PDF document

- 1 -

The Examination Process
The IRS Mission

Provide America’s
taxpayers top
quality service by Introduction
helping them
understand and
The Internal Revenue Service (IRS) accepts most federal
meet their tax returns as filed. Some returns, however, are examined, or
responsibilities audited, to determine if income, expenses, and credits are
and by applying reported accurately.
the tax law with
integrity and This publication discusses general rules and procedures
fairness to all. we follow in examinations. It explains what happens before,
during, and after an examination. It also explains appeal and
payment procedures.

As a taxpayer, you have the right to fair, professional,
prompt, and courteous service from IRS employees, as
outlined in the Declaration of Taxpayer Rights found on
page 3.

We must follow the tax rules set forth by Congress in the
Internal Revenue Code. We also follow Treasury
Regulations, court decisions, and other rules and
procedures written to administer the tax laws.

If the examination results in a change to your tax liability,
you may ask us to reconsider your case. Some reasons why
we may reconsider your case include:

You are submitting additional information that could
result in a change to the additional amount we have
determined that you owe;

You are filing an original delinquent return after we have
determined that you owe an additional amount, or;

You are identifying a mathematical or processing error
we made.

You must request reconsideration in writing and submit it to

your local IRS office.

www.irs.gov

Publication 3498 (Rev. 11-2004)
Catalog Number 73074S

- 2 -

What’s Inside . . .
                                                                                         Do you have questions or need help
Introduction                                                                             right away?  Call us.  We are here to
                                                                                         ? help you.
Declaration of Taxpayer Rights                         ○○○○○               ○○○○○       3

Your Return Is Going To Be Examined                                        ○○○○○       3 For General Information:
Before the Examination                ○○○○○○                               ○○○○○○      3 For information about a specific examination please
                                                                                         contact the person named on the appointment letter.
During the Examination                         ○○○○○○○                     ○○○○○       3
Examinations by Mail                  ○○○○○○○                              ○○○○○○      3
                                                                                           For tax information and help:
Examinations in Person                ○○○○○○○○○○○○                                     3
                                                                                           Call the number on the bill you
How to Stop Interest from Accumulating                                            ○○○○ 4   received or call us toll free at:

Consents to Extend the Statute of                                                      4   1-800-829-1040 (for 1040 filers)
Limitations  ○○○○○○○○○○○○○○○○○○
                                                                                           1-800-829-4933 (for business filers)
Results of the Examination                          ○○○○○○○○○○                         4   1-800-829-4059 /TDD

What to Do When You Receive a Bill                                                         For tax forms and publications:
from the IRS ○○○○○○○○○○○○○○                                                ○○○○○       4   1-800-829-3676
                                                                                           1-800-829-4059 /TDD
What To Do if You Agree or Disagree                                                        1-703-368-9694-Forms by Fax
with the Examination Results                        ○○○○○○○○○○○                        5
If You Agree ○○○○○○○○○○○○○○○○○○                                                        5   Internet:  www.irs.gov
                                                                                           FTP - ftp.fedworld.gov/pub/
If You Do Not Agree ○○○○○○○○○○○○○○                                                     5
Fast Track Mediation Services                          ○○○○○○○○○                       5   TELENET-iris.irs.gov
                                                                                           You’ll find answers to frequently asked
How Do You Appeal a Decision? ○○○○○                                               ○○○○ 6
                                                                                           tax questions, tax forms on-line,
The Appeal System               ○○○○                   ○○○○○○○○○○                      6   searchable publications, hot tax
                                                                                           issues, news, and help through e-mail.
Appeal Within the IRS                 ○○○○○○○                              ○○○○○○      6
Making a Small Case Request                            ○○○○○○○○○                       6   If you prefer to write to us . .
Filing a Formal Protest               ○○○○○○○○○○○○○                                    6   Enclose a copy of your tax bill.  Print
                                                                                           you r    name, social security number or
After the Examination ○○○○○○○○○                                            ○○○○○○          taxpayer identification number, and the
                                                                                       7   tax form and period shown on your bill.
Payment Options                ○○○○○○                      ○○○○○○○○○                   7   Write to us at the address shown on
                                                                                           your tax bill.
Temporarily Delay the
Collection Process              ○○○○○○○○○○○○○○                                         7
                                                                                         You may also visit your nearest IRS Office.
Innocent Spouse Relief                ○○○○○                       ○○○○○○○○             8
                                                                                         You’ll find the exact address in your local
You Must Contact Us                   ○○○○○○○○○○○○○                                    8 phone book under U.S. Government
What If You Believe Your Bill Is Wrong ○○○○○                                           8

