25.15.7  Compliance Campus Functions

Manual Transmittal

February 19, 2013

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) IPU 110655 issued 03-24-2011 IRM 25.15.7.2.1(2) revised instructions for addressing letters to deceased taxpayers back to the prior instructions because of letter review.

(3) IPU 110867 issued 04-25-2011 IRM 25.15.7.2.1(3) revised instructions for undeliverable mail.

(4) IPU 110867 issued 04-25-2011 IRM 25.15.7.2.1.1 new instructions for undeliverable mail.

(5) IRM 25.15.7.2.2 added procedures when claim is received from a Revenue Officer.

(6) IRM 25.15.7.3 moved identifying AUR and Exam cases into AUR and Exam overview as 25.15.7.3.1

(7) IRM 25.15.7.4 renumbered as 25.15.7.3 and renumbered the rest of the IRM.

(8) IRM 25.15.7.3.1 completely revised procedures on identifying AUR and Exam cases.

(9) IRM 25.15.7.3(4) added link for the Innocent Spouse website.

(10) IRM 25.15.7.3.2(1)2 added AUR acknowledgment Letter 4314C.

(11) IRM 25.15.7.3.2(1)3 changed control to input Stage 01 and 02.

(12) IRM 25.15.7.3.3(1) deleted 30 day period and revised to open AUR or CCEO cases. Charts revised.

(13) IRM 25.15.7.3.3(4) Added procedures when taxpayer files Form 1040X in reply to AUR or Exam.

(14) IRM 25.15.7.3.3.1(1), (2), & (3) Charts revised.

(15) IRM 25.15.7.3.4(1) Note deleted.

(16) IRM 25.15.7.3.4(4) CCISO Chart revised and Note added.

(17) IRM 25.15.7.3.5(1) Note TEFRA information deleted.

(18) IRM 25.15.7.4(1) First Read responsibility revised.

(19) IRM 25.15.7.4.1(1)(7) revised instructions for ISTS record.

(20) IRM 25.15.7.4.1(2) clarified Action 61 requirements.

(21) IRM 25.15.7.4.1(4) Note revised information on disclosure.

(22) IRM 25.15.7.4.2(1) claims screening criteria revised.

(23) IRM 25.15.7.4.2(2) updated IRM references.

(24) IRM 25.15.7.4.2(7) changed Letter 3661C to 3659C.

(25) IRM 25.15.7.4.2.1(3) added Stage 30 criteria.

(26) IRM 25.15.7.4.2.2(1) added notate ISTSR print.

(27) IRM 25.15.7.4.2.3(2) years revised in the IF/ Then Chart.

(28) IRM 25.15.7.4.2.3(3) revised the example in the Note.

(29) IRM 25.15.7.4.2.3(4) revised the example in the Note.

(30) IRM 25.15.7.4.2.3(5)(2) added stages.

(31) IRM 25.15.7.4.2.4(1)(a) added Examined Disposal Code.

(32) IRM 25.15.7.4.2.4(1)(b) added from current year return.

(33) IRM 25.15.7.4.2.4(1)(c) added referral to Lead.

(34) IRM 25.15.7.4.2.4.4 completely revised.

(35) IRM 25.15.7.4.2.4.5(1) added filing method and balance due accounts.

(36) IRM 25.15.7.4.2.4.5 (3) new.

(37) IRM 25.15.7.4.2.4.6 (1) added date of birth, date of death and debt indicator.

(38) IRM 25.15.7.4.2.4.6(1)(1) added caution concerning RS address on Form 8857.

(39) IRM 25.15.7.4.2.4.6(4) completely revised.

(40) IRM 25.15.7.4.2.4.6(5) added CC INOLES and up to two weeks in Note.

(41) IRM 25.15.7.4.2.4.7(3) revised the second note concerning CAF information.

(42) IRM 25.15.7.4.2.5 deleted SFR information.

(43) IRM 25.15.7.4.3.1 replaces Status 12 to Status 10 in various places.

(44) IRM 25.15.7.4.3.1(3) revised instructions for TEFRA referrals.

