Opinion ID: 1852360
Heading Depth: 1
Heading Rank: 4

Heading: Authority to Amend Filing Status.

Text: After receiving the tax assessment notices from the Department, Kathleen and Robert Clark sought to amend their joint tax returns to change their filing status to married filing separate. Although no statute in our tax code prohibits such an amendment, no statute permits it. The provisions of the code discussing the amendment of tax returns only pertain to claims for refunds or credits for overpayments due the taxpayer. See Iowa Code § 422.73(2) (discussing limitations periods for taxpayers to amend returns to claim income tax refund or credit); see also Iowa Admin. Code r. 70143.3 (1999) (discussing claims for refunds and corresponding statutes of limitations). Similarly, the administrative rule that requires filing amendments to tax returns applies when a taxpayer learns the amount of income reported to be federal net income or Iowa taxable income was erroneously stated on the Iowa return, or changed by an Internal Revenue Service audit, or otherwise .... Iowa Admin. Code r. 70139.3(4) (1997). It is clear neither the Code nor the administrative regulations contemplate the filing of amended returns by taxpayers to change filing status after the taxpayers have been jointly assessed taxes and penalties for the failure to report embezzled funds as income on a joint return. Moreover, there would be no legitimate purpose in amending the filing status under such circumstances. If the spouse is an innocent taxpayer, the amendment is unnecessary because there is no liability for the spouse based upon the joint return. [1] If the spouse is a culpable taxpayer, the amendment will not eliminate the culpability. We do not believe the legislature contemplated the amendment of tax returns to change the filing status as a means to insulate joint filers from joint liability for the contents of the return. The legislature provided for the amendment of returns in order to permit taxpayers to correct inaccuracies or inconsistencies, not to avoid tax liability. See Iowa Code § 422.73(2); Iowa Admin. Code r. 70139.3(4).