Get Relief from the Tax Debts of Your Former Spouse
Many individuals who were recently divorced or separated are surprised to learn that they are responsible for their former partner’s tax debt, even in situations where they were never told about (or aware) of their original income. However, if you find yourself in this situation, it is possible for you to seek help as an innocent spouse and get out of debt. The question is, are you eligible? At Davis, Ermis & Roberts, P.C. in Arlington, TX, our team of experienced legal professionals and tax attorneys understands just how frustrating it can be to suddenly deal with tax responsibilities for a partner you are no longer connected to.
Married couples have the option to file a joint tax return, not separate tax returns. Choosing this filing status often has advantages, but there may be disadvantages. Couples who come together are responsible for taxes, interest or penalties. The term “joint and multiple debts” means that each partner is legally responsible for all tax debts. If one partner does not fulfill their tax obligations adequately, it can cause the other partner to experience serious difficulties with the Internal Revenue Service (IRS). Fortunately, there are several ways in which a person can be exempt from tax in this situation. One of these types of tax breaks is called “innocent spouse relief”.
Understanding the Terminology
Imagine this scenario: Your spouse is a business owner who has difficulty monitoring profits and expenses. If you send your tax returns together, the IRS determines that there are differences in your business income, expenses, and/or deductions. You realize you are being audited. As a result, you both have to pay large amounts of money in back taxes. In such situations, innocent spouse relief, also known as innocent spouse protection, can help the person make it through the partner’s tax obligations without taking on such a heavy burden.
Who Qualifies for This Option?
Under the IRS guidelines, the IRS will not agree to allow protections for an innocent spouse if the taxpayer knew about the understatement of income or if the person reasonably knew about the circumstances. The IRS will consider all the facts and circumstances to determine whether the taxpayer has reason to know about the estimates that are too low, and this is an opportunity for a good tax attorney to do what’s needed to help you present the strongest possible case. Taxpayers must also show that, given the facts and circumstances, it is unfair to force the person to assume responsibility for the owed taxes. These facts and circumstances must be proven by an innocent spouse; They can be identified with the help of a tax attorney and explained to the IRS.
How to Handle a Recent Divorce or Separation in These Situations?
Even after a divorce, the two taxpayers are still very responsible for taxes, interest or penalty fees incurred in a joint tax return. IRM 184.108.40.206.6. This means that one spouse, including an innocent spouse, may be required to pay all taxes from a previous marriage – even if the other spouse has earned all income. However, taxpayers can claim Relief by Separation of Liability. In this case, the tax undervaluation is divided between the two people in the amount that is the responsibility of each partner. In addition to being separated or divorced, taxpayers and their spouses may not be members of the same household for any period during the 12 months that end on the day the taxpayer submits a claim.
Contact Davis, Ermis & Roberts P.C. in Arlington, Texas to Discuss Your Options
If you’re worried about your tax liability following a recent divorce or separation, the last thing you want to do is to try and sort through the entire mess on your own. With years of experience helping individuals and businesses throughout the DFW Metroplex, our team of legal professionals is always ready to work with you to handle your concerns including tax relief. To find out more about our services, or to schedule a consultation, don’t hesitate to contact us right away!