IRS Opts to Permanently Ease Restrictions for Innocent Spouse Tax Relief

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With the extension of the limit for the application of an Innocent Spouse Tax Relief, the IRS provides convenience for couples who are going through a separation. Perfect Tax offers sound advice on the process based on the new proposals by the IRS.

Solving tax issues at affordable prices.

Perfect Tax offers strategies in order to help taxpayers deal with concerns on the process of applying for an Innocent Spouse Relief.

In 2011, the IRS has since stated that the two-year limit for the processing of the Innocent Spouse Relief would no longer apply. It was 10 years, although during such time, was only temporary. This was good news to those who had been or are being abused by their spouses.

In the IRS Publication 971, it had been expressed that, "Generally, the IRS has 10 years from the date the tax liability was assessed to collect the tax."

Also, according to the IRS website, the IRS "... will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency." (, New Rule for Innocent Spouse Relief, May 2, 2013)

Read more about the extension here.

This means that the IRS has now loosened the general restrictions for filing by permanently imposing the extension, which will benefit spouses which have been subjected to abuses.

The service stated that:

"Abuse comes in many forms and can include physical, psychological, sexual, or emotional abuse, including efforts to control, isolate, humiliate and intimidate the requesting spouse, or to undermine the requesting spouse’s ability to reason independently and be able to do what is required under the tax laws. All the facts and circumstances are considered in determining whether a requesting spouse was abused." (Internal Revenue Bulletin, January 23, 2012)

Aside from the extension being made permanent, part of the easing process would prohibit the IRS from collecting—or rather—demanding unpaid amounts while taxpayers are processing their application for a Spouse Relief.

Every year, over 50,000 taxpayers apply for the relief. Considering the huge number, it is a logical move that the IRS extends the limit to a decade.

A legislation has been issued which will implement the proposals accordingly, although the IRS is still allowing public comments to gather feedback before finalizing things.

Perfect Tax offers strategies in order to help taxpayers deal with concerns on the process of applying for an Innocent Spouse Relief. (Global Tax News, August 15, 2013)

Click here to visit the Perfect Tax website.

The firm affords unique guarantees for all services, such as a 200% money back assurance for error of law point--if any--in tax planning and a 125% money back if all other CPAs are able to lawfully reduce even down to $1 in tax worked out by the organization.

Contact Perfect Tax by emailing info(at)helpfortax(dot)com or by calling 469-828-0829 for more details.

Also, visit the Perfect Tax Facebook page for additional information.

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Sam Thakkar
Perfect Tax
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