EQUITABLE RELIEF

 The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests. What this means is that a married couple who filed a joint tax return both are liable for 50% of the tax due unless one does not pay then the other is liable for 100%. This usually happens in a year involving a divorce.

Equitable Relief Under Section 6015(f ) allows for equitable relief of taxes owed when a spouse files a joint tax return and relief is not available under Section 6015(b) or (c). However there was a two year deadline to request equitable relief of taxes under subsection (f).

Even though the courts have upheld the validity of the two-year deadline to request equitable tax relief the IRS launched a thorough review of the equitable relief provisions and issued Notice 2011-70 which eliminates the two-year deadline.

"In recent months, it's became clear to me that we need to make significant changes involving innocent spouse relief" said IRS Commissioner Doug Shulman.

Comments

Popular posts from this blog

Early Results from Focused Efforts on High Income Tax Cheats

Protect Yourself from Threats

The IRS Focuses on High Income Tax Cheats