I represent tax payers in the greater St. Louis area, the state of Missouri and nationwide who have Federal and State Tax liability issues. Covid has created financial chaos for both businesses and individuals. Some recent conversations with bankrupcy and divorce attorneys tell me it's just a matter of time before there business blasts off. Right now it's a little slow but with over 500,000 accounts waiting to be turned over to collection personel.The stress for families has to be just overwhelming which brings me to the subject of what we call innocent spouse. What exactly is that?
Married tax payers are allowed to file a joint return with there spouses for the purpose of saving taxes. Good idea, right? However, with a joint tax return comes joint-and several liability. Both spouses are liable for any tax liability associated with the tax return, either from the filed return or from a subsequent examination by the IRS. It’s not infrequent that a taxpayer calls me and has lots questions regarding a letter they got in the mail. The IRS allows three forms of innocent spouse relief: 1. Innocent Spouse — IRC Section 6015(b)(1) 2. Separation of Liability — IRC Section 6015(c)(1) 3. Equitable Relief — IRC Section 6015(f)
Lets focus on section (b) for starters.
To meet the requirements for relief under IRC Section 6015(b), the taxpayer must meet the following requirements:
• The liability is attributable to erroneous items of the non-requesting spouse;
• The taxpayer did not know and had no reason to know of the item giving rise to the understatement;
• Taking into account all the facts and circumstances, it is inequitable to hold the requesting spouse liable for the deficiency attributable to the understatement.
• The taxpayer must make the request for innocent spouse relief within two years of collection activity beginning. If the client receives relief under IRC Section 6015(b) then the liability will be allocated to each spouse based upon the taxable items, with the erroneous items attributed to the non-requesting spouse. Hence, IRC Section 6015(b) may not give a taxpayer complete relief from the liability, but only the portion of the tax that should not have belonged to.
If you or anyone else you know are under stremdous financial pressure and are getting tax bills and don't seem to be right feel free to contact me @steveshapiroea@gmail.com or call @636-397-2759, or text @ 636-866-4554 for a consultation.
Arch Tax Resolution
620 S. Benton Street
St. Charles, MO 63301
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