IRS Innocent Spouse Relief does not Abate Tax – Paul Gaulkin CPA

MarshmellowWhen a taxpayer applies for innocent spouse relief, they are not actually applying to have the tax liability abated; rather, they are applying to have the tax liability reduced to zero to prevent the IRS from pursuing collection activities against them.

Innocent Spouse Relief

This is an important distinction because the IRS has the ability to reverse the grant for relief if it is determined that the relief was inappropriately issued to the taxpayer. Because the liability has not been abated by the IRS, the reversal of transaction code 604(which reduces the taxpayer’s liability to zero) is not a new assessment and is not prohibited by the expiration of the statute of limitations on assessment.

The limitations period on collection under IRC Sec. 6502 runs from the original date of the assessment, adjusted for any suspension, which includes innocent spouse relief. This means that innocent spouse relief will extend the statute of limitations further into the future.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.

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