(45) IRM 25.15.7.4.3.1(6) AIMS IF/Then Chart revised.

(46) IRM 25.15.7.4.3.1.2(3) added APPL-CD.

(47) IRM 25.15.7.4.3.3 pending offer-in-compromise deleted.

(48) IRM 25.15.7.5.2 completely revised.

(49) IRM 25.15.7.4.3.2.1(1) added additional notices.

(50) IRM 25.15.7.5.3(15) added instructions for no reply cases.

(51) IRM 25.15.7.5.5 revised forgery procedures and changed instructions to forward the case to the Technical Team when the tacit consent factors do not apply or it cannot be determined.

(52) IRM 25.15.7.5.6(2) revised Common Law State Chart.

(53) IRM 25.15.7.5.6(3) completely revised.

(54) IRM 25.15.7.5.7(4) added procedures for community property non-qualified cases.

(55) IRM 25.15.7.5.8(1) revised Exception instructions.

(56) IRM 25.15.7.5.8(2) revised referral instructions.

(57) IRM 25.15.7.5.8.1(6) changed one half of the sales proceeds can be refunded to no amount of the sales proceeds can be refunded.

(58) IRM 25.15.7.5.8.1(7) deleted.

(59) IRM 25.15.7.5.8.2(1) added designated payment codes and revised the Note.

(60) IRM 25.15.7.5.14(1) Note revised procedures on determining cycle date.

(61) IRM 25.15.7.5.14(1) (a) added Exception for Community Property payments.

(62) IRM 25.15.7.5.14(2) added input credit transfer and document actions.

(63) IRM 25.15.7.5.15 revised list of math errors.

(64) IRM 25.15.7.5.16 revised procedures for Open AUR and Campus Examination.

(65) IRM 25.15.7.6(4) added non-qualifying claim unless a preliminary letter is issued.

(66) IRM 25.15.7.6(8) revised instructions for requesting documents.

(67) IRM 25.15.7.6(9) revised instructions for mirroring accounts.

(68) IRM 25.15.7.7 through IRM 25.15.7.8.15 completely revised non-qualified and disallowed instructions.

(69) IRM 25.15.7.7.12 changed order of instructions.

(70) IPU 111451 issued 08-31-2011 IRM 25.15.7.8.7 revised due to Notice 2011–70.

(71) IRM 25.15.7.9 changed title.

(72) IRM 25.15.7.10(1) Caution for TC 706 offsets revised.

(73) IRM 25.15.7.10(2) added procedures for requesting additional information and renumbered the remaining paragraphs.

(74) IRM 25.15.7.10(3) deleted under penalties of perjury.

(75) IRM 25.15.7.10(5) replaced Limited Scope with Streamlined Determination.

(76) IRM 25.15.7.10(8) added mirroring modules instructions.

(77) IRM 25.15.7.10.1(3) added Letter 3284C.

(78) IRM 25.15.7.10.1(7) deleted.

(79) IRM 25.15.7.10.1.1 moved to IRM 25.15.7.11.5.1.

(80) IRM 25.15.7.10.2.1.1(3) revised work in received date order and added exception.

(81) IRM 25.15.7.10.2.3(1)(b) added AC 276 or AC 277.

(82) IRM 25.15.7.10.2.3(1)(c) added AC 279 or AC 280.

(83) IRM 25.15.7.10.2.3(7)(3) added the Lead will check ACDS of Appeals officer.

(84) IRM 25.15.7.10.2.3(8)(6) added the Lead will check ACDS for Appeals officer.

(85) IRM 25.15.7.10.4 Limited Scope changed to Streamlined Determinations.

(86) IRM 25.15.7.10.5 completely revised instructions for Additional Information Required.

(87) IRM 25.15.7.10.5.1 added no reply for additional Information instructions.

(88) IRM 25.15.7.10.6 completed revised instructions for allowed request.

(89) IRM 25.15.7.10.7 completely revised instructions for partial relief.

(90) IRM 25.15.7.10.8 completely revised instructions for disallowed relief.

