Do you think you might be an innocent spouse? The tax professionals at BAYSHORE CPA’S, P.A. located in Mooresville, NC can determine if you qualify as an innocent spouse regarding back taxes owed. According to IRS guidelines, when a married couple files their taxes jointly, both parties are liable for the taxes owed no matter how much taxable income each person earned individually. If your spouse or former spouse made mistakes on your joint return or misrepresented a portion of the income, the IRS doesn’t care who made the errors.They will go after the spouse they can find first. Even if you’re divorced, they will do all they can to recover back taxes, penalties, and interest. If your spouse or former spouse has put you in this unfair and potentially expensive situation, you may qualify for innocent spouse relief.
IRS Requirements for Innocent Spouse Tax Relief
You must meet all of the following conditions to qualify for innocent spouse relief:
- You filed a joint return that has an understatement of tax (deficiency) that’s solely attributable to your spouse’s erroneous item. An erroneous item includes income received by your spouse but omitted from the joint return. Deductions, credits, and property basis are also erroneous items if they’re incorrectly reported on the joint return.
- You establish that at the time you signed the joint return you didn’t know, and had no reason to know, that there was an understatement of tax.
- Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.
Types of Innocent Spouse Relief:
Classic Innocent Spouse Relief
Classic innocent spouse relief provides you relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly, or claimed improper deductions or credits.
Relief by Separation of Liability
Separation of liability relief provides for the separate allocation of additional tax owed between you and your former spouse, or your current spouse you’re legally separated from or not living with, when an item wasn’t reported properly on a joint return. You’re then responsible for the amount of tax allocated to you.
Equitable Relief
f you don’t qualify for innocent spouse relief or separation of liability relief, you may still qualify for equitable relief. To qualify for equitable relief, you must establish that under all the facts and circumstances it would be unfair to hold you liable for the understatement or underpayment of tax.
Put an End to Your Tax Problems
Trust the tax professionals at Bayshore CPA’s, P.A. based in Mooresville, NC to determine if you qualify for innocent spouse relief.
Your peace of mind is our motivation. To see if you qualify as an innocent spouse and eligible for relief for misrepresentation of income by your spouse or former spouse:
Call our office now located in Mooresville, NC at 704-660-9317 to schedule your consultation.