Innocent Spouse Relief - Offers A Way Out From Your Partner's Tax Problems
Many married couples file their taxes jointly because there are certain advantages to the tax status. But, this can be a major problem if your spouse has major tax debts. Often after a divorce one party or the other discovers that they are being pursued by the IRS for thier spouse's tax debts.
For many in this situation, innocent spouse relief will be the key to stopping the harasssment by the IRS for your ex's mistakes.
An innocent spouse can file an application for exclusion from the collection process in certain situations, which can also impact terms of any agreement reached by the other spouse with the IRS.
It is also important to remember that a divorce decree designating tax liabilities may not apply when the IRS begins a recovery process. The application process will explain the innocent spouse position on the accrued tax debt and their personal involvement in the income activity that produced the tax debt. This is by no means an automatic approval process, as the ability to apply for exclusion is a new tax regulation with little history of approval results.
There is a two-year statute of limitations on filing for innocent tax relief, so any consideration of filing for exemption should be done quickly. There are certain conditions that must also be met in order to qualify. The innocent spouse must either provide documented evidence that they have not lived in the same dwelling as the targeted spouse for the twelve-month period in question and the spouses must be either divorced or legally separated. Widows and widowers are also qualified to receive the exemption. In addition, the exempt spouse must swear they were not aware of the tax debt underestimate when requesting equitable relief.
As a local Salt Lake Tax Attorney concentrating in IRS Problem Resolution, I can help you decide if Innocent spouse relief is the right solution to your IRS tax debt problem. Please call the Gilland Law or your free consultation at (801) 444-9302 or email Salt Lake Tax attorney Jim Gilland or your free IRS Tax help consultation.