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8.4.1.15
(10-26-2007)
APS Procedures on Non-Petitioning Spouse Cases
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If the notice of deficiency is issued to both a husband and wife who filed a joint return and only one spouse petitions the
U.S. Tax Court and the other spouse agrees or does not take appeal action, this is considered a non-petitioning spouse case.
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Verify the address of both taxpayers on all non-petitioning spouse cases. Use IDRS command code SPARQ to determine if the
last known address of both taxpayers is the same as the address on the notice of deficiency.
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When it is clear the notice of deficiency was sent to the last known address, ensure a default assessment is made on the non-petitioning
spouse. If not, make the default assessment.
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If separate residences were established and it is not clear from the administrative file that both taxpayers received the
notice of deficiency, take the following actions:
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Immediately input the case on CASES following the procedures set forth below to control the statute date on ACDS for the taxpayer
who did not receive the notice of deficiency.
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In notes, indicate "spouse at different address"
.
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Immediately deliver the case to the Processing Team Manager (PTM) to determine the appropriate action.
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The PTM may need to immediately transmit the case to Counsel to determine the appropriate action to take on the case.
Note:
A notice of deficiency sent to an address other than the last known address is NOT valid. When this occurs, an assessment
cannot be made as a default assessment. (In some cases, a protective assessment may be requested by Counsel until it is determined
if the notice of deficiency was mailed to the proper address.) The statute for the taxpayer with the invalid notice of deficiency
is the normal or extended statute (before the notice of deficiency was issued).
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If the statute is still open, issue a new notice of deficiency. Refer the case to the lead Appeals Team Manager (ATM). The
lead ATM determines whether to return the case to Compliance or issue a notice of deficiency.
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If the statute is not open, follow established procedures for preparing Form 3999, Barred Statute Report. See 8.21.7.
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Information pertaining to closing a non-petitioning spouse case is found in a subsequent section. See IRM 8.4.1.32.
8.4.1.15.1
(10-26-2007)
Order of Carding the Non-Petitioning Spouse Work Unit
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A non-petitioning spouse case requires special CASES procedures to create a work unit that includes a key case (the joint
return) and two related cases, one for each spouse. First establish the non-petitioning spouse, next establish the petitioning
spouse, and lastly, establish the key case for the joint return.
8.4.1.15.1.1
(10-26-2007)
Carding the Non-Petitioning Spouse's Case
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Establish a separate case for the non–petitioning spouse using the same work unit number as the petitioning spouse. Follow
normal ACDS procedures and follow the additional instructions described below:
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TPName — Enter the name of the non-petitioning spouse.
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Address — Enter the address of the non-petitioning spouse.
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TIN — Enter the TIN of the non-petitioning spouse.
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MFT — Enter MFT 31.
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TYPE — Enter REF.
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FEATRCD — Enter NS to identify a non-petitioning spouse case.
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REQAPPLS — Leave blank.
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DKTNO — Leave blank.
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KEYTP — Enter the name of the joint return.
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KEYTIN — Enter the primary TIN of the joint return.
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SNTYPE — Leave blank unless a separate notice of deficiency was issued.
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SNDATE — Leave blank unless a separate notice of deficiency was issued.
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NOTES — You may want to enter "Non-Petitioning Spouse"
.
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On the case return information screen, follow the normal ACDS procedures except for the following:
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AIMS Indicator — Enter E since the individual return is not controlled on AIMS.
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Statute Date — Enter the normal or extended statute date.
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Statute Code — Leave blank.
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PropdTax and PropdPen — Leave these fields blank.
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Duplication — Leave blank.
8.4.1.15.1.2
(10-26-2007)
Carding the Petitioning Spouse's Case
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Establish a separate case for the petitioning spouse following normal ACDS procedures and follow the additional instructions
described below:
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TPName — Enter the name of the petitioning spouse.
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Address — Enter the address of the petitioning spouse.
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TIN — Enter the petitioning spouse TIN.
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MFT — Enter MFT 31.
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TYPE — Enter I.
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FEATRCD — Enter NS to identify a non-petitioning spouse case.
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REQAPPL — Enter the date the petition was filed..
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DKTNO — enter docket number as it appears on the petition
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KEYTP — Enter the name of the joint return.
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KEYTIN — Enter the name of the primary TIN on the joint return.
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SNTYPE — enter type of SN issued.
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SNDATE — enter date notice of deficiency was issued.
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NOTES — You may want to enter "Petitioning Spouse"
.
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On the case return information screen, follow the normal procedures except for the following:
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AIMS Indicator — Enter E since the individual taxpayer is not on AIMS.
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Statute Date — Leave blank.
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Statute Code — Enter DOCKT.
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PropdTax and PropdPen— Leave these fields blank.
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Duplication — Leave this field blank.
8.4.1.15.1.3
(10-26-2007)
Carding the Joint Return
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Establish a separate record for the joint return using the same work unit number as the petitioning spouse. Follow normal
ACDS procedures and follow the additional instructions described below:
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FEATRCD — Enter NS to identify a non-petitioning spouse case.
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TP Type - valid with only MFT 30 Enter
P - if the petitioner is the primary TIN
S - if the petitioner is the secondary TIN
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REQAPPLS — Enter the date the petition was filed by the petitioning spouse.
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DKTNO — Enter the docket number as it appears on the petition or Docket List.
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KEYTP — Leave blank.
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KEYTIN — Leave blank.
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On the case return information screen, follow normal ACDS procedures except for the following:
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Statute Date — Leave blank.
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Statute Code — Enter NPS.
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PropdTax and PropdPen — Enter the tax deficiency and penalty(s) amounts shown on the notice of deficiency.
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Duplication — Leave blank.
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