One of the perks of being married is that you are able to file a joint federal income tax return, which allows for greater tax deductions, credits, and write-offs for your combined annual earnings. However, there are many instances where joint tax returns can work against you. If it turns out that your spouse under-reported his or her income, or claimed unlawful deductions or credits without your knowledge, you could be held responsible for your spouse’s mistakes. In such instance, you may be eligible to apply for innocent spouse relief with the IRS.
By requesting innocent spouse relief, you can be relieved of your responsibility for paying tax, interest, and penalties if your current or former spouse improperly reported items or omitted items on your joint tax return without your knowledge and assistance. Thus, the tax, interest, and penalties that qualify for relief can only be collected from your current or former spouse. You generally start the process by filing an IRS Form 8857, requesting a separate tax liability that is distinct from your current or former spouse. But how do you know if you qualify for innocent spouse relief?
In order to be considered an innocent spouse, you need to meet the following criteria when filing a joint tax return:
(1) You must have filed a joint tax return with your current or former spouse with the tax understatement or erroneous statement of the tax liability of the spouse.
(2) When you signed the tax return, you did not know and had no reason to know of the understatement or the erroneous statement.
(3) Based on the circumstances of the case, it would be unfair to hold you liable for the understatement or erroneous statement.
(4) There has been no fraud committed by you and your spouse.
In order to receive the benefits offered from the innocent spouse relief provisions in the Internal Revenue Code, it is important that you contact an attorney as soon as you receive notice from the IRS. At Prompto Group, we know what the IRS looks for when granting innocent spouse relief. We believe that a collaboration of tax attorneys and CPAs increases the chances of success in negotiating a manageable tax liability solution for each specific case. Our experienced and professional Southern California tax attorneys and CPAs will evaluate your situation to determine if you qualify for innocent spouse relief and will work closely with you to help you get the relief you are eligible to receive.
You don’t have to deal with the IRS on your own. Let us help you negotiate the best option for your case! Contact us at (888) 754-7510 or info@promptogroup.com to set up your free initial consultation and assessment today!