- Instructor: Attorney Bob Schaller
- Lectures: 12
- Quizzes: 1
Separation of Liability Relief.
Congress has authorized “Separation of Liability Relief” for qualifying spouses to relieve them from certain joint and several tax liability related to a tax “deficiency.” 26 U.S.C. § 6015(c). The Tax Code defines “deficiency,” generally, as the amount by which the tax imposed by IRS Subtitle A (income taxes) exceeds the tax amount shown on the taxpayer’s IRS Form 1040 return. 26 U.S.C. § 6211(a). The procedures to separate liability are set forth in 26 U.S.C. § 6015(c) and Rev. Proc. 2013-34.
Condition 1: Timely Filed Election
Condition 2: Joint Tax Return
Condition 3: Marital Status
Burden of Proof: Requesting Spouse
One Spouse Attributed to Erroneous Item
Both Spouses Attributed to Erroneous Item
IRS 7 Steps to Allocate Understatements
Limitations on Relief: General
Limitations on Relief - Actual Knowledge
Limitations on Relief - Transfer of Property to Avoid Tax