I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

Unfortunately, relationships can be far more complicated than we like. All too often marriages lead to divorce, and whether you see it coming, or you’re blindsided by the separation, the last thing you want to worry about are back tax issues.

Remember, you may be entitled to one of the three reliefs afforded to both current and former spouses of taxpayers that believe they should be shielded from the burden of a tax liability. Of the three:

3. Equitable relief under IRC Section 6015(f) is a provision that provides relief when it is determined to be inequitable to hold an individual liable for an unpaid tax or deficiency that is the responsibility of the non-requesting spouse. Under Section 6015(f), relief may be granted for tax liabilities correctly reported on the return (underpayments of tax), unlike Section 6015(b) or Section 6015 (c) which grant relief only for understatements of tax. The IRS looks at many factors when deciding whether to grant equitable relief, including the following:

• The couple filed a joint return.

• Relief is not available under Section 6015(b) or Section 6015 (c).

• The non-requesting spouse did not transfer assets to the requesting spouse as part of a scheme to defraud the IRS.

• The income tax liability is attributable to an item of the other spouse.

• The requesting spouse had no knowledge or reason to know that the other spouse would not pay the tax.

• The requesting spouse will suffer economic hardship if relief is not granted. It is worthy to note that there is no requirement to file a request under 6015(f) within two years of collection beginning. The IRS had previously taken the position that there was a two-year requirement but changed its position several years ago. In addition to the threshold conditions listed here, Revenue Procedure 2012-8 lists other factors that the IRS considers when making its determination to grant relief. These include:

• Marital status

• Economic hardship

• Knowledge or reason to know

• Non-requesting spouse’s legal obligation

• Significant benefit

• Compliance with income tax laws

• Physical or mental health

• Abuse and financial control by the other spouse

• Subsequent compliance

We would be happy to help, regardless of your situation. To get started with us, please contact us to arrange for a convenient time to discuss your specific situation.  We will handle your situation in a discreet and confidential manner.