25.15.7  Compliance Campus Functions

Manual Transmittal

July 24, 2014

Purpose

(1) This transmits revised procedures for IRM 25.15.7, Relief from Joint and Several Liability, Compliance Campus Functions.

Material Changes

(1) Editorial changes have been made throughout this IRM.

(2) IRM 25.15.7.2(1) clarified that this section is listing where to find instructions for all the areas, not the entire 25.15.7.

(3) IPU 13U0808 issued 04-25-2013 IRM 25.15.7.2.1(2) added a reference to IRM 25.15.7.2.1.2.

(4) IRM 25.15.7.2.1.1(1) updated instructions for undeliverable mail.

(5) IPU 13U0808 issued 04-25-2013 IRM 25.15.7.2.1.2 new section added for Address Updates.

(6) IRM 25.15.7.2.1.2 removed statement to update the address from the Form 8857.

(7) IRM 25.15.7.2.1.2(1)(e) added ITIN to instruction.

(8) IRM 25.15.7.2.1.2(4)(b) changed to after the initial contact letter.

(9) IPU 13U1095 issued 06-17-2013 IRM 25.15.7.2.3 added new section on IAT tools.

(10) IRM 25.15.7.3(1) added Publication 3498–B for AUR notices and inserted an alphalist to make information easier to read.

(11) IPU 13U1312 issued 08-02-2013 IRM 25.15.7.2.3(4) updated the table of mandated IAT tools.

(12) IPU 13U1520 issued 09-30-2013 IRM 25.15.7.2.3(4) Updated the table of mandated IAT tools for refund tools.

(13) IRM 25.15.7.2.3(4) removed Refund Suite from the chart.

(14) IRM 25.15.7.3.1(1) replaced document 6209 with IRM 21.3.1.4.54 for references AUR status codes.

(15) IRM 25.15.7.3.1(2)(b) Note changed the status 12 to a status 10.

(16) IRM 25.15.7.3.2(1)(2) changed Letter 2645C to Letter 3659C.

(17) IRM 25.15.7.3.3(1) table, updated steps for AUR in box 1 and 3.

(18) IRM 25.15.7.3.3.1(1) table, revised instruction for AUR or CCEO to continue processing their case after 51 days has elapsed.

(19) IRM 25.15.7.3.3.1(1) table, removed instruction to have the AUR or CCEO case sent to appeals when the innocent spouse case is appealed.

(20) IRM 25.15.7.3.3.1(1) table, revised instructions for when the AUR or CCEO case is appealed.

(21) IRM 25.15.7.3.3.1(1) table, revised instructions for when there has been no appeals request.

(22) IRM 25.15.7.3.3.1(1) table, no appeals request updated (1) for both RS, NRS and deleted (2). Subsequent items were renumbered.

(23) IRM 25.15.7.3.3.1(2) table, revised instruction for AUR or CCEO to continue processing their case after 51 days has elapsed.

(24) IRM 25.15.7.3.3.1(2) table, removed instruction to have the AUR or CCEO case sent to appeals with the innocent spouse case.

(25) IRM 25.15.7.3.3.1(2) table, revised instructions for when the AUR or CCEO case is appealed.

(26) IRM 25.15.7.3.3.1(2) table, revised instructions for when there has been no appeals request.

(27) IRM 25.15.7.3.3.1(2) table, no appeals request updated (1) for both RS, NRS and deleted (2). Subsequent items were renumbered.

(28) IRM 25.15.7.3.3.1(3) table, revised instruction for AUR or CCEO to continue processing their case after 51 days has elapsed.

(29) IRM 25.15.7.3.3.1(3) table, removed instruction to have the AUR or CCEO case sent to appeals when the innocent spouse case is appealed.

(30) IRM 25.15.7.3.3.1(3) table, revised instructions for when the AUR or CCEO case is appealed.

(31) IRM 25.15.7.3.3.1(3) table, no appeals request updated (1) for both RS, NRS and deleted (2). Subsequent items were renumbered.

(32) IRM 25.15.7.3.5(3) Note, updated to reflect processing codes 21 — 29.

(33) IPU 13U1740 issued 12-12-2013 IRM 25.15.7.4.1(1)(13) updated instructions on VODV indicator and its removal.

(34) IPU 13U1343 issued 08-12-2013 IRM 25.15.7.4.1(1)(13) added instructions regarding the VODV indicator.

(35) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.4.2.2 Added instructions for cases previously closed as non-qualifying.

(36) IRM 25.15.7.4.2.2(2) updated sentence to state treat as a new claim under 6015(c).

(37) IRM 25.15.7.4.2.4(1)(a) last sentence reworded for clarity.

(38) IPU 13U0808 issued 04-25-2013 IRM 25.15.7.4.2.4.4 added a reference to IRM 25.15.7.2.1.2.

(39) IPU 13U0808 issued 04-25-2013 IRM 25.15.7.4.2.4.6 added a reference to IRM 25.15.7.2.1.2.

(40) IRM 25.15.7.4.2.2(2) removed caution, information is covered in 25.15.7.2.1.2.

(41) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.4.3.1(3) removed exception that stated to not update beyond Stage 3.

(42) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.4.3.1(4) added a note stating that all years listed should be referred and worked by the same employee.

(43) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.4.3.1(4) added reference to Field Exam IRM 25.15.6.

(44) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.4.3.1(4) removed reference to Field exam IRM 25.15.6.

(45) IRM 25.15.7.4.3.1(6) table, AIMS 56, updated instruction to contact area assigned the case in status 56.

(46) IPU 13U1343 issued 08-12-2013 IRM 25.15.7.4.3.2 updated instructions and added table defining open litigation/tax court cases.

(47) IRM 25.15.7.4.3.2.1(1) removed the PO Box from the address.

(48) IRM 25.15.7.4.3.2.1 Note, added Chief Counsel Notice.

(49) IRM 25.15.7.4.2.2(2) Exception updated to reflect only 6015(c).

(50) IRM 25.15.7.5.2(1) removed note and incorporated information into (1).

(51) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.5.5(1)(1) removed the exception.

(52) IRM 25.15.7.5.5(3) added information for when the RS states that they were not married the year the joint return was filed.

(53) IRM 25.15.7.5.6(2) added alphalist and included illegal marriage and annulment to divorce documents.

(54) IRM 25.15.7.5.6(3) moved table from (2) to (3), subsequently (3) became (4).

(55) IRM 25.15.7.5.6(3) updated chart to reflect that Puerto Rico is not a Common Law State.

(56) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.5.6(4)(c) revised to send a Letter 3659C to the RS.

(57) IRM 25.15.7.5.6(4)(c) added instruction to enclose Pub. 1 with the Letter 3659C.

(58) IPU 13U1630 issued 11-07-2013 IRM 25.15.7.5.9 added reference to CAU designation and IRM 25.4 Employee Protection.

(59) IRM 25.15.7.5.14(1)(c) updated to state that if the RS is granted relief it will be determined if any of the payment can be refunded.

(60) IRM 25.15.7.5.15(8) updated information for missing form.

(61) IRM 25.15.7.5.16(5) changed can be disallowed to may be disallowed.

(62) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.5.17 added section on Identity Theft Claims under Special Handling.

(63) IRM 25.15.7.7.8(4) added step list, sending Letter 4988C and updating ISTSR Input record through Stage 11.

(64) IRM 25.15.7.7.10(1)(3) added that TC 290 .00 should be input on RS TIN.

(65) IRM 25.15.7.7.11(1)(2) in the note updated to state that a TC 290 .00 should be input if an account is present.

(66) IRM 25.15.7.7.15(2) Exception added to retain orginal if multiple years listed and at least one year is a qualifying claim.

(67) IPU 13U1343 issued 08-12-2013 IRM 25.15.7.8(2) corrected IRM reference.

(68) IRM 25.15.7.10(1) Caution updated to have the employee determine the RS's portion of the TC 706.

(69) IRM 25.15.7.10(1)(5) changed title of IRM reference to reflect Rev. Proc. 2013-34.

(70) IRM 25.15.7.10(6) removed (he said/she said) and updated to contradicting statements.

(71) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.10.2(5) added Reconsiderations in Stage 12 before IRS rec'd date.

(72) IPU 13U1343 issued 08-12-2013 IRM 25.15.7.10.2.2 instructions renumbered and added instructions for non-petitioning spouse.

(73) IRM 25.15.7.10.2.3(1)(c) clarified open CDP cases.

(74) IPU 13U0808 issued 04-25-2013 IRM 25.15.7.10.2.3(6) exception has been updated to have CDP entered as the code section on all CDP cases.

(75) IPU 13U1167 issued 07-01-2013 IRM 25.15.7.10.2.3(6) exception has been updated to enter CDPA, CDPP, or CDPD in the code section on all CDP cases.

(76) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.2.3(7) removed (8) renumbered as (7).

(77) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.2.3 (7) revised to send all CDP cases to Cincinnati Campus Appeals Office.

(78) IRM 25.15.7.10.3 updated to state that the tool is a guide and the examiner will make the final determination.

(79) IRM 25.15.7.10.5(4) removed stop number from the PO Box address.

(80) IRM 25.15.7.10.7(3) added instruction to add a copy of the allocation worksheet to the case file.

(81) IPU 13U1167 issued 07-01-2013 IRM 25.15.7.10.9(2)d added instructions to update activity code with RSPRELIM.

(82) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.9(2) added invalid joint election to the caution.

(83) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.9(2), (3) and (4) revised and resequenced for clarity of instructions.

(84) IPU 13U1740 issued 12-12-2013 IRM 25.15.7.10.9(2) updated notification procedures for victims of spousal abuse or domestic violence.

(85) IRM 25.15.7.10.9(2)(b) updated the phone number of video services for the deaf.

(86) IRM 25.15.7.10.9(5) added that the NRS receives appeal rights.

(87) IPU 13U1740 issued 12-12-2013 IRM 25.15.7.10.9(9) removed note on VODV indicator and incorporated information into IRM 25.15.7.10.9(2).

(88) IRM 25.15.7.10.9(4) changed Keep in team to Close in team.

(89) IRM 25.15.7.10.9(6) changed Keep in team to Close in team.

(90) IRM 25.15.7.10.10(2) added definition of a timely rework.

(91) IRM 25.15.7.10.10(6) added instructions to correspond with the taxpayer when additional information required.

(92) IRM 25.15.7.10.10(8) added instructions to update the workpapers.

(93) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.10.10.1(1) Added an Exception to cases previously non-qualified in error.

(94) IRM 25.15.7.10.10.2(1) removed note about timely claims.

(95) IRM 25.15.7.10.10.3(1) removed note about timely claims.

(96) IRM 25.15.7.10.10.4(1) added instructions to update the workpapers.

(97) IRM 25.15.7.10.10.4(2) removed the instructions to delete stage 10.

(98) IRM 25.15.7.10.11 restructured the instructions to create a better flow of information.

(99) IRM 25.15.7.10.11(3) updated instructions to state Form 12509 with the appeals box checked.

(100) IRM 25.15.7.10.11(3) Note moved to be (2).

(101) IRM 25.15.7.10.11(3)(b) separated out determination correct and made it (4).