Privacy Act Statement ○○○○                     ○○○○○○○○○○○                             8

- 3 -

Declaration of Taxpayer Rights Your Return Is Going To Be
Examined.
I. Protection of Your Rights
IRS employees will explain and protect your rights as a taxpayer
throughout your contact with us. Before the Examination
We accept most taxpayers’ returns as filed. If we inquire about your return
II. Privacy and Confidentiality or select it for examination, it does not suggest that you are dishonest. The
The IRS will not disclose to anyone the information you give us, inquiry or examination may or may not result in more tax. We may close
except as authorized by law. You have the right to know why we are your case without change or you may receive a refund.
asking you for information, how we will use it, and what happens if
The process of selecting a return for examination usually begins in one of
you do not provide requested information. two ways. One way is to use computer programs to identify returns that
may have incorrect amounts. The programs may be based on information
III. Professional and Courteous Service returns, such as Forms 1099 or W-2, on studies of past examinations, or
on certain issues identified by other special projects. Another way is to use
If you believe that an IRS employee has not treated you in a information from compliance projects that indicates a return may have
professional, fair, and courteous manner, you should tell that incorrect amounts. These sources may include newspapers, public
employee’s supervisor. If the supervisor’s response is not records, and individuals. If we determine the information is accurate and
satisfactory, you should write to the IRS Director for your Area or reliable, we may use it to select a return for examination.
the Center where you file your return.
Publication 556, Examination of Returns, Appeal Rights, and Claims for
Refund, explains the rules and procedures that we follow in examinations.
IV. Representation The following sections give an overview of how we conduct examinations.
You may either represent yourself or, with proper written authoriza-
tion, have someone else represent you. Your representative must
be a person allowed to practice before the IRS, such as an attorney, During the Examination
certified public accountant, or enrolled agent (a person enrolled to
practice before the IRS). If you are in an interview and ask to Examinations by Mail
consult such a person, then we must stop and reschedule the
interview in most cases. Some examinations are conducted entirely by mail. If the examination
You can have someone accompany you at an interview. You may is conducted by mail, you’ll receive a letter from us asking for
make sound recordings of any meetings with our examination, additional information about certain items shown on your return, such
appeal, or collection personnel, provided you tell us in writing 10 as income, expenses, and itemized deductions.
days before the meeting.
If the examination is conducted by mail, you can:
V. Payment of Only the Correct Amount of Tax 1. Act on your own behalf. (In the case of a jointly filed return,
You are responsible for paying only the correct amount of tax due either spouse can respond or both spouses can send a
under the law—no more, no less. If you cannot pay all of your tax joint response.)
when it is due, you may be able to make monthly payments. 2. Have someone represent you in correspondence with us. This
person must be an attorney, accountant, enrolled agent, an
VI. Help with Unresolved Tax Problems enrolled actuary, or the person who prepared the return and
signed it as the preparer. If you choose to have someone
The Taxpayer Advocate Service can help you if you have tried represent you, you must furnish us with written authorization.
unsuccessfully to resolve a problem with the IRS. Your local Make this authorization on Form 2848, Power of Attorney and
Taxpayer Advocate can offer you special help if you have a Declaration of Representative.
significant hardship as a result of a tax problem. For more Note: You may obtain any of the forms and publications
information, call toll-free, 1-877-777-4778 (1-800-829-4059 for referenced in this publication by calling 1-800-829-3676.
TTY/TDD) or write to the Taxpayer Advocate at the IRS office
that last contacted you.
Examinations in Person
VII. Appeals and Judicial Review
If you disagree with us about the amount of your tax An examination conducted in person begins when we notify you that
your return has been selected. We will tell you what information you
liability or certain collection actions, you have the right to need to provide at that time. If you gather the information before the
ask the Appeals Office to review your case. You may also examination, we may be able to complete it more easily and in a
ask a court to review your case. shorter time.

