25.15.18. Innocent Spouse Relief Processing Procedures

(1) Management assigns innocent spouse cases.

(1) Review Form 8857 or other statement requesting relief to ensure the claim contains the following required elements:

1. Check for valid signature. The request must be signed under penalty of perjury.

   Note: Electronic, digitally signed, or stamped signatures are not valid. If a POA signs the Form 8857, there must be a Form 2848 indicating “Form 8857” POA permissions.

   Reminder: Document on AMS when a representative is authorized for Form 8857 so that employees working the cold call line will know who is authorized without having to pull the case or request that the authorization be resubmitted.

2. Tax years must be indicated.

3. Information must be provided to explain the request for relief.

   Note: If any of the above required elements are missing, the request for relief is unprocessable. See IRM 25.15.18.5.1.17, Unprocessable Claim, for more information.

(2) If all the above required elements are present, then continue screening.

(1) Review the claim and any attachments for allegations of forgery, unlawful, invalid joint returns, or duplicate returns. If any of these are found, then refer the request to the Technical Unit by completing the following actions:

1. Input ISTS Stages 01, 02 (if applicable), 03, and 06 manually including purge date.

2. Input STAUP on affected years.

3. Prepare and send Letter 3659-C, Requesting Spouse Initial Contact, and request additional information, if warranted.

   Note: Do NOT contact NRS.

4. Use CC ESTAB to request tax return(s) and related documents.

5. Create TXMOD control with activity "TECH" and IDRS number "0297XXXXXX".

6. Assemble case. See IRM 25.15.18.5.1.16, Assemble Case, for more information.

7. Put the Form 8857 in the appropriate folder and place case in appropriate receptacle for the Technical Unit.

(2) To determine the claim’s eligibility, complete IDRS research as follows:

(3) Once research is completed, the technician should be able to determine if the claim is an eligible request or a non-qualifying request.

(4) To be eligible for relief:

1. The RS must have elected to file a joint return.

   Exception: Individuals who live in community property states can have a qualifying request on a head of household, married filing separate, or single return. See IRM 25.15.5.2, Community Property States, for more information. If community property issues might be present, refer to Technical Unit.

2. There must be:

• A balance owed, or

• A refund offset, or

• Payments made by the RS are being requested for refund.

  Note: The offset must belong to the RS in whole or in part.

  Note: If no balance owed, but there are open examination or Automated Underreporter (AUR) indicators, continue screening.

(5) All other requests for relief are non-qualifying requests. See IRM 25.15.18.5.1.11, Non-Qualifying Requests, for more information.

(1) If the technician accesses an IRS employee account, complete Form 11377-E, Taxpayer Data Access, with the reason for the access and give the form to management.

(2) If the technician knows the IRS employee, give the Form 11377-E and the case to a manager to be reassigned.

(3) For more information on an IRS employee case, see IRM 25.15.18.9.7, IRS Employee Cases.

(1) An "-L" freeze indicates an open AIMS record.

(2) Check CC AMDISA to determine the current status of the examination case. Refer to Document 6209, IRS Processing Codes and Information, for the definition of AIMS status codes.

(3) The technician will use the table below to determine actions needed:

(4) See the table below for instructions on certain AIMS statuses.

(1) Prepare and send Letter 3659-C, Requesting Spouse Initial Contact, and Letter 3284-C, Non-Requesting Spouse Initial Contact, and request additional information, if warranted.

(2) Put case in appropriate colored folder and continue building case.

(1) If there is an open AUR or Correspondence Examination, and there is no balance due, and no pending AUR or Examination assessment, then the claim can be closed non-qualifying.

(2) If there is an existing balance due, continue building the claim and put in appropriate colored folder.

(1) Modules containing an open bankruptcy, CDP, or open litigation (TC 520 with appropriate closing codes) are worked as follows:

1. Continue screening.

2. Document in the upper right corner of the ISTSR Input Record the following:

• "bankruptcy",

• "CDP", or

• "litigation".

(1) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(3) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(4) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

(1) Review Form 8857 for the following:

1. Part II, Number 6. Divorce decree or legal separation document should be attached, if applicable.

2. Part II, Number 8. If abuse indication checked, supporting documentation should be attached.

   Exception: If Box 10 is checked "Yes", then do not request documentation regarding abuse.

3. Part II, Number 9. Medical documentation should be attached, if applicable.

4. Part IV. Financial situation (statement) should be completed.

(2) The technician will take the following actions in the table below.

(1) The table below reflects the reasons a request may be non-qualifying and the appropriate activity code. See IRM 25.15.3, Technical Provisions of IRC 6015 , and IRM 25.15.19, Non-Qualifying Claims & Complex Account Issues, for more information.

(2) Input ISTS manually to the following:

1. Stages 01, 02 (if applicable), 03,

2. Stage 29 with appropriate Activity Description, and

3. Stage 30 with Activity Description "NOACCTP".

(3) Prepare and send Letter 3657-C, No Consideration Innocent Spouse, to RS.

(4) Input TC 290 for 0.00 on latest non-qualifying tax year.