(102) IRM 25.15.7.10.11(5)(2) added another history item of incorrect allowance.

(103) IRM 25.15.7.10.11(6) new information for when referring the taxpayers to Appeals may be inappropriate.

(104) IRM 25.15.7.10.11.1(1) removed references to additional information.

(105) IRM 25.15.7.10.11.2(1) added allocation worksheets.

(106) IPU 13U1343 issued 08-12-2013 IRM 25.15.7.10.11.3 renumbered and added instructions for Non-Petitioning Spouse.

(107) IRM 25.15.7.10.12.4 changed title from He Said/She Said to Contradicting Statements.

(108) IRM 25.15.7.10.12.7 updated the instructions for when unable to obtain the administrative file.

(109) IPU 13U0889 issued 05-08-2013 IRM 25.15.7.10.13.1 added IRM reference for CSED, non-qualifying criteria.

(110) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.13.1(1) corrected letter to be sent to the NRS.

(111) IRM 25.15.7.10.13.1(2) added closing codes to TC 520.

(112) IPU 13U0889 issued 05-08-2013 IRM 25.15.7.10.13.2(1) and (2) revised to clarify full paid and payments made by RS and full paid with no payments made by the RS.

(113) IRM 25.15.7.10.13.4 removed sentence stating that a TC 290 .00 was required.

(114) IRM 25.15.7.10.13.4 section on Account Problems has been rewritten completely.

(115) IRM 25.15.7.10.13.4(5) added a new (b) to update ISTS with history.

(116) IPU 13U0466 issued 03-07-2013 IRM 25.15.7.10.13.4(5)(e) revised the wording to use in Letter 3323C.

(117) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.13.5(4)(1) revised when to go through statutory notice procedures.

(118) IRM 25.15.7.10.13.5(4)(1) added to determine the correct credits and revised when to go through statutory notice procedures.

(119) IRM 25.15.7.10.13.5.2(1)(2) added illegal marriage an annulment.

(120) IRM 25.15.7.10.13.5.2(1)(3) added information to consider alternative documentation.

(121) IRM 25.15.7.10.13.5.2(1)(3) reworded sentence to accept taxpayers statement and included IRS systems.

(122) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.13.6(2) and (6) revised when to contact Exam.

(123) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.13.6.1(3)(1) revised when to contact Exam.

(124) IRM 25.15.7.10.13.6.2(3)(1) updated statutory notice of deficiency procedures.

(125) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.13.6.2(3)(1) revised when to contact Exam.

(126) IPU 13U0695 issued 04-05-2013 IRM 25.15.7.10.13.6.3(2) revised when to contact Exam.

(127) IRM 25.15.7.10.13.6.3(2) updated statutory notice of deficiency procedures.

(128) IRM 25.15.7.10.14 reworded sentence.

(129) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.14.5 added additional instructions and table for ID Theft cases and procedures.

(130) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.14.5(1)(b) corrected IRM reference for Underreporter IDT Claims.

(131) IRM 25.15.7.10.14.5(7)(2) Table, #2 changed Letter 239C to Letter 5064C.

(132) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.14.5.1 added procedures for coordinating with other functions on ID Theft.

(133) IPU 13U1048 issued 06-05-2013 IRM 25.15.7.10.14.6 added a section for ID Theft claims that are actually claims of forgery.

(134) IRM 25.15.7.10.14.6(2) changed Letter 239C to Letter 5064C.

Effect on Other Documents

IRM 25.15.7, Compliance Campus Functions, dated February 19, 2013 is superseded. The following IRM Procedural Updates (IPUs), issued between March 7, 2013 through December 12, 2013, have been incorporated into this IRM: 13U1740, 13U1630, 13U1520, 13U1343, 13U1312, 13U1167, 13U1095, 13U1048, 13U0889, 13U0808, 13U0695, and 13U0466.

Audience

Employees working cases involving innocent spouse issues within the Compliance Campus Functions

Effective Date

(07-24-2014)


Steven C. Klingel
Director, Reporting Compliance
Wage and Investment Division

25.15.7.1  (02-19-2013)
Overview

  1. Requests for relief from joint and several liability are centralized at the Cincinnati IRS Campus known as the Cincinnati Centralized Innocent Spouse Operation (CCISO) of the Andover IRS Campus.

25.15.7.2  (07-24-2014)
General Procedures

  1. This section, IRM 25.15.7.2, includes instructions for Compliance Campus and Field functions. The functions are CCISO, Compliance Campus Exam Operations (CCEO), Automated Underreporter (AUR), Taxpayer Advocate Service (TAS), Field Collection, Field Examination, Appeals, and Accounts Management.

  2. General procedures for all functions can be in found in IRM 25.15.1, Introduction, and IRM 25.15.2, General Procedures/Employees With Taxpayer Contact.

  3. Technical procedures of IRC 6015 can be found in IRM 25.15.3, Technical Provisions of IRC 6015.

  4. Technical procedures of IRC 66(c), can be found in IRM 25.15.5, Relief from Community Property Laws/Community Property States.

  5. Field Examination procedures can be found in IRM 4.8.5, Post Examination Case Processing Requirements.

  6. Compliance Campus Functions procedures can be found in this IRM.

  7. Field Collection procedures can be found in IRM 25.15.8, Procedures for Working Innocent Spouse Relief Cases.

  8. Processing procedures can be found in IRM 25.15.9, Account Processing of Requests for Relief from Joint and Several Liability.

  9. Cincinnati Innocent Spouse Case Review (CISCR) procedures can be found in IRM 21.10, Quality Assurance.

  10. Taxpayer Advocate Service (TAS) procedures can be found in IRM 25.15.11, Taxpayer Advocate Service Contacts and Identity Theft Referrals.

  11. Appeals procedures can be found in IRM 25.15.12, Appeals Procedures.

  12. Innocent Spouse Tracking System (ISTS) procedures can be found in IRM 25.15.14, Innocent Spouse Tracking System Inventory Validation Instructions.

  13. Mirroring modules procedures can be found in IRM 25.15.15, Mirror Modules for Requests for Relief from Joint and Several Liability.

  14. Telephone procedures can be found in IRM 25.15.16, Telephone Contacts.

  15. Reconsideration procedures can be found in IRM 25.15.17, Reconsiderations.

  16. Information addressing same sex marriage can be found in IRM

25.15.7.2.1  (07-24-2014)
Addressing Letters to the Taxpayer

  1. Letters should be sent to the name as it appears when Integrated Data Retrieval System (IDRS) command code (CC) LETER is initiated.

    Note:

    If establishing an entity for the requesting spouse (RS), issue the letter to the current name.

    Caution:

    Be sure you do not disclose the RS's new name to the non-requesting spouse (NRS).

  2. 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 CC ENMOD, INOLE, or Form 8857. If the Form 8857 address is more current, see IRM 25.15.7.2.1.2, Address Updates for instructions on address changes and when you may update Master File.

    Note:

    During the mirroring process some of the RS's addresses are updating to the NRS's address on the joint return. Therefore it is imperative to verify the address before sending the letter. If the mirroring process erroneously updated the RS's address to the NRS's address, correct the account to prevent use of the wrong address on future letters/notices by IRS personnel.

    Caution:

    Do not input an address change for the NRS based on Form 8857 submitted by the RS.

  3. Mail letters for the NRS to the address on IDRS CC ENMOD. If it is returned as undeliverable, see IRM 25.15.7.2.1.1Undeliverable Mail.

  4. When a taxpayer is deceased, address the letter to the estate of the taxpayer. On the first name line, enter "Estate of...." , no second name line is required.

25.15.7.2.1.1  (07-24-2014)
Undeliverable Mail

  1. When an undeliverable letter is returned with a typed address on a United States Postal Service (USPS) yellow sticker, determine if the address on the USPS yellow sticker is more current than the address on IDRS CC ENMOD. If the USPS sticker is more current:

    1. Do not update IDRS CC ENMOD to the address on the USPS sticker.

    2. Send the letter to the new address (if letter is still needed).

    3. Include a Form 8822, Change of Address, if sending the letter to the new address.

  2. If there is no USPS yellow address sticker with a new address, research IDRS for a new address. If a new address is found, send letter to the new address (if letter still needed).

25.15.7.2.1.2  (07-24-2014)
Address Updates

  1. General requirements for making address changes require clear and concise written notification such as a statement signed by the taxpayer informing the Service that he/she wishes the address of record to be changed. The notification should contain these items:

    1. The new address,

    2. The taxpayer’s full name. Individuals who have changed last names should provide the last name shown on the most recently filed return and the new last name.

    3. The taxpayer’s signature or the signature of an authorized representative,

    4. The old address,

    5. The social security number (SSN) or individual taxpayer identification number (ITIN).

  2. Address changes can and should be made when an obvious error in the taxpayer name and/or address is shown on the Master Files.

  3. Contacts that are considered clear and concise notification of an address change include the following:

    1. The taxpayer returns an IRS initiated correspondence that solicits or requires a response to IRS with corrections marked on his/her address information. The taxpayers signature on the correspondence (for the purpose of updating their address) is not required.

    2. Notification of an address change made by the U.S. Postal Service.

      Note:

      A new address indicated as a return address on the envelope or in the letterhead of taxpayer correspondence is not, by itself, clear and concise notification and is not sufficient to change a taxpayer's address of record.

    3. You may change an address based on information received from the taxpayer over the phone. Refer to IRM 3.13.5.28, Address Changes from Oral Statements/Telephone Contact, for the appropriate guidelines.

  4. If any of the information is missing from the taxpayers request, do not update Master File.

    1. If you are issuing an initial contact letter, send the letter to the taxpayer at the new address and include a Form 8822, Change of Address. Include a paragraph advising the taxpayer to complete the form and return so that we may update their account.

    2. If the taxpayer indicates a change of address after the initial contact letter has been issued and you are reviewing/making a determination on the claim, issue the Preliminary or Final Determination letters to the address of record. Issue a copy of the letter to the current address (as indicated by the taxpayer) and include a Form 8822, Change of Address, and include an open paragraph advising the taxpayer to complete the form and return so that we may update their account.

      Note:

      If a Form 8822 was sent to the taxpayer with a previous initial contact or preliminary determination letter, and there has been no response, you do not need to send the Form 8822 again. Send the letter to the address of record.

25.15.7.2.2  (02-19-2013)
Receipt of Innocent Spouse Claim from Revenue Officer

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

    1. Document the action taken.

25.15.7.2.3  (07-24-2014)
IAT Tools

  1. Innocent Spouse employees are required to use the available Integrated Automation Technologies (IAT) tools whenever possible. The IAT tools simplify taxpayer account processing by assisting the user with IDRS research and input. They are desktop productivity enhancing tools. The required use of these tools applies to all telephone and inventory work. For more information on each tool see the IAT website.

    Exception:

    Employees are not required to utilize IAT if another IRS automated tool is more appropriate. Examples include, issuing letters through the Generalized IDRS Interface (GII) process or utilizing the Innocent Spouse First Read program in Account Management Services (AMS). Some IAT tools are not mandated to be used but are highly suggested. See the tables below for mandated and suggested IAT tools.

  2. If an IAT tool is not available, or an employee has a problem with the IAT Task Manager, the case should be processed through IDRS following established procedures. Employees should report any issues with the IAT Task Manager to their Supervisor.

