INNOCENT SPOUSE RELIEF
Did you know that you can get out of the tax debt due to the misdeeds or fraud committed by your spouse? Innocent Spouse Relief was designed to alleviate unjust situations where one spouse was clearly the victim of fraud perpetrated by their spouse or ex-spouse.
What Is Innocent Spouse?
When you file a joint income tax return, the law holds you and your spouse jointly and severally responsible for the entire tax liability. What this means is that Internal Revenue Service (IRS) may collect the tax due from the both of you - or from either one of you. This is true even if you later separate or get a divorce and it's true even if your divorce decree says that your ex is responsible for the outstanding debt.
Typically, you remain liable for the tax unless you can prove that you didn't know or had no reason to know about the liability. That might be the case due to unreported income (income received by your spouse or former spouse that was not reported) or an incorrect tax deduction, credit, or basis claimed by your spouse or former spouse.
Here's an example. You filed a joint return with your spouse and later receive a letter from the IRS indicating that $25,000 in income was not reported. You find out that it was money your ex earned during the marriage that he failed to report - and you didn't know a thing about it.
You would seek innocent spouse relief from the IRS when you become aware of the tax liability and you believe that it is not yours (meaning that it belongs only to your spouse or former spouse).
If eligible for Innocent Spouse Relief, you may not owe the IRS anything.
If you think you owe the IRS because of your spouse and need to be sure you understand your options, click the green button below and schedule your free Tax Strategy Analysis Today!