Taxes: Innocent Spouse Update

In a 2009 issue of Justice Quarterly, we wrote that the Tax Court had invalidated the IRS's 2-year limit on claiming "equitable relief" as an innocent spouse.  This has become a hotly-contested issue that the IRS is fighting in federal appeals courts all across the country.  Appeals are currently pending in five other federal appeals courts, including the Second Circuit, which covers Vermont, in a case brought by Christine Speidel of Vermont Legal Aid.  One federal appeals court sided with the IRS earlier this year.  Given this uncertainty, it is more important than ever for domestic violence survivors to promptly seek professional advice about any tax debts.

Christine Speidel of Vermont Legal Aid, together with Prof. Carlton M. Smith, Director, Benjamin N. Cardozo School of Law Tax Clinic will be representing a taxpayer before the 2^nd Circuit in that pending appeal.

When there is a joint tax return filed, normally both spouses are liable for the full amount of the debt.  This is true even if the debt is from one spouse's unreported income, and the other spouse knew nothing about it.  On a joint tax return, the IRS will pursue collection from whichever spouse is easier to collect from.  Usually this is the spouse with employment or a disability check. 

Many domestic violence survivors are forced to sign joint tax returns with their batterer.  Often, victims are denied any meaningful participation in household finances.  They may not even realize there is a problem with the IRS. 

If certain criteria are met, the "innocent spouse" can file a request with the IRS to show that it would be unjust to hold her responsible for the batterer's tax debt, even though she signed a joint tax return.  The IRS is asking courts to hold that an innocent spouse only has 2 years from the first IRS "collection action" to file her claim.  Many survivors are not able to file within that timeframe, for various legitimate reasons. 

Anyone who is considering an innocent spouse claim should seek tax advice immediately.  This is a complicated area of law.  Please refer clients who have received any IRS notice to VLA's Low Income Taxpayer Project at (800) 889-2047   or in Washington, Orange, or Lamoille counties to the Central Vermont Low Income Taxpayer Clinic at (800) 639-1053.

Domestic Violence Legislative Update

During the past five years, the Vermont legislature has passed a number of laws to help protect victims of domestic violence including the following:

   ·  Sexual assault and stalking is now defined as

      abuse in Relief from Abuse Orders.

   ·  Victims can now get orders against sexual

      assault and stalking even when the abuser was

      not a household or family member.

   ·  Custodial parents can now apply for an ex parte

      order to suspend visitation for good cause until

      a hearing is held.

   ·  Defendants are constructively served with a

      Relief from Abuse Order if notice is given in the

      court room.

   ·  A national model code for visitation is being

      used for cases involving domestic violence.

   · Victims no longer have to prove danger of

      further abuse if their abuser is currently

      incarcerated and has been convicted of one of a

      list of domestic or sexual violence crimes.

While these new laws will not end domestic violence, they present valuable tools for victims who seek assistance through the court system.

These changes also illustrate the Legislature's interest and willingness to help victims get and stay safe.  If you have other ideas for legal changes that could help victims, we encourage you to contact your legislators.

Vermont Legal Aid.  We can help.  (800) 747-5022

Fair Housing

Legal Aid's Housing Discrimination Law Project conducted a telephone survey in Chittenden County this Fall.  The testing results suggest that discrimination against people of color and families with minor children is a problem in Chittenden County.  We will report our full findings next year.

If you suspect that you or someone you know has been discriminated against in housing, please call us.  We will investigate and give you legal advice about your options.  We also represent victims of housing discrimination in legal proceedings at the Vermont Human Rights Commission, the U. S. Dept. of Housing and Urban Development, and in federal and State courts. 

Vermont Legal Aid.  We can help.  (800) 747-5022

Vermont Legal Aid Online

Come check out our new home on the web at our same location: www.vtlegalaid.org.  Also check out our legal education website: www.vtlawhelp.org