TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

Are you Married for Tax Purposes? You are married for tax purposes as of December 31. So, if you were married on or before December 31,  2013, you would be single (or head of household depending upon the circumstances for the 2012 tax year, but you would be Married for 2013 . Even if you were married on December 31. 2013, you are married for the entire year. As a married person. you may file jointly with your husband or wife, or as married filing separately .  You may not file as single or head of household. Note, if you and your spouse are both employed, especially if your income is similar, you may end up paying more tax being married (especially if you previously filed as head of household.) This is called the "marriage penalty." Here is a handy marriage penalty calculator: Marriage Tax Penalty Calculator

IRS provides updated guidance for equitable innocent spouse relief requests RIA, a large Tax Publisher, reported on revisions to Innocent Spouse relief requests. It has been extremely difficult (if not practically impossible) for married couples still living together to have one spouse qualify under the "innocent spouse" relief provisions. Even in situations where one spouse has illegal earnings, or has a huge increase in tax due to a business audit, the IRS almost always rejects the Innocent Spouse claim. The main argument is the spouse "benefited" from the income and higher life style and therefore should have known of the misreported income or expenses.  In addition to the usual denial of relief, the extremely long time for the IRS to process the requests, makes it costly and annoying. Supposedly, there will be a "streamlined" request. Usually, when the IRS announces such "reforms" they really do not mean much for most taxpayers. In ...