(5) Attach completed Form 11272, Associable IDRS Input Document Label, or REQ54/ADJ54 print, to front of Form 8857 or in red, notate on upper right hand corner of Form 8857 the following:

1. Adjustment/sequence number,

2. SSN,

3. MFT,

4. Tax year (YYYYMM), and

5. TC 290 .00.

(6) Assemble all non-qualifying requests at the end of the day and attach Form 6502, Employee Source Document Folder Label.

(7) Place the documents in the appropriate receptacle to send to files.

(1) Input ISTS manually for non-qualifying years to the following:

1. Stages 01, 02 (if applicable), 03,

2. Stage 29 with appropriate Activity Description, and

3. Stage 30 with Activity Description "NOACCTP".

   Note: Only establish one ISTS record for non-qualifying requests. If multiple years listed on request, use latest non-qualifying year. Input comment notating all non-qualifying years requested. File with the tax year(s) built.

   Note: The activity description for Stage 29 will be the reason for the non-qualification of the latest year. See IRM 25.15.14.4.1.29, Stage 29 - Non-qualifying, for more information.

(2) Prepare and send Letter 3657-C, No Consideration Innocent Spouse, to RS.

(3) Input eligible years into AMS. See IRM 25.15.18.5.1.14, AMS/ISA, for more information.

(1) For a definition of eligible claims, see IRM 25.15.18.5.1.2, Initial Screening, for more information.

(2) Input eligible years into AMS/ISA. See IRM 25.15.18.5.1.14, AMS/ISA, for more information.

(1) Access AMS/ISA using the primary SSN to open account.

1. Open AMS/ISA Innocent Spouse tool.

2. Click on First Read link.

3. Input appropriate information (e.g. secondary SSN (if applicable), select who is RS) to open claim.

4. Input the following: earliest received date of claim, where the claim was received, Cincinnati Service Center received date (if applicable), and unit received date.

5. Input tax years being requested.

   Note: If prior claim is in AMS/ISA, will need to click "Add Claim" button prior to input of appropriate information.

6. Select Claim Number, then select "Claims Details" button.

7. Click "First Read" button.

8. Answer questions according to prior research.

9. Request documents, if applicable.

10. Click "Complete Disposition" button.

    Note: FIRST READ WILL NOT MIRROR ANY ACCOUNTS. THIS ACTION WILL BE COMPLETED UPON DETERMINATION.

    Note: If claim has multiple years, complete all eligible years prior to issue of actions.

11. Click "Issue Actions" button.

12. Print ISTSR Input Record (disposition sheet).

13. Update activity record with necessary information (e.g. letters issued with paragraphs used, requested information from RS, etc.) and print.

    Note: AMS/ISA will indicate which letter should be sent and provide suggested actions. Verify the AMS/ISA automated actions are correct (ISTS, transaction codes, and controls).

(1) Issue letters using IDRS/IAT tool "Letters."

1. Select appropriate letter.

2. Select appropriate paragraphs.

3. Prepare and transmit letter from the table below.

   Note: Place attachment in appropriate receptacle, if applicable.

(2) IAT letters used by CCISO.

(1) Eligible requests.

1. ISTSR Input Record stapled to front of folder.

2. Activity record stapled to inside left flap of folder.

3. Left side of tab on folder write SSN of taxpayers with the primary taxpayer on top and the secondary taxpayer on bottom.

4. Write earliest received date of claim in center of tab on folder.

5. Place Form 8857 and all correspondence inside folder.

   Note: If additional colored folder(s) are required, place on outside of manila folder.

6. Notate purge dates and interim dates under "Clerical Instructions."

   Note: Purge dates and interim dates can be located on letter chart provided by management.

7. Place completed folder in designated receptacle to be filed.

   Note: Documents pertaining to colored folders will be provided by management.

(1) For unprocessable requests, the following actions will be taken:

1. Input ISTS manually to Stages 01, 02 (if applicable), 03,

2. Stage 29 with Activity Description "UNPR", or NORF for no return filed modules, and

3. Stage 30 with Activity Description "NOACCTP". Input history comment stating reason (i.e. no signature, incomplete form).

   Note: Only establish one ISTS record for unprocessable requests. If no tax year is listed on request, use the current tax year. If multiple years are listed, use the latest filed year.

4. Circle any IRS received dates on Form 8857 and all correspondence in red.

5. Return the form and correspondence to the RS.

6. Prepare Letter 3658-C, Unprocessable Innocent Spouse Relief Request, using appropriate paragraphs.

   Note: Envelope can be discarded.

7. Do not input TC 971 AC 065.

(1) The table below provides a description of the applicable laws used in the innocent spouse program.

(1) Cases are assigned by a manager.

(2) Cases should be screened upon receipt and worked in the appropriate order.

(1) Cases are in Stage 05 and assigned to the Financial Technician.

(2) Screen case as shown in the table below.

(1) Work cases in the following priority:

1. Taxpayer Advocate Service (TAS) cases marked "expedite". See IRM 25.15.7.6, Taxpayer Advocate Service, for more information.

2. Litigation or Docketed Appeals cases. See IRM 25.15.7.7, Open Litigation/Tax Court, for more information.

3. Collection Due Process (CDP) cases. See IRM 25.15.7.4, Collection, for more information.

4. Reworks in Stage 10. See IRM 25.15.18.5.6, Stage 10 - Reworks for more information.

   Note: Reworks have a 30-day response time frame from the date of the taxpayer’s correspondence.

