The majority of married taxpayers chose to file their taxes jointly. Generally, married taxpayers take advantage of a higher standard deduction and other tax benefits when filing their taxes together. Though, a great number of those married couples do not understand the possible liability that comes with the joint-filing status. Did you know that filing jointly allows the government to come after either spouse for the full amount of the tax debt, even if the debt or wrongdoing came from the other partner? That is where innocent spouse relief representation is needed. Even a homemaker who earns no income is considered to be liable and responsible for the full amount of any unpaid tax, interest and penalties. For those taxpayers who were once married but are now divorced or widowed are fair game for the IRS or California Franchise Tax Board if they were married during the tax year in question.
Innocent Spouse Relief Offers a Way Out
With over 20 years of combined experience as a CPA and a Tax Attorney, I have an in-depth knowledge of the ins-and-outs of innocent spouse relief. I can help you compile your records and prepare the proper paperwork with the IRS or California Franchise Tax Board. If you are denied innocent spouse relief, I can help you appeal the decision. At a time that you may feel betrayed or hurt, a seasoned tax expert can save you time, money and most important, unnecessary stress. Let me help you find peace of mind. There is a limited time period to request innocent spouse relief. Don’t hesitate, contact me today.
What Can I Do if I am Being Pursued for Taxes that I Know Nothing About?
If you are receiving letters from the IRS requesting that you pay a balance owed from a tax year that you were married, it may feel like there is nothing that you can do, even if you didn’t know about the tax owed or allegations made by the IRS. But, there is hope. The government has recognized that in some situations, it would be unfair to relentlessly pursue taxpayers who didn’t have a clue about the underpayment of tax. Thus, Section 6015 of the Internal Revenue Code was created. It creates the possibility of relief for a taxpayer claiming to be innocent in three different ways: 1. If you current or former spouse underpaid taxes filed while you were married and the taxpayer claiming to be innocent did not know or did not have reason to suspect that there could be an underpayment (IRC § 6015(b)), 2. Splitting the liability by allocating items of erroneous income, deductions and credits to the spouse who earned them (IRC § 6015(c)), 3. Equitable relief if the taxpayer claiming innocence does not fall into one of the relief options above but meets other specific requirements (IRC § 6015(f)).
Questions and Answers About Innocent Spouse Relief
Tax Attorney Can Help with Innocent Suppose Relief
The innocent spouse relief options are complicated as they have various moving parts. While there is no deadline to file for equitable relief (Option 3), your request for relief under Options 1 and 2 must be filed within 2 years of the first collection action. Generally, the first collection action is considered to be the Notice of Deficiency (90 day letter). When looking at the knowledge of the taxpayer claiming innocent spouse relief, the IRS will look at many financial aspects of the marriage including the couple’s financial situation, the innocent spouse’s educational background, the level of involvement in the activity that created the erroneous item and whether a reasonable person would have inquired as to the validity of the item.
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Innocent Spouse Relief was last modified: February 27th, 2019 by David Klasing