Innocent Spouse relief - Rev. Proc. 2013-34 equitable relief

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Updated Guidance Provided for Taxpayers Seeking Equitable Innocent Spouse Relief from Tax Liabilities (Rev. Proc. 2013-34),(Sep. 17, 2013)

The IRS has issued updated guidance for a taxpayer seeking equitable relief from income tax liability under Code Secs. 66(c) or 6015(f). This new procedure applies to spouses who request either equitable relief from joint and several liability under Code Sec. 6015(f), or equitable relief under Code Sec. 66(c) from income tax liability resulting from the operation of community property law. The procedures provides:

• the threshold requirements for any request for equitable relief;
• the conditions under which the IRS will make streamlined relief determinations granting equitable relief under Code Sec. 6015(f) from an understatement of income tax or an underpayment of income tax reported on a joint return, or the operation of community property law under Code Sec. 66(c); and
• a nonexclusive list of factors for consideration in determining whether relief should be granted under Code Sec. 6015(f) because it would be inequitable to hold a requesting spouse jointly and severally liable when the conditions for streamlined relief are not met (these factors also will apply in determining whether to relieve a spouse from income tax liability resulting from the operation of community property law under the equitable relief provision of Code Sec. 66(c)).

The new procedure is effective for requests for relief filed on or after September 16, 2013. In addition, the procedure is effective for requests for equitable relief pending on September 16, 2013, whether with the Service or in a case docketed with a federal court. Rev. Proc. 2003-61, 2003-2 CB 296, is superseded.

Rev. Proc. 2013-34, 2013FED ¶46,517

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