IRS Innocent Spouse Protection
Tax Help Hawaii will not rule out any of your options.
Tell us “YOUR STORY”. Where, What, When and how it happened? The most important aspect of an Innocent Spouse Petition is bringing your story to the IRS in a compelling manner.
Tax Help Hawaii will be your most aggressive tax settlement advocate.
An individual will be relieved of liability for income tax (including interest, penalties and other amounts) for a tax year to the extent the tax liability is attributable to an understatement (understatement and tax deficiency are synonymous) described below:
• A joint return was filed. Relief is not available under §6015(b) or §6015(c).
• The requesting spouse applies for relief no later than two years after the date of the first collection action against her after July 22, 1998.
• The liability remains unpaid (except that a refund will be considered for payments made after July 22, 1998, and before April 15, 1999).
• No assets were transferred between the spouses as part of a fraudulent scheme.
• No disqualified assets were transferred to the requesting spouse by the non-requesting spouse.
• The requesting spouse did not file the return in question with fraudulent intent.
• Even if these threshold conditions are met, of course, it must still be shown that holding the requesting spouse liable would be “inequitable.”
The new IRS innocent spouse rules are a vast improvement over the situation prior to the enactment of the IRS Restructuring and Reform Act of 1998. The IRS, however, has taken every opportunity to interpret the new rules as narrowly as possible. This is especially true of the “equitable” tax relief provisions of §6015(f).
In the face of this administrative reluctance to allow innocent spousal tax relief the successful and timely assertion of an innocent spouse claim requires creativity, diligence, and a complete understanding of the Code and the IRS’s implementing pronouncements.