IRS Removes Two-Year Limit on Equitable Innocent Spouse Relief

For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Bowing to pressure from lawmakers and the taxpayer advocate, IRS announces a switch in policy, eliminating the two-year time limit on certain new and existing innocent spouse relief requests. IRS will no longer apply the two-year limit to new equitable relief requests, or requests currently being considered by the agency, IRS says in Notice 2011-70. Instead the service will consider requests for equitable relief under tax code Section 6015(f) if the period of limitation on collection of taxes provided by Section 6502 remains open for the tax years at issue. IRS Commissioner Shulman says it had become clear in recent months that significant changes were needed.

Request Daily Tax Report