Innocent Spouse and Other Defenses to Joint Return Liability
Your joint tax return may be considered invalid and you may not be liable for a tax deficiency of your spouse or former spouse in certain circumstances.
Relief for Duress
If the IRS determines that you signed a joint return under duress or your signature was forged, then the election to file jointly will be considered invalid and you have not filed a valid joint return. If this is the case, only your spouse or former spouse will be held responsible for all or part of the understated or unpaid tax, including related penalties and interest. Kresch Tax Resolution Services can help you determine whether you qualify for this relief.
Innocent Spouse Relief
You may be entitled to innocent spouse relief if you did not know and had no reason to know of the understatement of tax and if, considering all the facts and circumstances, it would be unfair to hold you responsible for the understatement due to improperly reported items or omitted items on your tax return. Kresch Tax Resolution Services can help you determine whether you qualify for this relief.
Separate Liability Relief
If you do not satisfy the Innocent Spouse criteria and you are either legally separated, divorced or widowed you may qualify for the Separate Liability Election. Actual knowledge of the tax items in question at the time you signed the return is not an issue. However, the IRS will deny relief if it can prove a fraudulent transfer of assets between spouses to avoid taxes or tax collection. Under this type of relief you will be responsible for only that part of the joint tax liability, plus interest and penalties, that would have been attributed to you, if you had filed separately.
This type of relief is available for liabilities resulting from understated tax. Therefore, refunds are not allowed for any liabilities that have been paid. Kresch Tax Resolution Services can help you determine whether you qualify for this relief.
Spousal Equitable Relief
Equitable relief may be available to you if you do not qualify for Innocent Spouse or Separate Liability Relief.
For purposes of the equitable relief rules, if you establish that you were the victim of abuse, not amounting to duress, then depending on the facts and circumstances of your situation you may qualify for relief. Abuse can be physical, psychological, sexual or emotional. The IRS will consider the impact of your spouse’s, or former spouse’s, alcohol or drug abuse and the impact of abuse of other family members in determining whether you were abused. Kresch Tax Resolution Services can help you determine whether you qualify for this relief.
Injured Spouse Relief
If you file a joint return and all or part of your share of the refund is applied against your spouse’s past-due federal tax, state income tax, child or spousal support, unemployment compensation debts owed to a state or federal non-tax debt, such as a student loan, then you may be entitled to injured spouse relief. Kresch Tax Resolution Services can help you determine whether you qualify for this relief.