IRS e-filed Return. These records are destroyed 6 years after the end of the year the Form 8453 was processed.

    4. When requesting a document for an NMF account, ESTAB as you would for the TCs on Master File. In addition, ESTAB for the DLN on the NMF account. Enter "NMF" on the ISTSR Input Record behind this DLN and make sure it is the correct TIN for that account.

    5. If "SFR" is noted on TXMOD after the DLN or if the DLN begins with 43-210, do not request this document.

  9. Mirror the account, unless the account meets an exception to mirroring. Refer to IRM 25.15.15, Mirror Modules for Requests from Relief from Joint and Several Liability, for procedures on mirroring modules. Refer to IRM 25.15.15.2.1, Exceptions to Mirroring Modules.

    Exception:

    Do not mirror account if Field Referral.

25.15.7.6.1  (02-19-2013)
Case Building - AUR/Exam Case

  1. Input TC 971 AC 065 on MFT 30, MFT 31 or NMF 20 as appropriate. Initial the ISTSR Input Record when TC 971 AC 065 is input. For additional information on TC 971 AC 065 see IRM 25.15.2.4.2, Innocent Spouse Indicator Transaction Code (TC) 971/972.

  2. Notify AUR or CCEO via secure e-mail to the primary and back-up contact person that you have received Form 8857, Request for Innocent Spouse Relief.

  3. Update ISTS and ISTSR Input Record through Stage 04.

  4. Input comment entry on ISTS using "Open AUR" or "Open AIMS" .

  5. Input the appropriate team number on the ISTS Input Record.

  6. Do not ESTAB because AUR/Examination should have the return.

  7. Do not mirror the account.

  8. Send Letter 3659C to the RS.

    Note:

    If it has been less than 90 days since the SNOD was issued, inform the RS of their need to protect their petition rights for the AUR/CCEO deficiency and their right to raise the innocent spouse issue in their petition. Suggested language for an open paragraph: "If you disagree with the Statutory Notice of Deficiency issued on MM-DD-YYYY, you may file a petition with the United States Tax Court within 90 days from the date of that notice. The time to petition tax court could expire while we are evaluating your request for innocent spouse relief. If you decide to petition the Tax Court, you could raise the innocent spouse issue to the court. "

  9. Send Letter 3284C to the NRS.

  10. If multiple years, keep the AUR/Examination year and the non-AUR/Examination years in separate folders, but keep case files together. Any years that can be disallowed or non-qualified should be separated. Request ESTAB for the non-AUR/Examination years, if needed.

  11. Screen the correspondence to determine if the RS provided information needed by the campus to work the AUR/Examination issue. If so, the correspondence needs to be sent to AUR/Examination. Note ISTSR Input Record with "sent copy of correspondence to AUR/Exam" . Fax the correspondence to AUR/Examination.

  12. If the original AUR/Examination agreement with a signature or last will is attached to the Form 8857. Notate ISTSR Input Record with "Send copy of correspondence to AUR/Exam" . Fax the correspondence to AUR/Examination.

25.15.7.7  (02-19-2013)
Non-qualified and Disallowed

  1. Do not place non-qualified claims in a folder.

  2. Do not input TC 971 AC 065 on non-qualified claims.

    Exception:

    Input TC 971 AC 065 when the RS will be issued a preliminary disallowance letter or in cases where the CSED is open for the NRS only (this will prevent an offset from the RS’s account until the CSED is expired for the NRS).

  3. Follow procedures in IRM 25.15.9.1.2, Unprocessable Requests for Relief and Requests Not Meeting Basic Requirements (No Considerations), and IRM 25.15.9.1.5, Fully Disallowed Requests, for closing instructions, and IRM 25.15.14.2, Introduction, for ISTS instructions.

    Reminder:

    The stage date should reflect the date the action was taken. Example: Stage 30 date should be the date the TC 290 is input.

  4. There may be more than one reason a request for innocent spouse relief is non-qualified or disallowed. Choose the most definitive reason and address it accordingly. "Definitive" means it can not be disputed through Appeals.

    Example:

    A request is not timely, and there is no joint return (not an IRC 66(c) case). First, determine whether the claim is non-qualified. If the claim is non-qualifying, there is no reason to further determine whether it would be disallowed on other grounds. Non-qualify the request as no joint return filed.

  5. When inputting a TC 290 .00 on a module with a -A freeze (Duplicate Return Freeze) you must also enter TC 971 AC 010 with a posting delay code of 1. The TC 290 .00 releases the -A freeze and the TC 971 AC 010 resets the -A freeze.