5. By IRS received date.

(1) Conduct necessary IDRS research.

(1) For more information on an IRS employee case, see IRM 25.15.18.9.7, IRS Employee Cases.

(1) Accounts with an -A freeze need to be resolved prior to taking any further actions on the case. See IRM 25.15.7.2.1, Amended Returns, for more information.

(1) Some other research systems available are as follows:

• Remittance Transaction Research (RTR) - use to check who made a payment and get a copy or print.

• Lexis/Nexis (Accurint).

• Internet.

• IRS Intranet.

• AMS/ISA.

• Employee User Portal (EUP) - use to access electronically filed returns.

(1) Technical provisions for relief and case development can be found in IRM 25.15.3, Technical Provisions of IRC 6015.

(2) Things to consider include the following:

• Timeliness of the claim.

• De minimis liability.

• Factors of relief.

(3) Determine underpayment and understatement.

(4) Determine attribution and allocate, if necessary.

Exception: If the understatement portion of the liability is due to a math error, it may not be necessary to complete an allocation worksheet.

1. Sometimes the math error amount can be determined by comparing the TC 150 tax amount and the "TX/TRPR" amount under the Posted Return Information on TXMOD. If the TC 150 amount is higher, then the difference between the two figures is the math error understatement amount. See Exhibit 25.15.3-1, Math Errors, for additional information.

   Note: If the RS has any income that contributed to the balance due, prior to any payments after the original filing, allocate income from the original return(s) and/or additional assessment.

(5) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡

(6) Review Form 8857 for a response and additional correspondence.

(7) Apply tax law under appropriate code sections.

1. If a refund is requested and the outcome is allowed or partially allowed, see IRM 25.15.18.5.2.19, Refunds, for more information.

(8) After reading all documentation, doing research (IDRS), and applying the tax law, the Financial Technician should make the determination on whether or not to grant relief to the RS in full or in part (fully allowed, partially allowed relief, or relief disallowed).

(9) To complete determination work papers, see IRM 25.15.18.5.2.11, Account Management Services (AMS), for more information.

(1) The RS is required to complete all applicable sections of Form 8857, and provide any necessary supporting documentation when the claim is filed.

(2) If information is submitted and clarification is needed to a make a determination, the Financial Technician will attempt to contact the RS/NRS for clarification.

1. Document all contact attempt(s) and any information discussed on AMS. Document activity record in case file with "See AMS History".

2. If during phone contact, the RS/NRS agrees to provide the additional documentation needed, the Financial Technician can allow up to 30 days for the RS/NRS to provide the information. Before ending the call, ensure the RS/NRS has the fax number and/or address to provide the additional information. The information can be faxed or mailed to the Financial Technician’s attention.

   Reminder: Contact should be with the POA, if applicable.

3. Suspend the case for up to 45 days while waiting for the information.

(3) Attempt to make a determination based on the information available in the case file.

1. Document additional attempts to contact.

2. If there is not enough information available in the case file to make a determination, disallow the claim with reason code "V". See IRM 25.15.14.4.1.11, Stage 11 - Preliminary Determination Issued, for more information.

3. To complete determination, see IRM 25.15.18.5.2.11, Account Management Services (AMS), for more information.

(1) The AMS tool discussed below was developed to assist the Financial Technician in preparing the work papers.

(2) Use the AMS tool or manual work papers to prepare documentation for the case file as follows:

1. Document the questions used to develop criteria for relief in making the determination.

   Caution: AMS is a guide and may recommend a determination based on the questions answered, but the Financial Technician will make the final determination, based on all of the relevant facts and circumstances of the case.

2. All facts and circumstances must be addressed and documented.

3. The case must be fully developed by the Financial Technician.

4. The entire process used for arriving at the determination must be clearly documented.

(3) Any phone call made or received regarding the taxpayer’s account must be documented in the AMS History.

(4) Complete the general information section of the work papers.

1. A summary of the determination process.

2. Attribution.

3. Code section used.

4. Determination outcome.

5. Any refunds to be issued.

(5) Complete the spouse response section of the work papers.

1. No reply.

2. Undeliverable.

3. Deceased.

4. Summary of NRS response.

   Note: REVIEW FOR APPROPRIATE OUTCOME. SAVE AND PRINT WORK PAPERS. Initiate "ISSUE ACTIONS" on the AMS Innocent Spouse Claim Details screen.

   Note: Upon determination, if there is a concern for the RS’ safety, the Financial Technician must take appropriate precautions, which may include telephone contact with RS, before sending a preliminary determination letter. Document the case file with any additional actions taken.

(6) Mirror the account, as appropriate.

1. Fully allowed claims – account to be mirrored at the time the determination is made, and the RS MFT 31 will be zeroed out upon closure.

   Exception: If the balance due on the joint account is zero, and there are no refundable payments, do not mirror.

2. Partially allowed relief –account to be mirrored at the time the determination is made. Prepare the Innocent Spouse Operation – Adjustment Request (ISO-AR) for mirrored accounts to adjust the MFT 31 of the RS.

