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Tag Archive for FICA Guidance for Married Same-Sex Couples

Married Same-Sex Couples – FICA Guidance – Part II

TaxConnections Blog Post - Additional Guidance on Federal Tax Laws for Same-sex couplesGeneral Conditions for Relief

Eligibility for equitable relief. A requesting spouse must satisfy all of the following threshold conditions to be eligible to submit a request for equitable relief under Section 6015(f). With the exception of conditions (1) and (2), a requesting spouse must satisfy all of the following threshold conditions to be eligible to submit a request for equitable relief under Section 66(c). The Service may relieve a requesting spouse who satisfies all the applicable threshold conditions set forth below of all or part of the income tax liability under Section 66(c) or Section 6015(f) if, taking into account all the facts and circumstances, the Service determines that it would be inequitable to hold the requesting spouse liable for the income tax liability. The threshold conditions are as follows:

(1) The requesting spouse filed a joint return for the taxable year for which he or she seeks relief.

(2) Relief is not available to the requesting spouse under Section 6015(b) or (c).

(3) The claim for relief is timely filed:

(a) If the requesting spouse is applying for relief from a liability or a portion of a liability that remains unpaid, the request for relief must be made on or before the CSE). The CSED is the date the period of limitation on collection of the income tax liability expires, as provided in Section 6502. Generally, that period expires 10 years after the assessment of tax, but it may be extended by other provisions of the IRC. Read more

Married Same-Sex Couples – FICA Guidance – Part I

TaxConnections Blog Post - Additional Guidance on Federal Tax Laws for Same-sex couplesPurpose

This revenue procedure adopts the procedures detailed in Notice 2012-8 and under Section 66(c) or Section 6015(f) of the IRC [IRC{(a “requesting spouse”). It applies to spouses requesting relief from a jointly filed tax return with an income tax liability as well as spouses who live in community property states who have an income tax liability, regardless of the filing status used. Section 4.01 of this revenue procedure provides the threshold requirements for any request for equitable relief. Section 4.02 of this revenue procedure sets forth the conditions under which the Internal Revenue Service will make streamlined relief determinations granting equitable relief under Section 6015(f) from an understatement of income tax or an underpayment of income tax reported on a joint return, or the operation of community property law under Section 66(c). Section 4.03 of this revenue procedure provides a nonexclusive list of factors for consideration in determining whether relief should be granted under Section 6015(f) because it would be inequitable to hold a requesting spouse jointly and severally liable when the conditions of Section 4.02 are not met. The factors in Section 4.03 also will apply in determining whether to relieve a spouse from income tax liability resulting from the operation of community property law under the equitable relief provision of Section 66(c).

Scope

This revenue procedure applies to spouses who request either equitable relief from joint and several liability under Section 6015(f), or equitable relief under Section 66(c) from income tax liability resulting from the operation of community property law. Read more

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