Employees in the Accounts Management (AM) organization respond to the taxpayer inquiries and phone calls as well as process claims and other internal requests.

Refer to IRM 1.2.1.13, Policy Statements for Customer Account Services Activities, for information.

Per Policy Statement 5-2: We actively assist taxpayers who try to comply with the law, and work to continually improve the quality of our systems and service to meet the needs of our customers. All taxpayers whether delinquent or fully compliant are entitled to prompt and professional service whenever they deal with IRS employees. The public is our customer, not just delinquent taxpayers. Our customers expect us to promote voluntary compliance by ensuring that all promptly pay their fair share. This information can be found in IRM 1.2.1.6.2, Policy Statement 5-2, Collecting Principles.

The Taxpayer Services Chief has overall responsibility for the policy related to this IRM which is published on a yearly basis.

Additional information is found in IRM 1.1.13.7.3, Accounts Management, and IRM 21.1.1, Accounts Management and Compliance Services Overview.

Program Reports: The program reports provided in this IRM are for identification purposes for the Accounts Management Contact Representatives (CR) and Tax Examiners (TEs). For reports concerning quality, inventory, aged listing, refer to IRM 1.4.16, Accounts Management Guide for Managers. Aged listings can also be viewed by accessing Control Data Analysis, Project PCD, are on the Control-D/Web Access server, which has a login program control.

Program Effectiveness: Program Effectiveness is determined by Accounts Management’s employees successfully using IRM guidance to perform necessary account actions and duties.

Program Controls: Goals, measures and operating guidelines are listed in the yearly Program Letter. Quality data and guidelines for measurement are referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS), and Electronic Products and Services Support.

The information below is a list of commonly used acronyms used throughout this IRM:

For a comprehensive listing of any IRS acronyms, refer to the Acronym Database.

Refer to IRM 1.4.16.1.6, Related Resources, for information on related resources that impact internal controls.

The Internal Revenue Code (IRC) provides taxpayers specific rights. The Taxpayer Bill of Rights groups these rights into ten fundamental rights. See IRC 7803(a)(3). IRS employees are responsible for being familiar with and following these rights. For additional information about taxpayer rights, see Pub 1, Your Rights as a Taxpayer or visit irs.gov/taxpayer bill of rights.

Married taxpayers who previously filed as Married Filing Separate (MFS), Single, or Head of Household (HOH) may file a married filing joint return within three years from the due date of the original return without regard to extensions, provided the IRS did not mail either spouse a notice of deficiency for which a petition was filed timely in the U.S. Tax Court, and neither spouse has commenced a suit for refund in any court, or entered into a closing agreement, or offer-in-compromise. If married taxpayers file a MFJ return after petitioning the Tax Court from a notice of deficiency, contact Chief Counsel via your Planning and Analyst contact.

To establish a joint name line, a Taxpayer Identification Number (TIN) is needed for both spouses. Acceptable TINS include a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) or Internal Revenue Service Number (IRSN). For information on establishing an Internal Revenue Service Number, refer to IRM 3.13.5.75, When Internal Revenue Service Numbers (IRSNs) are Needed.

"No Consider" the change to married filing joint status:

Return the claim to the taxpayer with the appropriate "C" letter, requesting the necessary information if:

If there is a tax increase/credit decrease, adjust the account and send a letter to the taxpayer requesting the missing information. Refer to IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing, for additional guidance.

Research for the filing of both returns. It is not necessary to request the returns if the married filing joint (MFJ) return information can be verified from research. To determine if the request for a joint election is valid, refer to IRM 25.6.1.9.4.4(1), Joint Return After Separate Return.

If there is an open Transaction Code (TC) 420 or an open -L freeze on either spouse's account, follow IRM 21.5.3.4.7, Processing Claims and Amended Returns with Examination Involvement.

If either account has unresolved Taxpayer Protection Program (TPP) and/or MFT 32 issues, refer to IRM 21.5.6.4.9.1, E- Freeze Procedures for Unresolved TPP Issues.