  6. When inputting a TC 290 .00 on a module with an AIMS record, you must use priority code 1.

  7. Per IRM 25.15.15.2, First Read, mirror qualifying claims.

25.15.7.7.1  (02-19-2013)
Collection Statute Expiration Date (CSED) Expired

  1. When the CSED has expired and the RS made no payments, the claim is non-qualifying.

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and the ISTSR Input Record to Stage 29 with activity code "CSED" .

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

  2. When the CSED has expired and the RSED has expired on payments made by the RS, the claim must be disallowed.

    1. Issue Letter 4988C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record to Stage 11 with appropriate determination i.e., "D6015FOC" .

    3. Input comment entry on ISTS of 30DYMMDDYY.

    4. Update TXMOD control to 02XXX00030 with activity "30DYMMDDYY" . MMDDYY is the ending suspense date.

    5. Suspend the case for 45 days.

25.15.7.7.2  (02-19-2013)
Full Paid - No Payments from the RS or RS Did Not Request a Refund

  1. If a tax module reflects that an account is full paid (Status 12) and the RS did not make any payments or request a refund of payments:

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description "FP" and Stage 30 with applicable Activity Description.

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

    Exception:

    If there is an open AUR or Examination case, follow IRM 25.15.7.6.1, Case Building - AUR/Exam Case. See IRM 25.15.7.3.1, Identifying Automated Underreporter (AUR) and Examination Cases , to determine if an account contains an open AUR or Examination case.

25.15.7.7.3  (02-19-2013)
Full Paid - Payments from the RS But the Refund Statute Expiration Date (RSED) Has Expired

  1. If an account is full paid and the RS’s payments do not fall within the refund statute expiration date (RSED), which is 2 years of the claim date or 3 years from the date the return was filed, whichever is later:

    1. Issue Letter 4988C with the appropriate paragraphs.

    2. Update ISTS and the ISTSR Input Record to Stage 11 with appropriate activity code.

    3. Input comment entry on ISTS of 30DYMMDDYY.

    4. Update TXMOD control to 02XXX00030 with activity "30DYMMDDYY" . MMDDYY is the ending suspense date.

    5. Suspend the case for 45 days.

25.15.7.7.4  (02-19-2013)
Original Liability Full Paid and No Pending AUR/Exam Assessment

  1. If the original liability was fully paid and the AUR/Exam case is now closed with no additional assessment, the request for relief is considered a Pre - Assessment No Deficiency (PAND) request.

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description "PAND" and Stage 30 with applicable Activity Description.

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

25.15.7.7.5  (02-19-2013)
Full Paid - But the Account Contains a Joint (RS and NRS) TC 706

  1. When an account is full paid, but there is a joint (RS and NRS) TC 706, refer the case to the Technical Team so it can be determined if any portion of the joint TC 706 belongs to the RS. Update ISTS to Stages 01, 02 (if necessary), 03 and 06. The activity for Stage 06 is OTHER. Add a comment entry of "TO TECH" on ISTS.

    1. If the Technical Team determines the RS is not entitled to any portion of the joint TC 706, issue Letter 4988C advising the RS that the account is paid in full and that no refund is available for the overpayment from tax year(s) 20XX because they did not establish they provided all or a portion of the funds. Update ISTS and ISTSR Input Record through Stage 11 with the determination D6015FORB for underpayments or D6015FDRB for understatements.

      Note:

      Input comment entry on ISTS of 30DYMMDDYY. MMDDYY is the ending suspense date. Update TXMOD control to 02XXX00030 with activity of 30DYMMDDYY. Suspend case for 45 days.

    2. If the Technical Team determines the RS is entitled to any portion of the joint (RS and NRS) TC 706, follow IRM 25.15.7.6, Case Building - General.

25.15.7.7.6  (02-19-2013)
Full Paid - RS Is Requesting a Refund, But Is Not Eligible Because Payments Were Made Jointly with NRS

  1. When an account is full paid and the RS is requesting a refund, but is not eligible for a refund because the payment(s) requested for refund were made jointly with the NRS, issue a preliminary determination to deny the claim. Issue Letter 4988C to advise the RS the account is currently paid in full and that he/she is not entitled to a refund because the payments were made with joint funds.

    Note:

    Update ISTS and ISTSR Input Record through Stage 11 with determination of D6015FORB for underpayments and D6015 and the appropriate code section with activity RB for understatements.

    1. Input comment entry on ISTS of 30DYMMDDYY.

  2. Update TXMOD control to 02XXX00030 with activity "30DYMMDDYY" . MMDDYY is the ending suspense date.

  3. Suspend the case for 45 days.

25.15.7.7.7  (02-25-2011)
Community Property

  1. If the RS requested relief for a year and there is no issue to consider under IRC 66(c) and no balance due, issue Letter 3666C. Non-qualify the request as full paid due to no balance due and no Community Property Issue.

    Note:

    Payments made by the RS require consideration.

