Separated in divorce, taxpayers who have filed joint returns may need innocent spouse relief so they are not held liable by the IRS for their ex's failure to report taxable income or disallowed tax deductions. 2. Joint liability is a risk that many taxpayers don't recognize until it's too late. 3. Innocent spouse relief is one of the most frequently litigated issues in Tax Court because the legal requirements are complex and detailed. 4. Chapter 11 of my book contains an excellent discussion of innocent spouse relief and the related concepts of separation of liabilities and equitable relief. 5. Many married taxpayers choose to file a joint return because of the financial advantages and tax savings. 6. Yet, when married taxpayers file jointly, both taxpayers are held jointly and individually liable, even if they separate or divorce. 7. The tax interest and penalties associated with the joint return may be collected from either or both taxpayers, even if a divorce instrument states that one spouse will be responsible. 8. In fact, one spouse may be held responsible for all of the tax due, even if the income was earned by the other spouse. 9. Thus, filing jointly during the marriage and after separation presents spouses with a risk that they must consider and protect themselves against. 10. The Internal Revenue Code at section 6015(b), (c), and (f) offers three possible remedies for spouses who find themselves defending erroneous joint tax returns: innocent spouse relief, separation of liabilities, and equitable relief. 11. The most comprehensive form of relief, innocent spouse relief, is also the most difficult to obtain. 12. By requesting innocent spouse relief, a joint taxpayer can be relieved of responsibility for paying tax interest and penalties caused by erroneous or omitted items reported by a spouse or former spouse on a joint tax return. 13. To take advantage of the...
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What are the four types of Innocent Spouse Relief Form: What You Should Know
In the case of a former spouse claiming an innocent spouse relief from liability, only the spouse claiming and receiving the benefit must file Form 8857 or mail it to the address given at the bottom of the form as proof of the identity of the spouse claiming relief. in the case of an innocent spouse relief from liability for taxes, there are no separate withholding penalties associated with the filing. It has been very difficult for me to gather the facts necessary to apply for innocent spouse, what should I look for? Sep 12, 2024 — Spouse Claims Innocent Spouse Relief When Tax Served By Courts. The application for a guilty spouse relief is not to be considered for tax purposes. The application must be completed and filed via Form 8857 no later than 2 years after the date the IRS first attempted to collect the taxes in (1) an action brought under a court order authorizing the IRS to garnish the wages, pension benefits, or some other benefit payable to the former spouse. ‣(2) In the case of a former spouse claiming an innocent spouse relief from liability, only the spouse claiming and receiving the benefit must file Form 8857 or mail it to the address given at the bottom of the form as proof of the identity of the spouse claiming relief. [Note: If you do not wish to use the original form, you can electronically file Form 8857 using the E-Filing option on Form 8857 or mail your form by certified mail.] The application must be completed and filed via Form 8857 no later than 2 years after the date the IRS first attempted to collect the taxes in [See below] (1) an action brought under a court order authorizing the IRS to garnish the wages, pension benefits, or some other benefit payable to the former spouse. It has been very difficult for me to gather the facts necessary to apply for innocent spouse, how do I qualify? Sep 12, 2024 — Spouse Claims Innocent Spouse Relief When Tax Served By Courts. “A married person does not become an innocent spouse merely by paying the tax due. The question is whether the spouse has caused, attempted to cause, or will cause the IRS to bring the suit.
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