VIII. Relief from Certain Penalties and Interest If the examination is conducted in person, it can take place in
your home, your place of business, an IRS office, or the office of
The IRS will waive penalties when allowed by law if you can show your attorney, accountant, or enrolled agent (a person enrolled to
you acted reasonably and in good faith or relied on the incorrect practice before the IRS). If the time or place is not convenient for
advice of an IRS employee. We will waive interest that is the you, the examiner will try to work out something more suitable.
result of certain errors or delays caused by an IRS employee.

- 4 -

Your Return Is Going To Be Examined. (cont.)

If the examination is conducted in person, you can:
                                                                             If the statute of limitations for your tax return is approaching, you
1.  Act on your own behalf. (In the case of a jointly filed return,          may be asked to sign a consent.  You may:
    either spouse or both can attend the interview.) If you are
    acting on your own behalf, you may leave to consult with your            1. Refuse to extend the statute of limitations;
    representative.  We will suspend the interview and reschedule
    the examination.  We cannot suspend the interview if we are              2. Limit or restrict the consent to particular issues, or
    conducting it as a result of your receiving an administrative
    summons.                                                                 3. Limit the extension to a particular period of time.

 2. Have someone accompany you, either to support your position              The consent will be sent or presented to you with a letter
    or to witness to the proceedings.                                        explaining this process and         Publication 1035    , Extending the
                                                                             Tax Assessment Period.  For further information, refer to this
3.  Accompany someone who will represent you.  This person                   publication.
    must be an attorney, accountant, enrolled agent, an enrolled
    actuary, or the person who prepared the return and signed it as          Results of the Examination
    the preparer.
                                                                             If we accept your return as filed, you will receive a letter
4.  Have your representative act for you and not be present at the           stating that the examiner proposed no changes to your return.
    audit yourself.  If you choose to have someone represent you             You should keep this letter with your tax records.
    in your absence, you must furnish us with written authorization.
    Make this authorization on Form 2848, Power of Attorney and              If we don’t accept your return as filed, we will explain any
    Declaration of Representative.                                           proposed changes to you and your authorized representative.
                                                                             It is important that you understand the reasons for any
                                                                             proposed changes; don’t hesitate to ask about anything that is
How to Stop Interest from Accumulating                                       unclear to you.
During your examination, if you think you will owe additional tax at
the end of the examination, you can stop interest from accumulating
by paying all or part of the amount you think you will owe.  Interest        What to Do When You Receive a Bill from
will stop accumulating on the part you pay when the IRS receives             the IRS
your money.  Interest will only be charged on the tax, penalties, and
interest that are unpaid on the date they are assessed.

                                                                                                          You receive a tax 
Consents to Extend the Statute of                                                                         bill in the mail.
Limitations

