Management assigns innocent spouse cases.

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

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

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:

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

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

To be eligible for relief:

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

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.

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

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

An "-L" freeze indicates an open AIMS record.

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.

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

See the table below for instructions on certain AIMS statuses.

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.

Put case in appropriate colored folder and continue building case.

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.

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

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

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Review Form 8857 for the following:

The technician will take the following actions in the table below.

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.

Input ISTS manually to the following:

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

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

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

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

Place the documents in the appropriate receptacle to send to files.

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

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

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

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

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

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

Issue letters using IDRS/IAT tool "Letters."

IAT letters used by CCISO.

Eligible requests.

For unprocessable requests, the following actions will be taken:

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

Cases are assigned by a manager.

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

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

Screen case as shown in the table below.

Work cases in the following priority:

Conduct necessary IDRS research.

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

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.

Some other research systems available are as follows:

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

Things to consider include the following:

Determine underpayment and understatement.

Determine attribution and allocate, if necessary.

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Review Form 8857 for a response and additional correspondence.

Apply tax law under appropriate code sections.

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).

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

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

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.

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

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

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

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

Complete the general information section of the work papers.

Complete the spouse response section of the work papers.

Mirror the account, as appropriate.

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

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.

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.

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

Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

Prepare closing instructions as stated in the following table.

Update TXMOD activity with the determination as follows:

Update TXMOD control as follows:.

Notate the case file folder with the purge date.

Complete the following items on the ISTSR Input Record:

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

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

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

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

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

Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

Prepare closing instructions as stated in the following table.

Update TXMOD activity with the determination as follows:

Update TXMOD control as follows:

Notate the case file folder with the purge date.

Complete the following items on the ISTSR Input Record:

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

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

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

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

Follow IRM 25.15.18.5.2.16, Taxpayer Notification/Suspense Procedures.

Update TXMOD activity with the determination as follows:

Updated TXMOD control as follows:

Notate the case file folder with the purge date.

Complete the following items on the ISTSR Input Record:

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

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

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

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

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

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

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

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

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

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

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

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.

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

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.

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

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

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

Credit transfers are accomplished by the following:

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:

Evaluate the Appeals request:

Documentation for Appeals cases is as follows:

Complete the following actions on each case:

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" .

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.

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The DIMS list contains:

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:

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.

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.

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

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

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.

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

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

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

The Financial Technician will take the following actions:

Cases are assigned by management.

Screen the case to ensure it meets criteria for relief.

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

Tools available include the following:

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

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

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

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

Update IDRS controls, as appropriate.

Document case activity record of all actions taken.

Place case in appropriate receptacle.

A claim is non-qualifying when:

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

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

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

Update TXMOD control as appropriate.

Document case file activity record.

Add conclusion to AMS general information.

Place in appropriate receptacle.

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

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

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

The Lead Technician will initial the request for technical assistance.

The Financial Specialist will complete the following actions:

Answering the phone call.

Listen attentively to the caller.

Provide accurate call assistance for:

Conclude the call:

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.

Required authentication probes:

Additional authentication probes:

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

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

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.

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

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

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

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

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.

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

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

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.

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

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:

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.

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.

Emergency situations include the following:

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.

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

The definition of an IRS employee case is an active IRS employee. Any retired Federal employee is to be worked as a regular case.

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

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

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

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

Place in appropriate folder.

Control case using either of the following activities:

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.