Innocent Spouses Relief From Taxes

Innocent Spouses Relief From Taxes



Innocent Spouses - Relief from Taxes
Historically,​ tax issues arising from bad marriages fell into the​ category of​ better or​ worse for marriages .​
The IRS granted no innocent spouse tax relief,​ but has changed its views.
Tax Relief
When a​ marriage has problems,​ finances are almost always one of​ the​ elements that contribute to​ the​ strife .​
This can be particularly true where spouses file a​ joint tax return,​ which the​ both sign as​ tax payers .​
If the​ information provided on​ the​ tax return is​ false or​ inaccurate,​ the​ IRS has historically viewed both spouses as​ liable for the​ resulting assessments .​
If the​ relevant taxes were not paid,​ the​ IRS would also look to​ both spouses to​ pay the​ delinquent amount .​
In worse case scenarios,​ this can include criminal charges for tax evasion .​
Fortunately,​ the​ IRS has modified its view of​ the​ liability of​ joint filers .​
The IRS now recognizes that innocent spouses can’t control their deadbeat former spouses .​
It allows such innocent spouses to​ claim three types of​ tax relief:
1 .​
Innocent Spouse Relief
2 .​
Relief by Separation of​ Liability
3 .​
Equitable Relief
If the​ IRS comes after you​ for the​ tax liability of​ a​ former spouse,​ you​ can seek tax relief under these three theories if​ you​ meet all the​ following requirements .​
First,​ you​ filed a​ joint return with inaccurate information .​
Second,​ you​ didn’t know of​ the​ inaccuracies and didn’t have any reason to​ .​
Finally,​ taking into consideration the​ situation,​ holding you​ liable for the​ tax would be unfair .​
The IRS will evaluate your application and render a​ ruling on​ your application .​
The IRS may agree to​ simply waive any tax claim against you​ and go after the​ deadbeat spouse as​ the​ sole debtor .​
Alternatively,​ the​ IRS may split the​ tax into a​ his and her account,​ only requiring you​ to​ pay one half of​ the​ amount due .​
While this may not sound great,​ it​ will immediately cut your tax bill in​ half .​
In rare cases,​ you​ can seek equitable relief from the​ IRS .​
Equitable relief simply is​ another way of​ saying making you​ pay the​ tax would be manifestly unfair .​
You must show you​ and the​ spouse did not transfer assets as​ part of​ an​ fraudulent scheme,​ didn’t transfer assets with the​ intention of​ evading taxes,​ didn’t intend to​ commit fraud,​ didn’t pay the​ taxes due and you​ didn’t know what your spouse was up to​ .​
Equitable relief claims need to​ be handled very carefully as​ the​ IRS views them with a​ very cynical eye .​
Nonetheless,​ they are a​ last step that can be taken when all else has failed.




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