New Rule for Innocent Spouse Relief
The IRS announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests. After a thorough review:
- The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.
- A taxpayer, whose equitable relief request was previously denied solely due to the two-year limit, may reapply using IRS Form 8857 Request for Innocent Spouse Relief, if the collection statute of limitations for the tax years involved has not expired.
- The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances.
For more information, see:
- Publication 971, Innocent Spouse Relief
- News Release IR-2011-80
- Notice 2011-70
- Frequently Asked Questions