    1. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description "FP" and a History item "COMM PROP"

    2. These cases require a Transaction Code (TC) 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

  2. If the RS requested relief for a year and there is no issue to consider under IRC 66(c) and there is a balance due, issue Letter 3666C. Non-qualify the request as filing status.

    Note:

    Payments made by the RS require consideration.

    1. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description "FS" and a History item "COMM PROP"

    2. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

25.15.7.7.8  (02-19-2013)
Not Timely Filed

  1. IRC 6015(b) and IRC 6015(c) require a request for relief be filed no later than 2 years from the beginning of the first collection activity after July 22, 1998, against the RS. Any claim that is untimely under IRC 6015(b) and IRC 6015(c) must be considered under IRC 6015(f). Notice 2011–70 expanded the period for requesting relief under IRC 6015(f). Claims under IRC 6015(f) are timely as long as the collection statute is open on a balance due or the refund statute is open on a full paid module.

  2. See IRM 25.15.3.4.4, Collection Activity, for information on what constitutes collection activity.

  3. On understatement cases if the request for relief is not filed timely under IRC 6015(b), IRC 6015(c), and IRC 6015(f):

    1. Issue Letter 4988C with the appropriate paragraphs.

    2. Complete ISTSR Input Record through Stage 11.
      Input history item "30DYMMDDYY"
      Update TXMOD control to 02XXX00030 with activity "30DYMMDDYY" . MMDDYY is the ending suspense date.
      Suspend the case for 45 days.

    3. Complete the history sheet with the type of first collection activity and the date.

      Note:

      When an IRC 6330 notice starts the collection activity against the RS, there must be a TC 971 AC 069 present on the account for the RS. If the RS is the secondary taxpayer, the TC 971 AC 069 must contain an X-ref TIN. If the RS's TC 971 AC 069 is followed by a TC 971 AC 068, the notice was returned as undeliverable and then the TC 971 AC 069 is not considered the start of collection activity against the RS. A TC 971 AC 469 indicates the IRS received no response from the Post Office so the TC 971 AC 069 does not start the collection activity against the RS. If you are unsure, build the claim.

  4. On underpayment cases deemed not timely under IRC 6015(f), complete the history sheet with the date the collection statute or refund statute expired, whichever is later. Input history item "30DYMMDDYY" , update the TXMOD control to 02XXX00030 with activity "30DYMMDDYY" . MMDDYY is the ending suspense date.

25.15.7.7.9  (02-19-2013)
Taxpayer Request for Withdrawal of Claim

  1. When the RS has notified us verbally or by letter to withdraw their claim:

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record through Stage 29 with the activity of "WITH" .

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

    4. The CSED will be extended to 60 days after the date the request to withdraw was received. Input TC 972 AC 065 reflecting this addition of 60 days.

    5. If an open AUR case, e-mail the information to the appropriate primary contact person.

    6. If the RS withdraws the claim after the NRS has been notified, send Letter 3323C to advise the NRS the claim has been withdrawn.

      Note:

      If the withdrawal is done by phone, be sure to document it on AMS and keep a copy of the AMS print in the case file.

      Caution:

      A claim cannot be withdrawn after a preliminary determination letter has been issued.

25.15.7.7.10  (02-25-2011)
No Joint Return/RS Filed Own Return

  1. If there is no joint return, or RS filed own return and does not live in a community property state:

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record with RS as primary TIN through Stage 29 with Activity Description "FS" . and Stage 30 with applicable activity description.

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

25.15.7.7.11  (07-17-2009)
No Return Filed or Account Is on Retention Register/Vestigial

  1. If the request for relief includes a year where no return was filed or the account is on the Retention Register/Vestigial, and other years with a return posted will be disallowed:

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record under primary’s TIN with the appropriate stages and appropriate activity description. See IRM 25.15.14.4, Processing Stages for procedures.

    Note:

    Keep years together and if possible, post TC 290 to year where return has been filed that is not on retention register or vestigial.

  2. If the request for relief is for a year where no return was filed or the account is on the Retention Register/Vestigial and no other year is being disallowed, follow the above procedures and place in the No Post File.

25.15.7.7.12  (02-19-2013)
Civil Penalty

  1. If the request is for relief of a Civil Penalty Assessment (MFT 55) or NMF Civil Penalty (MFT 28):

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Create ISTS on MFT 30 on calendar year being requested.

    3. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description Other Tax, "OT" and Stage 30 with the applicable activity description.

    4. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

25.15.7.7.13  (07-17-2009)
Business Master File (BMF) Assessment

  1. If the request is for relief of a BMF assessment (do not control any BMF modules):

    1. Issue Letter 3657C with the appropriate paragraphs.

    2. Update ISTS and ISTSR Input Record on MFT 30 for the year requested through Stage 29 with Activity Description "OT" and Stage 30 with the applicable activity description.