We try to examine tax returns as soon as possible after they are filed, but                                                If it is correct . . . .
occasionally we may request that you extend the statute of limitations of
your tax return.                                                                                                                    Pay the full 
                                                                                                                                    amount now  . . .
                                                                                                                                       or  . . . .
A return’s statute of limitation generally limits the time we have to
examine it and assess tax.  Assessments of tax must be made within              If it is not correct . . .
3 years after a return is due or filed, whichever is later.  We can’t                        Gather copies of :
assess additional tax or make a refund or credit (unless you filed a                                 the bill
timely claim) after the statute of limitations has expired.  Also, if you                            any records
                                                                                                     tax returns, and
disagree with the results of the examination, you can’t appeal the                                   canceled checks
items you disagree with unless sufficient time remains on the statute.
Because of these restrictions, if there isn’t much time remaining to
examine your return, assess additional taxes, and/or exercise your              Contact us right away . . . 
appeal rights, you have the opportunity to extend the statute of
limitations.  This will allow you additional time to provide further
                                                                                Call...
documentation to support your position, request an appeal if you do             1-800-829-1040 (for 1040 filers)     Write to us at 
not agree with our findings, or to claim a tax refund or credit.  It also       1-800-829-4933 (for business filers) the address on  Visit your local 
allows the Service time to complete the examination, make any                   1-800-829-4059 /TDD                  your bill.        IRS Office
additional assessment, if necessary, and provide sufficient time for
processing.                                                                     You have several payment options . . .
A written agreement between you and the Service to extend the                                                    CREDIT
statutory period of a tax return is called a “consent.”  Consents can be                 Pay the full
                                                                                         amount now
used for all types of tax except estate tax.                                             See page 4.      Pay by Credit Card    Pay in 
                                                                                                             See page 7.        monthly installments
                                                                                                                                See page 7.
There are two basic kinds of consent forms.  One sets a specific                             Apply for an                    Seek a 
expiration date for the extension, and the other for an indefinite period                    Offer-in-Compromise             temporary delay.
                                                                                             See page 7.
of time.  Either type of consent may be limited by restrictive conditions.                                                   See page 7.
The use of a restricted consent is to allow the statute to expire with
regard to all items on the return except those covered by the restrictive
language.

                                                                            4

- 5 -

What To Do If You Agree or Disagree with the

Examination Results

If You Agree
If you do not respond to the 30-day letter,
or if you respond but do not reach an
If you agree with a proposed increase to tax, you can sign an agreement with an appeals officer, we will
agreement form and pay any additional tax you may owe. You send you a 90-day letter, also known as a
must pay interest and applicable penalties on any additional Notice of Deficiency. This is a legal
balance due. If you pay when you sign the agreement, interest document that explains the proposed
is generally figured from the due date of your return to the date changes and the amount of the proposed
of your payment. tax increase. You will have 90 days (150
days if it is addressed to you outside the
If you do not pay the additional tax and interest, you will United States) from the date of this notice
receive a bill (See “What To do When You Receive a Bill from to file a petition with the Tax Court. If you
the IRS” on page 4.) If the amount due (including interest and do not petition the Tax Court you will
applicable penalties) is less than $100,000 and you pay it receive a bill for the amount due.
within 21 business days, we will not charge more interest or
penalties. If the amount is $100,000 or more, the period is
reduced to 10 calendar days. If you can’t pay the tax due at
the end of the examination, you may pay whatever amount you
can and request an installment agreement for the balance.
(See “Setting up an Installment Agreement” on page 7.) Fast Track Mediation Services
If you are entitled to a refund, you will receive it sooner if you
sign the agreement form at the end of the examination. You If you do not agree with any or all of the IRS findings, you may
will also be paid interest on the refund. request Fast Track Mediation services to help you resolve
disputes resulting from the examination (audits). Fast Track
Mediation offers an expedited process with a trained mediator,
who will help facilitate communication, in a neutral setting.
If You Do Not Agree The mediator will work with you and the IRS to understand the
nature of the dispute. The purpose is to help the two of you
If you do not agree with the proposed changes, the examiner reach a mutually satisfactory resolution that is consistent with
will explain your appeal rights. If your examination takes place the applicable law. The mediator has no authority to require
in an IRS office, you may request an immediate meeting with either party to accept any resolution. You may withdraw from
the examiner’s supervisor to explain your situation. You may the mediation process anytime. If any issues remain unresolved
also enter into an Agreement to Mediate to help resolve you will retain all of your usual appeal rights.
disputes through Fast Track Mediation services. (See next column.)
Mediation can take place at this meeting or afterwards. If an
agreement is reached, your case will be closed. Most cases qualify for Fast Track Mediation. To begin the
process, you may request the examiner or IRS representative
If you cannot reach an agreement with the supervisor at this to arrange a mediation meeting. Both you and the IRS
meeting, or if the examination took place outside an IRS office representative must sign a simple Agreement to Mediate form.
or was conducted through correspondence with an IRS Campus A mediator will then be assigned. Generally, within a week,
employee, the examiner will prepare a report explaining your the mediator will contact you and the IRS representative to
position and ours. The examiner will forward your case to the schedule a meeting. After a brief explanation of the process,
Area office for processing . the mediator will discuss with you when and where to hold the
mediation session.
You will receive:
For additional information, refer to Publication 3605, Fast Track
A letter (know asn a 30-day letter) notifying you of your Mediation-A Process for Prompt Resolution of Tax Issues.
rights to appeal the proposed changes within 30 days,
A copy of the examiner’s report explaining the proposed
changes, and
An agreement or a waiver form.
You generally have 30 days from the date of the 30-day letter
to tell us whether you will accept the proposed changes or
appeal them. The letter will explain what steps you should
take, depending on what action you choose. Be sure to follow
the instructions carefully. Appeal rights are explained following
this section.

