When your spouse or ex-spouse failed to meet their tax obligations, the financial weight on you can be crushing, and it is not your fault that it happens. It can be unfair, stressful, and even scary to face your life and finances being irrevocably damaged because your spouse was irresponsible and you are facing their tax liabilities.
Sometimes, however, there is an option for folks in your situation to reduce or escape this burden, in the form of innocent spouse relief. Proving that you deserve this form of tax relief, however, can be extremely tricky and requires professional help. That is where we come in.
At Instant Tax Solutions, we have an expert team of CPAs, registered federal agents, Houston tax lawyers, and other tax professionals with decades of combined experience. We can work with you to find relief from the debt that threatens your financial future. If you are facing the need for innocent spouse relief, get in touch with us today. Call (888) 921-3781 or use our online form to schedule a free, no-obligation case review right away.
What Is Houston IRS Innocent Spouse Tax Relief?
Innocent spouse relief is a form of tax relief provided by the IRS that can remove some of your tax burden if your tax return contains errors related to your spouse’s income that you were unaware existed. You cannot apply for innocent spouse tax relief based on household employment, your own income, trust fund recovery penalties, or business taxes.
To request IRS innocent spouse tax relief, you must file within two years of getting an IRS notice of taxes or audit due to the error on your return. You must also meet the stringent requirements for this form of relief. Proving that you were ignorant of the errors on the return and that you meet other qualifications can be complex. At Instant Tax Solutions, we are ready to help you gather the important information to back up your case and help you negotiate with the IRS.
What Is Houston Separation of Liability Relief?
Separation of Liability Relief is similar to Innocent Spouse Relief, but applies if you are no longer married, or no longer cohabitating with your spouse. In such a case, the owed taxes from joint returns that have errors will be divided based on the individual income and assets of each spouse, and you only owe your share, rather than sharing full responsibility for all the taxes as in other forms of joint tax burden.
Normally, divorce is not a sufficient reason to separate tax liability if that liability was incurred while you were still married. After you are divorced and no longer filing jointly, each spouse is responsible for their own taxes. In these certain situations, you may be able to seek a separate, specific decision to seek separation of liability relief. Like other forms of tax relief related to spousal fraud, this requires a reasonable burden of proof on your part. Instant Tax Solutions can help you review your finances and determine if you can provide this proof.
What Is Houston Equitable Relief?
Equitable relief is a form of tax relief the IRS offers to those who suffer unfairly from a spouse that underpays or understates taxes on a joint return. In this case, if your spouse failed to report all their income, took deductions or credits for which they were not eligible, or did not accurately report the value of their assets, and the IRS determines that holding you responsible is unfair, you qualify for equitable relief.
In such situations, the IRS recognizes each spouse as responsible for their portion of the underreported tax burden. While for some couples the split may be equal, for others it may be 60/40, 70/30, even 90/10 if one spouse is significantly less financially solvent than the other. The IRS will make the final decision based on the contribution each spouse shared in the taxes due.
Such relief is granted only on a case-by-case basis and carries a sometimes tricky burden of proof. That’s why it can be so important to seek help from a qualified, experienced professional tax relief service.
What Is Injured Spouse Relief?
Injured Spouse Relief is a different kind of relief, and the only one for which you can apply after your tax refund was reduced, or you have a debt applied. Like innocent spouse relief, it depends on you being unaware of your spouse’s tax errors, and suffering no fault of your own. You can apply this relief to other income tax obligations, unemployment compensation debts, child support debts, or other federal debts.
Do I Qualify for Houston IRS Innocent Spouse Relief?
To qualify for Houston IRS innocent spouse relief, you must meet specific qualifications. First, you must have filed a joint return with your spouse. Second, this return understated the taxes you owed. Third, you must have no knowledge of the errors that led to the understatement. Finally, you are facing collections actions or demand for payment of additional tax burden as a result.
This form of relief can only be granted if the tax burden is new but applies to old tax returns. To qualify, you must have properly filed and paid any tax liability at the time the original tax return was due. You cannot qualify for innocent spouse relief if the IRS is pursuing you for taxes that you actually declared on the original return.
In addition, any income underreported or in error on the original return must come from normal 1040 tax return sources and must be solely earned by the other spouse. If the income is yours or partially yours, involves payments to household employees, involves business earnings, or is related to trust fund recovery penalties, you cannot apply for injured spouse relief.
The key factor here is that you must have filed your return and paid any declared amount owed in good faith. The IRS must then have gone back, re-assessed, and determined that the original return was in error. They will then issue a demand for additional payment with penalties and interest. Normally, under the law, both spouses share equal responsibility for any and all tax burden, and the IRS will pursue both spouses.
Very few forms of defense or tax relief can protect a spouse from these circumstances. Innocent spouse relief, however, exists for this specific purpose, but you absolutely must prove reasonable innocence of knowledge of the spousal tax fraud in question.
How to Prove Innocence of Knowledge
A second crucial element in your application is that you must be able to prove that you had zero knowledge of the errors on the return. This means you did not know your spouse was underreporting or that they claimed credits or deductions to which they were not entitled.
The IRS also, however, will consider whether you should have known. Ignorance alone is not always a qualifier. If a reasonable person in the same situation would have known, you may not be eligible. This can be a very tricky benchmark to pass, which means that it’s a good idea to seek help from professional tax relief services like Instant Tax Solutions.
Domestic Abuse Exceptions
The IRS does make a major exception for spouses who suffer domestic abuse. If the spouse in question had a legitimate, credible fear of harm from challenging their tax return, they may claim that they were coerced into signing. You must, in this case, have proof that you were the victim of abuse, including a court finding or other evidence that you can provide to the IRS.
Exceptions to Innocent Spouse Relief
Certain exceptions exist to qualifying for innocent spouse relief. These include freedom from any other deals associated with the tax debt. If, for example, you have come to an offer in compromise or installment agreement with the IRS for the debt in question, you cannot also claim innocent spouse relief.
Another exception comes if you were involved in a court case but failed to request relief. If the courts established that you knew about the unpaid taxes, you believed you were innocent of the burden, but did not request relief from the courts, you cannot apply for innocent spouse relief.
Will the IRS Stop Collections After I Apply?
Innocent spouse relief, equitable relief, injured spouse relief, and the other forms of spousal tax fraud relief listed here are different that some other types of tax relief in that they do not require the IRS to cease collections efforts. This means that the IRS may still pursue levies, liens, account freezes, penalties, fees, and other forms of collection efforts.
Instant Tax Solutions is here to stand up for your rights in these situations. We may be able to fight to have these penalties avoided or removed, while also establishing your innocence from liability.
Get Help Requesting Innocent Spouse Relief Today
At Instant Tax Solutions, our professional experts carry decades of combined experience in helping individuals seek tax relief. We understand the system, and we know how to stand up for your rights. We can review your financials, put together evidence of innocence, domestic abuse, or other requirements to get you back on the path to financial freedom. We will represent you, help you to appeal denials, and fight for your financial rights.
If you are ready to start fighting for tax relief, we are ready to stand by your side. Call us today at (888) 921-3781 or fill out our form online to schedule a financial review and consultation with no obligation and no cost to you.
