This is true regardless whether your divorce decree state that your spouse is responsible for any amount due on the tax return in question, because the IRS is not bound by the terms of the Decree of Divorce rendered by a district court in the State of Texas. The IRS, rather, is governed by federal law and one thing we all know is true: death and taxes, so the IRS is going to get their money.
To seek this innocent spouse relief, the IRS will look to see if the following conditions are met:. While historically there was a 2 year time limitation on the filing of this form, new rules adopted by the IRS recently have lifted in most cases this 2 year limitation. However, you should seek the advice of an Austin Divorce Attorney or a competent tax professional in this circumstance. Our Austin Divorce Attorneys can assist you with the filing of the innocent spouse relief form.
The Innocent Spouse Relief Form may be filed by mailing the form as follows:. By law, the IRS must contact your spouse or former spouse. There are no exceptions, even for victims of spousal abuse or domestic violence.
Therefore, you should consider all options including an Offer-in-Compromise Doubt as to Liability. We will inform your spouse or former spouse that your filed Form and will allow him or her to participate in the process. We must also inform him or her of its preliminary and final determinations regarding your request for relief.
However, to protect your privacy, the IRS will not disclose your personal information for example, your current name, address, phone number s , information about your employer, your income or assets or any other information that does not relate to making a determination about your request for relief from liability.
Caution: If you petition the Tax Court your spouse or former spouse may see your personal information. During the processing time, the Service is requesting your tax information and contacting the non-requesting spouse.
This issue is generally not related to Innocent Spouse Relief. If you filed a joint tax return, you are jointly and individually responsible for the tax and any interest and penalty due on the joint return.
This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on a previously filed joint return. In some cases, a spouse may be relieved of the tax, interest, and penalties on a joint tax return.
You can ask for relief no matter how small the liability. You must file Form , Request for Innocent Spouse Relief, to request any of the methods of relief.
Publication , Innocent Spouse Relief, explains each type of relief, who may qualify, and how to request relief. Yes, you can file a second claim, provide the new additional information and it will be reconsidered.
However, you will not have tax court rights on this reconsideration. Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the joint return even if they later divorce.
This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held responsible for all the tax due. Each of these kinds of relief has different requirements. They are explained separately below.
Yes, each spouse can file a Form to request relief from liability from tax, interest and penalties. Per Rev. However, the non-requesting spouse may not petition the Tax Court from the final determination letter. If relief is denied in part or in full, and the requesting spouse petitions the U. Tax Court, the non-requesting spouse, by law, will be given the opportunity to become a party in that proceeding. For claims where a preliminary determination was issued prior to April 1, , the non-requesting spouse had no appeal rights when the preliminary determination letter granted relief in part or in full to the requesting spouse.
If relief was denied and the requesting spouse petitioned the U. Tax Court, the non-requesting spouse, by law, was given the opportunity to be a party in that proceeding. The IRS is required to notify the non-requesting spouse to allow them to participate.
Erroneous items are any deductions, credits, or bases incorrectly stated on the return, and any income not reported on the return. An understatement of tax is generally the difference between the total amount of tax that should have been shown on your return and the amount of tax that was actually shown on your return.
There are many situations in which you may owe tax that is related to your spouse, but not be eligible for innocent spouse relief. You are not eligible for innocent spouse relief when you have knowledge or reason to know of the understatement. Under this type of relief, you divide separate the understatement of tax plus interest and penalties on your joint return between you and your spouse. The understatement of tax allocated to you is generally the amount of income and deductions attributable to your earnings and assets.
To qualify for separate liability, you must have filed a joint return and meet either of the following requirements at the time you file Form Even if you meet the requirements listed above, a request for separate liability will not be granted in the following situations:. Separation of liability applies to taxpayers who are 1 no longer married, 2 legally separated, or 3 living apart for the 12 months prior to the filing of a claim. Under this rule, you are no longer married if you are widowed.
