INNOCENT SPOUSE RULE

Many married taxpayers choose to file a joint tax return because of certain benefits that this filing status allows. Both taxpayers signing a joint return can be held liable for the full amount of any taxes due. This means that both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the joint return even if later divorced. This can be true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. The main point is, one spouse may be held responsible for all the tax due, even if all the income was earned by the other spouse!

The IRS can take collection action against you, even garnishing your wages, for taxes your spouse or former spouse failed to pay. The purpose of the Innocent Spouse Claim is to remove your responsibility for taxes and penalties which you believe only your spouse or former spouse should be held liable. There are specific rules that apply for eligibility and there are many situations under which an Innocent Spouse Claim may be asserted; our office can evaluate whether you are a good candidate.

In order to take advantage of the Innocent Spouse Rule, you must prove 3 things: 
1. That you were unaware of the understated income.
2. That you had no reason to be aware of the wrong tax claim.
3. That you did not benefit from your spouse's wrongful tax actions.

The innocent spouse will have to be prepared to demonstrate that your lifestyle (your automobile, your housing, your personal effects, etc.) is in keeping with the income that was reported on the tax return.

If it is demonstrated that the innocent spouse was truly uninvolved and did not benefit from their spouses tax misstatement, you may alleviate your tax problem.

The IRS will not be deterred and they won't disappear. Call us for a FREE CONSULTATION and let's discuss all YOUR options in ending your tax problems.