Tax Relief for Domestic Abuse Survivors: Easier Joint Debt Forgiveness.
This law creates new rules making it easier for domestic violence survivors to be relieved of tax debt resulting from errors or fraud committed by an abusive spouse on a joint tax return. It specifically protects individuals who signed the return under duress or fear, ensuring greater privacy during the IRS review process. This helps survivors regain financial stability without being penalized for the abuser's actions.
Key points
Survivors of domestic abuse can seek relief from joint tax liability, even if they knew about the tax understatement, provided they signed the return due to fear, pressure, or duress from the abusive spouse.
If evidence of abuse is provided, the law presumes that any known understatement was due to fear or coercion, simplifying the relief process for the survivor.
The IRS must protect the survivor's privacy: notices sent to the alleged abuser cannot mention domestic violence or that relief is being sought under these specific provisions.
Status:
Introduced
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