   Note: The ISO-AR worksheet can be found in the CCISO SharePoint.

3. Relief disallowed – no mirroring is required (both taxpayers remain jointly liable).

(1) If a multi-year request results in different determinations, the years should be separated for the differences in processing and closing procedures required.

(2) The fully allowed year can close after the Final Determination is issued. Place the fully allowed year (or years) in a separate folder with a copy of the ISTS Input Record on the front of the file, and enclose any original documents related solely to that year, if secured.

(3) The partially and fully disallowed years can remain together; but to expedite processing upon default of petition period, associate the documents needed for the processors on the partial relief year separately. When the petition period expires, the partial relief documents can be forwarded to the processors and that year updated to Stage 27, while the fully disallowed year can be closed.

(1) A fully allowed request is when the RS is granted full relief from the tax liability.

(2) Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

(3) Prepare closing instructions as stated in the following table.

1. The ISO-AR worksheet is utilized for account adjustment requests.

2. The AUR ISO-AR worksheet is utilized for account adjustment requests.

(4) Update TXMOD activity with the determination as follows:

1. "A6015" (Allowed) with IRC 6015 (b), (c), or (f) as appropriate.

(5) Update TXMOD control as follows:.

1. "02xxx00030" (xxx is IDRS team number) with activity "30DYMMDDYY" (30-day purge date).

   Note: The 30-day purge date is generated by AMS when the Stage 11 activity is initiated. To manually calculate the 30-day purge date, calculate 45 days from the letter issue date.

(6) Notate the case file folder with the purge date.

(7) Complete the following items on the ISTSR Input Record:

1. The Stage 11 field.

2. The FS TE (Full Scope Tax Examiner) field with the Financial Technician’s name and related identifying information on the bottom of the form.

(8) After AMS updates ISTS to Stage 11, manually input the paragraph selections, as applicable.

(9) Document the activity record located inside the case file with any actions taken.

(10) Place the case file in the appropriate team receptacle to be filed by the clerical staff.

(1) Partially allowed relief is when the RS is not entitled to full relief of the entire tax liability.

(2) Examples of partially allowed relief are shown in the table below.

(3) Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

(4) Prepare closing instructions as stated in the following table.

(5) Update TXMOD activity with the determination as follows:

1. "P6015" (Partially Allowed) with IRC 6015 (b), (c), or (f) as appropriate with applicable reason code.

(6) Update TXMOD control as follows:

1. "02xxx00030" (xxx is IDRS team number) with activity "30DYMMDDYY" (30-day purge date).

   Note: The 30-day purge date is generated by AMS when the Stage 11 activity is initiated. To manually calculate the 30-day purge date, calculate 45 days from the letter issue date.

(7) Notate the case file folder with the purge date.

(8) Complete the following items on the ISTSR Input Record:

1. The Stage 11 field.

2. The "FS TE" (Full Scope Tax Examiner) field with the Financial Technician’s name and related identifying information on the bottom of the form.

(9) After AMS updates ISTS to Stage 11, manually input the paragraph selections, as applicable.

(10) Document the activity record located inside the case file with any actions taken.

(11) Place the case file in the appropriate team receptacle to be filed by the clerical staff.

(1) Relief disallowed is when a claim is fully disallowed because the RS does not meet the qualifications for granting relief.

(2) Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

(3) Update TXMOD activity with the determination as follows:

1. "D6015" (Disallowed) with IRC 6015 (b), (c), or (f) as appropriate with applicable reason code.

(4) Updated TXMOD control as follows:

1. "02xxx00030" (xxx is IDRS team number) with activity "30DYMMDDYY" (30-day purge date).

   Note: The 30-day purge date is generated by AMS when the Stage 11 activity is initiated. To manually calculate the 30-day purge date, calculate 45 days from the letter issue date.

(5) Notate the case file folder with the purge date.

(6) Complete the following items on the ISTSR Input Record:

1. The Stage 11 field.

2. The "FS TE" (Full Scope Tax Examiner) field with the Financial Technician’s name and related identifying information on the bottom of the form.

(7) After AMS updates ISTS to Stage 11, manually input the paragraph selections, as applicable.

(8) Document the activity record located inside the case file with any actions taken.

(9) Place the case file in the appropriate team receptacle to be filed by the clerical staff.

(1) Issue a preliminary determination letter to RS, NRS, and current POA, if applicable.

(2) Innocent spouse relief determinations made prior to March 4, 2019:

(3) Innocent spouse relief determinations made on or after March 4, 2019:

• Issue Letter 3661-C, Requesting Spouse Preliminary Determination, to RS.

• Issue Letter 3660-C, Non-Requesting Spouse Preliminary Determination, to NRS.

(4) On fully allowed claims, the NRS will receive appeal rights.

1. The RS may receive appeal rights if they will not receive the full refund requested, or if

2. The RS' claim of forgery was denied due to tacit consent.

(5) On partially allowed claims, both the RS and NRS receive appeal rights.

(6) On relief disallowed claims, the RS will receive appeal rights, but the NRS will not.

(1) On relief disallowed and partially allowed claims, the RS may request a Form 870-IS.