    3. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

25.15.7.7.14  (02-19-2013)
Offer In Compromise (OIC)

  1. If an OIC was previously filed by the RS, look at the indicator on TXMOD to determine who filed the claim: P-Primary taxpayer or S-Secondary taxpayer or B-Both taxpayers. Listed below are OIC transaction codes and their explanation.

    • TC 480 - OIC filed (-Y freeze)

    • TC 481 - OIC rejected

    • TC 482 - OIC withdrawn

    • TC 483 - TC 480 posted in error

    • TC 780 - OIC accepted (-Y freeze)

    • TC 781 - Defaulted OIC

    • TC 782 - TC 780 processed in error

    • TC 788 - Closing of accepted OIC, removes the Y freeze

  2. If the RS’s offer was denied, continue screening.

  3. If there is a pending OIC (Integrated Data Retrieval System (IDRS) Transaction Code (TC) 480), contact the Requesting Spouse and advise him/her of the consequences if the OIC is accepted, i.e., the acceptance of an OIC precludes the taxpayer from subsequently being considered for relief from joint and several liability for the same tax period. If the RS wants to proceed with the OIC, contact the OIC area and request that they expedite the OIC. See who to contact in SERP under the Who/Where tab. Suspend the claim in Stage 06 until a determination is made on the OIC.

    1. If the OIC is going to be accepted, the taxpayer can't be considered for relief from joint and several liability for the same tax period, disallow the innocent spouse claim. Issue Letter 4988C. Update ISTS and ISTSR Input Record to Stage 11 with the Activity Description "OC" and applicable code section. Use "6015(b)" if understatement and "6015(f)" if underpayment.

    2. If the OIC is going to be denied, build the claim. See IRM 25.15.7.6, Case Building - General.

      Note:

      The taxpayer may submit another OIC if relief is not granted through the innocent spouse provisions.

  4. If the RS was granted an OIC (regardless if defaulted), issue Letter 4988C. See IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures. Update ISTS and ISTSR Input Record to Stage 11 with the Activity Description "OC" and applicable code section. Use "6015(b)" if understatement and "6015(fo)" if underpayment.

    1. Input history item "30DYMMDDYY" .

    2. Update TXMOD control to 02XXXX00030 with activity "30DYMMDDYYY" . MMDDYY is the ending suspense date.

    3. Suspend for 45 days.

25.15.7.7.15  (02-19-2013)
Injured Spouse Claim

  1. Injured spouse relief applies if an overpayment from a joint module offsets to a separate liability belonging to the other spouse.

  2. When the taxpayer files Form 8857, Request for Innocent Spouse Relief, but it is really an injured spouse claim, the request for relief is non-qualifying. Circle all date stamps in red and issue Letter 3657C to return Form 8857 to the RS.

  3. If you receive Form 8379, Injured Spouse Allocation, forward it to the Adjustments area where the return was filed. Issue Letter 3657C with the appropriate paragraphs.

  4. Update ISTS and ISTSR Input Record through Stage 29 with Activity Description "INJS" and Stage 30 with the applicable activity description.

  5. These cases require a TC 290 for .00. If you have access to input a TC 290, do so. Otherwise, notate the tax year(s) and activity code for Stage 30 on the ISTSR Input Record, but do not date Stage 30 on the ISTSR Input Record. Stage 30 will be dated when the TC 290 for .00 is input.

  6. Do not input TC 971 AC 065.

  7. Check for TC 570 on the account module. If the Form 8857 was detached from the Form 1040, U.S. Individual Income Tax Return, you may need to reverse the TC 570 freeze.

25.15.7.8  (07-17-2009)
Forms and File Assembly - First Read

  1. Built and disallowed cases should have the following information:

    1. Primary TIN on the left side of the folder. Enter the secondary TIN below the primary TIN.

    2. ISTSR Input Record stapled to front outside.

    3. Activity Record stapled to front inside.

    4. Any CFINK prints or Form 2848, Power of Attorney and Declaration of Representative, stapled to front of Activity Record.

    5. Claim with correspondence attached in folder.

  2. Non-qualified cases do not require a folder. For case file assembly see IRM 25.15.9.1.25, Case File Assembly.

    Note:

    It is not necessary to use the Activity Sheet for non-qualified cases. Notate any necessary information i.e., transaction codes, input in "Other Information" on ISTSR Input Record. Attach CFINK print or Form 2848 to the back of the ISTSR Input Record.