  3. IAT tool users can visit the IAT website, where you can sign up to become a subscriber to the IAT newsletter. The iNews details all ongoing IAT activity with tool retirements and rollouts.

  4. Below is a list of IAT tools that can be utilized by employees working the Innocent Spouse program. This list may not be all inclusive.

    Mandated IAT Tools
    Credit Transfer Automates the transfer of credits from one module to another.
    Disclosure Assists with completing disclosure process on incoming taxpayer calls; helps ensure authorized parties speaking before releasing sensitive information.
    Erroneous Manual Refund Tool (EMT) -Case Monitor Monitors accounts on IDRS for specific conditions that could cause a potential erroneous refund.
    Erroneous Refund Assists in the recovery of erroneous refunds. Automates the processes related to Category D (Cat D) erroneous refund processing as outlined in IRM 21.4.
    ESTAB Use the ESTAB tool to order returns.
    Fill Forms Automates and assists with the generation of various IRS forms.
    Letters Allows the user to send any "C" Letter listed in the correspondex index.
    Payment Tracer Finds a payment on related accounts.
    Manual Refund Researches the account for duplicate erroneous refund conditions, and accounting accept/reject conditions. It can fill Form 5792 or Form 3753.
    Missing Refund Assists users with resolving missing refunds. Inputs CC CHKCL or generates completed Form 3911.
    Reissue Refund Assists users with resolving undelivered refund checks. Updates entity and releases S- Freeze (TC 740) conditions.
    Stop Refund Assists users with the determination and input of stop refund (NOREF) actions.
    Suggested IAT Tools
    Act On Opens or closes a control base and input histories on multiple accounts, MFREQ an account not on IDRS and allow users to personalize and save particular features for future use.
    Address Allows users to input address changes.
    Compliance Suite Researches for Entity, Balance due, Return Delinquency, Levy Sources, Account Conditions, Case Control and Assignment, failure to deposit (FTD) and estimated tax (ES) payment compliance, Current Installment Agreement information and Centralized Authorization File (CAF) and Reporting Agents File (RAF) Information. It provides completion of Form 4442 and assists with routing to other sites with completion of various routing forms and Letter 86C.
    Condensed Income Transcript Condenses IRPTR Income onto a transcript.
    Quick CC Tool Allows command code navigation on IDRS.
    Managers Security Tool Assists management, unit security representatives and leads perform security command codes in regards to employee profiles, terminals or quality review.
    Mixed Scrambled Entity Performs initial research on mixed entity and scrambled social security number cases. Assists in determining valid taxpayer identification number (TIN) to correct taxpayer.
    New Name Search Allows users to search National Account Profile (NAP) for Business Master File (BMF) and Individual Master File (IMF) numbers.
    Result Combines the Legacy Screens into one tool. The Legacy Refund, Balance Due, Injured Spouse, and Paper Research Screens were developed to allow assistors to quickly obtain information from several IDRS command codes. These pieces of specific information are displayed onto research screens.
    Search 6209 Links directly to the Document 6209 Code retriever for transactions codes, freeze codes, TC 971 action codes, Unpostable codes, IMF math error codes.
    Phone Number Assists users with researching, updating and deleting phone numbers on taxpayer accounts in IDRS.
    Unifax Completes the fax cover sheet. Also features the ability to look up EGC and PBC contacts for the Exam area.
    UPTIN Histories Allows user to add, update or delete unpostable history items.

25.15.7.3  (07-24-2014)
Automated Underreporter (AUR) or Compliance Campus Examination Operations (CCEO) Cases - Overview

  1. Taxpayers must be notified of their rights when IRS proposes an additional assessment.

    1. Publication 1, Your Rights as a Taxpayer, enclosed with most correspondence related to proposed tax increases, informs taxpayers of their right to file a request for relief from joint and several liability.

    2. Publication 3498–B, Payer information Return Document Matching (Tax Return Reviews by Mail), is enclosed with AUR notices.

    3. Requests for relief are made on Form 8857, Request for Innocent Spouse Relief. Also, a RS may submit a written statement containing the same information required on Form 8857 and it must be signed under penalties of perjury. Publication 971, Innocent Spouse Relief, explains this relief in detail.

  2. If an innocent spouse claim is received on an open AUR or CCEO case, CCISO will coordinate:

    1. AUR/CCEO is responsible for all issues except making a determination on the innocent spouse claim. AUR/CCEO is responsible for coordinating final case processing including issuance of a statutory notice of deficiency (SNOD), account processing, appropriate ISTS updates, if AUR/CCEO received the Form 8857 from the taxpayer.

    2. CCISO is responsible for notifying the NRS, making the innocent spouse determination, sending determination letter(s), and providing AUR/CCEO with instructions on case closing (i.e., how to assess the tax, forward case to Appeals, language for notice, etc.).

  3. Procedures differ depending on whether a "90 day letter" /SNOD was issued or whether an Appeals conference was requested.

  4. Each Compliance Campus has an Innocent Spouse Coordinator available to assist with innocent spouse questions. A listing of these coordinators can be found on the innocent spouse website at http://win.web.irs.gov/innocent_spouse.htm.

25.15.7.3.1  (07-24-2014)
Identifying AUR and Examination Cases

  1. AUR cases are identified by transaction code (TC) 922 on TXMOD. AUR cases can be closed or open. This can be determined by reviewing the Underreporter process codes (UPC) listed under the TC 922 on the account. The status of an Underreporter case will be determined by the last process code posted. Refer to IRM 21.3.1.4.54(4), Status of IMF Underreporter Cases.,

    1. Closed AUR cases may or may not have a TC 290 posted and will not have an open TXMOD control. If the AUR case is closed, follow IRM 25.15.7.6, Case Building - General. If an account contains a TC 922 and a pending or posted TC 290, and there is an open TXMOD control, contact must be made with AUR to determine if the AUR case is closed.

    2. If the AUR case is open, follow IRM 25.15.7.3, Automated Underreporter (AUR) or Compliance Campus Examination Operations (CCEO) Cases - Overview, and all related subsections.

  2. Examination cases are identified by TC 420 on TXMOD. Like AUR cases, Examination cases may be closed or open. Examination cases are also distinguished by where the case is worked, which can be either Field Examination or CCEO.

    1. Closed Examination cases will be identified by a TC 421 on TXMOD. Additional assessments made by Examination contain a TC 300. Check Integrated IDRS CC AMDISA to determine the current status of the Examination case. Refer to the Audit Information Management System (AIMS) Status Codes in Document 6209, IRS Processing Codes and Information, for the definition of AIMS status codes. If the Examination is closed, follow IRM 25.15.7.6, Case Building - General.

      Note:

      Closed Examination cases, which include a Tax Equity and Fiscal Responsibility Act (TEFRA) issue will be referred to the Technical Team within the CCISO. See IRM 25.15.7.4.3.1, AIMS, for TEFRA identification information.

    2. Open Examination cases will be identified by a TC 420 on TXMOD without a corresponding TC 421. Open Examination cases will contain a -L freeze. Check IDRS CC AMDISA to determine the current status of the Examination case. Refer to Document 6209IRS Processing Codes and Information, for the definition of AIMS status codes.

      Note:

      Open Examination cases will be referred to either Field Examination or the Technical Team within the CCISO. Research IDRS CC AMDISA to determine the current status, primary business code (PBC) and employee group code (EGC). An AIMS status of 10 or higher with a PBC in the 19X or 29X series and EGC in the 5XXX series is a CCEO case. Open CCEO cases are referred to the Technical Team within CCISO. An AIMS status of 10 or higher with a PBC other than 19X or 29X and EGC in the 1XXX or 2XXX series is a Field Examination case. Open Field Examination cases will be referred to Field Examination. Follow IRM 25.15.7.4.3, Field Referrals, and IRM 25.15.7.4.3.1, AIMS, for Field Examination cases.

      Note:

      Do not mirror open Examination cases.

25.15.7.3.2  (07-24-2014)
Form 8857 Received by Compliance Campus

  1. Upon receipt of the Innocent Spouse claim, AUR/CCEO will:

    1. Date stamp the Form 8857, Request for Innocent Spouse Relief, with AUR/CCEO received date.

    2. CCEO will acknowledge receipt of the claim using IDRS Letter 3659C. AUR will acknowledge receipt of the claim using IDRS Letter 4314C. Both CCEO and AUR will use the CCISO AUR/CCEO coordinator as the contact.

    3. Input stages 01 and 02 on the Innocent Spouse Tracking System (ISTS) using IDRS command code ISTSR. See IRM 25.15.14.2, Introduction, for information on ISTS.

      Note:

      Upon receipt of the transferred case, CCISO will update ISTS.

    4. Fax Form 8857, and any correspondence regarding Form 8857 within 10 business days to CCISO at (855) 233-8558, Attn: Innocent Spouse AUR/CCEO Coordinator.

      Note:

      If too large to fax, mail within 10 business days.

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

  3. CCISO will:

    1. Date stamp the faxed copy of Form 8857.

    2. Acknowledge receipt of the faxed claim via secure e-mail to the appropriate IRC 6015 coordinator.

    3. Screen and consider the claim.

25.15.7.3.3  (07-24-2014)
Automated Underreporter (AUR) / Compliance Campus Examination Operations (CCEO) 30 Day Period (CP 2000 or Letter 566C Issued)

  1. If an innocent spouse claim is received on an open AUR or CCEO case after initial contact is made, but before a statutory notice of deficiency (SNOD) is issued, the following general procedures will be followed:

    AUR CCEO CCISO
    Assign process code (PC) 99, to suspend the AUR case and stop the automated system from generating SNOD. Do not issue SNOD until notified of the final innocent spouse determination. Follow normal procedures for claims including First Read and notification to the NRS.
    Work AUR issues. If additional correspondence is received from the taxpayer, share the additional correspondence with the CCISO. Work audit issue. If additional correspondence is received from the taxpayer, share the additional correspondence with CCISO. Work the innocent spouse issue. If additional correspondence is received from the taxpayer, share the additional correspondence with AUR/CCEO.
    Notify CCISO of any changes to the proposed deficiencies previously shared with CCISO. Notify CCISO of any changes to the proposed deficiencies previously shared with CCISO. Notify AUR/CCEO of any delay in making determination past 90 days such as combat zone or disaster area suspense.
    After the notice suspense period has ended, research IDRS CC ISTSRA to determine the latest stage of Form 8857, Request for Innocent Spouse Relief. If stage number is 01 through 04, initiate PC 75/letter. Contact the CCISO to advise them you are issuing the SNOD. If stage number is 05 or higher, contact CCISO to determine if the SNOD should be issued. Research IDRS CC ISTSRA to determine the latest stage of Form 8857. If stage number is 01 through 04, continue processing. Contact the CCISO to advise them you are issuing the SNOD. If stage number is 05 or higher, contact the CCISO to determine if the SNOD should be issued. If the time to appeal an innocent spouse determination has not expired, advise AUR that a preliminary determination has been issued, and they must wait 51 days from the ISTS Stage 11 date before issuing SNOD.
  2. If AUR/CCEO determines there is no deficiency and the case is a "no change," follow the "no change" procedures. IRM 25.15.7.3.5, Automated Underreporter (AUR) or Compliance campus Examination Operations (CCEO) No Change Case.

