Letter 4988C is a preliminary determination. It tells the requesting spouse, the person who filed Form 8857, that the IRS intends to deny the request for innocent spouse relief. Its title is "Requesting Spouse Preliminary Determination Letter on Disallowed Innocent Spouse Claims." On innocent spouse claims worked by IRS Examination, a similar Letter 4988 is used.
This is not the final decision. The letter explains why relief was denied under each relief provision the IRS considered, and it gives you appeal rights. The IRS also sends a preliminary letter to the other spouse. When relief is denied, you have appeal rights. The other spouse does not.
The IRS also uses this letter when it determines that the person you filed with did not agree to file a joint return. In that case the letter explains that finding, and your account may be adjusted.
For most innocent spouse determinations made on or after March 4, 2019, the IRS's centralized innocent spouse unit uses Letter 3661-C instead. You may still see Letter 4988C or Letter 4988.
What to Do
- Read every reason the IRS gives. Compare it with the facts you reported on Form 8857.
- If you disagree, file a written appeal within 30 days of the date on the letter. Follow the letter's instructions. Explain which findings are wrong and why, and include documents that support your account of what happened.
- If you agree, you don't need to respond. The IRS will issue a final determination.
- Use certified mail and keep copies of everything.
Tax Court Rights
If the IRS issues a final determination denying relief, that letter explains your right to petition the U.S. Tax Court. You will have 90 days from the date of the final determination letter to file. Missing the 30-day appeal window doesn't take away your Tax Court rights, but you lose the chance to have the IRS Independent Office of Appeals review the case first.
If the IRS is denying your innocent spouse request, call us at (813) 229-7100.