Innocent Spouse Flashcards
What is Innocent Spouse Relief, and under which IRC section is it provided?
Innocent Spouse Relief provides a spouse relief from liability for additional tax, interest, and penalties if the other spouse erroneously understated tax liability on a joint return. It is provided under IRC § 6015.
What are the three types of relief under IRC § 6015, and when can they be requested?
The three types are Innocent Spouse Relief (§ 6015(b)), Separation of Liability Relief (§ 6015(c)), and Equitable Relief (§ 6015(f)). They must be requested within 2 years of the IRS’s first collection activity (except for Equitable Relief, which has different timing requirements).
What are the requirements for Innocent Spouse Relief under IRC § 6015(b)?
Requirements include filing a joint return, an understatement of tax due to erroneous items, lack of knowledge or reason to know of the understatement, and it must be inequitable to hold the spouse liable.
How does Separation of Liability Relief under IRC § 6015(c) allocate tax liability?
This relief allocates the understatement between spouses based on who is responsible for the erroneous item. Only the allocated amount is subject to relief.
What are the eligibility criteria for Equitable Relief under IRC § 6015(f)?
Equitable Relief is available if relief is not available under other provisions and if it would be inequitable to hold the spouse liable considering all facts and circumstances.
What form is used to apply for Innocent Spouse Relief?
Form 8857, Request for Innocent Spouse Relief, is used to apply for any of the three types of relief.
What Revenue Procedure governs the procedural requirements for requesting Equitable Relief under IRC § 6015(f)?
Revenue Procedure 2013-34 outlines the procedures and requirements for requesting Equitable Relief under § 6015(f).
How does the Tax Court review the IRS’s determination concerning Innocent Spouse Relief under IRC § 6015(e)?
The Tax Court conducts a de novo review of the IRS’s determination, considering the administrative record and any new evidence presented.
What role does knowledge or reason to know play in determining eligibility for Innocent Spouse Relief?
Knowledge or reason to know of the understatement is crucial in assessing whether it is inequitable to hold the spouse liable. Lack of knowledge or reason to know is generally a requirement for relief under § 6015(b).
What are the essential factors considered in granting Equitable Relief under Revenue Procedure 2013-34?
Factors include marital status, economic hardship, compliance with income tax laws, knowledge or reason to know, legal obligations, and health. No single factor is determinative.