  3. If the taxpayer signs the proposed deficiency and the SNOD was not issued, treat as an understatement.

  4. If the taxpayer files Form 1040X, Amended U.S. Individual Income Tax Return, in response to a notice or correspondence from AUR or Exam and the additional tax is assessed, per the Form 1040X, treat as an underpayment, unless a SNOD was issued.

25.15.7.3.3.1  (07-24-2014)
Innocent Spouse Determination Made Before Issuance of SNOD

  1. Determination to fully disallow claim before issuance of a SNOD-AUR/CCEO and the CCISO will take the following actions:

    AUR/CCEO CCISO
    If notified by CCISO that a preliminary determination has been made (Stage 11), do not issue the SNOD until the time to appeal the disallowed claim has expired (51 days from the ISTS Stage 11 date). After 51 days have elapsed, continue processing your case. Issue preliminary determination. Follow IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.
      Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact. Advise them of:
    1. The preliminary determination is to disallow relief in full

    2. Both taxpayers' names and TINs

    3. Tax year

    4. Date suspense period ends.

    5. Financial technician's name and phone number


    If RS requests an Appeals conference regarding the Innocent Spouse claim denial:
    1. Continue processing the case and issue the SNOD.

    2. If the innocent spouse claim is in Stage 16 or above, contact appeals for the appeals determination before closure.

    3. If you are closing your case and the innocent spouse issue is still open, input a TC 971 AC 065 to prevent collection activity.

    See IRM 4.19.3.20.1.20.2(19), Innocent Spouse Relief Cases - AUR IS Coordinator Instructions for more information.
    Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact to notify them the RS appealed and the case is being sent to Appeals.
    1. Notate file.

    2. Leave folder on case.

    3. Send innocent spouse file to Cincinnati campus Appeals office. Follow IRM 25.15.7.10.11.2, Forwarding Appeals Request to Appeals.

    4. Notate on Form 3210, Document Transmittal, "Appealed Innocent Spouse Case, with open AUR/CCEO case" .

    5. Attach Form 1725, Routing Slip, notate at the top "Pre-Assessment" in red.

    If NRS requests an Appeals conference regarding the Innocent Spouse claim denial:
    If request received in AUR/CCEO, forward to CCISO to be addressed. Continue processing your case and issue SNOD once the 51 days have elapsed. Inform NRS there are no appeal rights on the Innocent Spouse issue since the claim was denied in full.
    If RS or NRS requests an Appeals conference thru AUR/CCEO regarding the tax issue:
    Notify CCISO via secure e-mail which Appeals office AUR/CCEO is sending their case.

    Note:

    AUR/CCEO should send their case to the campus Appeals office indicated in the "Nondocketed" row of the Case/Type/Workstream columns of the Campus Case Routing chart on the Appeals website at http://appeals.web.irs.gov/APS/caserouting.htm.
    Notate file.

    1. Issue final determination letter to RS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Issue final notice to NRS. See IRM 25.15.3.9.3(1) and (2), Other Letters.

    3. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    4. Update IDRS control. Suspend for 106 days.

    5. If the appeals case is not resolved when it is time to close the innocent spouse claim, forward the case to the Appeals office designated by AUR/CCEO using existing procedures in IRM 25.15.7.10.11.2Forwarding Appeals Requests to Appeals.

    If an Appeals conference is not requested during the 51 days:
    Issue the SNOD after the 51 days from the ISTS Stage 11 date has passed.
    1. Issue final determination letters to RS and NRS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    3. Update IDRS control. Suspend for 106 days.

    If SNOD defaults, process adjustments to the taxpayers’ Master File Tax (MFT) 30.  

    Note:

    Do not issue Form 870–IS, Waiver of Collection Restrictions in Innocent Spouse Cases on open AUR/Exam cases.

  2. Determination to partially allow claim before issuance of SNOD — AUR/CCEO and CCISO will take the following actions:

    AUR/CCEO CCISO
    If notified by CCISO that a preliminary determination has been made (Stage 11), do not issue the SNOD until the time to appeal has expired (51 days from the ISTS Stage 11 date). After 51 days have elapsed, continue processing your case. Issue preliminary determination. Follow IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.
      Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact. Advise them of:
    1. The preliminary determination is to partially allow relief.

    2. Both taxpayers' names and TINs

    3. Tax year

    4. Date suspense period ends.

    5. Form 3465, Adjustment Request, with processing instructions for partials

    6. Financial technician's name and phone number

    If RS or NRS request an Appeals conference regarding the Innocent Spouse claim determination:

    Note:

    Do not send to Appeals until time to appeal has expired. Both taxpayers could appeal regarding the Innocent Spouse issue.

    1. Continue processing the case and issue the SNOD.

    2. If the innocent spouse claim is in Stage 16 or above, contact appeals for the appeals determination before closure.

    3. If you are closing your case and the innocent spouse issue is still open, input a TC 971 AC 065 to prevent collection activity.

    See IRM 4.19.3.20.1.20.2(19), Innocent Spouse Relief Cases - AUR IS Coordinator Instructions for more information.
    Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact to notify them the RS, NRS or both appealed and the case is being sent to Appeals.
    1. Notate file.

    2. Leave folder on case.

    3. Send innocent spouse file to Cincinnati campus Appeals office. Follow IRM 25.15.7.10.11.2 Forwarding Appeals Request to Appeals.

    4. Notate on Form 3210, Document Transmittal, "Appealed Innocent Spouse Case, associate with open AUR/CCEO case" .

    5. Attach Form 1725, Routing Slip, notate at the top "Pre-Assessment" in red.

    If either taxpayer requests an Appeals conference thru AUR/CCEO regarding the tax issue:
    Notify CCISO via secure e-mail which Appeals office AUR/CCEO is sending their case.

    Note:

    AUR/CCEO should send their case to the campus Appeals office indicated in the "Nondocketed" row of the Case/Type/Workstream columns of the Campus Case Routing chart on the Appeals website at http://appeals.web.irs.gov/APS/caserouting.htm.
    Notate file.

    1. Issue final determination letter to RS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Issue final notice to NRS. See IRM 25.15.3.9.3(1) and (2), Other Letters.

    3. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    4. Update IDRS control. Suspend for 106 days.

    5. If the appeals case is not resolved when it is time to close the innocent spouse claim, forward the case to the Appeals office designated by AUR/CCEO using existing procedures in IRM 25.15.7.10.11.2Forwarding Appeals Requests to Appeals.

    If an Appeals conference is not requested:
    Issue SNOD after 51 days from the ISTS Stage 11 date has passed.
    1. Issue final determination letters to RS and NRS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    3. Update IDRS control. Suspend for 106 days

    If SNOD defaults, process adjustments to the taxpayers MFT 30 and 31 accounts based on CCISO instructions.  

    Note:

    Do not issue Form 870–IS, Waiver of Collection Restrictions in Innocent Spouse Cases, on open AUR/Exam cases.

  3. Determination to fully allow claim made before issuance of SNOD— AUR/CCEO and CCISO will take the following actions:

    AUR/CCEO CCISO
    If notified by CCISO that a preliminary determination has been made (Stage 11), do not issue the SNOD until the time to appeal has expired (51 days from the ISTS Stage 11 date). After 51 days have elapsed, continue processing your case. Issue preliminary determination. Follow IRM 25.15.7.10.9, Taxpayer Notification/Suspense Procedures.
      Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact. Advise them of:
    1. The preliminary determination is to fully allow relief

    2. Both taxpayers' names and TINs

    3. Tax year

    4. Date suspense period ends

    5. Form 3465, Adjustment Request, with processing instructions

    6. Financial technician's name and phone number

     
     
    If either taxpayer requests an Appeals conference thru AUR/CCEO regarding the tax issue:  
    Notify CCISO via secure e-mail which Appeals office AUR/CCEO is sending their case.

    Note:

    AUR/CCEO should send their case to the campus Appeals office indicated in the "Nondocketed" row of the Case/Type/Workstream columns of the Campus Case Routing chart on the Appeals website at http://appeals.web.irs.gov/APS/caserouting.htm.
    Notate file.

    1. Issue final determination letter to RS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Issue final notice to NRS. See IRM 25.15.3.9.3(1) and (2), Other Letters.

    3. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    4. Update IDRS control. Suspend for 106 days.

    5. If the appeals case is not resolved when it is time to close the innocent spouse claim, forward the case to the Appeals office designated by AUR/CCEO using existing procedures in IRM 25.15.7.10.11.2Forwarding Appeals Requests to Appeals.

    .
     
    If RS, NRS or both requests an Appeals conference thru CCISO regarding the Innocent Spouse claim determination  
    1. Continue processing the case and issue the SNOD.

    2. If the innocent spouse claim is in Stage 16 or above, contact appeals for the appeals determination before closure.

    3. If you are closing your case and the innocent spouse issue is still open, input a TC 971 AC 065 to prevent collection activity.

    See IRM 4.19.3.20.1.20.2(19), Innocent Spouse Relief Cases - AUR IS Coordinator Instructions.
    Send a secure e-mail, using the read receipt function, to AUR/CCEO primary and back-up contact to notify them the RS or NRS appealed and the case is being sent to Appeals.
    1. Notate file.

    2. Leave folder on case.

    3. Send innocent spouse file to Cincinnati campus Appeals office. Follow IRM 25.15.7.10.11.2 Forwarding Appeals Request to Appeals.

    4. Notate on Form 3210, Document Transmittal, "Appealed Innocent Spouse Case, associate with open AUR/CCEO case" .

    5. Attach Form 1725, Routing Slip, notate at the top "Pre-Assessment" in red.

     
    If an Appeals conference is not requested:  
    Issue manual SNOD to the NRS only. Do not issue SNOD until 51 days from the ISTS Stage 11 date has passed.
    1. Issue final determination letters to RS and NRS. See IRM 25.15.3.9.2, Final Determination Letters.

    2. Update ISTS and ISTSR Input Record to Stage 12. See IRM 25.15.14.4, Processing Stages.

    3. Update IDRS control.

    4. Suspend for 106 days.

     
    If SNOD defaults, process deficiency assessment to NRS’s MFT 31 account based on CCISO’s instructions.    
  4. Imminent Expiration of Assessment Statute of Limitations (ASED) — If CCISO does not issue a preliminary determination letter within 6 months of the ASED, AUR/CCEO may proceed with issuance of the SNOD after notifying CCISO. CCISO will continue processing the innocent spouse claim and follow procedures in this manual.

25.15.7.3.4  (02-19-2013)
Statutory Notice of Deficiency (SNOD) Issued - 90-Day Process

  1. An innocent spouse claim may be filed after the SNOD has been issued.

  2. AUR/CCEO is responsible for monitoring the ASED and making an assessment if the SNOD defaults.

  3. If the SNOD defaults before the innocent spouse issue is resolved, AUR/CCEO will follow normal procedures for assessing the tax. The CCISO will then make account adjustments as needed after the final determination is made.

