Innocent & Injured Spouse Overview

What is innocent spouse relief? What is injured spouse relief? What’s the actual difference between the two?

These are common questions that we get in our tax resolution CPE classes. Watch the following high level overview of innocent and injured spouse to learn the difference and apply them to help your clients.

 

Note: This was recorded in November 2015 based on Internal Revenue Code and IRS policies in place at the time. Practitioners should seek out the latest changes to the code and IRS procedures in effect today. For the most up to date version of this class, enroll in our tax resolution specialist training program and become a Certified Taxpayer Representative™.

Unedited Transcript

Note: This is a raw, unedited transcript of the recording that was produced with an automated transcription tool, not a human transcriptionist. It’s provided merely for reference and to help you find specific sections of the video you might want to jump to.

[00:00:00.150] Our course objectives today are to define the difference between innocent and injured spouse relief. This is a very commonly, very commonly messed up thing, even amongst practitioners understanding the difference between between the two. [00:00:22.920] You know, for practitioners, it can be difficult. We’re also going to look at the injured spouse procedures. We’ll look at various innocent spouse provisions and rules, including some things that you don’t commonly hear about. We’ll go in-depth on Form 88 57. And then finally, we’ll discuss appeals procedures for innocent spouse relief. So what is the difference between innocent and injured spouse relief? [00:01:00.860] So like I said earlier, this very commonly confused, so injured spouse, this is when one spouse is, quote unquote, injured by federal offsets of the other spouse’s sole liability. Remember, if they’re filing married, filing jointly on their 10 40, then they are jointly liable for jointly and separately liable for the tax obligation. However, there are cases where one spouse has a debt that can be satisfied through the federal offset program. [00:01:47.740] The most common situations where this occurs are unpaid child support debts to various federal or state agencies and separate tax liabilities. [00:01:58.780] For example, if one spouse has a tax liability that was incurred prior to the marriage or if a one spouse owns a business and there was an employment tax situation that generated a trust fund, recovery penalty trust fund, the recovery penalties are only… Continue reading

Resolving IRS Payroll Tax Debts (941 Liabilities)

The majority of federal tax liens filed, and the majority of monies owed to the IRS, are made up of payroll taxes. In addition, because of the fact that payroll tax deposits fund the day to day operations of the federal government, these tax liabilities are the highest enforcement priority for the SB/SE Collection Field Function (CFF).

In this video, you’ll learn the basics of resolving 941 tax debts. We will cover 941-specific penalties, resolution options specific to only this tax type, Appeals options, and a brief overview of the Trust Fund Recovery Penalty (TFRP).

Payroll tax liabilities represent the biggest opportunity for growth in your tax resolution practice. Learning the ins and outs of representing these lucrative clients can create a significant boost to your bottom line.

Note: This video was recorded on March 17, 2015 and therefore reflects tax code and IRS procedures in effect at the time. This webinar replay is not eligible for CPE credit.

Unedited Transcript

Note: This is a raw, unedited transcript of the recording that was produced with an automated transcription tool, not a human transcriptionist. It’s provided merely for reference and to help you find specific sections of the video you might want to jump to.

(00:00:00):
Today is March 17th, 2015, and I’d like to welcome you to this webinar on resolving 941 tax debts. My name is Jason Bowman from tax marketing hq.com. And for the next 15 minutes, we’re going to be discussing the special situations involved in resolving 941 tax liabilities. Why these abilities are such a huge enforcement priority for the IRS and exactly how you can go about helping your clients with these employment tax problems. So we’re also assessing some specific penalties and some appeals options. And of course we cannot discuss the 941 landscape without also talking about the trust fund recovery penalty. The trust fund recovery penalty itself as a topic worthy of, of, of an hour or two of its own. But again, it’s, it’s impossible to discuss the employment tax liability resolution without delving into the, the trust fund world. So we will be covering that. There are, there are a lot of trust fund items that are outside the scope of specifically what I’m going to be talking about today. And so in the future, I will be doing another webinar specifically on trust fund issues, because there’s just so much to cover within that.… Continue reading