http://www.irs.gov/newsroom/article/0,,id=252036,00.html?portlet=107
It may refer to other aspects for being an innocent spouse, but we have many innocent Canadian spouses who are affected by the IRS overreach into other countries.
“The IRS is significantly changing the way we determine innocent spouse relief,” said IRS Commissioner Doug Shulman. “These improvements should dramatically enhance our process to make it fairer for victimized taxpayers facing difficult situations.”
My thought on this, was if they could finally realize that there should be a front end process of relief here, why the hell can’t they figure out the same should apply for benign Minnow failures in the OVDI. A front end process, not a back end Opt Out.
I really appreciate how much we all would like it to mean us but it seems the program is more about people who have filed joint tax returns but the non-innocent spouse has mismanaged info/tax payment and the innocent spouse has no knowledge of it. 🙁
Yes, honestly, I watched the video and couldn’t determine if this could help us or not. Anyone more up on this than me?
This might seem like a weird question but I’m wondering if anyone has an idea. Does the IRS recognize same-sex spouses or common law partners of American citizens overseas for tax purposes? I wouldn’t think so but considering how desperate they are…
As far a I can tell, this doesn’t specifically apply to people like many of us with “innocent spouses” but it is preliminary document, and there seems to be some leeway in interpretation. It’s all going to depend on the interpretation They are looking for comments. Do you suppose it would help to get lots of comments. Of course, that means identifying one’s issue to the IRS, so I’m not sure if I’d be willing to do it.
My issue is that I have bank accounts with my husband (non US person) that are in effect all his money, but have my name on them for practical reasons (like probate, CDIC coverage etc.) By Canadian attribution rules, it is all taxable in his name. But it seems the IRS could insist I have to report it as if it is all mine and I am fully liable for all the tax. Whatever the leagalities, it is certainly unfair, and double taxation.
I am going to ask all the lawyers and accountants I talk to, and I suspect they will give me different answers. I’m wondering if anyone here has had any experience dealing with this issue.
The IRS would likely apply their US rules, even though other countries have different rules for same sex or common law marriages than the US…
US Domestic Partners Cannot File Joint Returns: http://www.irs.gov/pub/irs-wd/11-0068.pdf
The IRS does not follow state law for recognizing same-sex marriages. The Federal Defense of Marriage Act of 1996 defined marriage as “a legal union between one man and one woman as husband and wife, and the word ‘spouse’ refers only to a person of the opposite sex who is a husband or a wife.”
Some states, such as California, are requiring domestic partners to file tax returns as if they were married. Domestic partners should consult with an experienced tax professional for advice on filing their federal and state tax returns.
Canada Common Law (including same sex) partners taxation information:
https://www.invesco.ca/publicPortal/ShowDoc?nodePath=/BEA%20Repository/common/library/PDF/tax_planning/TESSEX//eBinary