Innocent Spouse
The IRS holds couples who file taxes jointly equally liable for the accuracy of the returns as well as the payment of the resultant debt. But it’s his debt! He was trying to get away with not paying, that’s why I divorced him! He earned all the income! Why should I be responsible for his tax debt? Well, get ready for some questions from the folks at the IRS. Question one: Why did you sign the return? Then: Why didn’t you read the return when you signed it? Why did you decide your non-filing husband (or wife, of course) was suddenly going to do the right thing this year? See where this is going? The IRS loves to deny Innocent Spouse claims by simply saying: You Should Have Known Better. And, in these cases, you’re guilty until proven innocent.
However, there are exceptions. For example if one spouse earns 95% of the income; then underestimates the tax liability; then, unknowingly, the other spouse signs the return; with a plausible argument it’s possible the innocent spouse bringing the claim to the IRS may not be held liable and the responsibility would shift back to the other spouse. But there is no guarantee. Never forget that the IRS is a collection agency and they instinctively resist the idea of freeing a potential source of revenue from a debt. The rules for Innocent Spouse relief are convoluted and plausible cases are routinely denied. Because the pros at Confidential Tax Resolution have dealt successfully with these painful, and often unfair, situations many times, we can step into the situation and advise you as to your options and the best way to approach the matter with the IRS. Call us.
The case for Innocent Spouse relief must be made succinctly to the IRS with an emphasis on documentation. There are forms which must be completed accurately. There is no margin for error and the majority of these claims are denied anyway. Also, keep in mind that the IRS must notify your spouse (or former spouse) that you are claiming innocent spouse relief. No exceptions. Do you think the accused spouse might have something to say in contradiction and in their own defense?
At Confidential Tax Resolution, we are familiar with numerous techniques that can be put into place to protect an Innocent Spouse from a liability that was incurred in a prior marriage (or current marriage, for that matter). We know how to make the case and, if it’s possible, we’ll protect your rights and your interests. Call us at Confidential Tax Resolution right away for a consultation to determine if the Innocent Spouse exception is the best option for you.