(91) IRM 25.15.7.10.9 completely revised instructions for taxpayer notification/suspense procedures.

(92) IRM 25.15.7.10.10 through IRM 25.15.7.11.10.6 completely revised instructions for Rework cases.

(93) IRM 25.15.7.10.11 completely revised instructions for Appeal procedures.

(94) IRM 25.15.7.10.11.1 completely revised instructions for Appeals conference requested.

(95) IRM 25.15.7.10.11.2 completely revised instructions for forwarding appeals requests to Appeals.

(96) IRM 25.15.7.10.11.3 completely revised instructions for docketed appeals case.

(97) IRM 25.15.7.10.11.3.1(6) procedures revised if Stage 11 through 28.

(98) IRM 25.15.7.10.11.3 1(7) added procedures for cases in Stage 30.

(99) IRM 25.15.7.10.12.1(1) added procedures for contacting bankruptcy specialist.

(100) IRM 25.15.7.10.12.5(3) added facts to consider when working TEFRA cases and deleted website.

(101) IRM 25.15.7.10.13.1 (1)(3) added to evaluate claim if CSED was open.

(102) IRM 25.15.7.10.13.2(1) added verify the payments.

(103) IRM 25.15.7.10.13.2 completely revised instructions when full paid by the NRS since receipt of the claim.

(104) IRM 25.15.7.10.13.3(2) through (6) completely revised instructions for BSOS.

(105) IRM 25.15.7.10.13.4(4) through (7) revised instructions for account problems.

(106) IRM 25.15.7.10.13.4.1 deleted technical referrals on complex account problems.

(107) IRM 25.15.7.10.13.5(1) revised instructions when forgery is alleged.

(108) IRM 25.15.7.10.13.6(2) (c) revised instructions for TXMOD control.

(109) IRM 25.15.7.10.13.6.1(2) and (3) revised instructions for TXMOD control.

(110) IRM 25.15.7.10.13.6.2(3) revised instructions for TXMOD control.

(111) IRM 25.15.7.10.13.6.3(5) revised instructions for TXMOD control.

(112) IRM 25.15.7.10.13.6.4(8) revised instructions for TXMOD control.

(113) IRM 25.15.7.10.13.6.5(8) revised instructions for TXMOD control.

(114) IRM 25.15.7.10.14.3 removed CSED will expire in 10 months and replaced with the revised procedures when CSED expired on underpayment not understatement.

(115) IRM 25.15.7.10.14.4 completely revised procedures on Combat Zone.

(116) IRM 25.15.5.7.10.14.5 revised procedures for ID Theft and incorporated new references.

(117) IPU 111451 issued 08-31-2011 IRM 25.15.7.10.14.4(1) and (5) updated IRM reference cites.

(118) IPU 111464 issued 09-02-2011 IRM 25.15.7.10.14.5 - completely revised the instructions for identity theft.

(119) IPU 111451 issued 08-31-2011 IRM 25.15.7.10.14.5(3) added instructions for entering TC 971 AC 522 for identity theft issues.

Effect on Other Documents

IRM 25.15.7 Compliance Campus Functions dated February 25, 2011 is superseded. The following IRM Procedural Updates (IPUs), issued between March 24, 2011 through December 19, 2012, have been incorporated into this IRM: 11065, 110867, 111451, 111464, and 12U1965.

Audience

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

Effective Date

(02-19-2013)


Steven 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  (02-19-2013)
General Procedures

  1. This IRM section 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 Processing of Innocent Spouse Cases.

  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.

25.15.7.2.1  (02-19-2013)
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, input an address change for the RS.

    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  (02-19-2013)
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, update IDRS CC ENMOD to the address on the USPS sticker. Send the letter to the new address (if letter is still needed).

    Note:

    If the address is handwritten on the USPS yellow address sticker, do not change the address on IDRS CC ENMOD. Send the letter to the handwritten address (if letter still needed) and include a Form 8822, Change of 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) and include a Form 8822, Change of Address.

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.

