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When couples file a joint tax return, they become jointly and severally liable for any taxes, interest, and penalties owed. This means the Internal Revenue Service (IRS) can collect the entire tax debt from either spouse, regardless of who earned the income or made the errors on the return. However, the IRS offers innocent spouse relief to protect taxpayers who may be unfairly burdened by their spouse’s or ex-spouse’s tax mistakes or intentional wrongdoing.
This process can be intricate and demanding, but a Bethesda innocent spouse relief lawyer can help you understand each step and avoid a more precarious legal situation. Our respected IRS collection alternatives attorney can be a valuable asset in navigating the complexities of innocent spouse relief, safeguarding your financial future from the consequences of your spouse’s tax liabilities. We have former Revenue Officers who know the inner workings of the IRS and can help you navigate your request for relief.
Innocent spouse relief is a provision in the U.S. tax code. It can help one spouse be relieved from joint liability if they can demonstrate they were unaware of their spouse’s actions that resulted in an understated tax liability on a joint return. This option can be a lifeline for individuals who find themselves on the hook for tax liabilities due to the errors or misdeeds of their spouse.
A crucial element for innocent spouse relief is the requesting spouse demonstrating they did not know, and had no reason to know, about the erroneous items or understatements on the joint return at the time of signing it. A Bethesda attorney who regularly handles innocent spouse relief cases can provide tailored guidance based on your specific situation. Here are some examples of scenarios where this relief may apply.
One spouse, without the other’s knowledge, fails to report significant income from a side business or investments on their joint tax return. The IRS later audits the return and discovers the underreported income. The spouse, having had no knowledge of this unreported income, may qualify for innocent spouse relief.
One spouse, without the other’s knowledge or consent, claims fraudulent deductions or credits on the joint tax return, leading to an understated tax liability. The innocent spouse can demonstrate they were unaware of these fraudulent activities and may be granted relief.
A spouse in an abusive or controlling relationship is coerced or intimidated into signing a joint tax return containing errors or underreported income. The victimized spouse, unable to question or challenge the accuracy of the tax return due to fear or abuse, may qualify for relief.
After a divorce or separation, one spouse discovers that their former spouse had engaged in fraudulent or inaccurate tax reporting on a joint return filed during their marriage. The innocent spouse can demonstrate they had no involvement in those tax activities after the divorce or separation, and may seek relief.
To be granted innocent spouse relief in Bethesda by the IRS, you must meet several key criteria:
The IRS offers different forms of relief to spouses who filed a joint tax return but believe they should not be held responsible for the entire tax liability, penalties, and interest due to a partner’s errors. Navigating innocent spouse relief requires careful attention to detail, and working with a Bethesda attorney for guidance will put you in the best position.
Separation of liability relief allows the requesting spouse to pay only their share of the understated tax (plus interest and penalties) on a joint return. This option is particularly helpful for individuals who are divorced, legally separated, or have not lived with their spouse for the 12 months leading up to the request for relief.
Equitable relief is a catch-all relief option if someone does not qualify for innocent spouse relief or separation of liability relief. This type relief can also apply to situations with understated or unpaid taxes where it would be unfair to hold the requesting spouse responsible based on all the facts and circumstances.
While not strictly an innocent spouse form of relief, injured spouse relief allows someone to reclaim their portion of a joint tax refund that was applied to cover their spouse’s separate debts, such as overdue child support or student loan obligations.
Our tax controversy specialists can thoroughly assess your circumstances to determine if you meet the criteria for federal and/or state innocent spouse relief. A tax professional at Pontius Tax Law can assist you in collecting and organizing the financial records, bank statements, and relevant correspondence necessary to support your claim.
A Bethesda innocent spouse relief lawyer can help you protect yourself from unfair tax liabilities and collection actions. Contact us today to request your confidential case evaluation.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.