25.15.7.9  (02-19-2013)
Full Scope - Overview

  1. Claims screened by First Read determined to have merit will be built and forwarded for determinations.

25.15.7.10  (02-19-2013)
Cases Assigned to Financial Technicians (FT) for Full Scope Determinations

  1. Cases will be allowed, partially allowed, disallowed or additional information requested from the taxpayer based on the facts and circumstances by applying IRC 6015. Refer to IRM 25.15.3, Technical Provisions of IRC 6015, for information on this IRC section.

    Note:

    When a RS's overpayment offsets to the year for which he/she is requesting relief you will assume he/she wants a refund of the offset that falls within the RSED and work your case accordingly.

    Caution:

    If there is an open RSED, joint (RS and NRS) TC 706 on an account, first determine if any relief would be allowed. If the TC 706 could be refunded, contact the RS to determine if they want any portion of the TC 706 refunded to them if relief is allowed. If the RS indicates they want the TC 706 or any portion of the TC 706 considered for refund, refer the case to the Technical Team.

  2. When information is missing or insufficient to make a determination, you must make two attempts to reach the taxpayer by telephone. These calls can't be made within 48 hours of each other. Document telephone contact attempts on AMS. Keep copies of AMS print(s) in the case file. If no telephone number available or unable to reach the taxpayer, correspond with the taxpayer using letter 3659C (3662C if under IRC 66(c)), to secure the information. Regardless of how the contact is made, allow 30 days for the information to be provided.

  3. Accept oral testimony, unless the information does not appear credible. If in doubt, request documentary evidence.

  4. Complete an ISTSR Input Record, Activity Record, and work papers on all cases.

    Note:

    Work papers are not needed if the information is captured on the history sheet, e.g., full paid closures, CSED expired, etc.

  5. Refer to IRM 25.15.3.8.3, Streamlined Determination - Notice 2012–8 Section 4.02, for information on Streamlined Determinations.

  6. If the information from the RS and NRS differ (he said/ she said), refer the case to the Financial Specialist if you are unable to make a determination.

  7. Refer to IRM 25.15.9.1.12, Decedents, when the NRS is deceased.

  8. Refer to IRM 25.15.15, Mirror Modules for Requests for Relief from Joint and Several Liability, for procedures on mirroring modules. Per IRM 25.15.15.2, First Read, qualifying claims must be mirrored, unless they meet an exception to mirroring as detailed in IRM 25.15.15.2.1, Exceptions to Mirroring Modules.

  9. See IRM 25.15.9, Account Processing of Requests for Relief from Joint and Several Liability, for closing instructions if the account is not mirrored.

25.15.7.10.1  (02-19-2013)
Screening Cases - Full Scope

  1. Verify claim is valid. Refer to IRM 25.15.7.4.2, Screening Procedures.

  2. Check IDRS command codes ISTSRS, TXMOD, IMFOLI, ENMOD or IMFOLE and CFINK. See IRM 25.15.7.4.2.4, IDRS Research, for additional information.

  3. Verify Letter 3284C to the NRS was sent to the correct address.

  4. Verify the administrative file (Form 1040, U.S. Individual Income Tax Return, and if applicable, Form 1040X, Amended U.S. Individual Income Tax Return, RTVUE and/or Examination package) is in case file, if necessary.

  5. Verify all returns in case file have been processed.

  6. Identify and address all other issues.

25.15.7.10.2  (02-25-2011)
Priority of Inventory

  1. Work cases in the following priority:

    1. Taxpayer Advocate Service (TAS) cases marked expedite. Refer to IRM 25.15.7.10.2.1, Taxpayer Advocate Service (TAS).

    2. Litigation/Docketed Appeals. IRM 25.15.7.10.11.3, Docketed Appeals Case.

    3. Collection Due Process (CDP). IRM 25.15.7.5.12, Collection Due Process.

    4. Automated Underreporter (AUR) cases. IRM 25.15.7.3.3, AUR/CCEO 30 Day Period (CP2000 or Letter 566C Issued).

    5. By IRS received date.

25.15.7.10.2.1  (02-19-2013)
Taxpayer Advocate Service (TAS)

  1. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Our goal is to work efficiently with TAS. See 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for information on TAS.

25.15.7.10.2.1.1  (02-19-2013)
Form 12412, Operations Assistance Request (OAR)

  1. CCISO receives Operations Assistance Requests (OAR) from TAS, either by mail or fax. Upon receipt of an OAR, hand carry it to the CCISO Taxpayer Advocate Liaison.

  2. The CCISO TAS liaison will be responsible for:

    1. Accepting the OAR from TAS.

    2. Acknowledging receipt of the OAR within 3 days (within 1 day for expedited OARs).

    3. Reviewing the case for appropriate assignment.

    4. Inputting the OAR information on the TAS database.

    5. Placing the innocent spouse/TAS cases in appropriate folder (which will remain around the case until it is closed to Appeals, Files or another area).