Living apart does not include a spouse who is temporarily absent from the household. A temporary absence exists if it is reasonable to assume that the absent spouse will return to the household, or a substantially equivalent household is maintained in anticipation of such a return. A temporary absence may include absence due to incarceration, illness, business, vacation, military service, or education.
Note: Unlike innocent spouse relief or separation of liability, if you qualify for equitable relief, you can get relief from an understatement of tax or an underpayment of tax. An underpayment of tax is an amount properly shown on the return, but not paid. Generally, community property laws require you to allocate community income and expenses equally between both spouses. However, community property laws are not taken into account in determining whether an item belongs to you or your spouse or former spouse for purposes of requesting any relief from liability.
The IRS will automatically consider whether any of the other provisions would apply. If you requested innocent spouse relief or separation of liability, IRS will automatically consider equitable relief. The only time you can reapply for relief is if you were denied relief because you were considered still married at the time the request for relief was filed and you now satisfy the marital status requirements to elect to separate the liability.
IRS will base their decision upon all the information available to them. If enough information is not available, it could adversely affect a request for relief. We cannot consider your claim for any year in which an Offer in Compromise was accepted. You should file as soon as you become aware of a tax liability that your spouse or former spouse should be responsible for.
Your qualification for the first rule is determined by examining your return and proposing to increase your tax liability. Certainly, if you received communication from the IRS stating you owe more money, you should be looking into your most recent tax filing activities.
Collection activities can also initiate the two-year period. Rule number two above is one activity. Another is the IRS filing a claim on your behalf in a court proceeding you are party to.
The IRS can file a claim involving your property, including the filing of bankruptcy. The two-year period could be initiated when the U. In every case of request for innocent spouse relief, the IRS is required to contact your spouse regarding your claim, even if you have been a victim of spousal or domestic violence. The law states both spouses are to be involved in the process.
Marriage is built on trust. If your spouse trades on that trust by understating taxes on a joint return that you subsequently sign, you will be held liable for the entire amount of taxes due if the IRS finds out.
If you can show you had no reason to know there was an issue with the return, you may be qualified for relief as an innocent spouse. If you have been blindsided by the news that your spouse has been cheating the IRS, call me. I sympathize with your situation and can only imagine the devastation you feel.
We will review your situation together and begin the process for applying for Innocent Spouse Relief. You can trust us to act in your best interests and relieve you of potential litigation and unwarranted financial responsibilities. This will set you on the path to enter the next chapter of your life free from this burden. Actual Knowledge The actual knowledge or reason to know test is governed by the principle that the IRS will not deem you an innocent spouse if you were aware of the tax deficiency at the time the return was filed.
Among the things that the IRS will consider when determining actual knowledge for IRS innocent spouse relief purposes are: The nature of the erroneous item and the amount of the erroneous item relative to other items The financial situation of you and your spouse or former spouse Your educational background and business experience The extent of your participation in the activity that resulted in the erroneous item Whether you failed to ask, at or before the time the return was signed, about items on the return or omitted from the return that a reasonable person would question.
Reason to Know The main eligibility requirement for innocent spouse relief is whether you can show you did not know and had no reason to know, the tax was understated when you signed the return. The IRS looks at several circumstances to determine whether there is an innocent spouse, including: Type and amount of the error Financial situation of both parties, even if divorced Educational backgrounds and business experience Extent of participation by each spouse in creating the error Whether you asked about errors on the return, or items omitted from it, before or at the time of signing, that a reasonable person would ask.
Whether there is the appearance of a recurring pattern over the course of several prior tax returns of the same type and amount of error Who Qualifies for Innocent Spouse Relief?
One of the taxpayers believes the understatement of tax was due to an error found later by one of the spouses. There is evidence that one spouse did not know about the error or that the tax was understated.
One spouse believes he or she should not be held responsible for the understated tax once all the facts and circumstances have been taken into account. What Is Included in the Rules for Relief?
0コメント