IRS Updates Procedures for Granting of Innocent Spouse Relief

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IRS proposes an update to its revenue procedures regarding innocent spouse relief that will expand how the service will take into account abuse and financial control by the nonrequesting spouse in determining whether relief is warranted. A notice proposing the new revenue procedure says it revises the threshold requirements for requesting equitable relief and revises the factors used by the service in evaluating those requests. National Taxpayer Advocate Olson commends IRS for the proposed changes, telling BNA, “Particularly for taxpayers who have been victims of domestic violence or abuse, or who are facing economic hardship, the proposed changes will provide much-needed relief. I look forward to continued collaboration with the IRS as it finalizes and implements these new procedures.”