Why All Couples Need to Know About Innocent Spouse Rule
How much do you know about your spouse’s financial history? What you do not know can come back to haunt you. Many people have little to no idea about the financial history of their spouse before entering marriage. If your husband or wife owes money to the IRS, their tax problems could soon become yours. Consider this nightmare scenario. In many households, one spouse is often placed in charge of filing the couple’s tax returns. But what if that person owes money to the IRS or reports inaccurate earnings or information without the other spouse’s knowledge? You could soon be facing huge penalties from the IRS. Fortunately, there is a solution called Innocent Spouse Relief.
When couples make their vows, they promise to love each other through sickness and health. But if one spouse fails to divulge their past tax problems, it can have disastrous consequences. When couples file a joint tax return, each person is responsible for the entire tax. You could have an almost impeccable record of great credit and paying all your bills on time. But if your partner doesn’t disclose their tax debt, you could facing serious tax problems including:
- Tax liens
- Bank levies
- Wage garnishments and more
The Innocent Spouse Rule was created to help protect those who fall victim to an irresponsible husband or wife. But if you find yourself in this position, please keep in mind the burden of proof is high. The victim must prove they had no idea of their spouse’s tax problems and financial abuse. Even worse, if you financially benefitted from your spouse’s false or inaccurate tax returns, your chances of receiving innocent spouse relief significantly lessen. That is why it is vital to have an experienced and knowledgeable tax attorney on your side.
File a Separate Return
If you have any suspicions of your spouse’s financial problems, filing separate returns is the best solution. You will have to file under the “married filing separate” status. You are only responsible for your own taxable income or unpaid taxes. The downside is you will probably have to pay higher taxes. But consider the alternative. It is much better than having to receive a notification from the IRS and having to back taxes that are not your fault.
Tax law in Fort Lauderdale can get extremely complicated. There are so many rules and regulations that are constantly updated. Even experienced and knowledgeable tax lawyers need to constantly study and stay on top of the latest changes. The IRS is not interested in hearing your sob story. It simply wants the money you are owed. If you find yourself owing back taxes due to the negligence of your spouse, contact a tax attorney right away. Exercising Innocent Spouse Relief is an effective method to protect yourself. A tax lawyer can help negotiate with the IRS on your behalf and provide effective solutions to help clients navigate through the legal process. To learn more, contact the legal team at 754-201-3536 today.