The JPTFS Newswire
A professional services communication from the office of JPT Financial Solutions, Inc.
July 29, 2011
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TWO YEAR LIMIT NO LONGER APPLIES TO MANY INNOCENT SPOUSE REQUESTS
The Internal Revenue Service will extend help to more innocent spouses by eliminating the two-year
time limit that now applies to certain relief requests.
"In recent months, it became clear to me that we need to make significant changes involving innocent
spouse relief," said IRS Commissioner Doug Shulman. "This change is a dramatic step to improve our
process to make it fairer for an important group of taxpayers. We know these are difficult situations for
people to face, and today’s change will help innocent spouses victimized in the past, present and the
future."
The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program
earlier this year. Policy and program changes with respect to that review will become fully operational
in the fall and additional guidance will be forthcoming. However, with respect to expanding the
availability of equitable relief:
The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently
being considered by the agency.
A taxpayer whose equitable relief request was previously denied solely due to the two-year limit
may reapply using IRS Form 8857, Request for Innocent Spouse Relief, if the collection statute of
limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense
will be automatically afforded the new rule and should not reapply.
The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and
where litigation is final, the agency will suspend collection action under certain circumstances.
The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted
today on IRS.gov.
Existing regulations, adopted in 2002, require that innocent spouse requests seeking equitable relief be
filed within two years after the IRS first takes collection action against the requesting spouse. The time
limit, adopted after a public hearing and public comment, was designed to encourage prompt resolution
while evidence remained available. The IRS plans to issue regulations formally removing this time limit.
By law, the two-year election period for seeking innocent spouse relief under the other provisions of
section 6015 of the Internal Revenue Code, continues to apply. The normal refund statute of limitations
also continues to apply to tax years covered by any innocent spouse request.
Available only to someone who files a joint return, innocent spouse relief is designed to help a taxpayer
who did not know and did not have reason to know that his or her spouse understated or underpaid an
income tax liability. Publication 971, Innocent Spouse Relief, has more information about the program.
Source: NJ Society of CPAs News 7/26/11
SMART PRE-MARRIAGE MONEY MOVES
Money habits and financial goals are usually the last thing on your mind when you are getting married.
But before you tie the knot, it may be a good idea to agree on the financial direction your union might
take.
Take an inventory. What do you have in assets, insurance and other benefits?
Eliminate redundancy. You may want to reduce credit cards and bank accounts by establishing
joint accounts. Or name your future spouse on existing cards and accounts as co-owner.
Establish financial goals. Put them in writing to make them real. Make sure they are realistic.
Make a budget. Once you have listed your financial goals, take inventory of your joint expenses
and how much income the two of you will earn.
Create a strategy. When you know how much money is coming in and going out, it’s easier to
create a strategy that helps you reach your financial goals.
Source: “Let’s Talk Money”, Robin Vetere, CASL, Financial Planner & Services Representative of MetLife
KIDS AND IDENTITY THEFT
Identify theft doesn’t only affect adults; it can strike your children, too. Discuss these concepts with
your children to potentially help safeguard their identity.
Be discreet – Broadcasting personal information about you or your family on the Internet social
networking sites is not the best idea.
Safeguard vital documents – Social Security numbers and birth certificates are gold to identity
thieves. Never provide originals when, for instance, you are asked to provide a birth certificate.
Check credit regularly – Every person, including a child, is entitled to a free credit report once a year
at www.annualcreditreport.com . This report consolidates credit reports from the three major credit
rating firms.
Source: “Let’s Talk Money”, Robin Vetere, CASL, Financial Planner & Services Representative of MetLife
IMPORTANT DATES - MARK YOUR CALENDAR
The IRS Tax Calendar for Small Businesses and the Self Employed is follows:
REMINDER FOR SELF-EMPLOYED INDIVIDUALS
Estimated tax payment due dates are April 15, 2011, June 15, 2011, September 15, 2011 and
January 16, 2012.
AUGUST 2011
8/1/2011
File Form 720 for the second quarter of 2011.
File Form 730 and pay the tax on wagers accepted during June.
File Form 2290 and pay the tax for vehicles first used during
June.
Employers: File 2010 Form 5500 or 5500-EZ.
Deposit FUTA owed through June if more than $500.
File Form 941 for the second quarter of 2011.
File 2010 Form 5500 or 5500-EZ.
8/3/2011
Deposit payroll tax for payments on Jul 27-29 if the semiweekly deposit rule applies.
8/5/2011
Deposit payroll tax for payments on Jul 30 - Aug 2 if the semiweekly deposit rule applies.
8/10/2011
Employers: Employees are required to report to you tips of $20 or
more earned during July.
File Form 941 for the second quarter of 2011 if you timely deposited all required payments.
Deposit payroll tax for payments on Aug 3-5 if the semiweekly deposit rule applies.
8/12/2011
Deposit payroll tax for payments on Aug 6-9 if the semiweekly deposit rule applies.
8/15/2011
Deposit payroll tax for Jul if the monthly deposit rule applies.
8/17/2011
Deposit payroll tax for payments on Aug 10-12 if the semiweekly deposit rule applies.
8/19/2011
Deposit payroll tax for payments on Aug 13-16 if the semiweekly deposit rule applies.
8/24/2011
Deposit payroll tax for payments on Aug 17-19 if the semiweekly deposit rule applies.
8/26/2011
Deposit payroll tax for payments on Aug 20-23 if the semiweekly deposit rule applies.
8/31/2011
File Form 730 and pay tax on wagers accepted during July.
File Form 2290 and pay the tax for vehicles first used during July.
Deposit payroll tax for payments on Aug 24-26 if the semiweekly deposit rule applies.
Source: IRS Tax Calendar – Game Plan for Success
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