The LTR 3657C is sent to the non-requesting spouse when the other spouse files for innocent spouse relief under IRC Section 6015. If your spouse or ex-spouse is claiming they shouldn't be liable for tax from a joint return you filed together, the IRS is required to notify you and give you the opportunity to participate in the process.
What It Means for You
If innocent spouse relief is granted, your spouse is released from liability for the tax attributable to erroneous items on the joint return. The full remaining liability shifts to you. This can significantly increase your personal tax obligation.
Your Right to Participate
You have the right to submit information and documentation supporting your position. You can argue that the requesting spouse knew about the erroneous items, that they benefited from the understatement, or that the facts don't support relief. Your input is considered by the IRS in making the determination.
If Relief Is Granted
You can appeal the determination to the IRS Office of Appeals. The determination is also subject to Tax Court review. If you disagree with the outcome, exercise your appeal rights within the stated deadlines.
Get Representation
Innocent spouse cases involve competing interests between two taxpayers. Having your own representative ensures your position is adequately presented and your rights are protected throughout the process.
If you received an LTR 3657C, call us at (813) 229-7100.