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Part 25. Special Topics

Chapter 15. Relief from Joint and Several Liability

Section 11. Taxpayer Advocate Service Contacts and Processing of Innocent Spouse Cases

25.15.11  Taxpayer Advocate Service Contacts and Processing of Innocent Spouse Cases

25.15.11.1  (03-21-2008)
Overview

  1. The National Taxpayer Advocate (NTA) works in partnership with the Commissioners of Wage and Investment (W&I), and Small Business/Self Employed (SB/SE) Divisions to address the need to correctly and efficiently resolve innocent spouse claims.

  2. The Taxpayer Advocate Service (TAS) does not have the authority to make innocent spouse determinations.

25.15.11.2  (07-17-2009)
Taxpayer Advocate Case Criteria

  1. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for information on the Taxpayer Advocate Case Criteria.

  2. Exceptions to TAS criteria are as follows:

    • When the complaint or inquiry only questions the constitutionality of the tax system

    • When the facts in the case clearly indicate the taxpayer is employing frivolous tax strategies to avoid the filing or paying of federal taxes

    Note:

    See IRM 13.1.7.3, Exceptions to Taxpayer Advocate Service Criteria, for more information about exceptions to TAS Case Criteria.

25.15.11.3  (07-17-2009)
How will TAS Innocent Spouse (IS) inquiries/cases be received?

  1. TAS cases are tracked on the Taxpayer Advocate Management Information System (TAMIS). Below are some ways TAS receives Innocent Spouse cases:

    • Referrals on Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) from IRS employees who have identified possible hardship issues

    • Direct contacts from the taxpayer to TAS offices or toll-free line 1-877-777-4778

25.15.11.4  (07-17-2009)
Role of TAS in IS Program

  1. TAS should educate taxpayers before a claim is filed.

    1. Elicit enough information to be sure filing for innocent spouse relief is the appropriate avenue of relief to pursue.

    2. Suggest other options such as full payment, installment agreement, offer-in-compromise, claim for refund, audit reconsideration, or Appeals conference, depending on the facts and circumstances of the individual taxpayer.

  2. TAS should help facilitate the process for the taxpayers.

    1. Encourage taxpayers to avail themselves of all opportunities to resolve the issue (e.g. group manager or Appeals conferences).

    2. Explain the process to taxpayers and provide guidance as to what paperwork, information, or other documentation is appropriate to support their claim.

    3. Use and update the TAMIS system to track contacts with innocent spouse claimants. Complete histories can provide background information which could aid the examiner in making decisions.

  3. Advise the taxpayer of current processing timeframes. See IRM 13.1.10.14, Innocent Spouse Inquiries/Relief from Joint and Several Liability, for more information on timeframes.

  4. Inform taxpayers of the legal requirement for IRS to notify and offer an opportunity for participation to the non-requesting spouse (NRS). Employees should also inform taxpayers of procedures for claimants who are concerned about potential abuse or physical retaliation by the NRS.

  5. Advise taxpayers they should file Form 8857, Request for Innocent Spouse Relief, directly with the Cincinnati Centralized Innocent Spouse Operation (CCISO) at:
    IRS
    Stop 840F
    PO Box 120053
    Covington, KY 41012

    In some instances, the taxpayer may want to work with the Local Taxpayer Advocate (LTA) and have the case monitored until completion.

  6. Advise taxpayers that TAS caseworkers do not have the authority to make Innocent Spouse Determinations. The decision will be made by an examiner in the CCISO, or in the Area Field Office, based on the merits of the case.

  7. Employees may refer taxpayers to the Spousal Eligibility Explorer on the IRS Website at http://www.irs.gov. . Instruct the taxpayer to click on "Individuals" , "Tax Information for Innocent Spouses" , and " Explore if you are an Eligible Innocent Spouse" .
    See www.irs.gov/individuals/index.html for links to Form 8857 and Publication 971 , Innocent Spouse Relief.

25.15.11.5  (07-17-2009)
Use IDRS Command Code Innocent Spouse Tracking System (ISTS) to Verify Status of IS Claims

  1. ISTS should be the first step in researching the status of any outstanding innocent spouse claim. See IRM 25.15.14.2, Introduction, for more information on ISTS. An ISTS Reference Guide is available through the Innocent Spouse Website at http://win.web.irs.gov/innocentspouse/isdocs/ISTS_REFERENCE_GUIDE.doc ..