25.15.7.3  (02-19-2013)
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. 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. 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 Campus, the Cincinnati Centralized Innocent Spouse Operation (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 and 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  (02-19-2013)
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 Document 6209, IRS Processing Codes and Information,

    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 25.15.7.7, 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 Data Retrieval System (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 12 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 12 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  (02-19-2013)
Form 8857 Received by Compliance Campus

  1. Upon receipt of the Innocent Spouse claim, Automated Underreporter (AUR), Compliance Campus Examination Operations (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 2645C. AUR will acknowledge receipt of the claim using IDRS Letter 4314C. Both CCEO and AUR will use the Cincinnati Centralized Innocent Spouse Operation (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  (02-19-2013)
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
    Suspend the AUR case by inputting the appropriate action to stop the automated system from generating SNOD until notified of the final innocent spouse determination. 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 Cincinnati Centralized Innocent Spouse Operation (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.
    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 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, AUR/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 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  (02-19-2013)
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
    Take no action until notified by CCISO of the preliminary determination and the time to appeal has expired (51 days from the ISTS Stage 11 date). 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 taxpayer identification numbers (TIN)

    3. Tax Year

    4. Financial Technician's name and phone number


    If RS requests an Appeals conference regarding the Innocent Spouse claim denial:
    See IRM 4.19.3.20.1.18.2(15), 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 appealed and the case is being sent to Appeals and to close their case to Cincinnati Office of 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. Include in the file, a copy of the e-mail sent to AUR/CCEO notifying them to send their case to Cincinnati. Place it on the top inside of the folder.

    5. Notate on Form 3210, Document Transmittal,"Appealed Innocent Spouse Case, associate with copies of related AUR/CCEO case" .

    6. 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:
    Take no action until notified by CCISO of the preliminary determination and the time to appeal has expired (51 days from the ISTS Stage 11 date). 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 to send their case to same campus Appeals office where 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.

    Forward case to Appeals office designated by AUR/CCEO using existing procedures. IRM 25.15.7.10.11.2 Forwarding Appeals Request to Appeals.
    If an Appeals conference is not requested:
    Do not issue SNOD until 51 days from the ISTS Stage 11 date has passed.
    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(3), 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.

    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
    Take no action until notified by CCISO of the preliminary determination and the time to appeal has expired (51 days from the ISTS Stage 11 date). 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 taxpayer identification numbers (TINs)

    3. Tax year

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

    5. 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.

    See IRM 4.19.3.20.1.18.2(15), 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, NRS or both appealed and the case is being sent to Appeals and to close their case to Cincinnati Office of 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. Include in the file, a copy of the e-mail sent to AUR/CCEO notifying them to send their case to Cincinnati. Place it on the top inside of the folder.

    5. Notate on Form 3210, Document Transmittal,"Appealed Innocent Spouse Case, associate with copies of related AUR/CCEO case" .

    6. 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 to send their case to same campus Appeals office where 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.

    Forward case to Appeals office designated by AUR/CCEO using existing procedures. IRM 25.15.7.10.11.2, Forwarding Appeals Request to Appeals.
    If an Appeals conference is not requested:
    Do not issue SNOD until 51 days from the ISTS Stage 11 date has passed.
    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(3) 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

    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
    Take no action until notified by CCISO of the preliminary determination and the time to appeal has expired (51 days from the ISTS Stage 11 date). 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 taxpayer identification numbers (TINs)

    3. Tax year

    4. Form 3465, Adjustment Request, with processing instructions

    5. 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 to send their case to same campus Appeals office where 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.

    Forward case to Appeals office designated by AUR/CCEO using existing procedures. IRM 25.15.7.10.11.2, Forwarding Appeals Request to Appeals.  
    If RS, NRS or both requests an Appeals conference thru CCISO regarding the Innocent Spouse claim determination  
    See IRM 4.19.3.20.1.18.2(15), 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 and to close their case to Cincinnati Office of 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. Include in the file, a copy of the e-mail sent to AUR/CCEO notifying them to send their case to Cincinnati. Place it on the top inside of the folder.

