Innocent Spouse Relief
If you have filed joint tax return with your spouse you each are generally liable for a full amount of taxes due on such return. In some situations IRS may grant you tax relief of those taxes if such liabilities arise due to your spouse or ex-spouse income or actions. Some of those circumstances may relate to income earned strictly by spouse, the amount of withholding each spouse had from wages, underreporting of income by
one of the spouses discovered during tax audit.
If one spouse owes past due student loans or child support and has so called debt indicator on IRS file total tax refund will be garnished at the time of filing. There is a way to have IRS split the refund based on income and taxes each of you paid so you can still get your prorated refund share at tax time. You have to file injured spouse refund claim with your tax return and break down each spouse income and deductions including dependents claims.
If the return is filed without injured spouse refund claim or additional tax liability arise after return filing there is a process you can go through to request innocent spouse tax relief. The chances of getting the relief are better if you are no longer married to your spouse.
There is a general Innocent Spouse Relief that you have to apply first. If it is denied you may qualify for Separate of Liability Relief or Equitable Relief instead. If you did not sign joint tax return and it was filed without your consent you are not liable for the taxes. If you did sign joint tax return you now have to prove that you were not involved in the financial activities of your household, were no aware of underreported income or that you spouse would not pay tax liabilities, you did not directly benefit from it and will suffer economic hardship if not relieved from such tax obligations. The claim must be filed within two years after IRS collection activities has started.
Innocent spouse cases are very involved and are best suited for professional representation. Please consider hire a professional to increase your chances of getting relief.
To get started today please submit your information via consultation form or simply call Nicholas A. Trishin, CPA directly at 404-585-1040.