Joint Returns
TAXPAYER BILL OF RIGHTS II
5. TITLE IV--JOINT RETURNS
5.1. Studies Of Joint Return-Related Issues. The new law directs the Treasury Department and the General Accounting Office (GAO) to conduct separate studies analyzing the following: (1) The effects of changing the current standard of "joint and
several" liability for married couples to a "proportionate" liability standard. That is, each spouse would be liable only for the income tax attributable to the income of each spouse. (2) The effects of requiring the IRS to be bound by the terms of a
divorce decree which addresses the responsibility for the tax liability on prior joint tax returns. (3) Whether the current "innocent spouse" provisions provide meaningful relief to former spouses. (4) The effects of overturning the application of Poe v.
Seaborn for income tax purposes in community property states. The Treasury Department and the GAO must examine the tax policy implications, the equity implications, and operational changes which would face the IRS if the liability standard were changed.
For example, the studies must consider how a system of proportionate liability would change the way the IRS communicates with taxpayers, conducts audits of joint returns, and enforces tax lien and levies against married couples. The studies are due six
months after the date of enactment. TPBR2 §401. SEC. 401 OF THE BILL
5.2. Joint Return May Be Made After Separate Returns Without Full Payment Of Tax. The new law repeals the requirement of full payment of tax liability as a precondition to switching from married filing separately status to married filing
jointly status. The provision applies to taxable years beginning after the date of the enactment. TPBR2 §402. IRC §6013(b)(2). SEC. 402 OF THE BILL
5.3. Disclosure Of Collection Activities. If a tax deficiency with respect to a joint return is assessed, and the individuals filing the return are no longer married or no longer reside in the same household, the new law requires the IRS
to disclose in writing (in response to a written request by one of the individuals) to that individual whether the IRS has attempted to collect the deficiency from the other individual, the general nature of the collection activities, and the amount (if
any) collected. Such requests must be made in writing. The IRS may develop procedures to address the frequency of such requests in order to prevent taxpayers from abusing this provision by making numerous requests without good cause. For example, one
request per quarter would be a reasonable rate unless the taxpayer had good cause to seek more frequent information. In making these disclosures, the IRS may omit the current home address and business location of the former spouse. This is designed to
prevent the disclosure of such personal information to persons who might be hostile towards a former spouse. TPBR2 §403. IRC 6103(e)(8). SEC. 403 OF THE BILL
Visitors to this Page