How to Qualify For Innocent Spouse Tax Relief

If you filed a joint tax return and the IRS accusesthe income.
you and your spouse of fraud, you can qualify for2. Get expert help understanding and meeting IRS
innocent spouse tax relief to avoid paying IRSguidelines. If you had no idea about the financial
back taxes, penalties and interest, not to mentionactivity of your spouse and how your spouse
doing hard time in federal prison on criminal taxwas manipulating the books, you can qualify for
fraud and tax evasion charges.innocent spouse tax relief. This means:
In the tax relief game, innocent spouse tax relief- You did not share bank accounts-you had no
is as close as you'll get to that invaluable "get outaccess to his/her account activity
of jail free" card. But you have to act fast to- Your spouse had a separate business that he
qualify since a recent treasury ruling has upheldshe operated independently
the 2-year deadline for taxpayers who must claim- You did not benefit in lifestyle from the extra
innocent spouse tax relief within 2 years of themoney that was a result of tax manipulation
IRS's commencement of collection action.To claim protection, it's wise to consult with an
If you've got a tax-cheating spouse (orexperienced tax attorney who can help you
ex-spouse), the IRS demands an immediatequalify for relief by showing the IRS that you
response on your part to defuse a deadly bombmeet all of the following conditions:
before it explodes. If you're an innocent spouse,- You must have filed a joint return which has an
here are expert tips to help you qualify for vitalunderstatement of tax.
relief.- The understatement of tax must be due to
1. Protect yourself and your family assets. Whenerroneous items of your spouse.
you and your spouse file a joint tax return, both- You must establish that at the time you signed
you and your spouse are "jointly and severally"the joint return, you did not know, and had no
liable for any taxes due. Many married taxpayersreason to know, that there was an
do this because of certain benefits this filingunderstatement of tax.
status allows. If you did so, you may be held- Taking into account all of the facts and
responsible for monies due, even if your spousecircumstances, it would be unfair to hold you liable
earned all of the income. And this is true even if afor the understatement of tax.
divorce decree states that your spouse will be- You must request IRS innocent spouse relief
responsible for any amounts due on previouslywithin 2 years after the date on which the IRS
filed joint returns.first began collection activity.
However, if you qualify for innocent spouse taxIf you are worried that the law might consider
relief, you may not have to pay the tax, interest,you a culpable party and you're in need of tax
and penalties related to your spouse (or formerrelief, you need to take action now. Once you file
spouse).For example, if it is later shown that onefor an Innocent Spouse Claim, the IRS will send
spouse had unreported income, the other spouseyou a questionnaire for the purpose of verifying
may try to escape civil and/or criminal liability forthe validity of your story. A Certified Tax
the tax on that unreported income under theResolution Specialist can help you through the
"innocent spouse" rule. To claim this protection,process of sharing your financial information in
the spouse could have reasonably known aboutinnocent spouse cases.