(2) The following items need to be completed using RS information when preparing a Form 870-IS:

1. Your name and address (Number, Street, City or Town, State, Zip Code).

2. Your Social Security Number.

3. Your Spouse or Ex-Spouse’s Social Security Number.

4. Tax Year Ended.

5. Relief Provision.

6. Tax.

7. Penalties, if applicable.

   Caution: The name of the field on the Form 870-IS references “Your name and address”. Input RS information only when the word "your" is used.

(1) The ISO-AR will be pre-filled to match the allocation worksheet information, when using the Underpayment or Understatement Allocation tool. It is the Financial Technician’s responsibility to review the ISO-AR to ensure it is complete and correct.

(2) The following are general guidelines on how to transfer the figures from the allocation worksheet to the ISO-AR:

(1) A refund determination is made based on the facts and circumstances and only given if requested on Form 8857. A refund is accomplished through a credit transfer or a manual refund request.

(2) All payments being refunded must be verified as being received solely from the RS as shown in the table below:

(3) Payment types and determination of payment eligible for refund is as follows:

(4) If a refund is applicable, determine if a credit transfer is appropriate or a manual refund is issued.

(5) Credit transfers are accomplished by the following:

1. Prepare ISO-AR.

2. Include document in case file.

3. Document activity record.

4. Provide clerical instructions.

5. Place case in the appropriate colored folder.

   Note: Credit transfer will be processed upon closure.

(6) It may be necessary to issue a manual refund to the RS if Master File is unable to refund the credit. See IRM 21.4.4, Manual Refunds, for more information. Additional reasons for a manual refund are as follows:

• An erroneous TC 130 freeze. The TC 130 was input to the RS’s TIN in error.

• Certain 2001 tax year rebates.

• Payments, other than offsets, on the joint module belonging to only one spouse.

• RS is the primary taxpayer, IDRS indicates Status 60, Installment Agreement, and payment(s) need to be refunded.

  Exception: This note pertains to MFT 31 only. If a TC 150 HAS NOT posted to a module, a manual refund CANNOT be issued. If a manual refund is attempted, a -X freeze will be created, and the technician will not be able to post a TC 290 .00 to release it. If payments must be refunded on an expedite basis, and conditions prevent the issuance of the refund from the module, transfer the payments to a module for the RS that has a zero balance and a TC 150 posted.

(1) Evaluate the Appeals request:

1. If RS/NRS states documentation to follow, then suspend case for reasonable time.

2. If not received, then document and send to Appeals if appropriate.

3. If received, consider new information before sending to Appeals.

4. Ensure the protest is adequate per the guidelines in Pub 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, and is signed under penalty of perjury.

(2) Documentation for Appeals cases is as follows:

1. Original and revised work papers.

2. Documented activity record.

   Note: Ensure the documentation is specific.

   See Exhibit 25.15.18-1, Documented Activity Record, for more information.

3. Allocation Worksheets, if applicable.

4. Tax returns, CP-2000, exam reports, or similar prints for all years being appealed.

   Note: RTVUE, TRDBV and IRPTRO prints can be substituted, if these prints contain the same essential information as the returns.

(1) Complete the following actions on each case:

1. Input comment into ISTS, "Sent to Appeals", and which taxpayer sent the appeal.

   Example: "RS Appealed "or "NRS Appealed".

2. Send Letter 4144-C, Innocent Spouse Appeal/870-IS Acknowledgement, to RS, NRS, and any valid POAs on the taxpayers’ accounts.

3. Update TXMODA control with, "To Appeals".

   Note: The designated personnel will update the ISTS to Stage 7 and close the TXMOD control.

4. Place case in appropriate receptacle.

(1) The Office of Chief Counsel prepares and emails a hardcopy of the DIMS lists to the various IRS functions, including CCISO, who issues notices to taxpayers that include Tax Court rights. A DIMS list contains all cases where the taxpayer has petitioned the Tax Court during a specified period. CCISO must review the entire DIMS list to identify innocent spouse cases that appear on the list. The identified case(s) should be highlighted, and the current ISTS Stage written in the right margin, next to the identified case. It is important to pay particular attention to any case where the source of the notice is "unknown".

(2) If Appeals does not receive a docketed case within ten calendar days from receipt of the docket list, Appeals begins its process of searching for and securing the case. If the ISTS stage of the case will prevent CCISO from transmitting the docketed case to Appeals within ten calendar days of the docket list date, CCISO must notify the Appeals DIMS contact and provide the ISTS status of the case for the DIMS contact to provide to the assigned Counsel attorney.

(3) The DIMS list contains:

• A docket list number,

• A docket number, and

• Date.

  Note: Enter these items as a comment entry on ISTS, if available.

(4) If ISTS is Stage 01 through 04, place a print of ISTS and a copy of the DIMS listing entry in a designated color folder and give to the First Read team. The designated color folder indicates that:

• No determination has been made,

• The case should be purged, and

• Expedited to Full Scope via Stage 05 for determination.

(5) If ISTS is Stage 05, the Full Scope team will receive a designated color folder with the ISTS print. Work these cases on an expedite basis. After a determination is made, prepare the work papers, and document the history sheet. Contact the assigned Counsel attorney via secured email to advise of an innocent spouse request receipt, and to determine if the petitioning taxpayer is the RS or NRS. Use the following link to search for U. S. Tax Court cases: United States Tax Court - Docket Inquiry.

