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Tax Relief Tips: How You Can Exonerate Your Tax Liabilities Through Innocent Spouse
By Michael Rozbruch | September 2, 2010
There are only so few things that are worse than owing the IRS back taxes. Owing the IRS back taxes that was not incurred by you is one of them. In the U.S., if your spouse owes the IRS money, it automatically means you share the burden and liability to pay it back. Doesn’t sound fair? Read on.
So how do you exonerate your IRS liabilities when you had nothing to do with the back taxes that your spouse owes? There is good news: the IRS offers an escape for qualified people under the Innocent Spouse Tax Relief option.
Here are some basics of how to settle your tax liability with the Innocent Spouse Relief:
How do I know if I qualify for innocent spouse relief?
You will need to prove to the IRS that you meet all of the following criteria to qualify for tax relief:
~You filed a joint tax return that featured an understatement of tax.
~The tax discrepancy was due to the erroneous actions of your spouse.
~When you signed the joint return, you neither knew nor suspected that there was a tax misstatement.
~Given the facts, it is unfair to hold you responsible.
~You initiated innocent spouse relief within two years of the IRS’s starting collection activity against you (after July 22, 1998).
If the IRS has already accepted my Offer in Compromise, can I still apply for innocent spouse tax relief?
Once your Offer in Compromise tax settlement has been accepted for a certain tax year, that closes the books on it.
Can I apply for innocent spouse tax relief after signing a Closing Agreement?
The answer varies with the type of agreement. (This highlights why it is vital to have a tax attorney or Certified Tax Resolution Specialist negotiate with the IRS on your behalf to make sure you understand clearly what you are committing yourself to.)
~Form 866, Agreement as to Final Determination of the Tax Liability – closed that tax year for good.
~Form 906, Closing Agreement on Final Determination Covering Specific Matters – resolved only those issues specifically covered in the agreement. Anything not addressed is still negotiable.
Continue reading Innocent Spouse Tax Relief FAQs here.
Bottom line is, don’t get stuck paying for your spouse’s mistake when you didn’t know about it in the first place. Free yourself from this serious tax burden through Innocent Spouse Relief and move on with your life without IRS tax problems.
If you need expert tax help, don’t hesitate to pick up the phone and call a tax attorney or Certified Tax Resolution Specialist. At Tax Resolution Services, we are dedicated to providing affordable expert tax help to taxpayers like you so that you can live your life without the stress and anxiety of tax problems. Call us today at (888) 259-1516 or visit www.TaxResolution.com for a free tax relief consultation.
Topics: IRS tax relief, Innocent Spouse Tax Relief, back taxes, hiring a tax attorney or Certified Tax Resolution Specialist, tax attorney, tax help | No Comments »