Innocent Spouse Rule

If your husband or wife runs up a debt with the IRS and you filed your taxes jointly, the IRS may come to you in an effort to collect on the bill, even if your spouse was the one who created the tax bill.

This is because the IRS finds that married couples who filed their tax returns jointly are separately and jointly responsible for each other's tax liability. This means if the IRS can't collect taxes from your spouse they may attempt to collect taxes from you. The IRS reasons that you were in a position to know about you spouse's underreporting of income and that you likely benefited from your spouse's actions.

The IRS also recognizes there are exceptions to these assumptions and has created "the Innocent Spouse Rule" to exempt qualifying taxpayers from their spouse's actions. If you are able demonstrate that you were truly uninvolved and did not benefit from your spouses' tax misstatements, you can alleviate your IRS problem.

To do so, you must prove three things:

1. You must prove that you were unaware of the understated income. 
2. You had no reason to be aware of the erroneous tax claim.
3. You did not benefit from your spouse's tax misdeeds.

You must prove that you were unaware of the understated in order to demonstrate that you did not benefit from your spouse's tax misdeeds. Also, you will have to be prepared to demonstrate that your lifestyle (the car you drive, the home you live, etc.) is in keeping with the income you and your spouse reported on your tax return.

To prove that you are not benefiting from your spouse's tax evasion, you must be able to show that your lifestyle is commensurate with the income listed on your return. As an example, if your tax return states that your joint income is $41,000, but you live in a large mansion and drive a exotic sports car, the IRS may find that you benefited from your spouses' misstatement and therefore were aware (or should have been aware) that your spouse did not claim all their income. If you qualify for the Innocent Spouse Rule, we will complete IRS Tax Form 8857, "Request for Innocent Spouse Relief," on your behalf.

Tax attorney Sherri Carver has the knowledge and the experience necessary to assist you with Innocent Spouse Relief. Dealing with tax problems can be one of the most stressful times of anyone's life; Don't handle it alone! You need a tax attorney who understands tax law and how to help you end your tax problems.

Contact Our Office  today for a free consultation regarding your tax problems!