The Internal Revenue Service has issued new guidance and streamlined procedures for spouses who are seeking equitable relief from joint income tax liability. Revenue Procedure 2013-34 provides the threshold requirements for any request for equitable relief and sets forth conditions under which the IRS will make streamlined relief determinations granting equitable relief from an understatement of income tax or an underpayment of income tax reported on a joint return, or the operation of community property law.The revenue procedure provides that if the nonrequesting spouse abused the spouse who is requesting relief from the IRS, or maintained control over the household finances by restricting the requesting spouse's access to financial information, and because of the abuse or financial control, the requesting spouse was not able to challenge the treatment of any items on the joint return, or to question the payment of the taxes reported as due on the joint return or challenge the nonrequesting spouse's assurance regarding payment of the taxes, for fear of the nonrequesting spouse's retaliation, then the abuse or financial control will result in satisfying the factor needed for a streamlined determination even if the requesting spouse knew or had reason to know of the items giving rise to the understatement or deficiency, or knew or had reason to know that the nonrequesting spouse would not pay the tax liability.
Medical expenses can result in overwhelming debt
Many people on Long Island, New York believe in the old adage that says health is wealth. However, rising medical costs can be a serious issue that can land a person in a pile of debt. In a report by the National Patient Advocate Foundation in the United States nearly two-thirds of bankruptcy filings are a result of medical debt.
Bankruptcy can eliminate debt, problems with collectors
On Long Island, New York, it can sometimes be difficult to address the financial needs of the family. When unexpected financial expenses such as medical bills strike, many New Yorkers have no choice but to take out a loan. For families with limited income, staying current with the payments can be a burden.
The benefit of Chapter 7 bankruptcy during the Great Recession
Many Americans, including those from Long Island, New York, have been struggling with their personal finances since the Great Recession. The Great Recession began in 2009 and many people are still dealing with financial challenges due to unemployment, debts and the high prices of commodities.
Relief from credit card debt with Chapter 13 bankruptcy
Whenever the topic of bankruptcy is brought up, most people, including people on Long Island, New York, assume that it has something to do with having no money. However, personal bankruptcy, such as Chapter 13 or Chapter 7, can actually save them from unexpected financial challenges that can otherwise leave families peniless. Some of these financial struggles may include household debt, unpaid medical bills and ultimately, credit card debt.