    6. Assign the case to the appropriate employee within the function using a Form 3210, Document Transmittal.

  3. All criteria will be worked in received date order.

    Exception:

    TAS cases marked Expedite will be expedited through the innocent spouse process.

    Note:

    Innocent spouse cases have processing timeframes based on statutory requirements. The statutory timeframes cannot be circumvented, even for economic burden cases.

  4. TAS Case Criteria (See IRM 13.1.7Taxpayer Advocate Service (TAS) Case Criteria for additional information)

    1. Taxpayer is experiencing economic harm or is about to suffer economic harm.

    2. Taxpayer is facing an immediate threat of adverse action.

    3. Taxpayer will incur significant costs if relief is not granted.

    4. Taxpayer will suffer irreparable injury to, or long-term adverse impact if relief is not granted.

    5. Taxpayer has experienced a delay of more than 30 calendar days to resolve a tax account problem or inquiry.

    6. Taxpayer has not received a response or resolution to their problem or inquiry by the date promised.

    7. A system or procedure has either failed to operate as intended or failed to resolve the taxpayer's problem or dispute within the IRS.

    8. The manner in which the tax laws are being administered raise considerations of equity, or has impaired or will impair the taxpayers' rights.

    9. The National Taxpayer Advocate (NTA) determines compelling public policy warrants assistance to an individual or group of taxpayers.

25.15.7.10.2.1.2  (03-21-2008)
Assigning OARs

  1. OARs will be assigned to all functions of the CCISO depending upon the recommended actions requested by TAS.

25.15.7.10.2.1.3  (02-19-2013)
Actions Initiated on TAS Cases (OARs)

  1. Once a determination has been made or the requested actions have been taken on Full Scope innocent spouse/TAS cases, the examiner will:

    1. Complete Section V of Form 12412, Operations Assistance Request (OAR), with their name, phone number, etc.

    2. Notate Section VI with actions taken, initial and date.

    3. Fax Form 12412 and a fax cover sheet to TAS.

    4. Notate the activity sheet that Form 12412 was faxed to TAS.

    5. File case as appropriate.

  2. Once an action has been taken on innocent spouse/TAS cases assigned to First Read, the examiner will:

    1. Notate Section VI of the Form 12412 with the action taken, initials, and date.

    2. Fax the TAS cover-sheet and completed Form 12412 to TAS.

    3. Notate activity sheet (when applicable) that Form 12412 was faxed to TAS. If activity record is not available, notate the Form 12412.

    4. Keep original Form 12412, TAS/OAR Disposition Sheet and the Innocent Spouse Tracking System Record (ISTSR) Input Record with the case going to other areas or Files.

    5. Ensure the TAS folder includes a copy of the Form 12412, a print of the ISTSR Input Record showing Stage 30, if closing the claim, and a copy of the TAS OAR Disposition Sheet. If there is not an Innocent Spouse issue because it has previously been closed, the originals will stay in the appropriate folder.

    6. Return to CCISO TAS Liaison.

  3. Once an action has been taken on innocent spouse/TAS cases assigned to the Processing Team, the examiner will:

    1. Notate Section VI of the Form 12412 with the action taken, initials, and date.

    2. Fax the TAS cover sheet and completed Form 12412 to TAS.

    3. Notate the activity sheet (when applicable) that Form 12412 was faxed to TAS. If activity record is not available, notate the Form 12412.

    4. Keep original Form 12412, Operations Assistance Request (OAR), TAS OAR Disposition Sheet and ISTSR Input Record with the case going to another area or Files.

    5. Ensure the TAS folder includes a copy of the Form 12412 a print of ISTS showing Stage 30, if closing the claim, and a copy of the blue TAS/OAR Disposition Sheet. If there is not an innocent spouse issue because it has previously been closed, the originals will stay in the appropriate folder.

    6. Return to IS TAS Liaison.

25.15.7.10.2.1.4  (07-17-2009)
Closing and Transferring TAS Cases

  1. When closing or transferring a TAS case, update the case on ISTS and ISTSR Input Record to Stage 30 or 07:

    1. Complete all required closing processes.

    2. Notate Section VI of Form 12412, Operations Assistance Request (OAR), of the actions taken to close the OAR such as closing to Appeals, Files, CDP, etc. Initial and date the Form 12412.

    3. Fax Form 12412 with a TAS cover sheet to TAS.

    4. Notate the activity sheet that you faxed the Form 12412 to TAS.

    5. Make a copy of Pages 1 and 2 of the Form 12412.

    6. Remove the innocent spouse case that you are closing to Files or forwarding to another area from the TAS folder.

    7. Place copies of the Form 12412, and ISTS print in the TAS folder and return to the IS TAS Liaison.

    8. Keep original Form 12412, and ISTS print with the case going to another area or Files. Place originals inside case file so they are on top.