    5. Notate on Form 3210, Document Transmittal,"Appealed Innocent Spouse Case, associate with copies of related AUR/CCEO case" .

    6. 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 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(3), Other Letters.

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

    4. Update IDRS control.

    5. 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 Statutory Notice of Deficiency (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/SCEB 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 4.19.3.20.1.18.2, 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 4.19.3.20.1.18.2, 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  (02-19-2013)
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 Code 29 indicates that AUR was not able to secure the return and are not pursuing the proposed deficiency. Close the case as Pre-assessment No Deficiency (PAND) IRM 25.15.7.7.4, Original Liability Full Paid, 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  (02-19-2013)
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 command code 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 971AC 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, 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.

  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 Machine/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 Taxpayer Advocate Service (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 all years shown on Form 8857, Request for Innocent Spouse Relief, or specified in the RS’s correspondence. Address all years.

  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 25.15.7.6 Case 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  (02-19-2013)
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 marital status changed from the prior claim, treat as a new claim. This includes stopping collection activity.

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 Taxpayer Identification Number (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  (02-19-2013)
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 RS balance due on NMF, 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 Taxpayer Identification Numbers (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 document locator number (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  (02-19-2013)
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. Input CC ENMOD.

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

    3. Input the address on the appropriate lines.

    4. In the remarks section, enter "NSD Form 8857 filed" . NSD means no source document.

    5. To review the change, input CC ENMOD.

    Note:

    You can also update the taxpayer's address using the Accounts Management System (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  (02-19-2013)
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 25.15.7.4.2.4.4, ENMOD, for instructions to change an address.

      Caution:

      Do not update RS's address if Form 8857, Request for Innocent Spouse Relief, is not signed.

  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 Innocent Spouse Tracking Record (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 - Individual Master File (IMF) 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  (02-19-2013)
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 420/424 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.

      Exception:

      Do not request documents or update ISTS beyond Stage 03.

    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.

  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 Innocent Spouse Policy Analyst.
    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  (02-19-2013)
Open Litigation/Tax Court

  1. Cases identified with a -W freeze and a TC 520 with a closing code of 70, 71, 72, 73, 74, 75, 78, 79, 80, 81, 82 or 84 are open litigation/tax court cases. See IRM 25.15.7.10.2.3 Form 12153, Collection Due Process (CDP), for procedures where a -W freeze is paired with a TC 520 closing code 76 or 77 . If the closing code is 81, refer the case to your local Litigation coordinator.

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

    2. Note "Litigation or Tax Court Referral" (see TC 520 Closing Chart in Document 6209).

    3. Indicate on ISTSR Input Record the Appeals Office where case should be sent; this will be determined by checking the TC 520 on TXMOD. Use the Appeals Office shown after the letters APPL-CD>.

    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  (02-19-2013)
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
    Stop 840F
    P.O. Box 120053
    Covington, KY 41012

    Note:

    A reference to 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 procedures listed below 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  (02-19-2013)
Potentially Abusive Non-Electing Spouse (PANES)

  1. 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).

    Note:

    These procedures are not necessary if taxpayer files Form 8857 revised June 2007 or later.

    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 Processing of Innocent Spouse Cases. 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  (02-19-2013)
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.

      Exception:

      Input TC 971 AC 065 but do not mirror the account. Send Letter 3659C but do not send the NRS letter at this time. Update ISTS to Stage 01, 02 (if applicable), 03 and 06. Enter "possible forgery" in the ISTS comments section. Place in appropriate folder and forward to Technical Team.

    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.

    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 Propose 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, 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  (02-19-2013)
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. If the taxpayer seeks to invalidate the joint election the taxpayer must submit verification, e.g., court documents, showing the couple was divorced for the tax period involved. The taxpayer must provide an allocation of all income, credits, and payments. See the table below 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 Yes  
    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.

  3. 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. Do not send a letter to the RS or the NRS.

    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 Processing, 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 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  (03-21-2008)
Potentially Dangerous Taxpayer (PDT)

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


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