Example:

The taxpayer’s current year refund was applied to a balance owed for a prior year. The taxpayer submits Form 14039 stating they are a victim of identity theft, because they didn’t file a return for the year the refund was applied to and should not have a balance due. Through research, you determine the taxpayer is not a victim of identity theft. The balance owed is the result of an ASFR assessment made for income earned by the taxpayer. The identity theft case is closed, but the compliance issue remains. The closing letter must include the phone number the taxpayer may call for more information about the ASFR assessment.

On cases filed as married filing jointly (MFJ), the closing Letter 4674C should be addressed to both taxpayers when the CII case is assigned under the primary TIN. A disclosure issue does not exist when the letter is addressed to both taxpayers. If the valid return was filed MFJ and the CII case is assigned under the secondary taxpayer’s TIN, the letter will be issued from the secondary account and may include both taxpayers’ names. Refer to the table below for potential case scenarios:

IF

AND

THEN

Filing Status is MFJ for the impacted tax year,

Primary TP is the victim of IDT,ORThe primary and secondary taxpayers are both victims of IDT,ANDThe CII case is assigned under the primary TP’s TIN,

There is no disclosure issue.

The closing letter will be issued from the primary TP’s entity. The secondary TP’s name can be included.