Married couples can file joint tax returns since it is financially beneficial and simpler than filing separately. Both spouses must sign the joint return and each is liable for any tax owed.
If the Internal Revenue Service (IRS) later alleges that the joint return was incorrect or fraudulent, both spouses are potentially liable for back taxes, interest, and penalties. However, spouses who are divorced, or where one was unaware of the willful fraudulence of the other, may be able to seek relief from that liability.
Contact an Alexandria innocent spouse relief lawyer immediately when you become aware that the IRS has initiated collection action regarding a joint return. Our tax collection attorneys can review your circumstances and help you resolve the matter as favorably as possible.
Errors or Deception on Joint Tax Returns
Underpaying federal taxes can be expensive. The IRS can seek the unpaid amount plus penalties and interest from the date the payment was due.
Taxpayers who ignore IRS collection efforts face mounting penalties plus the prospect of more significant attempts to collect the debt. The IRS may seek to levy bank accounts or other property, garnish wages, and withhold future income tax refunds.
Sometimes spouses ignore collection notices because they are no longer married to the person who prepared the return, and believe they are no longer responsible for the debt. Unfortunately, a former spouse remains responsible even when the marriage has ended. When a spouse consults an Alexandria attorney soon after receiving the collection notice, you could explore whether you qualify for innocent spouse relief, which would free you from responsibility for the debt.
Qualifying As an Innocent Spouse
The IRS’ innocent spouse relief program reflects the reality that for many couples, one spouse handles all financial matters and the other spouse may have little knowledge. It would be unfair to hold a spouse with no familiarity with the couple’s financial affairs liable for an incorrect or false return.
Someone seeking innocent spouse status must file Form 8857. Not every spouse will qualify. Someone seeking innocent spouse status must prove their lack of familiarity with the couple’s finances in general, and specifically the errors or omissions that triggered the IRS inquiry.
When a spouse handles some of the couple’s financial matters or has professional or educational credentials that indicate they could have identified the problem with the return, the IRS might not qualify the applicant as an innocent spouse. An Alexandria attorney will carefully review the circumstances to determine whether they are likely to qualify for innocent spouse relief.
Swift Response to Secure Relief
Even when a spouse would otherwise qualify for relief, their application could be rejected if they delay too long. The IRS opens the innocent spouse relief program only to people who apply within two years of the initial notice of the IRS collection action.
Other forms of relief may be possible when a spouse misses the deadline. The IRS sometimes grants equitable relief to people who can demonstrate that it would be unfair to hold them responsible for unknowingly underpaying taxes due to their spouse’s error.
Ideally an innocent spouse would contact an Alexandria attorney soon after receiving a notice of underpayment. When the taxpayer acts promptly, more avenues to resolving the matter are available.
Consult an Alexandria Attorney About Applying for Innocent Spouse Relief
If you are facing IRS collection action because your spouse filed an incorrect return, and you can prove you had no knowledge of it and no reason to know of it, you have options to free yourself from responsibility. Contact an Alexandria innocent spouse relief lawyer as quickly as possible to explore whether you qualify for this IRS program. Even when innocent spouse relief is not available, there may be other ways to address these mistakes and reduce the burden.