Unfortunately, in marriage and life, everything is not always "Happily Ever After". If that is the case, now what? In order to qualify for Spousal Relief, you must meet all of the following conditions to qualify for innocent spouse relief: 1. You must have filed a joint return which has an understatement of tax due to erroneous items of your spouse (or former spouse); 2. You must establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax; and 3.      Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax. It’s important to note that a request for innocent spouse relief will not be granted if the IRS proves that you and your spouse (or former spouse) transferred property to one another as part of a fraudulent scheme. A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, ex-spouse, or business partner.

By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. The IRS can collect these amounts from either you or your spouse (or former spouse). The IRS will consider all of the facts and circumstances of the case in order to determine whether it is unfair to hold you responsible for the understatement.

Some of these facts and circumstances include whether or not the taxes owed are your spouse's or ex-spouse's, if you are no longer married to that spouse, if you thought your spouse would pay the taxes on the original return, if you didn't know about the items changed in the audit, if you would suffer a financial hardship if you were required to pay the tax (ie: you would not be able to pay for basic living expenses like food, shelter, and clothing), if you did not significantly benefit (above normal support) from the unpaid taxes, and if you suffered abuse during your marriage. To claim innocent spouse relief you must complete IRS Form 8857, and because the circumstances surrounding this type of relief is unique and varied, professional assistance is recommended.

For more information about Innocent Spouse see the video below.

Innocent Spouse is a post from: IRS Tax Problem Solver Blog - IRS Help

Because married couples receive benefits if they file their taxes jointly, that is the norm.  If there are errors on the tax return, both taxpayers are held responsible.  Both of them also now have IRS Problems.  Another issue is if you and your spouse have since divorced, you may still be held responsible for the errors and subsequent taxes owed.

There are circumstances in which you may be able to qualify for release from paying these taxes.  You will need to qualify for innocent spouse relief.

Qualifying for Innocent Spouse Relief

The IRS has specific criteria to determine innocent spouse status.  It is important for you check into the rules of your state, as these rules do not apply in all 50 states.  The IRS’s criteria include:

•    You are divorced or living apart from your spouse.
•    You can prove you were unaware of the errors made on the tax return when you signed it.  These errors could include understatement of income, incorrect deductions, or tax credits.
•    You can prove you did not benefit directly or indirectly from the understatement of taxes.
•    You can prove your were unaware the joint return reported an understatement of tax due whether with income, incorrect deductions, or tax credits.
•    You can prove that you would suffer economic hardship.
•    You can prove that you were abused by your spouse.
•    You can prove that the liability is solely your spouse’s responsibility.
•    The IRS reviews the circumstances and determines that it is unfair to hold you responsible for the understatement of tax.

Form 8857

You will need to obtain, fill out, and submit Form 8857, Request for Innocent Spouse Relief, to the IRS.  If the form is not readily available, you can submit your written request including the necessary information.  You do not need to provide the amount of the taxes owed as this will be determined by the IRS.

Deadline

Your request for innocent spouse relief status must be made no later than 2 years after the first attempt by the IRS to collect the tax.

Spouse Notification

The IRS will notify your spouse of your application for innocent spouse relief.  Your spouse will be allowed to submit information to the IRS.  This information may affect the outcome of your application.

To help you obtain innocent spouse status or with help regarding any other IRS Problems, contact our office.  We will be able to answer your questions and guide you through the process.  Are you looking for a Florida Tax Attorney?? Don't worry we can help taxpayers throughout the United States. Call us today.

Innocent Spouse Relief – Is it right for your situation?? is a post from: IRS Tax Problem Solver Blog - IRS Help

There are five elements that must be met to establish that you qualify for "Classic" Innocent Spouse Relief.

The first element is that must have been a Married Filing Joint return. If no joint return was filed there is no way that Innocent Spouse Relief will be applicable. How do you blame your spouse when you filed a return using the Single filing status for example? You told the IRS that you weren't even married now you turn around and blame your spouse? That may seem elementary but I've seen it happen.

The second element is that there must have been an understatement of tax attributable to the erroneous items of the other spouse. These erroneous items can be innocent errors or misrepresentations by the so called "guilty" spouse.

The third element is that the potential "Innocent Spouse" cannot have known about the erroneous items of the other spouse at the time that the return was signed. If they did know this makes them culpable or just as guilty as the other spouse.

The fourth element is that it must be inequitable or unfair for the IRS to hold the "Innocent Spouse" liable for the tax. This will be considered on a case by case basis. In my experience, the IRS is pretty tough when it comes to this element. They usually want to argue that the potential Innocent Spouse benefited from the income so it's not unfair to hold them liable for the corresponding tax.

The fifth element is that the Application for Innocent Spouse Relief must be filed within 2 years of the first collection action taken by the IRS. This is not as straight forward as it seems so it's a good idea to have a professional take a look at the case before you assume that you have run out of time.

If you are experiencing problems with the IRS and need IRS Help, please do not hesitate to call us. The anxiety that you are feeling is usually caused largely by the uncertainty of not knowing what to do with your IRS Problem. Most people are greatly relieved after speaking with me. Why not take a chance? It's free after all and I might just be able to solve your IRS Problems once and for all. If you're looking for an IRS Lawyer in Florida or to represent you anywhere in the country, we're here to help. Why hire a gigantic company like JK Harris and Company when you can get the personalized attention only a small law firm can provide. Questions about our qualifications check out my qualifications. I'm sure you can see that we are very qualified to handle any IRS Problem, anywhere in the world.

"Classic" Innocent Spouse Relief – Is it right for you? is a post from: IRS Tax Problem Solver Blog - IRS Help

There are three types of Innocent Spouse Relief. An application for Innocent Spouse Relief is used when a taxpayer feels like their spouse or former spouse should be responsible for a tax liability. The three types of Innocent Spouse Relief are:

1. Innocent Spouse Relief from an Understatement of Income §6015(b) or what I call "Classic" Innocent Spouse

2. Separate Liability Election

3. Equitable Relief

Although Congress set up the program to correct wrongs done to innocent victim spouses, in true form the program is so complicated that most taxpayers can't figure out how to get the help that they deserve. The process is very slow, convoluted and difficult to navigate through. Currently, applications for Innocent Spouse Relief are taking 12-24 months to process. This is not all bad as the IRS is prohibited from levying a taxpayer while an application for Innocent Spouse Relief is pending but a downside is that the Collection Statute of Limitations is tolled (stopped) while such an application is pending. Each such case must be carefully analyzed based upon the particular facts and circumstances. View the short video below for a very brief overview of each. More details to follow in a future post. Don't forget if you have IRS Problems and need IRS Help don't hesitate to contact us for IRS Help.

Innocent Spouse Relief – What's That? is a post from: IRS Tax Problem Solver Blog - IRS Help