NEW INNOCENT SPOUSE GUIDELINES ISSUED

The IRS recently issued important new guidelines for innocent spouse relief under IRC section 6015 to override prior guidelines under Rev. Proc. 2001-61.  The new guidelines, issued under Notice 2012-8, liberalize innocent spouse treatment where factors such as spousal abuse and excessive control of finances and financial information by the non-requesting spouse exist.  Additionally, an objective standard is adopted to determine whether the requesting spouse will suffer economic hardship, and guidelines as to the weight of the factors to consider are provided.  Moreover, the new guidelines provide for more streamlined review of innocent spouse cases, and for reconsideration of pending cases on the Tax Court docket which are not yet scheduled for trial in which equitable relief under IRC Section 6015(f) is at issue.

These new guidelines are effective immediately pending the finalization of the new proposed revenue procedure.  For any questions, please do not hesitate to contact Curtis Elliott at 704-372-6322.

Fourth Circuit Upholds 2 Year Statute of Limiations in Innocent Spouse Cases

The Fourth Circuit Court of Appeals has held in Octavia Jones v. Commissioner, No. 10-1985 (June 13, 2011) that the 2 year statute of limitations regulation asserted by the IRS in innocent spouse cases is valid for purposes of innnocent spouse equitable relief and that innocent spouse claims asserted after the 2 year period of initial collection activity by the IRS are time barred.  This reflects a split in the Circuits and the issue may be ripe for resolution by the U.S. Supreme Court.

For a copy of the case, please contact Curtis Elliott at Culp Elliott & Carpenter, PLLC, Charlotte, NC.  Our web site is http:www.ceclaw.com