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IRS Relents on Two-Year Limit on Innocent Spouse Equitable Relief - Emil Estafanous, CPA : Emil Estafanous, CPA

IRS Relents on Two-Year Limit on Innocent Spouse Equitable Relief

After winning appeals in 3 sovereign circuit courts of a two-year extent for requesting estimable trusting associate relief, a IRS pronounced on Jul 25 it will no longer observe that deadline.

In Notice 2011-70, a IRS pronounced it will now cruise taxpayer requests for estimable service from corner and several guilt underneath Sec. 6015(f) during any time if a reduction duration for collection of taxes underneath Sec. 6502 stays open for a taxation years during emanate (generally, 10 years after an assessment). If a taxpayer is seeking a reinstate as partial of a request, a reduction duration on credits or refunds underneath Sec. 6511 governs (generally, 3 years).

In a series of cases, taxpayers have been denied estimable trusting associate service only since a ask was not timely. The Tax Court has announced a two-year limit, imposed by Regs. Sec. 1.6015(f)-5(b)(1), invalid, though a Seventh, Third and, many recently, a Fourth Circuit Courts of Appeals have overruled a Tax Court and inspected a IRS’ management to levy a two-year extent (respectively, Lantz, 607 F.3d 479; Mannella, 631 F.3d 115; and Jones, 642 F.3d 459). In Apr 2011, members of Congress wrote IRS Commissioner Doug Shulman to titillate a Service to correct a regulation.

On Jul 25, a IRS pronounced it will do only that. In a interim, until a regulations are revised and a extent is rigourously removed, a IRS supposing transitory manners for requesting service or solution cases now in litigation.

Requests Pending with a IRS

For requests already submitted (normally, by filing Form 8857, Request for Innocent Spouse Relief) though not nonetheless ruled on by a Service, taxpayers should not reapply. The IRS will cruise a ask even if it was submitted some-more than dual years after a initial collection activity was undertaken, if it is within a other germane reduction durations noted.

Requests Denied Solely for Untimeliness

Taxpayers might reapply for estimable service if their requests were denied only since they done a ask some-more than dual years after a initial collection activity and a box has not been litigated. If a ask involves a explain for reinstate or credit, a IRS will use a date of a strange ask for that purpose.

Requests in Litigation

For cases now before a court, a supervision will “take suitable movement unchanging with a position” announced in a notice per any issues of timely filing of a ask underneath Sec. 6015(f).

Requests for Which Litigation Is Final

If, in a justice box that is final, a IRS stipulated that a ask for service underneath Sec. 6015(f) would have been postulated solely for a timely acquiescence issue, a IRS will take no serve collection activity after Jul 25, 2011, a effective date of a notice. No refunds or credits are available, however, for prior collections.

Future Requests

Requests for estimable service underneath Sec. 6015(f) filed after Jul 25 will be deliberate unchanging with a other reduction durations remarkable above though but courtesy to when collection activity began.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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