Life can be unpredictable at times. An IRS letter just came in demanding that you pay more taxes on your tax return for last year. For as long as you can remember, you have always relied on your spouse to prepare your tax returns. Your spouse works in finance, after all. The worst part is that you do not understand why the IRS believes you did not report $50,000 of additional income. Due to back taxes, penalties, and interest, the IRS now wants $20,000 from you.
In this situation as well as many others, you may be able to apply for innocent or injured spouse relief. First, you must meet certain conditions to qualify for this relief. Here, an injured spouse means financially hurt, not physically hurt.
We’ll be able to determine whether innocent spouse relief is right for you. We will review your situation to determine if there were any unreported income items that you were unaware of. Your spouse may have hidden additional income from you. There may also be situations where it isn’t fair to hold you liable for the additional tax.
Your innocent spouse relief application will be reviewed by the IRS to determine if any of the following circumstances apply:
- Your spouse claimed an incorrect deduction
- When you signed the return, you were unaware of the erroneous deduction or item
- In light of the facts and circumstances, holding you responsible for the tax would be unfair
- You have not transferred or received property from your spouse in order to avoid paying taxes or paying a third party.
We understand that this is a difficult time for you. There are many factors to consider. We can assist you in determining whether innocent spouse relief applies to you.