IRS Adopts Tax Law Change to Help Innocent Spouses in PA
Posted by Jason Martin, Esq. on Fri, Aug 12, 2011
The Internal Revenue Service (IRS) has announced that it has implemented a policy change to benefit individuals seeking relief under the “innocent-spouse” rule in Pennsylvania and across the U.S. The “innocent-spouse” rule permits taxpayers to seek relief from their spouse’s tax debts, even if they filed a joint return. In the past, an innocent spouse had a window of two years after the first collection notices sent by the IRS to claim protection from liability as an innocent spouse. Effective immediately, the IRS has eliminated the two-year deadline for taxpayers who seek innocent-spouse status under the “equitable relief” provision, often sought by taxpayers who were victims of domestic abuse.
In order to attain innocent-spouse relief successfully, a taxpayer must prove to the IRS that they did not know or have reason to know that their spouse underpaid income taxes. The IRS also considers other factors, including the taxpayer’s level of education and the financial situation of the married couple in question.
The IRS rule change will apply to current and past cases, and the IRS is encouraging taxpayers who have been denied relief based on the old two-year deadline to reapply. The IRS is making an effort to be as flexible as possible in this regard. The change will also apply to cases that are pending before the IRS.
Tax and family law issues can be very complex and often require the assistance of experienced counsel. The Martin Law Firm is a Blue, Bell, Montgomery County, PA law firm that assists families and individuals throughout Pennsylvania with tax planning strategies, estate planning, and family law issues. Contact The Martin Law Firm today for a free consultation.
Jason Martin, Esq. is an experienced PA estate planning attorney serving residents of Norristown, Lansdale, Blue Bell, King of Prussia and the rest of Montgomery County. The Martin Law Firm, located in Blue Bell, PA, also regularly assists personal representatives and executors with the Pennsylvania probate process and other estate administration matters. Contact The Martin Law Firm today for a free consultation.