Innocent spouse and amendment help

[kpangelinan]

Married clients filed an incorrect return (1099 should've have gone to corporation - income already claimed on their corporation, but 1099 was issued on the owner personally). The IRS adjusted the return and in order to adjust it, they needed both signatures.

Since the above letter came from the IRS, the clients divorced and one spouse filed innocent/injured spouse on the newly assessed liability from the IRS and it was granted.

Husband wants to file an amendment to have the return properly adjusted back as they had already claimed the income on the 1099, but the wife refuses as she is afraid if the amendment gets rejected, she would be admitting liability. Is this true? If the wife signs the amendment and is rejected, does that make her liable for the liability.

[erchess]

Bump

My gut feeling is no signing the amend would not hurt her but this is a weighty matter and you need a cite. I hope when you get one it gets posted here so I can learn. I bet NYEA or Uncle Sam or one of the people on that level knows the answer without a lot of head scratching.

[MilTaxEA]

Rev Rul 80-8:

The Service will accept a claim for credit or refund filed by a divorced taxpayer on a Form 1040X with respect to a joint return if the Form 1040X is signed by only one of the taxpayers and will issue a refund check in that taxpayer's name alone. The proper method is provided [in this revenue ruling] for computing the refund that may be made to the individual taxpayer.

This rev rul refers to filing an amendment for a refund, but I imagine you wouldn't have issues filing an amendment and paying tax due with only one signature. Maybe someone else has another cite.

[kpangelinan]

Bump and thanks a bunch!

My gut feeling is no signing the amend would not hurt her but this is a weighty matter and you need a cite. I hope when you get one it gets posted here so I can learn. I bet NYEA or Uncle Sam or one of the people on that level knows the answer without a lot of head scratching.

Thanks!

Rev Rul 80-8:

This rev rul refers to filing an amendment for a refund, but I imagine you wouldn't have issues filing an amendment and paying tax due with only one signature. Maybe someone else has another cite.

Thanks a lot....great direction to start. I'll do a little more research.