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

    AUR/CCEO CCISO
    Provide CCISO with the following:  
    Date the SNOD was issued,
    Copy of the tax computation,
    Copy of the information returns in AUR cases.
    Await further instructions from CCISO.  
    Notify CCISO if there is a reduction in the deficiency. Proceed with claim determination and issuance of preliminary and final determination letters. Notify 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.
      Notify AUR/CCEO of the claim determination.
    For petitioned cases on AUR/CCEO issues.
    See IRM 4.19.3.20.1.20.2, Innocent Spouse Relief Cases - AUR IS Coordinator Instructions. Determine the status of the claim and advise Appeals office of any delays in making the innocent spouse determinations. The determination will be made expeditiously, following docketed procedures, after appropriate suspense period has expired.
    For petitioned Innocent Spouse issues.
      Forward case to Appeals and notify AUR/CCEO of appropriate Appeals office to send their case if innocent spouse determination is petitioned. IRM 25.15.7.10.11.2, Forwarding Appeals Request to Appeals.
    See IRM 4.19.3.20.1.20.2, Innocent Spouse Relief Cases - AUR IS Coordinator Instructions. Notify AUR/CCEO where to forward the case.
    On defaulted AUR/CCEO SNOD where the Innocent Spouse Determination is Not Made and ASED is within 45 days
    Notify CCISO that assessment will be made and proceed. Make any necessary corrections to assessment after determination is made.
      Update ISTS and ISTSR Input Record as appropriate.
    On defaulted SNODs, where the Final Innocent Spouse Determination is made with more than 45 days remaining on the ASED
    Follow CCISO instructions when assessing deficiency on allowed or partially allowed claims. Send a secure e-mail with Form 3465, Adjustment Request, to AUR/CCEO.
      Update ISTS and ISTSR Input Record.
      Monitor final account processing.

    Note:

    Do not issue Form 870-IS, Waiver of Collection Restrictions in Innocent Spouse Cases, on open AUR/Exam cases.

25.15.7.3.5  (07-24-2014)
Automated Underreporter (AUR) or Compliance Campus Examination Operations (CCEO) No Change Case

  1. If AUR or CCEO determines that the case is going to be closed as a no change (no deficiency), they will:

    1. Notify the CCISO, AUR/CCEO Coordinator of the no change determination.

    2. Close case using normal procedures.

    3. CCISO will then take the necessary actions to address the innocent spouse claim.

      Note:

      Processing codes 21- 29 indicates that AUR is not pursuing the proposed deficiency. Close the case as Pre-assessment No Deficiency (PAND). See IRM 25.15.7.7.4, Original Liability Full Paid and No Pending AUR/Exam Assessment

      .

25.15.7.4  (02-19-2013)
First Read at the Cincinnati Centralized Innocent Spouse Operation (CCISO) Overview

  1. The responsibility of the First Read tax examiner is to:

    • Build claims,

    • Perfect the claims,

    • Identify non-qualified claims,

    • Disallow claims, if appropriate after reviewing IDRS,

    • Identify and refer account problems, and

    • Identify and refer Rework/Reconsideration cases.

  2. Address each year and input on ISTS as appropriate.

25.15.7.4.1  (07-24-2014)
Claims Received in the Cincinnati Centralized Innocent Spouse Operation (CCISO)

  1. When a claim is received:

    1. Date stamp Form 8857, Request for Innocent Spouse Relief, or substitute document on a daily basis.

    2. Check IDRS CC SUMRY or ISTSR for open innocent spouse controls and associate any new correspondence/claim with the existing claim.

    3. Copy Form 2848, Power of Attorney and Declaration of Representation, attached to a claim and place in clerk’s basket. See IRM 21.3.7, Processing Third Party Authorizations onto the Centralized Authorization File, for additional information. Clerks will fax the Form 2848 to the Centralized Authorization File (CAF) Team per www.irs.gov/instructions/i2848/ch01.html. Keep the original in the case file.

    4. Screen for processable and unprocessable claims.

    5. If forgery is indicated, follow IRM 25.15.7.5.5, Forgery.

    6. Pull cases with requests for Appeals conference and route to the examiner coordinating the Appeals file.

    7. Ensure an ISTS record is established or updated for each year relief is requested.

    8. Input TC 971 action code (AC) 065 following instructions in IRM 25.15.2.4.2, Innocent Spouse Indicator TC 971/972.

    9. Ensure TC 130 has posted to the correct account per IRM 25.15.2.4.3, Transaction Code (TC) 130 Entire Account Frozen From Refunding.

    10. ESTAB, when necessary, for the administrative file. See IRM 25.15.7.6(8), Case Building - General.

    11. Research for a TC 570 on the current year account. IRM 25.15.7.6, Case Building - General.

    12. Conduct IDRS Research. IRM 25.15.7.4.2.4, IDRS Research.

    13. If the RS answers yes to the question regarding domestic violence on Form 8857, use CC REQ77 to input a TC 971 AC 198 on the RS's ENMOD. This will generate a victim of domestic violence code "VODV-1" on CC ENMOD.

    Exception:

    Do not enter a VODV indicator if the RS indicates that they do not wish to have the indicator on their account. The latest version of Form 8857 has a box for the RS to opt out of the indicator on their account. If the indicator is already present and the RS has indicated they wish to opt out, remove the indicator by inputting a TC 972 AC 198 on ENMOD.

  2. Taxpayers must be contacted within 30 days of the IRS received date of the innocent spouse relief request, per Action 61, see IRM 21.3.3.4.2.2, Interim Responses.

  3. If the taxpayer raises other issues,

    1. Copy the correspondence and route to the appropriate area for resolution.

    2. Notate on the routing slip you are processing the innocent spouse claim.

    3. Document the case file that the correspondence was forwarded to the appropriate area.

  4. If the claim information is insufficient to make a determination,

    1. Contact the taxpayer by telephone or Letter 3659C to obtain the additional information.

    2. Advise the taxpayer to respond within 30 days or a determination will be made based on the information available.

    3. Suspend the case for 45 days.

    Note:

    When making or taking taxpayer calls, ensure you are speaking with the taxpayer or authorized representative before disclosing any account information. See the Taxpayer Authentication guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayer’s answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voicemail. Review fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, prior to faxing confidential information to the taxpayer.

  5. 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 Non-requesting Spouse (NRS) per IRC 6015(h)(2).

  6. 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.

  7. A new Form 8857, Request for Innocent Spouse Relief, must be filed if taxpayer wants relief of an understatement that was not pending when the original Form 8857 was filed.

25.15.7.4.2  (02-19-2013)
Screening Procedures

  1. Claims will be screened in IRS received date priority. Claims will be screened to determine if they should be:

    • Built,

    • Perfected,

    • Disallowed/Non-Qualified,

    • Referred, or

    • Other

  2. Additional actions are necessary for the following situations:

    • Injured spouse. See IRM 25.15.7.7.15, Injured Spouse Claim.

    • Additional information needed. See IRM 25.15.7.10.5, Additional Information Required, and IRM 25.15.7.10.5.1, No Reply to Request for Additional Information.

    • Forgery. See IRM 25.15.7.5.5, Forgery.

    • Invalid joint election. See IRM 25.15.7.5.6, Invalid Joint Election.

    • Account Problem (Place in appropriate folder and forward case to the financial specialist). See IRM 25.15.7.5.8, Account Problems.

    • IRS Employee Cases (Place in appropriate folder, forward to appropriate team). See IRM 25.15.7.5.3, IRS Employee Cases.

    • Congressional Cases (Place in appropriate folder and notify appropriate individuals). See IRM 25.15.7.5.4, Congressional Cases.

    • Collection Due Process (Place in appropriate folder). See IRM 25.15.7.5.12, Collection Due Process.

    • Taxpayer Advocate Case. See IRM 25.15.7.10.2.1, Taxpayer Advocate Service (TAS), through IRM 25.15.7.10.2.1.4, Closing and Transferring TAS Cases.

    • Open Automated Underreporter (AUR) and Examination cases. See IRM 25.15.7.3.1, Identifying AUR and Examination Cases.

    • Reworks. IRM 25.15.7.10.10, Rework. Place a tag marked "Rework" , update ISTS to Stage 10 and route the case to the appropriate team

    • Reconsiderations. IRM 25.15.17, Reconsiderations.

    • Taxpayer requests relief of only penalties and/or interest. See IRM 25.15.7.5.8, Account Problems.

  3. Identify and address all years shown on Form 8857, Request for Innocent Spouse Relief, or specified in the RS’s correspondence.

  4. Check for RS’s signature. A photocopied or faxed signature is acceptable. An authorized power of attorney (POA) signature (per CFINK or Form 2848) on Form 8857, Request for Innocent Spouse Relief, is considered a valid signature.

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

    Example:

    If the NRS’s TIN does not belong to the taxpayer she filed with for the year listed and module is balance due, build the case using the correct NRS’s TIN.

  6. Read the RS's correspondence to determine all years to consider. IRM 25.15.7.4.2.3, Determining the Tax Year.

  7. Identify and address all other issues.

  8. If the RS submits a request for relief but there is no balance due because the Form 1040, U.S. Individual Income Tax Return, or Form 1040X, Amended U.S. Individual Income Tax Return, has not been processed, suspend the case until the return is processed.

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

      Exception:

      Do not ESTAB for the return or mirror the account. Note the account will need to be mirrored after processing of the return is done. Update ISTS to Stage 06. Open a control base with the activity "WT1040" or "WT1040X"

    2. If the return does not result in an assessment or is not processed because of missing signature, etc., close the case following non-qualifying procedures.

      Reminder:

      It may be necessary to send the NRS a closing letter if Letter 3284C was issued and not returned as undelivered.

25.15.7.4.2.1  (02-19-2013)
No Valid Signature

  1. Continue processing the request to determine if the request would be a non-qualified/disallowed first read closure, e.g., no jointly filed return.

  2. Prepare Letter 3658C, circle received dates on Form 8857, Request for Innocent Spouse Relief, and all correspondence in red. Return the form and correspondence to the RS. In addition, if the year would be non-qualified/disallowed include a sentence in Letter 3658C, "this year would not qualify because..." .

  3. Update ISTS and ISTSR Input Record to Stages 01, 02 (if applicable), 03, Stage 29 with Activity Description "UNPR" and Stage 30 with Activity Description "NOACCTP" .

    Note:

    Do not input TC 971 AC 065

    .

  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.

25.15.7.4.2.2  (07-24-2014)
Second Request

  1. If ISTS shows the request for relief is already in process, attach a print of ISTSR to Form 8857, Request for Innocent Spouse Relief, and notate ISTSR print associate with original request. Place in appropriate basket to be associated.

  2. If claim is in Stage 30 refer to IRM 25.15.17, Reconsiderations.

    Exception:

    If the prior claim was denied under IRC 6015(c) and the marital status has changed, treat as a new claim under 6015(c). This includes stopping collection activity.

  3. When the RS submits additional information on an innocent spouse claim previously closed as non-qualified and the additional information shows that the claim should not be non-qualified treat it as a new claim:

    1. Update ISTS as a second claim. The IRS received date will be the date that the additional information came in that created a qualifying claim.

