In addition, an important deadline for seeking innocent spouse relief is almost upon us. This article will present what you need to know to stay current on the innocent spouse rules, and to avoid getting stung by the pending deadline. First a brief review. The requesting spouse seeks relief in the manner prescribed by the IRS 3 within two years of the commencement of collection action against her. If the requesting spouse is divorced, widowed or separated, relief is even easier to obtain.
Any item giving rise to a deficiency is allocated to the appropriate spouse.
The election to separate the liability in this fashion must be filed within two years of the time the IRS begins collection action against the spouse seeking relief. From the above recitation of the rules, you have no doubt already spotted the deadline. The IRS Collection Division, of course, is out there taking enforcement action against somebody every day. She explains that for many years prior to her divorce from Rhett in 1996 they filed joint returns, and that the IRS assessed large deficiencies after determining that Rhett's plantation business was really a hobby farm. You put the file aside, planning to get back to it after taking care of all the 1999 1040s you extended to August 15th.