Math verify the MFJ return and recompute the tax, if necessary. Assess or recompute the estimated tax penalty based on joint liability. Refer to IRM 20.1.3.3.1.1.2, Joint Return After Filing Separate Return(s).

Domestic married filing separate to married filing joint claims are processed under category code "SPJT" and program code 40056. If the Separate to Joint claim is not scanned into CII as "SPJT" , update the category code.

Update the DUPOL database. Refer to IRM 21.6.1.7, Command Code DUPED and DDBCK, for additional information.

Update the secondary taxpayer's address if there is a change on the joint return.

Consistent with Obergefell v. Hodges, 135 S. Ct. 2584, lawfully married same-sex couples filing joint or separate returns are married for all federal tax purposes.

Registered Domestic Partnerships (RDPs), civil unions and other similar formal relationships not recognized as marriage under state law are not recognized as marriages for federal tax purposes.

Legally married same-sex couples must generally file their returns with either the joint or separate filing status.

All items required on an original return, amended return, adjusted return, or claim for credit or refund that are affected by the filing status must be adjusted consistent with the status reported on the return or claim. If the claim is incomplete or additional information is needed, refer to IRM 21.5.1.5.6, Incomplete CII Claims.

For any statute related issues, refer to IRM 21.6.1.5.4, "Statute of Limitations" Procedures for Married Filing Separate, Single, or Head of Household to Married Filing Joint.

Additional information is located on the IRS website.

Care must be taken when processing statute year claims to prevent erroneous abatements and to prevent the generation of RSED-STAT transcripts. Refer to procedures in IRM 21.5.3.4.3, Tax Decrease and Statute Consideration. Substitute for Return (SFR), refer to IRM 21.5.3.4.10, Returns Prepared Under IRC 6020(b).

The filing of a married filing joint return after separate return(s) may affect the Assessment Statute Expiration Date (ASED). The IRS has at least one year from the actual filing of a married filing joint return to make an assessment, per IRC 6013(b)(4).

Determine if the extended ASED is imminent (within 90 days). Refer to IRM 25.6.1.9.4.4, Joint Return After Separate Return, for specific instructions on conditions which extend the ASED.

For statute of limitations Issues refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues.

Married taxpayers may file separate returns such as married filing separately, head of household, or single on or before the due date, or extended due date, of their originally filed married filing joint return. If a taxpayer changes filing status from Married Filing Joint (MFJ) to Married Filing Separate (MFS), Single (S) or Head of Household (HOH), the taxpayer MUST clearly be eligible, refer to Publication 501, Dependents, Standard Deduction, and Filing Information, and Publication 17, Your Federal Income Tax (For Individuals).

Disallow all claims postmarked after the due date, or the extended due date, except:

For claims that meet the exceptions in paragraph 2 above, if the taxpayer does not provide the proper documentation such as court documents showing the marriage was not valid, copy of divorce decree or separate maintenance, documents verifying the taxpayers did not live together during the last six months, such as a lease agreement, utility bills, etc., refer to IRM 21.5.3.4.6.3, No Consideration Procedures.

If the taxpayer has not allocated a previously received refund, return the claim to the taxpayer, and request the allocation. The IRS cannot make the allocation determination of a previously received refund. See the Exception in paragraph 2 of IRM 21.6.1.5.8, Allocating Married Filing Joint Cases, for more information.

When one spouse on a married filing joint return claims their signature was forged, refer the claim to Exam for deficiency procedures. Refer to IRM 21.5.1.5, Correspondence Imaging Inventory (CII) Procedures. ONLY refer claims to Exam when the additional assessment (net tax increase/credit decrease) is at least ≡ ≡ ≡ ≡ ≡ and the assessment statute expiration date (ASED) has at least ≡ ≡ ≡ ≡ ≡ remaining. The net tax increase/credit decrease does not include withholding. Do not send tax decreases or credit increases to Exam, Accounts Management (AM) has the authority to work these cases. If the claim does not meet Exam criteria above, refer to IRM 21.6.1.5.7, Married Filing Joint or Married Filing Separate is Invalid or Filed with Incorrect Status.

