Tax Fairness for Abuse Survivors Act
Summary
The Tax Fairness for Abuse Survivors Act amends the Internal Revenue Code of 1986 to establish procedures for relief from joint and several liability on a joint tax return for individuals requesting such relief due to domestic violence or abuse. It allows a requesting spouse to seek relief from tax liability if they were a victim of domestic violence or abuse by the nonrequesting spouse and did not know, or had no reason to know, about the understatement of tax or did not challenge it due to fear or duress.
The bill outlines procedures for providing evidence of domestic violence or abuse and establishes a default presumption that any understatement by the requesting spouse was due to fear, pressure, threats, retaliation, or duress by the nonrequesting spouse if such evidence is provided. It also includes provisions to protect the requesting spouse's privacy by limiting the information provided to the nonrequesting spouse.
The Act's amendments apply to requests for relief after the date of enactment, aiming to provide tax fairness for abuse survivors.
Expected Effects
This act will change the process by which individuals can seek relief from joint and several tax liability when domestic violence or abuse is a factor. It will likely lead to more abuse survivors successfully obtaining relief from tax liabilities incurred due to their spouse's actions.
It also creates a framework for handling these cases with sensitivity and protecting the privacy of the abuse survivor. The IRS will need to establish new procedures to implement these changes.
Potential Benefits
- Provides a pathway for abuse survivors to seek relief from unfair tax burdens.
- Protects the privacy of abuse survivors by limiting information shared with the nonrequesting spouse.
- Establishes a presumption that understatements by the requesting spouse were due to fear or duress if evidence of abuse is provided.
- Aims to create a fairer tax system for individuals in abusive relationships.
- Could reduce financial burdens on abuse survivors, aiding their recovery and independence.
Potential Disadvantages
- May increase administrative burden on the IRS to implement and manage these new procedures.
- Could potentially be subject to fraudulent claims, requiring careful verification processes.
- May create complexities in tax law and require additional guidance for tax professionals.
- Could lead to disputes between spouses regarding the validity of abuse claims.
- The financial impact on the IRS is not specified, potentially leading to unforeseen costs.
Constitutional Alignment
The bill aligns with the Constitution's broad goals of establishing justice and promoting the general welfare, as stated in the Preamble. By providing tax relief to abuse survivors, the bill seeks to address an inequity in the tax system and support vulnerable individuals.
While the Constitution does not explicitly address tax relief for abuse survivors, the bill falls within Congress's power to lay and collect taxes, as outlined in Article I, Section 8, Clause 1, and to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, as outlined in Article I, Section 8, Clause 18.
There are no apparent conflicts with specific constitutional provisions or amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).