  2. The status of an innocent spouse claim can be tracked through ISTS, which captures 33 different stages of the process. Employees who respond to taxpayer inquiries must have access to the Integrated Data Retrieval System (IDRS) Command Code (CC) ISTS. Functional TAS Innocent Spouse Coordinators can make arrangements for access to computer-based training (CBT) and provide authority for new command codes.

  3. TAS employees will use Command Codes ISTSRT and ISTSRA to monitor Innocent Spouse Claims.

25.15.11.6  (07-17-2009)
Innocent Spouse Form 8857 Claim Processing Timeframes

  1. To keep taxpayers informed about the status of their claims, it is important to recognize the timeframes involved in processing Forms 8857. To process Innocent Spouse cases many steps must be taken. Some are required by law and shortcuts cannot be taken. TAS employees should work with taxpayers to keep them informed of the progression of their cases until it is completed.

    1. Before a claim can be considered, the account must be researched, administrative files retrieved, and often, additional information secured from the taxpayer.

    2. Included in the processing framework is the legal requirement to notify the NRS of the claim and offer an opportunity to participate in the administrative proceedings. The NRS must be given a reasonable amount of time to respond and for all correspondence to be associated with the file (generally 45 days).

    3. Additionally, the law calls for final 90 day determination letters, with 30 day letters offering an administrative appeal, generally preceding them in denied claims. For claims where there is a preliminary determination to grant full or partial relief, the NRS will receive a 30 day letter allowing an administrative appeal of the determination. Examiners may secure Form 870-IS, Waiver of Collection Restrictions in Innocent Spouse Cases; this will reduce timeframes in some cases.

    4. In optimal circumstances, steps required by legal provisions alone, take 230 days (original notification to NRS, notification of preliminary and final determination to both the RS and NRS). Keep this in mind when estimating timeframes for taxpayers.

25.15.11.7  (07-17-2009)
Case Processing of Original Form 8857

  1. Advise the taxpayer to file Form 8857 directly with CCISO. If, however, the claim is received in TAS, then:

    1. Establish the case on TAMIS.

    2. Check IDRS for an open audit indicator, transaction code (TC) 420.

    3. Check ISTS to ensure claim is not a duplicate.

    4. Ensure that claim is processable (e.g., correct tax year, correct code section, jurat and explanation attached).

    5. Forward the case file (i.e., TAMIS History and supporting documents) to CCISO.

    6. If there is an open field control , use the Form 12412, Operations Assistance Request (OAR), process to forward the claim to the Area innocent spouse coordinator in Planning and Special Programs (PSP).

    7. Forward all other claims to CCISO using the OAR process.

25.15.11.8  (07-17-2009)
OAR Process

  1. Use the Form 12412, Operations Assistance Request (OAR), process to forward Form 8857 claim to CCISO. For procedures about the OAR and Service Level Agreement (SLA) process see IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

    Note:

    Innocent spouse cases have processing timeframes based on statutory requirements. The statutory timeframes cannot be circumvented, even for economic burden cases. Check the Innocent Spouse Tracking System (ISTS) to determine if the timeframes are being met. If the timeframes are not met and the case requires expedite processing, the TAS employee will include an explanation with the OAR.

25.15.11.9  (07-17-2009)
Contacts on Form 8857 Already Filed

  1. After researching ISTS to determine the location, status, and employee assigned to the claim, establish the case on the TAMIS system. Continue to monitor the case on ISTS and TAMIS and keep the taxpayer apprised of the progress of his/her claim.

  2. If the case has already been established on the TAMIS system and it appears the case is not progressing through the stages in normal timeframes, the TAS employee should work with the examiner to ensure the case is being handled properly.

  3. If you receive a Form 12412, Operations Assistance Request (OAR), follow the special instructions TAS has entered on the Form 12412. Contact TAS for any clarification or if you do not agree with the actions requested by TAS. For further guidance see National Advocate Service (TAS) Service Level Agreement (SLA), for additional information refer to IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

25.15.11.10  (03-21-2008)
When a TAS IS Case Can be Closed

  1. The goal of TAS is to resolve the taxpayer’s problem(s) completely and prevent the taxpayer from having to contact TAS in the future on the same issue.

  2. TAS controlled cases should remain open until every action on the claim has been completed including final account adjustments or appeal determinations.

  3. Assure all Master File Tax (MFT) Code 31 actions are closed before closing a TAS case.

  4. Use the OAR process if actions are needed on these cases.


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