IRS Innocent Spouse & Injured Spouse Relief
Innocent & Injured Spouse Help
IRS Innocent Spouse Help
The innocent spouse law is the one exception to the law making both currently married or former spouses responsible for an IRS tax debt. A spouse, or more likely, an ex-spouse, may be relieved of joint tax debts. Under current law, an innocent spouse filing a joint tax return must show all the following:
- All or part of the tax understatement was due to erroneous items of the other spouse.
- He or she did not know, and had no reason to know, there was an understatement by the other spouse.
- It would be unfair to hold the innocent spouse liable.
Even if you do not qualify as an innocent spouse, it is possible that the IRS can grant you some relief by apportioning the tax debt. You must recompute your separate tax liability (as if you had not filed jointly).
The IRS can deny innocent spouse relief if it concludes that the spouse had actual knowledge of the tax misdeed and still voluntarily signed the return. The only hope for the innocent spouse is to show that he or she signed the return under duress (i.e. you must have been unable to resist the demands of your spouse to sign the return, and you would not have signed the return if the pressure had not been applied). If you had no income and believed that you were not obligated to file a return, you will not be assumed to have authorized your spouse to sign your name on a joint return. If you have your own income and do not file separately, the IRS will assume you intended to file jointly, and you cannot claim that your spouse forged your name to a joint return.
Injured Spouse Claims
If the IRS takes a joint income tax refund when only one spouse owes back taxes, the other spouse can file a claim for his or her share of the refund money.
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Areas of Practice
expat tax preparation
Foreign earned income and housing exclusions for both federal and state income tax returns. Foreign bank account reporting (FBARs), Statement of Specified Foreign Financial Assets, Tax Treaties, Application for IRS Individual Taxpayer Identification Number,etc.
business tax debt representation
We will file a power of attorney with the IRS and State Taxing Authority to negotiate a hold on all enforcement action such as bank and account receivable levies while we work on an appropriate resolution including Installment Agreements, Company Restructuring, Penalty Abatements, Offer in Compromises, and Currently Not Collectible Status. We will also advise you if bankruptcy is an option.
irs and state tax debt representation
We will file a power of attorney with the IRS and State Taxing Authorities to negotiate an appropriate resolution for back tax debt including Installment Agreements, Penalty Abatements, Offer in Compromises, Innocent Spouse Requests, and Currently Not Collectible Status. We will also advise you if bankruptcy is a option.
new business entity formation
We will educate you of the pros and cons of organizing an Limited Liability Company versus a Corporation, S-Corp., Limited Partnership, etc. and assist in the formation of the entity of your choosing.
previous years tax returns
We will prepare your previous years tax returns to bring you back into compliance with the IRS and State.
business tax return preparation
Whether you have a sole proprietorship with a Schedule C or a 1120 Corporate return we will prepare any business return.
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