Two-Year Limit For Innocent Spouse Relief Removed in 2011

 Innocent Spouse Relief: Removing The 2 Year Limit.

by Lori J Latimer - earthenwarehaven@gmail all rights reserved.

There are some cases and circumstances where a 2 year limit may apply. To make sure, either contact a tax professional, or go to http://www.irs.gov/Individuals/New-Rule-for-Innocent-Spouse-Relief (Innocent Spouse Page of www.irs.gov link) 

The Internal Revenue Service recognizes the difficulty for some Innocent Spouses to claim this relief from the tax / legal / credit due to their marital circumstances. 

A hearty Thank You goes out to members of Congress, the Department of Justice, The Internal Revenue Service for changing the two-year limit. 

So often people and families face life-changing events that impact them emotionally. Unknown to the general public, domestic abuse, missing children, absent adults, death and murder can have be jarring for the taxpayer as well. 

Some spouses are unable to claim Innocence against a criminal or abuser, because to do so will have dire consequences. In the past, an Innocent Spouse who may be in hiding, missing or under the power of another only had a two-year window of time to claim the Innocent Spouse relief. That has changed to take these type of circumstances into consideration.

Publication 971 - Innocent Spouse Relief - IRS Pub . GOV Link

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What's up with Grizzly Bear Tax Care?

For many years, the majority of my winters and early springs were spent locked into a co-dependency between tax preparer, and tax payer. Each April I would leave "tax season" exhausted. 

Now I understand the Grizzly better. The need to rest is because whatever the Bear does, she does with energy purpose and exactitude. 

As she ages, the Grizzly realizes she must take care of herself too, and choosing the battles we help others fight become based on true urgency rather than stress and adrenaline of almost every tax payer.

This Grizzly Bear has been on a very long winters nap. My hibernation clock did not go off, and the cave was nice and warm. 

Hunger has finally awakened me. 

IRS offers new Interactive tax assistant, new free search for tax law questions

IRS offers new Interactive Tax Assistant, new free search for Tax Law questions, and offers a down-loadable copy of your research!

The Internal Revenue Website (IRS), has always had an excellent search box, located on the upper right hand corner of the IRS website, within their own site for individuals, tax professionals, and Tax Law practitioners  , The Interactive Tax Assistant is a Tax Law Resource tool that goes beyond a simple How To Search. This is geared more toward the Tax Professional, Tax Lawyer, CPA, Enrolled Agent, and possibly IRS staff could make use of this friendly tool. 

This new toy for the Tax People among us. Us nerds, who wait anxiously, during February to get our ink-stained, paper-cut fingers, on the new Publication 17. (It is easily accessible on the www. IRS.gov website, and down-loadable in PDF format today. The Pub 17 as it is loving called is still available in paper, and on disc too) 

When Congress completes creating Tax Law Changes for the prior and upcoming tax years, it is when Tax Professionals come to life. Like bats in a cave, sleeping during the day, it appears there is not even a heartbeat among them. April 15, hails the end of the tax season. There are the extension filers and trouble cases that go through a good part of the year, but then it settles down to a mere trickle. Then, the second week of February comes, and it is on.


Then, the sounding bell rings through Tax-dom, "Congress has recessed, Congress has recessed, we may begin filing!"


The madness begins, and with many new tax law changes during this historical 2010-2011 session, we are seeing many breaks for businesses who withhold and match FICA for employees. Employees themselves are getting big relief. It is a huge break across the board. 


This year Tax Professionals will be held responsible for collecting and verifying every legal deduction taken. In years past, a CPA, or Tax preparer could have relied on the, "assume they are telling the truth rule", but so many Tax Professionals helped their clients fudge, that new rules came into affect.

The Interactive Tax Assistant tool, from the IRS, offers an easy and reliable source of research, that can take the pressure off of the Tax Pro, while assisting the Taxpayer/Client in having their books, K-1's, LLC's, Estate Tax Changes, and more. There are many US Taxpayers who have been able to bully an accountant, or preparer into doing his will, more than what the Tax Code says. This takes the pressure off. 


Another benefit that can be seen with this tool, are for a client's benefit. While preparing the books of a Company, Partnership, LLC or any other entity, if there are deductions or credits that are "red flags" or often get audited, while the Tax Pro knows this a legitimate expense or claim, this would appear to be a very helpful tool. 

When pre-answering questions that may be asked in an Audit or a Letter from the IRS, requesting more information in a tax matter this could be a time and worry saver all the way around. 


This blog has always been at the basic level, and on a higher professional level there are probably many other ways this tool can be implemented. 


Review of Tool - 

• Search must be by legal language or positioning phrases of Tax code or law.

I had a legal question that I needed to know for a close friend. It was in regards to the taxability of   an insurance settlement of an Estate of a Deceased descendant. 

On my first try, I used the standard Search criteria used for Google searches. 

Q. Is income from an Estate settlement taxable?

A. Came up with the topic of Income types, statuses; the basics of Income definition as they are applied to status, etc.

My next step, was to search closer to the subject, using regular search methods.

Q. Taxable Income from an Estate settlement.

A. Again, I got types of income, and a few other partially related topics.

Then, I asked in the wording used in Tax Code.

Q. Estate, taxes, settlements

A. Estate information came up the first time, When I returned to redo my process for this blog post, only standard information for types of income came up, but it quickly linked me to the information I was seeking.

The IRS has advanced with technology, and is helping taxpayer, take more responsibility in their taxes, while offering more tools for a subject, that makes the standard non-tax-nerd, roll their eyes to the back of their head, and leave. Way to go y'all. Thanks for making it a little easier.

Taxpayers who itemize, can file on Valentines Day, sweet

Wondering if this will delay kisses and hugs sent on-line on this very romantic holiday?
<3  ~ * ~   <3
There is a one day reprieve. Those who fill out the "long form" or itemize their US Federal Tax return will be able to file one day earlier than previously announced. Perhaps all of those loving and romantic Congresspersons, and Senators, would like to make it home in time to pour out their love and compassion on their Significant Other's. The majority are so loving, and filled with compassion, it would not be a surprise to see a new National Holiday! Don't call it tax day any longer, call it Love Day. Make this a tradition, so this time of tax reckoning will become a giant love fest! Thank you Representatives and Senators for putting the American majority in mind. Thank you for always putting the majority of your constituents first. Wow, I feel like playing the Star Spangled Banner! 

Go to www.irs.gov for the most up to date announcements, or come back anytime.