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Why request Innocent
Spouse Relief? Many married taxpayers choose to file a joint tax
return because of certain benefits this filing status allows. Both
taxpayers are jointly and individually responsible for the tax and any
interest or penalty due on the joint return even if they later divorce.
This is true even if a divorce decree states that a former spouse will be
responsible for any amounts due on previously filed joint returns. One
spouse may be held responsible for all the tax due.
The Internal Revenue Code allows for relief
from certain joint tax liabilities for divorced persons if it can be shown
that the delinquency was caused by "erroneous" information
provided by the other spouse. To qualify for innocent spouse relief,
the following conditions must be established:
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A joint
return was filed for the year relief is requested.
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There is an
understatement of tax attributable to erroneous items
of one individual filing the return.
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The spouse did
not know and had no reason to know of the understatement.
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It would be
inequitable to hold the person liable for the
deficiency considering all the facts and circumstances.
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The spouse elects
the benefits of this provision before expiration of two
years after collection action begins.
The IRS
Restructuring and Reform Act of 1998 expanded the law with respect to
relief from joint and several liability. Internal Revenue Code
Section 6015 was enacted to make relief from joint and several liability
easier to obtain. There are now three kinds of relief available:
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Innocent
Spouse relief - IRC Sec. 6015(b)
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Election to
allocate a deficiency - IRC Sec. 6015(c)
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Equitable
relief - IRC Sec. 6015(f) & 66(c)
Internal Revenue
Code Section 6015 is effective for the following:
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Unpaid
balances as of July 22, 1998 and
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Liabilities
arising after July 22, 1998.
Internal Revenue
Code Section 6015(e) was added to enable taxpayers to petition the United
States Tax Court to review denials of Innocent Spouse relief.
Get immediate tax help by
contacting us toll free at 877-426-3121
for a Free Consultation. Or by using our on-line Free
Consultation Request form for a confidential tax analysis.
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