A tax liability owed to the IRS is subject to efficient and aggressive collection actions. When this liability is owed by two persons as in the case of a jointly filed tax return, one or both individuals may be subject to legal collection actions from both state and federal agencies.
It is important to understand that once a joint tax return is filed, both parties may be held equally responsible for any tax liability owed. It is also possible that one person may be held accountable for taxes owed to the IRS. This includes the principal balance as well as interest and penalties that have been applied to the original balance. If one of the parties can prove they are not liable for the other spouses tax liability that party may be granted Innocent Spouse Relief from the IRS.
By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. The IRS can collect these amounts from either you or your spouse (or former spouse).
You must meet all of the following conditions to qualify for innocent spouse relief:
*Â You filed a joint return which has an understatement of tax due to erroneous
Â Â Â items of your spouse (or former spouse).
* You establish that at the time you signed the joint return you did not know, and Â
Â Â had no reason to know, that there was an understatement of your taxes.
* Taking into account all the facts and circumstances, it would be unfair to hold you
Â Â liable for the understatement of tax.
* A request for innocent spouse relief will not be granted if the IRS proves that you
Â Â and Â your spouse (or former spouse) transferred property to one another as part
Â Â of a fraudulent scheme. A fraudulent scheme includes a scheme to defraud the IRS
Â Â or another third party, such as a creditor, ex-spouse, or business partner.
The IRS offers innocent spouse relief to spouses who have a clean tax record, but get married to individuals who owe the IRS money. The relief means that the IRS will only assess fines and collect the assets of the individual owing back taxes.
You maybe eligible for relief from your tax obligations, if your spouse or ex-spouse improperly filed his or her income tax returns.
Need help qualifying for Innocent Spouse tax relief? Get help from our team of experienced Certified Public Accountants (CPAs), Enrolled Agents (EAs) and Certified Tax Resolution Specialists.
Call us today toll free at 1-888-877-1090 for your free consultation.
Do you need Tax Relief?
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