IRS re-examining innocent spouse rule after woman wins her case
The "innocent spouse" rule implemented by the Internal Revenue Service is supposed to benefit in-the-dark spouses from being liable for their partner's taxes, but one woman found out things aren't always as they appear.
The "innocent spouse" rule implemented by the Internal Revenue Service is supposed to benefit in-the-dark spouses from being liable for their partner's taxes, but one woman found out things aren't always as they appear.
According to an article published by USA Today, Valarie Stephenson filed for divorce from her husband in 2008 and shortly after was notified by the IRS that she was responsible for the $66,000 in unpaid income taxes from a joint tax return dating back to 1999.
Stephenson applied for relief under the innocent spouse rule and, after an appeal, won her case. This has kick-started a debate regarding the effectiveness of the innocent spouse rule, with the IRS noting the need for taking a second look at the rule.
"We are seeing from our review so far that clearly our procedures need to be improved in this area," said Terry Lemons, IRS spokesman.
The IRS is also dealing with a spike in stolen identities affecting tax payers, with the recent announcement that 248,357 identities were reported stolen in 2010, up from 51,702 in 2008, according to the Government Accountability Office.
Related Articles
- Internal Revenue Service shows improvement in compliant pension plans -- The Internal Revenue Service is continuing to tweak its procedures and how it handles the tax code while it continues to battle the war on income taxes and those who attempt to defraud the federal government.
- Japanese couple operating California restaurant get second chance on tax charges -- A case that started with a false statement of income taxes has turned into a significant court ruling that affects immigrants everywhere.
- New York passes legislation to crack down on state income tax evasion -- A loophole in New York tax law has been sealed shut with new legislation that aims to eliminate white collar crime and those who attempt to evade filing returns on their income taxes, according to a Reuters report.
These articles are all written by TaxLawHome.com's great editors and contributors. If you would like to write articles for TaxLawHome.com, please email editor[at]taxlawhome.com.
- Back Taxes
- Wage Ganishments
- IRS Settlement
- Tax Settlement in your State
- Tax Professionals
- Tax Law Blog
- Tax Law News
- Wisconsin State Income Tax Overview
- Maryland State Income Tax Overview
- Missouri State Income Tax Overview
- California man charged with tax evasion after creating internet start-up scam 07/11/2011
- Internal Revenue Service warns of tax fraud committed via email 07/11/2011
- Employees of a Gary, Indiana, tax preparation company charged with alleged tax fraud 07/11/2011
- Atlanta man sentenced to prison for stealing identities, filing false tax returns 07/08/2011
- East Bay prison inmate charged in tax fraud scheme, receives more prison time 07/08/2011
=== More Tax News ===
- Home
- Back Taxes
- Tax Liens
- IRS Settlement
- IRS Installment Plan
- Wage Garnishment
- OIC
- Tax Professionals
- Tax Blog
ATTORNEY ADVERTISEMENT NOTICE: TaxLawHome.com is a pooled advertisement. TaxLawHome.com is not a lawyer referral service. Subscribers appearing on TaxLawHome.com have paid an online advertising fee. Use of this Service is not intended to and does not create an attorney-client relationship between a Subscriber and any Requestor. TaxLawHome.com is not a law firm. The information contained on TaxLawHome.com is not legal advice. The subscribers listed do not in any way constitute a referral or endorsement by this website.
Copyright 2012 LeadRival.com.All Rights Reserved