25.15.7.10.2.2  (02-19-2013)
Docketed Court Cases (PC 80 for AUR and AIMS Status 82 for Examination

  1. Work the case.

    1. Document the case file with the determination. Do not send any letters.

    2. Update ISTS and ISTSR Input Record with Stages 11, then 07. Stage 07 date must be at least one day later than Stage 11 date.

    3. Close IDRS control base.

    4. Forward case to Appeals by using a buckslip, notate Pre-assessment and the case is docketed on the top in red.

      Note:

      If the TC 922 has a PC of 80 or Status 82 for AIMS, there is no need to e-mail AUR or Exam. Their case has already been forwarded to Appeals.

25.15.7.10.2.3  (02-19-2013)
Form 12153, Request for a Collection Due Process or Equivalent Hearing

  1. A taxpayer may request a Collection Due Process (CDP) hearing or an equivalent hearing using Form 12153, Request for Collection Due Process or Equivalent Hearing.

    1. A TC 520 with CC 76 or 77 (without a reversing TC 521) will be present if there is a pending CDP hearing request.

    2. A TC 971 AC 275, 276 or 277 (without a reversing TC 972 AC 275, 276, or 277) on TXMOD or IMFOLT also indicates there is an open CDP hearing. A TC 971 AC 630 will also be present, but only if the hearing involves a proposed levy action.

    3. A TC 520 will not be present if the taxpayer has requested an equivalent hearing. You must rely on TC 971 Action Codes to determine if there is an open equivalent hearing. A TC 971 AC 278, 279 or 280 (without a reversing TC 972 AC 278, 279, or 280) on TXMOD or IMFOLT indicates there is an open equivalent hearing. A TC 971 AC 631 will also be present, but only if the equivalent hearing involves a proposed levy action.

    4. If the CDP hearing request was received by Automated Collection System (ACS), there will also be an open IDRS control on TXMODA with activity beginning with CDP or EH (equivalent hearing). The final activity on that control should be 2APPLS indicating ACS sent the CDP hearing request to Appeals.

    5. If a TC 520 is present on TXMODA or IMFOLT, it will be paired with an indicator "B" if both spouses requested a CDP hearing, "P" if only the primary spouse requested a CDP hearing or "S" if only the secondary spouse requested a CDP hearing. The CDP must be for the RS. Notate CDP on top of the ISTSR input record sheet and highlight.

      Note:

      Research for TXMOD controls TCPI status M, which indicates a CDP hearing already in progress.

  2. Expedite CDP cases.

  3. If you receive the original Form 12153, make a copy for the case file and expedite the original form to Automated Collection System (ACS) Stop 813G.

  4. If the claim meets non-qualifying criteria:

    1. Issue the appropriate letter.

    2. Update ISTS and ISTSR Input Record through Stage 30.

    3. Attach a Form 1725, Routing Slip, addressed to Appeals with a copy of the letter issued to the RS and ISTS Input Record.

  5. If the claim should be built for Full Scope:

    1. Follow case building procedures. IRM 25.15.7.6, Case Building - General.

    2. Place in appropriate folder, notate and highlight "CDP" on top of the ISTSR Input Record.

    3. Enter a history item on ISTS "CDP" .

  6. Follow the existing procedures for making a determination, issuing a preliminary determination letter and holding the case in suspense for 45 days.

    Exception:

    Enter CDP as the code section for Stage 11 if disallowed or partially allowed.

  7. If the relief is allowed and the NRS did not appeal:

    1. Purge the case.

    2. Do Not issue the final determination letter.

    3. Make a copy of the ISTSR Input Record, work papers, Form 3465, Adjustment Request; Form 8857, Request for Innocent Spouse Relief, and send copies to the appropriate Appeals office with a Form 1725, Routing Slip. The lead will check Appeals Centralized Data System (ACDS) for the Appeals officer assigned the case and send the information to that Appeals office's address. The website for ACDS is http://acds.web.irs.gov/.

  8. If the relief is allowed and the NRS appealed, or if the relief is partially allowed or disallowed:

    1. Purge the case.

    2. Do not issue the final determination letter.

    3. Recharge documents to the appropriate appeals office using ESTAB to recharge documents.

    4. Complete Form 3210, Document Transmittal. Keep two copies with the case and retain one copy for the team. Always use the primary TIN on Form 3210.

    5. Update ISTS and ISTSR Input Record accordingly.

    6. Close IDRS control base.

    7. Send case to the appropriate Appeals office with a Form 1725. The lead will check the ACDS for the Appeals officer assigned to the case and send the information to that Appeals office's address. The website for ACDS is http://acds.web.irs.gov/.