If only one taxpayer is requesting the change from married filing joint to married filing separate, single or head of household, and the other taxpayer has income and/or credit:

The married filing joint election is potentially invalid if the individuals were not legally married, did not consent to the joint return, or if the return contains a forged signature.

Allow claims if the marriage was not legal for federal tax purposes (even if the claim is received after the due date) if the following is present:

When one spouse on a married filing joint return claims they did not consent to the joint filing, or their signature was forged, refer the claim to Exam for deficiency procedures. Refer to IRM 21.5.1.5.2(5), Cases Currently Assigned in CII. ONLY refer claims to Exam when the additional assessment (net tax increase/credit decrease) is at least ≡ ≡ ≡ ≡ ≡ ≡ and the assessment statute expiration date (ASED) has at least ≡ ≡ ≡ ≡ ≡ ≡ ≡ remaining. The net tax increase/credit decrease does not include withholding. Do not send tax decreases or credit increases to Exam because, Accounts Management (AM) has the authority to work these cases. If the claim does not meet Exam criteria above, follow the If/Then chart below:

If an Economic Impact Payment (EIP) refund was issued from the primary account and the secondary taxpayer is claiming that the return is invalid,

If an EIP refund was issued from the primary account, the primary taxpayer is claiming that the return was invalid and the secondary taxpayer received and kept the entire EIP refund,

On the primary account, refer to IRM 21.6.3.4.2.13.3, Economic Impact Payments - Manual Adjustments, to correct the module.

If the change from married filing separate to single is due to a clerical error and does not result in a change to tax, credits, etc., allow the change.

Allocation means the taxpayer must designate/show which wages, deductions, withholding, EITC, tax liability, etc., belong to each taxpayer:

Return the claim to the taxpayer if a determination cannot be made because the taxpayer does not submit an allocation. Refer to IRM 21.5.1.4.3, Incomplete Inquiry.

Accept the allocations as specified below:

The separate tax method allocates liabilities by dividing the married filing joint liability into separate liabilities:

Subtract the taxpayer’s share of the new married filing joint liability from the taxpayer’s separate payments to arrive at the overpayment amount:

Manually refund the proportionate share of the overpayment to the spouse filing the claim.

Using account indicators, route the claim to the Collection Operations when one spouse is discharged of a tax liability in a bankruptcy proceeding and a married filing joint return was filed.

Registered Domestic Partners (RDPs) must each report half of their community income. A partner who amends a previously filed return to claim a credit or refund of tax paid must file the amended return before the Statute of limitations expires to receive the credit or refund. Refer to IRM 25.6.1.5, Basic Guide for Processing Cases with Statute of Limitations Issues.

Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States, is used to allocate income for community property states. The Form 8958 can be filed electronically.

A RDP claim for refund must include:

For a RDP claim with a tax increase/assessment without the documentation in (3) above, follow procedures in IRM 21.5.3.4.1, Tax Increase or Credit Decrease Processing.

If a RDP files an amended return, there is no need to verify if the other domestic partner filed a claim to reduce or claim additional income.

When adjusting the partner's account with a tax decrease, reducing withholding or previous credit claimed, input Transaction Code (TC) 170 for zero (.00) to restrict any erroneous Estimated Tax (ES) penalty assessment.

Amended returns claiming a Net Operating Loss Carryback/Carryforward as Community Property Income, refer to IRM 21.5.9.5, Carryback Processing.

For tax years 2017 and prior, a taxpayer is allowed only one exemption regardless of the number of returns on which they are listed. A dependent child may not claim their exemption when filing a return if claimed on the parent’s return. Refer to IRM 21.6.1.6, Exemption/Dependent Procedures, when working on tax years 2018-2025.