(6) After a determination is made, prepare the work papers and document the history sheet. Print any documented phone calls or history items related to the innocent spouse claim from the AMS history, and place prints in the case file for reference.

(7) If ISTS Stage is 11 through 28, complete the following actions:

1. Retrieve the case file and place in a designated color folder.

2. Place a print of ISTS and a copy of the DIMS listing entry in the case file.

3. Print any documented phone calls or history items related to the innocent spouse claim from the AMS history.

4. Place prints in the case file, for reference.

5. Update TXMOD to "TAXCOURT", "02XXX00007".

6. Case will be forwarded to Appeals. See IRM 25.15.18.5.4.2, Preparing Case for Appeals, for more information.

(8) If case is in Stage 30, complete the following actions:

1. Request the document from Files.

2. Place in designated color folder with an updated ISTS print and a copy of DIMS listing entry.

3. Input TC 971 AC 065.

4. Update ISTS and the ISTSR Input Record to Stage 07.

5. Forward to Appeals. See IRM 25.15.18.5.4.2, Preparing Case for Appeals, for more information.

(1) When requested, CCISO will mirror an account that was not mirrored prior to CCISO sending the case to Appeals. The request can only be made once Appeals has made a final determination to allow a claim in full, and when that claim was previously denied in full by CCISO.

(2) Upon receipt of the mirroring request from Appeals, CCISO will:

1. Initiate the process of mirroring the account within five business days of receiving the request.

   Note: CCISO will notify Appeals if the account is one that cannot be mirrored. See Exhibit 25.15.18-2, Accounts That Cannot Be Mirrored, for a list of such cases.

2. Ensure all transactions are posted to complete the mirroring of the account.

3. Promptly notify Appeals after the entire mirroring process is complete.

4. Resolve any unpostables resulting from the mirroring transactions they input.

(1) The Full Scope technician will verify the following actions have been taken:

1. Case is in Stage 10 on ISTS.

2. Case has had appropriate updates on ISTS, TXMODA, and is controlled into the appropriate IDRS number.

3. Case has been prioritized to ensure the review is completed within 30 days of receipt.

   Note: If a request for Appeals has been made, it must be postmarked within 30 days from the date of the preliminary determination letter.

   Note: If the additional information was received after the final determination letter has been sent, see IRM 25.15.17, Reconsiderations, for more information.

(1) The Financial Technician will review all documentation to determine if the information will change the previous determination.

(2) The Financial Technician will take the following actions:

(1) Cases are assigned by management.

(2) Screen the case to ensure it meets criteria for relief.

(3) Ensure all information is included in the file which consists of the following:

• Returns.

• Research.

• All information from taxpayer.

  Note: Correspond with the taxpayer, if additional information is needed.

  Note: The Financial Specialist has the option to contact the RS/NRS via phone or limit the response time, if a letter is mailed.

(4) Tools available include the following:

• Pre-plan evaluation to determine needs,

• Community Property work papers,

• Allocation Tool,

• Accurint,

• IDRS Research, and

• Internet or IRS Intranet.

(5) Suspend case up to 45 days, if letter requesting additional information is sent.

(6) Once all documentation is available to make a determination, see IRM 25.15.5, Relief From Community Property Laws, for more information.

(7) Prepare and send Letter 3663-C, Requesting Spouse Determination Letter, Section 66(C).

(8) Update ISTS to Stage 11 with a 30-day purge date.

(9) Update IDRS controls, as appropriate.

(10) Document case activity record of all actions taken.

(11) Place case in appropriate receptacle.

(1) A claim is non-qualifying when:

• The claimant files a return reflecting their income only, and

• Does not have any community income from the NRS on the filed return, and

• Does not have any subsequent assessments that include community income from the NRS.

(2) Prepare and send Letter 3666-C, Unprocessable/Transferred Claim Letter, with appropriate explanation to the RS.

(3) Send the NRS the appropriate letter, if the initial contact letter was sent.

(4) Update ISTS to Stage 29 with activity "FS", and add comment, if needed.

(5) Update TXMOD control as appropriate.

(6) Document case file activity record.

(7) Add conclusion to AMS general information.

(8) Place in appropriate receptacle.

(1) Technical referrals are questions or situations for which a technician may need assistance. Examples include:

• Complex tax law questions.

• Questionable payments.

• Joint offsets.

• Allocation issues.

• Cases that are beyond the scope of the Financial Technician’s ability (should be rare).

• Account problems.

• Statute issues.

• Erroneous refunds.

• TEFRA, Tax Equity and Fiscal Responsibility Act.

• Tax benefit received by the claimant.

  Example: Losses from partnership returns may have offset RS income on the original filed return.

• Any other issues that the Financial Technician or First Read Technician cannot resolve. See Exhibit 25.15.18-5, Other Technical Referrals, for more information.

(2) The technician will pose the question on the Innocent Spouse Technical Referral Form.

(3) The Lead Technician for the team must review the case to resolve or ensure all information needed is in the file.

(4) The Lead Technician will initial the request for technical assistance.