- 6 -

How Do You Appeal a Decision?

The Appeal Syst
em Be sure to send the protest within the time
limit specified in the letter you received.
Because people sometimes disagree on tax matters, the
Service has an appeal system. Most differences can be
settled within this system without going to court. You must file a formal written protest
If the total amount of tax, penalties, and interest for any tax
Your reasons for disagreeing must come within the scope of period is more than $25,000;
tax laws, however. For example, you cannot appeal your In all partnership and S corporation cases, regardless of the
case based only on moral, religious, political, constitutional, dollar amount;
conscientious, or similar grounds.
In all employee plan and exempt organization cases,
If you do not want to appeal your case within the IRS, you regardless of the dollar amount;
may take your case directly to tax court. In all other cases, unless you qualify for other special
appeal procedures, such as requesting appeals consideration
of liens, levies, seizures, or installment agreements.
Appeal Within the IRS (See Publication 1660, Collection Appeal Rights, for more information
on special collection appeals procedures.)
You may appeal our tax decision to a local appeals office,
which is separate and independent of the IRS Office taking Filing a Formal Protest
the action you disagree with. An appeals office is the only
level of appeal within the IRS. Conferences with Appeals When a formal protest is required, send it within the time limit
Office personnel may be conducted in person, through specified in the letter you received. Include in your protest:
correspondence, or by telephone with you or your authorized
representative Your name and address, and a daytime telephone number.
If you want to have a conference with an appeals officer, A statement that you want to appeal the IRS findings to the
follow the instructions in the letter you received. We will send Appeals Office.
your conference request letter to the appeals office to A copy of the letter showing the proposed changes and
arrange for a conference at a convenient time and place. findings you do not agree with (or the date and symbols from
You or your qualified representative should be prepared to the letter.)
discuss all disputed issues at the conference. Most
differences are settled at this level. Only attorneys, certified The tax periods or years involved.
public accountants or enrolled agents are allowed to
represent a taxpayer before Appeals. An unenrolled A list of the charges that you do not agree with, and why
preparer may be a witness at the conference, but not a you do not agree.
representative.
The facts supporting your position on any issue that you do
If you want to have a conference with an appeals not agree with.
officer, you may also need to file either a small case The law or authority, if any, on which you are relying.
request or a formal written protest with the contact
person named in the letter you receive. You must sign the written protest, stating that it is true, under
the penalties of perjury as follows:
Whether you file a small case request or a formal written
protest depends on several factors. “Under the penalties of perjury, I declare that I examined the
facts stated in this protest, including any accompanying
documents, and, to the best of my knowledge and belief,
they are true, correct, and complete.”
Making a Small Case Request
If your representative prepares and signs the protest for you, he
You may make a small case request if the total amount of or she must substitute a declaration stating:
tax, penalties, and interest for each tax period involved is That he or she submitted the protest and accompanying
$25,000 or less, and you do not meet one of the exceptions documents and;
below for which a formal protest is required. If more than one
tax period is involved and any tax period exceeds the $25,000 Whether he or she knows personally that the facts stated in
threshold, you must file a formal written protest for all periods the protest and accompanying documents are true and
involved. The total amount includes the proposed increase or correct.
decrease in tax and penalties or claimed refund. For an
Offer-in-Compromise, include total unpaid tax, penalty, and We urge you to provide as much information as you can, as this
interest due. will help us speed up your appeal. This will save you both time
and money.
To make a small case request, follow the instructions in our Additional information about the Appeals process may be found
letter to you by sending a brief written statement requesting an in Publication 5, Your Appeals Rights and How to Prepare a
appeals conference. Indicate the changes you do not agree Protest if you Don’t Agree.
with and the reasons you do not agree with them.

