The Internal Revenue Service has redesigned Form 8857, Request for Innocent Spouse Relief, to help reduce follow up questions and taxpayer burden. The form will ask more questions initially, but collecting critical information early in the process will allow faster processing of the request. The IRS says that the new design will eliminate an estimated 30,000 follow-up letters annually, resulting in a reduced burden and quicker answer for taxpayers and less cost for the government. When a taxpayer files a joint return, both spouses are jointly and individually responsible for the tax. If one taxpayer believes that only his or her spouse or former spouse should be responsible for the tax, the taxpayer can request innocent spouse relief. The redesigned form will be easier to understand and to complete and will help educate taxpayers about the process. Previously, the questionnaire was separate from the form.
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The federal scholarship tax credit is set to take effect on Jan. 1, 2027, with proposed regulations expected by the end of September.
July 6 -
The Top 25 Firm acquired Houston-based Ham, Langston & Brezina, effective as of July 1, expanding its presence in Texas.
July 6 -
Ernst & Young is expanding its use of artificial intelligence to make the tax preparation process more efficient, while also recognizing its limitations.
July 6 -
UHY has added RBT CPAs LLP, expanding the Michigan-based Top 50 Firm's presence to New York's Hudson Valley and bolstering its wealth management practice.
July 6 -
Plus, new partners at Weaver and Gross Mendelson; a host of scholarships in Illinois; and other firm and personnel news from across the profession.
July 3 -
Plus, CCH Axcess adds complex document ingestion and interpretation; TaxStatus launches Planning Observations to automate discovery; and other accounting tech news and updates.
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