    2. Update to Stage 01 with activity “PRNQ”.

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

25.15.7.4.2.3  (02-19-2013)
Determining the Tax Year

  1. Identify all years shown on Form 8857, Request for Relief from Innocent Spouse, or specified in the RS’s correspondence. All years must be addressed.

  2. If the tax year is not indicated on the form, the correspondence must specifically address a particular year to be considered.

    If the RS: then:
    Indicates 2011 on Form 8857 and attaches a letter that says "you took my refund to pay the taxes for 2009" . Consider both 2011 and 2009. This is because 2011 is listed on the Form 8857 and 2009 is the year the RS really wants relief since that is the year they owed taxes.
    Indicates 2009 on Form 8857, and attaches a letter that says "you took my 2011 refund" . Consider 2009 only since that is the year on the Form 8857 and 2011 would not qualify for relief.
    Leaves the tax year blank but attaches an IRS notice of refund offset to a balance due on a previously filed joint return or states you took my 2011 refund and applied it to my 2009 taxes. Work the year indicated on the IDRS notice or correspondence for the year the overpayment was offset.

    Example:

    A 2011 overpayment was offset to the 2009 year you only need to address 2009. The difference between this and the issue in the first box above is that the RS did not specify a year on Form 8857.

    Indicates 2008 - 2010 (research shows the years listed were all filed single with overpayments) and the RS states "you took my refunds every year for taxes that my ex-spouse owes" . Work only the years 2008 - 2010 since the RS did not specify the years filed jointly.
  3. If the research shows you could consider a request for relief for a year not requested and you are disallowing or non-qualifying the claim, advise the RS you could consider the other year.

    Note:

    Do not solicit a Form 8857 for a year that clearly will be disallowed or non-qualified. For example, the RS has an expired refund statute expiration date (RSED) TC 706 applied to a tax year on which the collection statute expiration date (CSED) has expired.

  4. If the taxpayer only requests relief for one valid year on their Form 8857 but does not mention additional years that could possibly be considered (according to our research), then build the valid year and advise RS via Letter 3659C there is another year we could consider.

    Note:

    Do not solicit a Form 8857 for a year that clearly will be disallowed or non-qualified. For example, the RS has an expired RSED TC 706 applied to a tax year on which the CSED has expired.

  5. If no year is indicated on Form 8857 and a year was not mentioned in their correspondence, return the claim to the taxpayer with Letter 3658C with the appropriate paragraphs. Circle any dates in red and remove all internal documents before the claim is returned to the taxpayer.

    1. Control ISTS on the latest joint year filed. If no joint account, control under the RS’s TIN for the latest year filed.

    2. Update ISTS and ISTSR Input Record to Stages 01, 02 (if necessary), 03, 29 with Activity "UNPR" and then Stage 30 with Activity "NOACCTP" .

      Note:

      Do not input TC 971 AC 065.

25.15.7.4.2.4  (07-24-2014)
IDRS Research

  1. Research on IDRS (both TINs on MFT 30 and MFT 31) using the command codes listed in IRM 25.15.7.4.2.4.1, ISTSR, thru IRM 25.15.7.4.2.4.7, CFINK. Identify any items listed in a through d below.

    1. Non-Master File (NMF) - Research ENMOD for a TC 130 with a "2" in the 9th position of the document locator number (DLN). There may be an additional assessment made directly to NMF. TC 400 may indicate a NMF assessment. TC 300 for .00 with an agreed Examined Disposal Code 03, 04, 08, 09 or defaulted Examined Disposal Code 10 or 13 could indicate a NMF assessment. If the NMF indicates the RS has a balance due, continue screening.

    2. TC 706 from current year return.

    3. TC 670 with designated payment code 05 with a date after the claim was filed, research the Remittance Transaction Research (RTR) to determine if the levy payment was made by the RS. If unable to determine, contact the RS. If the levy payment was from the RS, prepare Form 3465, Adjustment Request, to release the payment. Also, refer the claim to the lead to suspend a continuous wage levy, if appropriate. For additional information on levies, IRM 25.15.7.5.8.2, Automated Collection System (ACS) Tax Levy.

    4. Collection Statute Expiration Date (CSED) - The CSED is generally 10 years from the assessment date. However, certain events such as bankruptcy, OIC, etc., suspend the collection period. For an underpayment the assessment date is usually the due date of the return or the date the return was filed, whichever is later. See IRM 25.15.7.5.8, Account Problems, and IRM 25.15.7.7.1, Collection Statute Expiration Date (CSED) Expired, for additional information on CSEDs.

      Note:

      The CSED can be extended by TC 480, 520, or 550. An indicator under the DLN of the transaction code identifies whose CSED has been extended. TC 480 and 520 suspend and extend the collection statute of limitations. TC 550 extends the collection statute. See table below.

      CSED Extension Indicator Explanation
      P Primary taxpayer
      S Secondary taxpayer
      B Both taxpayers

25.15.7.4.2.4.1  (02-19-2013)
ISTSR

  1. Check CC ISTSRS under both TINS to verify case is not already being processed. This prevents building duplicate cases. If nothing is found, continue to screen. If one is already in process, see IRM 25.15.7.4.2.2, Second Request, for instructions.

    Note:

    A claim can be filed for both the primary and the secondary taxpayer.

25.15.7.4.2.4.2  (09-01-2006)
SUMRY

  1. Check CC SUMRY for any open IDRS controls. SUMRY identifies the filing status and the controlling DLN to ESTAB for the return if building the case.

25.15.7.4.2.4.3  (02-19-2013)
TXMOD

  1. CC TXMOD has more detailed account information than any other IDRS command codes.

    Note:

    TC 640 is a cash bond. A cash bond is an advance payment of a proposed deficiency. If there is a TC 640 and no deficiency assessed, refer case to the lead.

25.15.7.4.2.4.4  (07-24-2014)
ENMOD

  1. CC ENMOD allows you to view taxpayer name line(s), address information, telephone numbers as well as certain account information. When a taxpayer supplies a P.O. Box and a street address, follow IRM 3.13.5.122, Domestic Address Changes.

  2. To change an address:

    1. Verify that an address change can be completed by following IRM 25.15.7.2.1.2, Address Updates.

    2. Input CC ENMOD.

    3. Overlay with CC ENREQ this will generate CC INCHG.

    4. Input the address on the appropriate lines.

    5. In the remarks section, enter "NSD address change per: " and how the information was received. NSD means no source document.

    6. To review the change, input CC ENMOD.

    Note:

    You can also update the taxpayer's address using the Accounts Management Services (AMS).

  3. If there is no entity information, you must establish one.

  4. To establish entity information perform the following steps:

    1. Input CC MFREQDxxx-xx-xxx. (next line)
      00 000000 NMCL (NMCL is the first four letters of the taxpayer's last name).

    2. Input CC ENMOD, which will show the dummy account.

    3. Overlay CC ENMOD with CC ENREQ XXX—XX—XXXX (2 spaces) 1 (next line) NMCL,C,OTHE.

    4. This will default to CC INCHG. Enter all entity information, name, address, filing status, year of name line and in remarks enter "NSD EST ENTITY" .

      Note:

      "NMCL" refers to the first four letters of the taxpayer’s last name otherwise known as the name control.

  5. If the name control is incorrect, overlay CC ENMOD with:
    ACTON 00 000000 NMCL/
    H, CORRNAME

    Caution:

    Do not update a name for a prior year based on the Form 8857, Request for Innocent Spouse Relief. This is the taxpayer's current name, not necessarily their name in earlier years.

    Note:

    If a mixed entity, scrambled TIN, or other entity issues are identified and verified, forward to the Financial Specialist.

  6. If the RS or NRS gives their new telephone number, update CC ENMOD by input of CC TELEA. See IRM 2.4.29.3, Command Code TELED, IRM 2.4.29.4, Command Code TELEA, and IRM 2.4.29.5, Command Code TELEC, for information on IDRS CC TELE used to update telephone information.

    Note:

    You can also update the taxpayer's phone number using AMS.

25.15.7.4.2.4.5  (02-19-2013)
IMFOLI

  1. CC IMFOLI displays a summary of a taxpayer’s filing history currently on Master File. The IMFOLI screen displays the following information:

    • Filing method - paper or electronic return,

    • Balance due accounts,

    • Freeze codes on the accounts, and

    • Accounts dropped to the retention and vestigial registers (An R will be to the left of the tax period on the retention register.).

      Note:

      Retention register accounts can be viewed with definer T. Older accounts dropped to the vestigial record cannot be viewed.

  2. Use CC IMFOLI to help address the factor of whether a RS is compliant with federal tax law in years after the years at issue on the claim.

  3. Use CC IMFOLI to help determine if the RS should be advised they can request innocent spouse relief of other tax year(s).

25.15.7.4.2.4.6  (07-24-2014)
INOLES

  1. CC INOLES allows you to view a taxpayer’s name, address, date of birth, date of death and debt indicator.

    1. If RS's address is different than claim, check CC ENMOD for pending changes. If none pending, make necessary changes to the RS’s address only. See IRM 25.15.7.2.1.2, Address Updates for when an address can be updated on Master File and IRM 25.15.7.4.2.4.4, ENMOD, for instructions to change an address.

  2. View NRS's address. Mail letters to the NRS at their address of record. Only change the address of the NRS if requested by him/her.

  3. View date of birth and date of death information.

    1. Verify date of death on CC INOLE.

    2. Indicate on the top portion of the ISTSR Input Record if either taxpayer is deceased.

  4. CC INOLES will also indicate if a taxpayer has never filed a return as the primary taxpayer. If CC INOLES does not display a name line or address, the taxpayer has not filed a return as the primary taxpayer. See IRM 25.15.7.4.2.4.4, ENMOD, to establish entity information for RS.

  5. View a taxpayer's debt indicator on CC INOLES - research under both TINs.

    • F - Outside agency (Treasury Offset Program (TOP) non-tax)

    • I - IRS tax

    • B - Both outside agency and IRS debt

    • N - None

      Note:

      This information can be helpful to determine the type of closure. If the debt indicator is F, do not assume that a TC 846 is going to refund. The TC 898 (TOP offset) will post in the cycle after the TC 846. Allow up to two weeks for the TC 898 to post and treat the claim as injured spouse.

25.15.7.4.2.4.7  (02-19-2013)
CFINK

  1. CC CFINK is used to identify POA or representative information for a taxpayer.

  2. Refer to IRM 21.3.7, Processing Third Party Authorizations onto the Centralized Authorization File (CAF), for guidelines on processing a POA and additional information.

  3. Make a copy of the CFINK print and attach it to the Activity Record. On the print, identify whether the POA is for the RS or NRS. Check the POA box on the ISTSR Input Record.

    Note:

    Joint returns could have a joint CAF, but only be filed under the primary TIN on CFINK.

    Note:

    For individual taxpayers, CAF information is generally displayed for MFT 30. When sending letters on MFT 31 you need to manually input the CAF information on the LPAGE screen when sending letters via IDRS until further notice. If the CAF is valid for MFT 30, it is also valid for MFT 31.

25.15.7.4.3  (02-19-2013)
Field Referrals

  1. 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, Request for Innocent Spouse Relief, determine the correct field office using the chart for the field offices. See http://win.web.irs.gov/innocent_spouse.htm, go to Contact Information, then Contacts for Exam.