A taxpayer must furnish a correct/valid Taxpayer Identification Number (TIN) for every exemption/dependent claimed. This number may be a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), or an Adoption Taxpayer Identification Number (ATIN). Refer to IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real-Time System (RTS), and IRM 3.13.5.74, Assignment of Internal Revenue Service Numbers (IRSNs), for additional information.

Taxpayers are considered to have omitted a correct TIN if Social Security Administration (SSA) information indicates the social security number being used belongs to an individual who was deceased prior to the beginning of the tax year for which it is being used or if the social security number or ITIN being used does not match the name of the taxpayer based on SSA or IRS records.

Dependents, such as children and other relatives, must meet certain eligibility criteria. A dependent is either a qualifying child or a qualifying relative. Refer to Publication 17, Your Federal Income Tax (For Individuals), Part One, Chapter Three, Dependents, for dependency qualifications.

Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or similar statement must be attached to the taxpayer’s return when a non-custodial parent claims a child as a dependent because of the custodial parent’s release of claim to the child, or a custodial parent claims a child as a dependent as a result of a revocation of a release of claim to the child.

The IRS allows primary, secondary, and dependent taxpayers identified as having a religious or conscience-based objection, even if the taxpayer fails to provide a valid TIN. If the taxpayer was NOT allowed during original processing, adjust the account.

The IRS initially disallows any TIN related credits claimed on a return indicating a religious or conscience-based objection to providing TINs for the “qualifying” dependent(s). Beginning in TY 2018, this includes Amish, Mennonite, and Form 4029 filers claiming the Child Tax Credit. Taxpayers receive a math error notice stating their TIN related credit was not allowed because a TIN was not furnished.

In some cases, taxpayers claiming a religious or conscience-based objection to obtaining a TIN are allowed the dependent/exemption or related credits when they provide specific documentation. Refer to IRM 21.6.3, Credits, for information on specific credits, when complete information is received (i.e., TINS and documentation requested in Letter 3050C, EIC/CTC/ODC/Dependent/Child & Dependent Care Credit - Math Error).

For tax years ending before Jan. 1, 2018, the taxpayer is allowed one exemption for each qualifying person listed on the return. Allow one exemption for:

The exemption allowance is different for each year. Refer to the year of the tax return for the correct amount:

There is no personal exemption deduction for the tax years 2018 to 2025. Due to the Tax Cuts and Jobs Act of 2017, this exemption is suspended for taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026.

The personal exemption deduction begins to phase out when the Adjusted Gross Income (AGI) exceeds the following amounts:

For tax years 2017 and prior, the amount for each exemption is reduced by 2 percent for each $2,500 ($1,250 for MFS), or fraction thereof, more than of the applicable threshold.

If a valid Taxpayer Identification Number (TIN) is not provided for the primary taxpayer, the secondary taxpayer, or the dependents, the exemption/dependent is disallowed for the person listed with no valid TIN. The IRS considers a TIN missing if it isn't provided or if it is obviously incorrect. If the exemption/dependent was disallowed during initial processing, a math error taxpayer notice code (TPNC) appears on the module.

For tax year 2017 and prior, verify the exemption field on CC TXMOD, RTVUE, and IMFOL screens:

If the taxpayer submits correspondence indicating someone used their TIN or the TIN of a dependent, refer to IRM 25.23.4.4, Taxpayer Inquiries Involving Identity Theft (IDT).

Taxpayers may call or correspond regarding Individual Taxpayer Identification Numbers (ITINs), refer to procedures in IRM 3.21.263.8, Accounts Management (AM). For ITIN math error procedures, refer to IRM 3.21.263.8.7, Math Errors. For invalid TIN, refer to IRM 21.4.1.5.4, Invalid Taxpayer Identification Number.

