- Instructor: Attorney Bob Schaller
- Lectures: 4
- Quizzes: 1
Tags: Installment Agreements
Installment Agreement Affected by Request for Relief.
Some taxpayers do not know their tax options and contact the IRS for an installment agreement after receiving notice from the IRS that an audit revealed a tax deficiency due to a spouse’s failure to report income or improper deduction claim. This could be a costly mistake. A better tactic might be claiming relief from joint and several liability.
This begs the question: How does the filing of IRS Form 8857, Request for Innocent Spouse Relief impact an existing installment agreement that was executed before the taxpayer realized the better strategy was to claim relief from joint and several liability?
Claim for Relief Ultimately Denied
Claim for Relief Ultimately Granted
Tax LawThis course teaches tax professionals the effect on an installment agreement if a claim for relief is granted. If relief is ultimately granted, the installment is no longer needed because the Requesting Spouse is relieved of the tax liability subject to the installment agreement. If the Requesting Spouse continues to make installment payments and relief is granted under Innocent Spouse Relief or Equitable Relief, then the Requesting Spouse may be entitled to a refund of these payments.