IRS Extends Time for Innocent Spoue Relief
The IRS in Notice 2011-70 has extended the time that an innocent spouse can request equitable relief from the current two year limitation to the amount time remaining under the statute of limitations for collection procedures. This is a very nice change from the IRS since they had recently won a couple of court cases mandating that the two year period was valid.
I believe that the IRS realized that there were many cases where a spouse had been wronged in the filing of income taxes and extending the time period was not just warranted, but good policy. The innocent spouse provisions allow a spouse whose husband or wife has filed a joint tax return with major errors or other issues to get equitable relief. With out the innocent spouse provisions, by signing a joint return, the innocent spouse would be subject to paying taxes, interest and penalties that were really the other spouse’s responsibility.
These provisions allow the innocent spouse to request relief from these taxes, interest and penalties. This is a good change.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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