When working math error returns processed by Austin Submission Processing ITIN unit indicating the valid/invalid ITIN(s), follow procedures above.

If a Form W-7, Application for IRS Individual Taxpayer Identification Number, is attached to the Form 1040-X, or the taxpayer requests additional information to complete processing Form W-7, refer to the following address:
Austin Submission Processing Campus
ITIN Operation Stop: AUSC 6090 P.O. Box 149342
Austin, TX 78714-9342

For tax years 2017 and prior, a taxpayer may respond to a math error concerning the number of exemptions allowed on the original return or the taxpayer may file a claim (amended/duplicate/informal) to request a change to exemptions. For tax years 2018-2025, refer to IRM 21.6.1.6, Exemption/Dependent Procedures.

If taxpayer is adding or deleting an exemption/dependent, refer to IRM 21.6.3.4.2.12.6, Premium Tax Credit Amended Returns, to determine if there is a potential impact to the Premium Tax Credit (PTC).

Verify the validity of the name(s) and TIN(s) submitted by the taxpayer. For a math error reply, the dependent with the missing/invalid TIN is recorded on RTVUE:

If taxpayer makes a statement, asks a question, or indicates a misunderstanding of an exemption/dependent math error notice:

If taxpayer responds to a math error notice within 60 days, refuses to obtain/provide the correct information and requests the account adjustment be made (after a full explanation of the legislative provisions was given), follow unsubstantiated math error procedures in IRM 21.5.4.5.5, Math Error Unsubstantiated Protest Processing.

When changing the exemptions/dependents (or adjusting credits requiring TIN validation for allowance), refer to IRM 21.6.1.7, Command Code DUPED and DDBCK, for more information.

The Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are required, for U.S. tax purposes, to have a U.S. taxpayer identification number, but who do not have, and are NOT eligible to obtain, a social security number (SSN) issued by the Social Security Administration (SSA).

The ITIN is for federal tax purposes ONLY. It does NOT entitle the holder to social security benefits and does NOT change their immigration status or their right to work in the United States.

An ITIN is formatted like an SSN. The ITIN begins with a "9" and has a unique identifying 4th and 5th digit range of:

Income earned in the United States is taxable regardless of the individual’s immigration status. Individuals earning income in the United States and have NOT been granted work authorization by the United States Citizenship and Immigration Services (USCIS) must meet their tax obligations.

To obtain an ITIN, an individual must complete the Form W-7, Application for IRS Individual Taxpayer Identification Number, or the Spanish version, Form W-7SP, and submit the required supporting identification documentation along with their valid U.S. Federal income tax return or exception documentation, as required. For assistance, applicants may make an appointment for their nearest TAC office or refer to IRS.gov for an IRS Certifying Acceptance Agent.

ITIN applicants must show they need an ITIN for a Federal income tax purpose. A U.S. Federal income tax return must be attached to the ITIN application unless the applicant meets one of the five exceptions discussed in Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number (ITIN).

All ITIN applicants must submit supporting identification documentation. The 13 acceptable identification documents are listed in the instructions for the Form W-7 and Form W-7SP, Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number (ITIN), and in IRM 3.21.263, IRS Individual Taxpayer Identification Number (ITIN) Real Time System (RTS).

Follow ITIN procedures in IRM 3.21.263.8, Accounts Management (AM). Expired ITINs refer to procedures in IRM 3.21.263.8.2, Inquiries Regarding Expiration of ITIN/Letter 5821 or CP 48, or IRM 3.21.263.2.3, Request to Reactivate an ITIN, if ITIN was deactivated/expired in error. Status of application refer to IRM 3.21.263.8.3, Inquiries Regarding Status of Application.

When the primary taxpayer’s TIN is invalid, the taxpayer may receive a CP 54 notice (see descriptions in 2 below), and/or a math error notice. Written responses to CP 54 notices that do not involve Earned Income Tax Credit (EITC) math errors are worked in Entity. If taxpayer attaches correspondence in response to a math error notice or attaches correspondence inquiring about a math error issue, Accounts Management works the response.