    1. The Lead must initial all cases shipped to field office.

    2. Input TC 971 AC 065.

    3. Update ISTS and the ISTSR Input Record through Stage 03. Stage 02 will be input when case is shipped to the Field Office.

25.15.7.4.3.1  (07-24-2014)
AIMS

  1. A -L freeze indicates an open Audit Information Management System (AIMS) record.

    Caution:

    If there is no -L freeze on an account, but there is a TC 300, check TC 420/TC 424 for source code 17, 23, or 39. These are Tax Equity and Fiscal Responsibility Act (TEFRA) cases, see IRM 25.15.7.4.3.1.(3), below.

  2. If employee group code (EGC) is in the 5XXX series and Status is 10 or greater, follow IRM 25.15.7.6, Case Building - General, and place in appropriate folder.

  3. If EGC is 58XX with source codes 17, 23, or 39, the examination involves a TEFRA issue. For TEFRA cases:

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

    2. Note on ISTSR Input Record "TEFRA" .

    3. Send case directly to the Technical Team. The case will not be held on 04 wall.

    4. Reassign IDRS control and enter activity "TEFRA" .

    5. Input history item on ISTS "TEFRA" .

  4. The request for relief will be sent to the primary business code (PBC) Small Business/Self-Employed (SB/SE) Division Area Coordinator of the TC 420, if the PBC is 201 through 215, 301 through 398, or 401 through 417 and EGC is 1XXX through 4999 and the status is 10 through 50.

    Note:

    It is in the best interest of the customer to have the same employee work all years involved in an innocent spouse claim. If a request for relief meets the criteria above to be referred, all years that the taxpayer is requesting relief for will be included in the referral.

  5. If the EGC and status are other than those listed in paragraphs (2) through (4) of this section, continue screening.

  6. See the table below for instructions on certain AIMS statuses.

    If AIMS Status is Then
    09 or below
    1. If there is a balance due or the RS requested a refund, build the case. Follow IRM 25.15.7.6, Case Building - General.

    2. If there is no balance due and the RS did not request a refund, close as full paid, see IRM 25.15.7.7.2, Full Paid - No Payments from the RS or RS Did Not Request a Refund.

    51, 52, 53, 54, 55 or 57 Build the case. Any additional tax will be assessed by the time the case is purged from the Stage "04" wall.
    56 Update ISTS and ISTSR Input Record to Stages 01, 02 (if necessary), 03 and 06. Issue a claim acknowledgement letter to the RS, but do not issue Letter 3284C to the NRS. Input TC 971 AC 065. Suspend the claim for 45 days. After 45 days, check AMDIS. If case is in a status other than 56, continue screening. If case is still in Status 56, contact the area assigned the exam case for an update.
    For more information on the status codes research Document 6209, IRS Processing Codes and Information.
  7. If AIMS status is 90, refer to the second page of AMDISA. Pending assessment will show in the "AIMS/EXAM RESULTS" . If the dollar amount is zero, continue screening. If other than zero, check TXMOD for a pending TC 300.

  8. If AIMS status is 80, 81, or 82, determine if it is qualifying. If so, put the case in a appropriate folder and file on Stage 04 wall. When it is time to purge, forward case to Full Scope.

25.15.7.4.3.2  (07-24-2014)
Open Litigation/Tax Court

  1. Accounts that have an open litigation/tax court case can be identified with the codes listed in the chart below. See IRM 25.15.7.10.2.3 Form 12153, Request for a Collection Due Process or Equivalent Hearing for procedures where a -W freeze is paired with a TC 520 closing code 76 or 77.

    Open Litigation/Tax Court Identifiers
    Primary Code With Secondary Code Notation on ISTSR
    -W Freeze TC 520 with closing code: 70, 71, 73, 75, 78, 79, 80, 81, 82, 84 Litigation
    -W Freeze TC 520 with closing code: 72 or 74 Tax Court
    -L Freeze AIMS Status 82 Tax Court Exam
    TC 922 PC 80 Tax Court AUR
    1. Put case into a black folder.

    2. Note "Litigation " or "Tax Court" on ISTS and the ISTSR input record per the table above.

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

    4. If the -W freeze has been released by TC 521, continue case building procedures. See IRM 25.15.7.6, Case Building - General. These will be processed at the CCISO.

25.15.7.4.3.2.1  (07-24-2014)
Litigation Referral Cases

  1. Counsel attorneys, Appeals officers and settlement officers may refer docketed Tax Court cases to the CCISO to make an innocent spouse determination if one has not been made. You should receive a copy of the Tax Court petition with the referral. These cases may also be identified by a memorandum addressed to:
    IRS - CCISO
    Attn: Department One Manager
    201 W. Rivercenter Blvd.
    Stop 840F
    Covington, KY 41012

    Note:

    A reference to Chief Counsel Notice CC-2012-004, CC-2009–021, or CC-2004–026 could be present on the memo.

  2. Route these cases to the litigation liaison who will build the case. Litigation cases are worked in an expedite manner. Determination(s) must be made within 60 days of receipt of the case or by the date specified by Chief Counsel.

25.15.7.5  (03-21-2008)
Special Handling

  1. See the following procedures for cases requiring special handling.

25.15.7.5.1  (07-17-2009)
Criminal Investigation (CI) and -Z or Z- freeze

  1. When there is a -Z or Z- freeze indicating Criminal Investigation (CI), do not contact the taxpayer.

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

  3. 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.

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

25.15.7.5.2  (07-24-2014)
Potentially Abusive Non-Electing Spouse (PANES)

  1. If the taxpayer files Form 8857 revised June 2007 or earlier, special handling is required when there is an indication the NRS was physically abusive and the case is being built.

    Note:

    Form 8857, Request for Innocent Spouse Relief, with a revision date prior to June 2007 has a block to check if Potentially Abusive Non-Electing Spouse (PANES).

    1. Call the RS to explain procedure for contacting the NRS. If the RS indicates it will be OK to contact the other spouse, continue case building procedures. Follow IRM 25.15.7.6, Case Building - General. Document the call on AMS and keep a copy of the AMS print(s) in the case file.

    2. If the RS states he/she does not want the NRS to know that they filed a claim for relief, advise the RS that contacting the NRS is required by law, unless they withdraw the innocent spouse claim. Advise the RS, IRS will not disclose his/her current personal information.

    3. If unable to contact the RS by phone, issue Letter 3659C and include Form 8857 revised June 2007, or later. The NRS will not be contacted at this time. Place in appropriate folder. Update ISTS and ISTSR Input Record to Stage 06. Hold the case for 45 days or until the RS responds, whichever is later. Do not input TC 971 AC 065 on the account(s) at this time. This is so that an employee will not prematurely disclose to the abusive NRS that there was an innocent spouse claim filed; until we know if the RS wants to proceed.

    4. If the RS indicates they want to proceed with the claim or the RS does not respond requesting a withdrawal, input TC 971 AC 065 on the account. Send Letter 3284C to NRS and Letter 3659C to RS, if necessary. Remove the appropriate folder from the case. Update ISTS and ISTSR Input Record to Stage 04 and file on wall for 45 day purge.

    5. If the RS requests to withdraw the claim, see IRM 25.15.7.7.9, Taxpayer Request for Withdrawal of Claim.

25.15.7.5.3  (02-19-2013)
IRS Employee Cases

  1. 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:

    • ENMOD - below the name and address area, IRS-EMP-CD.
      1=Primary Taxpayer (TP) is IRS employee
      2=Secondary TP is IRS employee
      3=Both TP's are IRS employees
      Blank=Neither

    • TXMODA - under the Document Locator Number (DLN), top left. Same codes as ENMOD.

    • IMFOLI - under IMFOLI command code, top left.
      P=Primary
      S=Secondary
      B=Both
      Blank=Neither

    • U.S. Treasury Form W-2s attached to the return

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

    Note:

    If you know the IRS employee, refer the case immediately to your manager.

  3. 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.

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

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

  6. If a claim is built or disallowed, see IRM 25.15.7.5.3(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.

  7. 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.

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

  9. Place in appropriate folder.

  10. Send Letter 3284C to NRS.

  11. Send Letter 3659C to RS.

  12. Control case using activity IRSEMP8857, Status A, Category, INSP or INSS on TXMOD. INSP indicates the primary taxpayer filed for innocent spouse relief and INSS indicates the secondary taxpayer filed for innocent spouse relief.

  13. 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.

    Note:

    Do not remove the folder.

  14. 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.

  15. If sufficient information is not provided to make a determination, follow IRM 25.15.7.10.5.1, No Reply to Request for Additional Information.

  16. 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.

  17. At purging, the Closing Technician will:

    1. Input TC 290.

    2. Keep case in appropriate folder.

    3. Place case and appropriate folder in security envelope (confidential information).

    4. On security envelope write "Employee Case" in red.

    5. Seal envelope.

    6. Place the envelope in the employee folder going to Files.

  18. 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.

  19. 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.

    Exception:

    If the case file is too large to fit in the white security envelope, ensure the case file is adequately secured and identified as "Employee Case" .

25.15.7.5.4  (03-21-2008)
Congressional Cases

  1. 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.

    Note:

    If a case has been sent from TAS, work as provided in IRM 25.15.11, Taxpayer Advocate Service Contacts and Identity Theft Referrals. If TAS has not seen the Congressional, give to the lead. The lead will call TAS to alert them.

  2. Input TC 971 AC 065.

25.15.7.5.5  (07-24-2014)
Forgery

  1. If the RS alleges forgery and it is a qualified claim apply the tacit consent factors, see IRM 25.15.7.10.13.5.1, Tacit Consent Factors. Do not contact the NRS unless it has been determined that tacit consent applies.

    1. If tacit consent applies, follow IRM 25.15.7.6, Case Building - General.

    2. If tacit consent does not apply, or if you are unable to determine, forward the case to the Technical Team. See IRM 25.15.7.5.6 Invalid Joint Election for additional information.

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

    1. Issue Letter 3657C. Include a paragraph explaining that "We cannot consider your claim of forgery at this time. You did not provide a statement explaining your belief that your signature was forged or signed under duress"

    2. Enter TC 290 .00 to close the case as a non-qualifying claim.

  3. If the RS alleges forgery and it is a non-qualifying claim look for a statement from the RS addressing the forgery issue. If a statement has been included, apply the tacit consent factors. IRM 25.15.7.10.13.5.1, Tacit Consent Factors. If the RS states that they were not married the year the joint return was filed, see 2) below.

    1. If tacit consent occurred issue Letter 3657C and enter TC 290 .00 to close the case as a non-qualifying claim. Address the forgery issue in the letter to the RS.

      Note:

      Advise the taxpayer of their right to appeal the determination of tacit consent. Use a fill-in paragraph and enclose Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don't Agree. Suggested fill in paragraph: If you do not agree with our decision that you intended to file a joint return you can request an appeals hearing within the next 30 days. Enclosed is Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don't Agree.

    2. If tacit consent factors do not apply, the RS states that they were not married the year the joint return was filed, or it cannot be determined at this time, forward the case to the Technical Team. See IRM 25.15.7.5.6 Invalid Joint Election for additional information.

