October 20, 1998
IRS Seeks Comment on Draft Form for Innocent Spouse Relief
WASHINGTON - The Internal Revenue Service is requesting
comments on a draft form to be used by taxpayers seeking innocent
spouse relief under the expanded provisions of this summer's IRS
Restructuring and Reform Act. The IRS set a comment deadline of
November 30, with the aim of finalizing the form by year's end.
"Implementation of the new innocent spouse provision is one of
my top priorities," said IRS Commissioner Charles 0. Rossotti. "The
taxpayers affected by this change in the law have been among the
nation's most vulnerable and will benefit significantly from the
enhanced relief provided to them in the Restructuring legislation.
To that end, we are working hard to provide assistance to permit
those taxpayers to take advantage of that relief,"
When a married couple files a tax return jointly, each spouse is
fully liable for any taxes owed, including any additional
assessments that may result after an audit. In some situations,
however, the law provides relief for a spouse who did not know about
the transactions that resulted in the tax.
The IRS Restructuring Act eased the existing requirements for
"innocent spouses" to get relief from tax liabilities where the IRS
has assessed additional tax. In addition, the law now allows certain
divorced or separated spouses to elect separate liability on
additional assessments of tax -- which means that taxpayers may
allocate the tax according to each person's share of the items at
issue.
The new law also permits the IRS to grant equitable relief in
certain cases where the spouse does not qualify for relief under the
expanded innocent spouse or separate liability provisions. Such a
situation might arise when one spouse did not know, and had no
reason to know, that the other spouse took the money intended for
paying the tax and used it for his or her own benefit instead.
Earlier this year, the IRS introduced Form 8857, "Request for
Innocent Spouse Relief," to assist taxpayers seeking relief under
the old law. The IRS has revised this form to reflect the expanded
relief available and invites public comment on this draft form until
November 30. The draft form will be available in the Tax
Professional's Corner of the IRS Web site at www.irs.ustreas.gov and
will be published in the Internal Revenue Bulletin 1998-44, dated
November 2, as Announcement 98-95. Interested persons may send
comments by mail to Chairman, Tax Forms Coordinating Committee, I
RS, OP: FS: FP, Room 5577, 1111 Constitution Ave., NW, Washington,
DC, 20224, or by fax to 202-622-5025, or by e-mail to
ffpmaii@publish.no.irs.gov.
The IRS has already taken several steps toward implementing the
new law's relief provisions, including:
suspending collection action in regard to an individual who
files an innocent spouse claim or requests innocent spouse
relief from an IRS employee;
automatically considering whether a person qualifies for
equitable relief if the person does not qualify for innocent
spouse relief or for separation of liability;
holding equitable relief claims in suspense until it issues
guidelines for handling them; and
issuing Notice 1213 as an interim measure to assist people
in using the current Form 8857 to request relief.
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