There are four CP 54 notices:

Process CP 54 responses with math error involvement as follows:

Taxpayer may provide a different name or primary TIN:

To change the exemptions/dependents, the taxpayer must:

Changes to the exemptions/dependents change the taxable income:

Review the claim for Examination criteria:

When changing the number of exemptions/dependents, refer to IRM 21.6.1.7, Command Code DUPED and DDBCK, for procedures on updating the Duplicate TIN database (DUPOL).

Refer to IRM 21.5.3.4.6, No Consideration and Disallowance of Claims and Amended Returns, for claim rejection and disallowance information.

For tax years 2018-2025, due to TCJA, Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is used for dependent credit documentation. For tax years ending on or before Dec. 31, 2017, the form is used for exemption documentation.

A custodial parent may release their claim to a child’s exemption/dependent credit. The custodial parent:

The non-custodial parent must attach a copy of the Form 8332 to the return for each year the non-custodial parent claims the child as a dependent.

Upon receipt of a math error notice response concerning a missing or incomplete Form 8332 (or similar statement) take the following actions:

Upon receipt of the completed Form 8332:

If taxpayer provides the appropriate documentation, and the tax year is prior to 2018, allow the exemption as follows:

If the taxpayer provides the appropriate documentation, and the tax year is 2018-2025, input the adjustment to correct tax and dependent credits, if needed. Update the Return Processable Date (RPD) if the Form 8332 is a late reply to a U coded return (RPD 99999). Refer to IRM 21.5.1.4.2.10, Late Replies.

CC DUPED is used to update dependent credit(s) in the Duplicate TIN database (CC DUPOL) for current processing year returns for:

CC DUPED should not be used to update CC DUPOL if the taxpayer is:

CC DUPED does not replace masterfile account action. Appropriate account transactions are still required.

Do not disclose CC DUPED data. Taxpayers are not entitled to know who else has claimed the dependent for credits.

Refer to IRM 2.4.53, Command Code DUPED, for information on the input of the command code.

Dependent credit(s) are updated in CC DDBCK for the current processing year and two years prior. Use CC DDBCK/DUPED to validate the spousal TIN when a credit is claimed for the spouse; it is not needed when the ONLY change is for a filing status change.

Instructions for additional action are given by CC DDBCK after it is input for the following:

Always use CC INOLES to verify the TIN/NAME/DOB and TIN assignment date before using CC DDBCK. Even though CC DDBCK validates age, TIN, and name information when the taxpayer is claiming additional dependents and/or credits requiring TIN validation, it will not provide an error message unless ACTC, AOTC, CTC, or EITC is involved and then only if one of the math errors listed above is present or the taxpayer is claiming one of those credits for the first time. If EITC is claimed and TIN issue date is after the RDD, refer to IRM 21.6.3.4.2.7.10, Earned Income Tax Credit (EITC) - Claims.

When processing an amended return/Form 8862 and ACTC, AOTC, CDCC, CTC, and/or EITC, is being increased, CC DDBCK identifies account conditions which require Exam involvement. If credit recertification is required, see IRM 21.6.3.5, Credit Recertification.

Exceptions for when CC DDBCK cannot be used:

CC DDBCK does not update CC DUPOL on cases when the response includes "Follow IRM" , "Selected" , or "Send as CAT-A" .

Input Category Code "EICN" in the category code field when working a case and:

For cases involving an increase to EITC, refer to IRM 21.6.3.4.2.7.14, EITC and Command Code DDBCK, for information on the appropriate "Category Code" , "Claim Amount" , and "SCHED-C" indicator to enter.

Take the following account action per CC DDBCK:

Response screens addressing the action to be taken displays after the appropriate data is input. For CC DDBCK input, refer to IRM 2.4.58, Command Code DDBCK/DDBCV/DDBCS, for additional information.