Salt Lake City, Utah - My last two blogs have focused on Innocent Spouse Relief. Based on my last blog I discussed whether or not a joint return was filed. In an innocent spouse case, joint returns are everything, and an innocent spouse's options for tax relief start with whether or not the innocent spouse filed a married filing separate tax return or a joint tax return. If a joint tax return was filed by the taxpayers, we now need to determine which of the three various forms of innocent spouse relief the innocent spouse should pursue to resolve his or her tax problem. It is important to note that all three types of tax relief may be available.
In making the decision as to which of the three types of tax relief may be granted, the first issue is whether or not there is an erroneous item on the tax return that caused the tax liability in question. What I mean is that there was something wrong on the return when it was filed that created the tax liability. When we look at an erroneous item, it usually means an improper expense was taken.
The second issue is referred to as “underpayment” and this happens when the liability on the tax return was correct but not enough was paid so their is an outstanding tax debt due and the innocent spouse is considered liable for the tax debt. This goes back to a past blog I did dealing with joint and several liability. This can also occur when either the return is filed showing tax payments that were never made or the return showed a balance due, which caused a tax liability owed to the IRS. In the case of an innocent spouse claim due to underpayment, the innocent spouse must use the equitable relief provisions of IRC Section 6015(f).
In my next blog, I will discuss separation of liability under Section 6015(c). Tax problems are legal problems, and we solve both. If you or someone you know has an issue with their federal or state income taxes and needs help to end their IRS nightmare, please contact us by either phone at (801) 323-2112 or email at: kbrown@strongandhanni.com or go to my personal webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/. Also, if you did not have a chance to read my Tax Alert, please go to: https://strongandhanni.com/tax-alert/ where I discuss the "IRS Fresh Start" program and how many tax resolution companies use the "Fresh Start" program to lure people with tax problems in under a program that no longer exists.
Best,
Kent
Comments(2)