In: Accounting
Tax Audit & Notice Services: Requesting Innocent Spouse Relief (2019) Options
5 To be eligible for separation of liability, the taxpayer:
a Did not sign the return.
b Must be divorced, legally separated, or
has not lived with the spouse for the prior 12 months.
c Did not have any earned income.
d Must request relief before the IRS begins
collection activity.
The correct option is:
b. Must be divorced, legally separated, or has not lived with the spouse for the prior 12 months.
Explanation: Under section 6015(c), a claim for separation of liability can be filed if any of the three statutory requirements are met by the tax payer:
1. the person is no longer married ( widow/widower),
2. spouses are legally separated,
3. Prior to the date of filing a claim, they are living apart for at least 12months. Livng apart does not include temporary absence due to illness, vacation, education, etc.