Two-Year Limit No Longer Applies to Many Innocent Spouse Requests

Married  Couple (Spouse)  Filing For Taxes

Have you ever heard the story about the husband or wife that, unbeknownst to their partner, failed to pay federal income or payroll taxes to the government as required? The IRS, unable to locate the cheater and his/her assets, seeks to recover these unpaid taxes from the spouse — sometimes by serving a writ of garnishment on bank or investment accounts or by filing a lien against the home or other real estate. In these circumstances, a spouse who is truly acting without knowledge of their partner’s deceit may file a claim for relief from IRS collection activities but only if s/he does so within 2 years of the date the IRS first initiated collection activities. Until now, that is.