Innocent spouse. (From The IRS).Rev. Rul. 2003-36 clarifies that an executor executor n. the person appointed to administer the estate of a person who has died leaving a will which nominates that person. Unless there is a valid objection, the judge will appoint the person named in the will to be executor. can continue an innocent spouse claim started while the decedent An individual who has died. The term literally means "one who is dying," but it is commonly used in the law to denote one who has died, particularly someone who has recently passed away. was alive (and can even initiate one after the spouse died), provided the decedent met applicable innocent spouse requirements before death. The IRS's previous position, in FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) 200117005, was that an executor could continue--but not initiate--a request for innocent spouse relief on a deceased's spouse behalf. Example 1: H and W claimed deductions on their 2001 joint return for an investment H owned. In June 2003, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. proposed to disallow To exclude; reject; deny the force or validity of. The term disallow is applied to such things as an insurance company's refusal to pay a claim. the deductions and make adjustments. W filed Form 8857, Request for Innocent Spouse Relief, to seek relief under Sec. 6015(b) (regular innocent spouse relief) and Sec. 6015(c) (relief for divorced and separated individuals) or, alternatively, under Sec. 6015(f) (equitable relief). W died in July 2003, before the IRS acted on her request. Her executor pursued the relief request Example 2: The facts are the same as in Example 1, except that IRS did not propose adjustments until 2002; W died in July 2003 without seeking innocent spouse relief and her executor instituted a claim for relief on her behalf in October 2003. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Rev. Rul. 2003-36, because an executor assumes the rights of a decedent's estate under Sec. 6903 and has specific authority to make and disaffirm Repudiate; revoke consent; refuse to support former acts or agreements. Disaffirm is commonly applied in situations where an individual has made an agreement and opts to cancel it, which he or she may do by right—such as a minor who disaffirms a contract. joint returns under Sec. 6013(a)(3), he or she is also authorized to seek any form of relief from joint and several liability under Sec. 6015 on a decedent's behalf. Thus, an executor may pursue an existing request for relief from joint and several liability made while the spouse was alive. However, an executor can pursue or initiate a claim for relief only if the spouse met the requirements for relief before death. The Sec. 6015(c) requirement that the joint filers (1) no longer be married, (2) be legally separated or (3) not be members of the same household, cannot be met by the requesting spouse's death. An executor who learns that the IRS is seeking taxes owed on a joint return filed by the decedent and his or her spouse or former spouse should investigate the facts surrounding the joint return and the claimed underpayment to determine whether there are grounds for pursuing an innocent spouse claim. |
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