(5) The Financial Specialist will complete the following actions:

1. Respond fully to the question(s) asked.

2. Questions will be worked within 5 business days.

3. Account issue resolution will be started within 5 business days, but may take extended time to resolve.

   Note: Management will monitor progress, if needed

   .

(1) Answering the phone call.

1. Greet the caller by saying "Internal Revenue Service", "Innocent Spouse Department", or similar statement.

2. Provide your Title (Mr., Mrs., Ms., Miss), your last name, and IRS Identification (ID) Number (7 or 10 digits).

3. Use a lead-in question. Examples include: "How can I help you?" or "How may I help you?".

   Note: If the caller asks specific questions related to their claim, and the technician needs to access the account, the technician must complete Taxpayer Authentication. See IRM 25.15.18.9.2.2, Taxpayer Authentication, for more information.

(2) Listen attentively to the caller.

1. Ask the appropriate questions and target the caller’s questions.

2. Take note of the technician’s tone and the caller’s tone, voice inflection, and rate of speech.

3. Be aware of special issues concerning the following:

• Taxpayer Advocate Service (TAS). If the caller states they have a hardship or needs immediate help because of disconnect notices, give TAS phone number. See IRM 25.15.18.9.2.10, Calls Unrelated to Innocent Spouse, for more information.

• Criminal Investigation Z freezes on the account. Refer call to appropriate CCISO Criminal Investigation contact. See IRM 25.15.18.5.1.9, Criminal Investigation (CI) Cases.

• Identity Theft (IDT), See IRM 25.15.18.9.2.7, Identity Theft (IDT), for more information.

• Emergency situations including suicide, assaults/threats and bomb threats. See IRM 25.15.18.9.2.9, Emergency Situations, for more information.

• Victim of Domestic Violence (VODV). See IRM 25.15.18.9.2.6, Victim of Domestic Violence (VODV), for more information.

(3) Provide accurate call assistance for:

• First Read Cold Calls. See IRM 25.15.18.9.2.3, First Read Cold Calls, for more information.

• Full Scope Extension Routed Calls. See IRM 25.15.18.9.2.4, Full Scope Extension Routed Calls, for more information.

• Outgoing Calls. See IRM 25.15.18.9.2.5, Outgoing Calls, for more information.

(4) Conclude the call:

1. Ask the taxpayer, "Do you have any additional questions?", or like statement.

2. Apologize, if the Service made an error.

3. If issues unrelated to innocent spouse are mentioned during the call, provide the taxpayer with the appropriate phone number and/or transfer the call to the appropriate area. See IRM 25.15.18.9.2.10, Calls Unrelated to Innocent Spouse, for more information.

4. Conclude the call courteously.

(1) To identify who is calling and prevent unauthorized disclosure of tax information, the technician must know with whom they are speaking and the purpose of the call.

(2) Required authentication probes:

1. Taxpayer Identification Number (TIN). Examples include: SSN, Individual Tax Identification Number (ITIN).

2. Name. As it appears on the tax return for the year(s) in question, including the spouse name on a joint filed return. If the name is different, ask if the caller filed under a different name.

   Note: If the caller cannot provide the above information, advise them to call back once they have secured the return information. If the caller is a POA follow Third Party Authentication procedures in IRM 21.1.3.3, ThirdParty(POA/TIA/F706) Authentication, and look in AMS for documentation of representation.

3. Current Address. The technician may need to probe further if the given address is different from the address on record. The technician can ask for a prior address of record or use return information, if needed.

4. Date of Birth (DOB). If the caller does not verify the DOB, but verifies all prior information, the technician may need to use additional taxpayer authentication probes. After using the additional taxpayer authentication probes, and the caller has verified the information, the technician can suggest that the caller contact the Social Security Administration (SSA) to correct the error.

5. Phone number. Ask the caller for a current phone number and ask if it is a home, work, or cell number. Adding the phone number may be completed through CC ENMOD or AMS.

   Note: If the caller is a first time filer and the return is not yet processed fully, the technician can use CC FFINQ to verify the Name Control, amount of refund and filing status. The technician can use CC INOLE to verify the DOB.

(3) Additional authentication probes:

• Filing status on the return in question.

• Spouse's DOB.

• Children name(s) on return.

• Income amount claimed on filed return.

• W-2 employers information.

• Number of exemptions claimed on return.

• Preparer information, if applicable.

• Expected refund amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, unless computed by IRS.

• Any other verifiable information from the return or account.

(1) This section is primarily used to answer calls concerning general information on innocent spouse claims.

(2) Generally, there are two types of calls received on the cold call line from a taxpayer or Power of Attorney (POA) requesting.

1. How to file a claim.

2. The status of a filed claim.

   Note: If the technician has to access the account, it is mandatory to use Taxpayer Authentication or Third Party Authentication. See IRM 25.15.18.9.2.2, Taxpayer Authentication, for more information.

(3) If the caller wants to know how to file a claim, refer them to https://www.irs.gov/, IRS Homepage. Explain they can find the Form 8857, Form 8857 instructions, and Pub 971, Innocent Spouse Relief, that explains the process.

1. The technician can remind the caller they must sign Form 8857, specifying the tax years they want relief of, and completing the questions on the form.