- 7 -

After the Examination

Payment Options You should be aware, however, that an installment agreement
is more costly than paying all the taxes you owe now. Like
revolving credit arrangements, we charge interest on the
You cannot pay all that you owe now unpaid portion of the debt. Penalties also continue to
If you cannot pay all your taxes now, pay as much as you can. By accumulate on installment agreements.
paying now, you reduce the amount of interest and penalty you
owe. Then immediately call, write, or visit the nearest IRS office to If you want to pay off your tax debt through an installment
explain your situation. After you explain your situation, we may ask agreement, call the number shown on your bill. If you owe:
you to fill out a Collection Information Statement. If you are
contacting us by mail or by telephone, we will mail the statement to $25,000 or less in tax, we will tell you what you need to do
you to complete and return to us. This will help us compare your to set up the agreement;
monthly income with your expenses so we can figure the amount
you can pay. We can then help you work out a payment plan that More than $25,000, we may still be able to set up an
fits your situation. This is known as an installment agreement. installment agreement for you, but we may also ask for
financial information to help us determine your ability to
pay.
Payment by credit card
Individual taxpayers may make credit (and debit) card payments on Even if you set up an installment agreement, we may still file a
tax liabilities (including installment agreement payments) by phone Notice of Federal Tax Lien to secure the government’s interest
or Internet. Payments may be made to the United States Treasury until you make your final payment.
through authorized credit card service providers. Note: We cannot take any collection actions affecting your
property while we consider your request for an installment
The service providers charge a convenience fee based on the agreement, while your agreement is in effect, for 30 days after
payment amount. You will be informed of the convenience fee we reject your request for an agreement, or for any period while
amount before the credit card payment is authorized. This fee is in you appeal the rejection.
addition to any charges, such as interest, that may be assessed by
the credit card issuer. Visit www.irs.gov to obtain a list of autho- If you arrange for an installment agreement, you may pay with:
rized service providers and to obtain updated information on credit
card payment options. Personal or business checks, money orders, or certified
funds (all made payable to the U.S. Treasury),
Note: You can use debit cards issued by VISA and MasterCard
when making tax payments through the participating service Credit and debit cards,
providers. However, the service providers and card issuers treat
debit cards and credit cards equally for the purpose of processing Payroll deductions your employer takes from your salary
electronic tax payments. Therefore, debit card users are charged and regularly sends to IRS, or
the same fee traditionally associated with credit card transactions
Electronic transfers from your bank account or other similar
means.
Payment by Electronic Federal Tax
Apply for an Offer-in-Compromise
Payment System (EFTPS)
In some cases, we may accept an Offer-in-Compromise to
EFTPS is an Electronic Federal Tax Payment System developed settle an unpaid tax account, including any penalties and
by the Internal Revenue Service and Financial Management interest. With this kind of arrangement, we can accept less
Service (FMS). tha nthe full amount you owe when it is doubtful we will be able
to collect the entire amount due.
The system allows federal taxes to be paid electronically. The
system allows the use of the Internet at www.eftps.gov or Offers in compromise are also possible if collection action
telephone to initiate tax payments directly. EFTPS payments may would create an economic hardship. You may want to discuss
also be made through your local financial institution. The service these options with your examiner.
is convenient, secure and saves time.
You may enroll in EFTPS through the website at www.eftps.gov or Temporarily Delay the Collection
by completing a form available from EFTPS customer service at
Process
(800) 555-4477 or (800) 945-8400.
If we determine that you can’t pay any of your tax debt, we
may temporarily delay collection until your financial condition
Setting up an installment agreement improves. You should know that if we delay collecting from
you, your debt will increase because penalties and interest are
Installment agreements allow you to pay your full debt in smaller, more charged until you pay the full amount. During a temporary
manageable amounts. Installment agreements generally require equal delay, we will again review your ability to pay. We may also file
monthly payments. The amount and number of your installment a Notice of Federal Tax Lien, to protect the government’s
payments will be based on the amount you owe and your ability to pay interest in your assets. See Publication 594, The IRS
that amount within the time we can legally collect payment from you. Collection Process.

