Detail How Innocent Spouses Spell Relief ?   Oleh:  Bryant, Jeffrey J. ; Fleischman, Gary M. Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 189 no. 3 (2000), page 63. Topik: spouses; innocent spouses; relief Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.10 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel Many tax payers don’t understand the profound consequences of signing their names to tax documents. Although signing a joint income tax return can lower a married couple’s tax obligation, joint and several liability can turn this advantage into a nightmare if one spouse omits income or claims fraudulent deductions. Joint and several liability obligates each spouse to individually pay the entire tax on a joint return. This means both spouses are fully responsible for the accuracy of a joint return, even if one spouse acts in bad faith. After hearing testimony from witnesses who had suffered the consequences of their spouses’ tax excesses, Congress expanded the ability of taxpayers to claim the innocent spouse defense to avoid paying tax obligations their mates created. The Internal Revenue Service Restructuring and Reform Act of 1998 amended existing law, effective after July 22, 1998, so that aggrieved spouses now have three options : An augmented traditional innocent spouse defense against joint and several liability. A new separate liability election for recently divorced or separated tax payers. Discretionary equitable relief from unpaid taxes reported on a return or any other tax deficiency. The expanded legislation requires the IRS to establish procedures to alert taxpayers to the gravity of the joint and several liability their signatures impose. In response, the agency added an explanation of a spouse’s rights and responsibilities to IRS Publication 1, Your Rights as a Taxpayer, in a new section titled “innocent spouse relief.” The IRS is also required to alert married taxpayers to their individual liability for the total tax, interest and penalties on collection notices the agency sends to taxpayers. Congress also envisions that tax forms will clearly point taxpayers to statements explaining their liability. While revised rules broaden the opportunity for innocent parties to avoid their spouses’ tax problems, they also complicate the job of CPAs who advise married clients. With the new law, nearly everyone who prepares joint income tax returns and advises married clients on tax matters must be aware of the innocent spouse defense options and understand their tax compliance implications. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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