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

    1. If a statement has not been included, see IRM 25.15.7.7.8, Not Timely Filed. Include in the letter to the RS a paragraph explaining that "We cannot consider your claim of forgery at this time. You did not provide a statement explaining your belief that your signature was forged or signed under duress. "

    2. If there is a statement present to address the forgery issue, apply tacit consent factors, see IRM 25.15.7.10.13.5.1, Tacit Consent Factors.

      If tacit consent occurred, address the forgery issue in the letter to the RS.

      If tacit consent factors do not apply, or it cannot be determined at this time, forward the claim to the Technical Team.

  5. Address any other issues raised by the RS.

  6. Update ISTS.

  7. Update AMS and IDRS.

25.15.7.5.6  (07-24-2014)
Invalid Joint Election

  1. 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:

    • An original or amended joint return was filed and processed with only one signature.

    • The return was signed, however, it was established the signature was forged and there was no tacit consent.

    • The return was signed under duress.

  2. 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.

    1. If the taxpayer seeks to invalidate the joint election the taxpayer must submit verification, e.g., court or legal documents, showing the couple was divorced, or the marriage was illegal or annulled for the tax period involved.

    2. The taxpayer must provide an allocation of all income, credits, and payments.

  3. See the table below to determine if the taxpayers resided in a state that recognizes common law marriage:

    State Common Law Recognized ? Note
    Alabama Yes  
    Alaska No Will recognize if legal in state where the common law marriage began.
    Arizona No Will recognize if legal in state where the common law marriage began.
    Arkansas No Will recognize if legal in state where the common law marriage began.
    California No Will recognize if legal in state where the common law marriage began.
    Colorado Yes  
    Connecticut No  
    Delaware No Will recognize if legal in state where the common law marriage began.
    District of Columbia Yes  
    Florida No  
    Georgia Yes When the common law marriage was formed before January 1, 1997.
    Hawaii No  
    Idaho Yes When the common law marriage was formed before January 1, 1996.
    Illinois No  
    Indiana No  
    Iowa Yes  
    Kansas Yes Not valid if either party is under 18 years of age.
    Kentucky No Common law marriage valid for Workers' Compensation only.
    Louisiana No  
    Maine No Will recognize if legal in state where the common law marriage began.
    Maryland No Will recognize if legal in state where the common law marriage began.
    Massachusetts No  
    Michigan No  
    Minnesota No  
    Mississippi No  
    Missouri No  
    Montana Yes  
    Nebraska No  
    Nevada No  
    New Hampshire No Will recognize for probate purposes only.
    New Jersey No  
    New Mexico No  
    New York No  
    North Carolina No Will recognize if legal in state where the common law marriage began.
    North Dakota No  
    Ohio Yes Will recognize if entered into prior to October 10, 1991.
    Oklahoma Yes Will recognize if entered into prior to November 1, 1998.
    Oregon No Will recognize if legal in state where the common law marriage began.
    Pennsylvania Yes No common law marriage contract after January 1, 2005 is valid.
    Puerto Rico No  
    Rhode Island Yes  
    South Carolina Yes Common law marriage valid for Workers' Compensation only.
    South Dakota No  
    Tennessee No Will recognize if legal in state where the common law marriage began.
    Texas Yes  
    Utah Yes Recognized only if validated by a court or administrative order.
    Vermont No  
    Virginia No  
    Washington No Will recognize if legal in state where the common law marriage began.
    West Virginia No  
    Wisconsin No  
    Wyoming No Will recognize if legal in state where the common law marriage began.
  4. When the case is a potential "invalid joint election" :

    1. Update ISTS to Stages 01, 02 (if necessary), 03 and 06. Use the activity of OTHER for Stage 06. Input comment entry on ISTS to indicate the case is being referred to the Technical Team as a possible invalid joint election.

    2. Input TC 971 AC 065.

    3. Send a Letter 3659C to the RS, but do not send the NRS a letter at this time. Enclose Pub 1, Taxpayer Bill of Rights (formerly Your Rights as a Taxpayer), with the Letter 3659C.

    4. Do not mirror the account.

    5. Forward the case to the Technical Team.

    6. If the case is returned from the Technical Team because the election is not invalid, follow IRM 25.15.7.6, Case Building - General. However, do not duplicate any actions input prior to referring to the Technical Team.

25.15.7.5.7  (02-19-2013)
Community Property

  1. 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.

    Note:

    See IRM 25.15.5.2, Community Property States for a list of community property states.

  2. 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).

  3. Community property cases will be worked at the CCISO:

    1. Request administrative file for both taxpayers.

    2. Follow IRM 25.15.7.6, Case Building - General.

    3. Input TC 971 AC 065 on the RS’s account.

    4. Note on ISTSR Input Record "Community Property" .

    5. Place a "T" at bottom of ISTSR Input Record.

    6. Notate history on ISTS "Community Property" .

  4. If the RS requested relief for a year and there is no issue to consider under IRC 66(c), IRM 25.15.7.7.7, Community Property, non-qualify for filing status. Input a comment entry of "COMM PROP" on ISTS.

25.15.7.5.8  (02-19-2013)
Account Problems

  1. 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, IRM 25.15.7.6, Case Building - General.

    Exception:

    Do not send Letter 3284C to the NRS.

  2. If the RS indicates or you identify an account problem and there is no innocent spouse issue (case is non-qualifying), refer the case to the Technical Team, using local routing slip. State "Non-qualifying Innocent Spouse claim. No Innocent Spouse issue. Account issue needs to be addressed."

  3. If payments from the RS (need to verify) were erroneously applied to the joint module after the RS’s CSED had expired, prepare Form 3465, Adjustment Request, to refund any open RSED payments to RS. If the account is not mirrored move the whole account to NMF 20. If a refund is involved, put case in appropriate folder. Refer to the Processing Team.

    1. Input Letter 3657C with this explanation: "A review of our records indicates the 10–year statute of limitations to collect the liability on your account has expired. You will not be held liable for the remaining balance due on this account."

    2. Update ISTS and ISTSR Input Record to Stage 29 with activity code "CSED" and then Stage 27. Enter history item "RS-CSED" . Place entire case in appropriate folder.

    3. Open IDRS control base and assign to the Processing Team with the activity "CSED" .

    4. See IRM 25.15.7.7(2), Non-qualified and Disallowed, for additional instructions.

  4. If tax, but not interest and/or penalties, is full paid (i.e., if the return is filed late but with full payment of the tax) and the RS only requests an abatement of the penalties and interest, 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 For Refund and Request for Abatement. In this situation, as there was no unpaid tax or deficiency, there is nothing from which to get innocent spouse relief. 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 under any section of IRC 6015, 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.

    1. Send Letter 86C advising RS the case was transferred.

    2. Update ISTS and ISTSR Input Record to Stage 29 with activity ACTP and Stage 30 ACCTCORR. Add history item, sent to Accounts Management.

    Caution:

    If there was unpaid tax on the return which has since been paid, and relief would have been appropriate for the underlying tax, then relief is appropriate for the penalties and interest. See IRM 25.15.3.8.1(6), Understatements and Underpayments, to determine if relief should be considered under IRC 6015, or treated as an 843 claim.

  5. When there is a valid innocent spouse claim as well as an account problem:

    1. Notate history sheet with nature of account problem.

    2. Continue normal screening.

25.15.7.5.8.1  (02-19-2013)
Liens

  1. TC 582 indicates a lien.

  2. In a divorce settlement, the RS may have received property on which the IRS has a lien. The RS may not sell this property with a good (clean) title due to the lien. If relief is granted under IRC 6015, the RS is relieved of personal liability, but the tax lien remains attached to the property, and the RS takes it subject to the lien.

  3. Once an account is established, Master File will send the Automated Lien System (ALS) a record that identifies the non-liable spouse. Based on that information, a partial release is systemically created. The release takes about two weeks for the actual document reflecting the release to generate. The release extinguishes the lien with respect to the non-liable spouse's property and rights to property.

  4. When it is necessary to prepare a manual lien release, i.e., the adjustments or abatements will take longer than 30 days, complete Form 13794, Request for Release or Partial Release of Notice of Federal Tax Lien and send it through secure e-mail to the appropriate team in the Centralized Lien unit.

    Caution:

    If sending case to the Processing Team, advise them you need the case back to release the lien.

  5. The lien teams can be found on Servicewide Electronic Research Program (SERP) under the Who and Where tab. See http://serp.enterprise.irs.gov/databases/who-where.dr/als.dr/case-processing-lien-units.htm or the Innocent Spouse website for the list.

  6. If an asset to which a lien has attached is sold and the IRS receives proceeds from the sale of said asset, you must determine the ownership of the asset at the time the lien arose. If it was the RS’s asset and you grant relief, any proceeds from the sale can be refunded to the RS. If, at the time the lien was placed on the asset, it had joint ownership, and relief is being granted, no amount of the sale proceeds can be refunded to the RS.

25.15.7.5.8.2  (02-19-2013)
Automated Collection System (ACS) Tax Levy

  1. If the RS calls or corresponds regarding a levy or there is an indication of a levy (TC 670 with designated payment code 04, 05, 16, 18, 19, 20, 21, 22, or 23 are indicators of a levy), ask the RS for the following information:

    • Levy source’s name and a telephone number.

    • Levy source's fax number if known. If not, contact the levy source for the fax number. Explain to the levy source that you need to fax them a statement to stop a levy.

      Note:

      Bank account, state income tax, Alaska Permanent Fund Dividend and electronic funds transfer (EFT) levies are typically a one time levy action; however, wage levies can be a continuous levy. A levy of Social Security benefits can be recurring, but is not defined as continuous. The continuous or recurring levies can be suspended while an innocent spouse claim is pending. Typically by the time a taxpayer is aware of a one time levy action, we cannot stop or suspend it. Any levy payment applied to an account after the date IRS received Form 8857, Request for Innocent Spouse Relief, will be returned to the RS. The RS will be required to establish the funds from the levy payment belonged to them and not the NRS.

  2. If the RS is entitled to the return of any payments from the levy, list the payments to be refunded on the AMS. Prepare Form 3465, Adjustment Request, identifying the payments to be refunded. If multiple years are involved, prepare Form 3465 for each year a refund is requested.

    Note:

    Before requesting a return of a levy payment (after the innocent spouse claim was filed) to the RS, documentation must be in the file that the levy payment was only made by the RS. This can be accomplished through documenting on AMS and including a copy with the case file. If in doubt the levy payments belong to the RS, research Remittance Transaction Record (RTR) and if unable to determine payment was solely made by the RS, contact the RS. Documentation for levy payments can be an RTR print, check stub with the RS’s name and TIN or a summary account sheet from the RS’s employer. Attach the documentation to Form 3465. On Form 3465, notate the RS’s name and address.

  3. The designated Lead will coordinate with the Andover Campus’ Automated Collection System designee to stop the levy.

25.15.7.5.9  (07-24-2014)
Potentially Dangerous Taxpayer (PDT)

  1. If there is an indication of a Potentially Dangerous Taxpayer (PDT) or Caution Upon Contact (CAU), proceed with the case as usual. Nothing should be notated in the case file regarding the PDT or CAU designation. 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). Please see IRM 25.4Employee Protection for more information on these designations.


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