- 8 -

After the Examination (cont.)

Innocent Spouse Relief
Privacy Act Statement
If you filed a joint tax return, you are jointly and individually responsible
for the tax and any interest or penalty due on the joint return, even if
you later divorce. In some cases, a spouse may be relieved of the
tax, interest, and penalties on a joint return. The Privacy Act of 1974 says that when we ask you for
You can ask for relief no matter how small the liability. information, we must first tell you our legal right to ask for the
information, why we are asking for it, and how it will be used.
Three types of relief are available. We must also tell you what could happen if you do not provide it
and whether or not you must respond under the law.
Innocent spouse relief - may apply to all joint filers;
Separation of liability - may apply to joint filers who This notice applies to tax returns and any papers filed with
are divorced, widowed, legally separated, or have not them. It also applies to any questions we need to ask you so we
lived together for the past 12 months; can complete, correct, or process your return; figure your tax;
and collect tax, interest, or penalties.
Equitable relief - applies to all joint filers.
Innocent spouse relief and separation of liability apply only Our legal right to ask for information is found in Internal
to items incorrectly reported on the return. If a spouse does Revenue Code sections 6001, 6011, and 6012(a), and their
not qualify for innocent spouse relief or separation of liability, regulations. They say that you must file a return or statement
the IRS may grant equitable relief.
with us for any tax you are liable for. Your response is manda-
Each type of relief is different and each has different tory under these sections.
requirements. You must file Form 8857, Request for
Innocent Spouse Relief, to request any of these methods of Code section 6109 and its regulations say that you must show
relief. Publication 971, Innocent Spouse Relief, explains your social security number or individual taxpayer identifica-
each type of relief, who may qualify, and how to request tion number on what you file. You must also fill in all parts of
relief.
the tax form that apply to you. This is so we know who you are,
and can process your return and papers. You do not have to
check the boxes for the Presidential Election Campaign Fund.
You Must Contact Us
We ask for tax return information to carry out the U.S. tax laws.
We need it to figure and collect the right amount of tax.
It is important that you contact us regarding any correspon-
dence you receive from us. If you do not pay your bill or
work out a payment plan, we are required by law to take We may give the information to the Department of Justice and
further collection actions. to other Federal agencies, as provided by law. We may also
give it to cities, states, the District of Columbia, and U.S.
Commonwealths or possessions to carry out their tax laws.
And we may give it to certain foreign governments under tax
What If You Believe Your Bill is treaties they have with the United States.

Wrong We may also disclose this information to Federal, state, or
local agencies that investigate or respond to acts or threats of
terrorism or participate in intelligence or counterintelligence
If you believe your bill is wrong, let us know as activities concerning terrorism.
soon as possible. Call the number on your
bill, write to the IRS office that sent you the
bill, call 1-800-829-1040 (for 1040 filers), If you do not file a return, do not give us the information we
1-800-829-4933 (for business filers), ask for, or provide fraudulent information, the law says that we
1-800-829-4059 /TDD, or visit your local IRS may have to charge you penalties and, in certain cases, subject
office. you to criminal prosecution. We may also have to disallow the
exemptions, exclusions, credits, deductions, or adjustments
To help us correct the problem, gather a copy of the bill along with shown on your tax return. This could make your tax higher or
copies of any records, tax returns, and canceled checks, etc., that delay any refund. Interest may also be charged.
will help us understand why you believe your bill is wrong.
Please keep this notice with your records. You may want to refer
If you write to us, tell us why you believe your bill is wrong. With to it if we ask you for other information. If you have questions
your letter, include copies of all the documents you gathered to about the rules for filing and giving information, please call or
explain your case. Please do not send original documents. If we visit any Internal Revenue Service office.
find you are correct, we will adjust your account and, if necessary,
send you a corrected bill.

PDF file checksum: 4294173143

(Plugin #1/7.24/11.3)