Innocent Spouse Relief
Many married taxpayers choose to file a joint tax return. This is due to certain benefits of joint filing status. When filing jointly, both spouse’s are severally liable for the tax, interest, or penalties that arise as a result of the joint return. For example, if one spouse is unaware the other has embezzled money. The “innocent” spouse is still responsible for the tax liability. To address the unfairness, congress implemented Innocent Spouse Relief.
Due to joint and several liability, both taxpayers are legally responsible for all the tax due. Even if one spouse earned all the income and claimed improper deductions or credits. A spouse can get relief from joint and several liability by filing for Innocent Spouse Relief. This provides you with relief from additional tax owed if your spouse or former spouse failed to report income, or claimed improper deductions or credits. If one spouse is “innocent,” then he or she is not responsible for these additional taxes. The burden falls on the “non-innocent” spouse.
How to Obtain Status as Innocent Spouse
- A joint income tax return has been filed.
- There is a understatement of tax attributable to omitted income of one spouse. Also deductions of one spouse.
- When signing the return, the other spouse did not have knowledge that there was an understatement.
- It is inequitable to hold the other spouse liable for the tax deficiency.
Why use Allied Tax Advisory to Apply for Innocent Spouse Relief
There is no requirement as to how small the liability must be to qualify. Even if your divorce states that your spouse will be responsible for the tax liability on previously filed returns. The IRS can still come after you. The experienced professionals at Allied Tax Advisory Group can help you figure out the best course of action. Many cases of innocent spouse relief are denied by the IRS due to error or misrepresentation. Don’t let this happen to you, call Allied Tax Advisory Group today.
- IRS FRESH START & DEBT FORGIVENESS
- WAGE GARNISHMENT
- BANK LEVY
- TAX LIENS
- INSTALLMENT AGREEMENT
- OFFER IN COMPROMISE
- IRS AUDIT REPRESENTATION
- CURRENT YEAR TAX RETURNS AND EXTENSIONS
- FILE OR AMEND PREVIOUS YEAR TAXES
- AUDIT RECONSIDERATION
- IRS APPEALS PROCESS
- NOT COLLECTIBLE STATUS
- PENALTY ABATEMENT
- INNOCENT SPOUSE RELIEF
- INJURED SPOUSE
- FBAR FILING & FBAR REPRESENTATION
- UNFILED BACK TAXES