2. The technician can explain the IRS will contact the other spouse on the joint filed return.

   Note: If the caller states they are in fear due to domestic violence, see IRM 25.15.18.9.2.6 , Victim of Domestic Violence (VODV), for more information.

3. The technician can explain the IRS puts a collection hold on the account, if they are eligible for further review, as follows:

• Taxpayer should be referred to Collections for information about an installment agreement.

• If a levy has been issued, a request to release the levy will be submitted. The taxpayer needs to provide employer’s name, employer's address, phone, and fax number of the contact person, or related asset information (i.e. bank account). This information will be given to the Lead to be forwarded to the appropriate person.

  Note: If the caller is filing for a reconsideration, the technician does NOT input another collection hold.

(4) If a caller is calling to check the status of the claim:

1. Use the appropriate taxpayer authentication. See IRM 25.15.18.9.2.2, Taxpayer Authentication, for more information.

2. Research ISTS to find the current status of the claim and provide to the caller the following:

• If claim is built, but no determination made, explain that the claim has not been worked yet.

• If a determination has been made, state the determination to the caller and provide the technician's name and extension for further information about the determination.

• If the claim was non-qualified, explain the reason.

• If the taxpayer requests a transfer, then transfer to the CCISO technician who is working or has worked the case.

  Note: Do not transfer a caller to another employee outside of CCISO.

(5) Update the conversation on AMS using history note for all calls.

(1) These are dedicated phone lines for each Full Scope technician and are usually answered after a preliminary determination letter has been sent.

(2) As a Full Scope technician, provide the following information during an extension routed call:

1. Provide a complete answer regarding the determination made on the account.

2. Explain IRC 6015 (b), (c), and (f), as applicable.

3. Explain tacit consent and/or forgery issues, if applicable.

4. Explain installment agreement criteria based on the determination, if applicable.

5. Explain appeal time frames and tax court rights, if applicable.

6. Update the conversation on AMS using history note, for all calls when the account is accessed.

(1) Follow Taxpayer Authentication when returning a call to the taxpayer or POA. See IRM 25.15.18.9.2.2, Taxpayer Authentication, for more information.

(2) Update any information related to the case file or AMS history based on the details of the call.

(3) Update ISTS with "PCRS" or "PCNRS" based on the recipient of the callback.

(1) The VODV indicator was created to alert employees to a caller's situation. This indicator does not verify that domestic violence has taken place. It is only used as an alert that domestic violence could be present.

(2) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡"≡ ≡ ≡ ≡

(3) If the caller is in immediate danger, refer the caller to the following:

• National Domestic Violence Hotline at 1-800-799-SAFE (7233), or

• 1-800-787-3224 for TTY, or

• 1-855-812-1001 for video phone (deaf callers only)

(1) For tax related IDT, review ENMOD for a current TC 971 AC 501-506 or 522-524. If not input, input TC 971 AC 522 "PNDCLM" based on the table below:

(1) The FTC Identity Theft Hotline can be reached at 1-877-438-4338 or https://www.ftc.gov/, Federal Trade Commission. Taxpayers who need information on identity theft that is non-tax related should be referred to this number and/or website. They can also be referred to Pub 4535, Identity Theft Prevention and Victim Assistance.

(2) Taxpayers experiencing non-tax related impact may call and ask that the IRS take action to protect their account information. Refer these taxpayers to the identity theft toll free number, 1-800-908-4490.

(1) Emergency situations include the following:

1. Suicide Threats. See IRM 25.15.18.9.2.9.1, Suicide Threats, for more information.

2. Assaults/Threats. See IRM 25.15.18.9.2.9.2, Assaults/Threats, for more information.

3. Bomb Threats. See IRM 25.15.18.9.2.9.3, Bomb Threats, for more information.

(2) All physical security incidents and/or threats, including bomb threats, are reported to the Situational Awareness Management Center (SAMC). Refer to IRM 10.2.8, Incident Reporting, and see IRM Exhibit 10.2.8-1, Incidents To Be Reported to SAMC. Visit Facilities Management and Security Services (FMSS) Incident Reporting to learn more about SAMC.

(1) Calls unrelated to innocent spouse can be transferred to one of the following:

• Customer Service.

• Accounts Management.

• Refund Hotline.

• Taxpayer Advocate Service (TAS).

• Appeals.

(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.

(2) IRS employees are identified on ENMOD, TXMOD, or IMFOL as follows:

(3) If the claim is non-qualified and no special handling is required, follow normal procedures.

(1) Use CC ESTAB for the administrative file. Notate in the remarks area the following:

1. Identify the appropriate employee who should receive the administrative file, and

2. That it is an IRS employee involved.

(2) Update ISTS and ISTSR Input Record to Stage 04 with comment "IRSEMP".

(3) Place in appropriate folder.

(4) Control case using either of the following activities:

1. "IRSEMP8857", Status A, Category," INSP", or

2. "INSS" on TXMOD.

   Note: INSP indicates the primary taxpayer filed for innocent spouse relief. INSS indicates the secondary taxpayer filed for innocent spouse relief.

(5) Give case to the lead or manager in the appropriate team when case activities (building case, assigning case, making determination, etc.) are complete. Cases will be filed and maintained by date order in a secure locked cabinet.