If you filed a joint return with a spouse but there are unpaid taxes, penalties, or other related debt, those tax debts also become your liability. This is true even if a divorce court orders the other spouse to pay the liabilities. You could be involved in a financial problem that you did not create. Fortunately for you, there is hope on the horizon. The IRS Innocent Spouse Relief (ISR) option can help you get out from under this burden.
If you are struggling with tax debt caused by your spouse, a Phoenix innocent spouse relief attorney from Dayes Law Firm can help you navigate this complex process to get you the tax relief you deserve. We work throughout Arizona and in neighboring states.
Understanding Innocent Spouse Relief
Innocent Spouse Relief is a specific IRS provision to protect innocent taxpayers from being held responsible for tax liabilities they did not incur themselves. The purpose of the program is to provide tax relief in situations where one spouse was unaware of the other’s financial misdeeds, such as underreporting income, claiming improper deductions, or failing to pay taxes owed. It also applies when a taxpayer was a victim of coercion, fraud, or abuse, leading to their unwitting participation in the filing of inaccurate tax returns.
Are You Eligible for Innocent Spouse Relief?
The IRS has specific criteria that must be met by the taxpayer to qualify for Innocent Spouse Relief in Phoenix, helping to ensure that the relief is granted only to those who genuinely deserve it. Key factors that the IRS will consider when evaluating eligibility under this program include:
- You must have filed a joint tax return with your spouse for the tax year in question.
- You must show that you were unaware of the understatement of tax or the incorrect tax information on the joint return.
- You have not benefited from the unpaid tax liability or the erroneous items on the tax return.
- It is unfair to hold you responsible for the tax debt, considering all the facts and circumstances.
- Paying the tax debt would cause you significant financial hardship.
While these initial criteria need to be met, other facts and circumstances can also be considered when seeking relief.
Types of Innocent Spouse Relief
The IRS offers three types of relief under the Innocent Spouse Relief program:
- Innocent Spouse Relief: The most common type, it completely absolves you of responsibility for the tax debt.
- Separation of Liability Relief: Equitable relief divides the tax liability between spouses based on their individual involvement and ability to pay.
- Equitable Relief: Catch-all provision allowing the IRS to grant relief in situations where the other types of relief don’t apply.
How to Apply for Innocent Spouse Relief
Applying for Innocent Spouse Relief in Phoenix involves a detailed process that requires careful attention to ensure your application is complete and accurate. The first step is collecting all relevant tax documents, including your tax returns, IRS notices, and any supporting evidence that demonstrates lack of knowledge or involvement in the tax issue. Next, you must file a Request for Innocent Spouse Relief with the IRS.
The IRS will review your application and make a determination on your eligibility for relief. The Dayes Law Firm attorneys can help you carefully apply with all required information.
What if Your Application is Denied?
If your application for Innocent Spouse Relief is denied by the IRS, you have the right to appeal that decision. However, you must timely file your appeal (within 30 days) of the date on the denial notice. The appeals process can be complex, and you need an experienced tax resolution attorney by your side helping you navigate the process to present your case effectively.
Learn How a Phoenix Innocent Spouse Relief Attorney Can Help
Dealing with tax issues, especially when facing a significant tax liability that you believe you don’t owe, can be an overwhelming experience. A skilled Phoenix innocent spouse relief attorney can provide invaluable assistance through initially evaluating your eligibility, gathering needed evidence, completing and filing the necessary IRS forms, negotiating with the IRS on your behalf, and even representing you in appeals, when necessary.
You do not have to face the IRS alone when you are struggling with tax debts caused by your spouse’s actions or omissions. With the right legal representation, you can get the relief you deserve to move forward. Call us today.
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