25.15.7.10.3  (03-21-2008)
Account Management Services (AMS) - Innocent Spouse Application (ISA)

  1. AMS/ISA routes the employee through a series of questions to assist the examiner in making a determination on the relief request.

  2. Workpapers are systemically generated.

  3. Address all relevant facts and circumstances of the case and clearly document the process you used to arrive at your decision.

25.15.7.10.4  (02-19-2013)
Streamlined Determinations

  1. Refer to IRM 25.15.3.8.3, Streamlined Determinations - Notice 2012–8 Section 4.02 for information.

25.15.7.10.5  (02-19-2013)
Additional Information Required

  1. If information submitted is insufficient to make a determination,

    Note:

    You must make two attempts to contact the RS for the information. If a telephone number is not provided for the RS, use resources available to obtain a telephone number for the RS. If a telephone number is available, two attempts must be made to contact the RS by telephone. These calls cannot be made within 48 hours of each other and preferably at different times of the day. After the second call, wait at least one week for the RS to return the call. If the RS does not respond, or if a telephone number cannot be secured, letter 3659C (3662C if under IRC 66(c)) must be sent to the RS to request the information. Send the correspondence to the current address of the RS. In the correspondence, allow the RS 30 days to provide the additional information. Suspend the case for 45 days. If you do not receive a response from the RS, follow IRM 25.15.7.10.5.1,No Reply to Request for Additional Information.

  2. Always inquire about who made any TC 670 payments and how the refund, if applicable, was divided and/or spent. Research the Remittance Transaction Record (RTR). If unable to secure copy of remittance, contact RS/NRS for copies of payments.

  3. Document all contact attempts and any information discussed on AMS. Notate the contact attempts on the Activity Record. Make print(s) of AMS contact(s) and attempted contact(s). Keep a copy of the AMS print(s) in the case file.

  4. If the RS provides the information over the phone, document the information on AMS and keep a copy of the AMS print(s) in the case file. Regardless of how contact is made with the RS, they are allowed 30 days to provide the additional information. Before ending the call or in the correspondence, ensure the RS has the fax number and/or address to provide the additional information. The RS additional information should be faxed or mailed to your attention at:
    IRS
    Stop 840F
    PO Box 120053
    Covington, KY 41012

  5. Document Activity Record and notate time on case.

25.15.7.10.5.1  (02-19-2013)
No Reply to Request for Additional Information

  1. When there is no reply to a request for additional information from the RS:

    1. Attempt to make a determination based on the information available in the case file.

    2. Make sure required attempts to contact the RS in IRM 25.15.7.10.5, Additional Information Required, have been followed.

    3. If there is not enough information available in the case file to make a determination and the required telephone and correspondence contacts have been made, disallow the claim with reason code "V" . Send a preliminary determination letter to the RS, NRS and current POA, if applicable. Follow IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.

25.15.7.10.6  (02-19-2013)
Allowed Requests

  1. Refer to IRM 25.15.3, Technical Provisions of IRC 6015 and IRM 25.15.5, Relief from Community Property Laws/Community Property States.

  2. As of July 2, 2012 any preliminary determination of P6015XRB is considered fully allowed. Claims are considered fully allowed when the RS is granted full relief of the entire balance due without regard to a request for refund. Previously, if a RS did not receive the full refund requested, the determination was considered partial relief.

    Note:

    A RS will be allowed to appeal on fully allowed requests if they do not receive the full refund requested. A RS has the right to petition Tax Court on all allowed requests.

    Note:

    Many taxpayers do not understand that an offset is considered a payment. So if the RS had an offset applied to the year they are requesting relief, assume he/she wants a refund of the offset that falls within the RSED and work your case accordingly.

  3. Follow IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.

    Caution:

    If the RS indicated they were a victim of spousal abuse or domestic violence, see the specific requirements in IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.

  4. If account is mirrored and no refund is due, refer to IRM 25.15.15.3.1, Relief Allowed in Full and No Refund Due, for closing instructions.

  5. If account is mirrored and a refund is due, refer to IRM 25.15.15.3.2, Relief Allowed in Full and Refund Due, for closing instructions.

  6. If account is not mirrored refer to IRM 25.15.9.1.7, Allowed Requests - Financial Assistants. Prepare Form 3465, Adjustment Request, to have the Processing Team move the relieved amounts to NMF 20. Identify payments that need to be moved to NMF 20 and those that should be refunded. Address Earned Income Tax Credit (EITC) and applicable penalties. Attach a TXMOD print.

  7. If full relief is allowed of an open AUR issue, follow IRM 25.15.7.3, Automated Underreporter (AUR) and Compliance Campus Examination Operations (CCEO) Cases - Overview.


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