Spouses who file joint tax returns are typically both responsible for any deficiency. For example, if the couple pays less than they owe, the IRS can go after either spouse to recover any unpaid amounts. However, sometimes it is unfair to hold one spouse responsible for unpaid taxes, and the IRS will sometimes grant an innocent spouse relief.
Disadvantages of Filing Jointly
Generally, it makes good financial sense for married couples to file as “married filing jointly.” The deductions are greater, and the couple will qualify for more deductions. However, by filing jointly, they are “jointly and severally” liable for any deficiency. This is true even where only one spouse earned income or where one spouse deliberately lied about their income. It’s also true even when the spouse who is responsible for the deficiency dies.
When the IRS needs to collect on a deficiency, it can bring several different actions against either spouse. The IRS may do any of the following:
Garnish your wages
Put a lien on your home and other assets
Levy your bank accounts
Although it generally makes sense to file jointly, there are situations where one spouse is on the hook for tens of thousands of dollars in unpaid taxes through no fault of their own. In this situation, you’ll need a tax attorney to relieve you of IRS collection actions.
Relief is Available
The federal government has recognized the unfairness of holding a blameless spouse responsible for tax deficiencies, so it allows you to claim relief as an innocent spouse. Typically, you will need toprove the following to the IRS:
You filed a joint tax return.
There is a deficiency (understatement) related to that return.
Only one spouse is responsible for the understatement.
One spouse did not know or have reason to know that there was a deficiency. (This is the “innocent spouse”).
It is unfair on the facts and circumstances to hold both spouses legally responsible for the deficiency.
The innocent spouse has requested relief within two years of the IRS beginning collection action.
Some of these elements are easier to prove than others. For example, you can quickly show that you filed a joint tax return by producing a copy of it. The IRS is also well aware of a deficiency, so you won’t have trouble proving that, either.
However, you’ll need a good tax attorney to convince the IRS that you satisfy the other requirements. For example, why shouldn’t you have known that your spouse was reporting an understatement on the tax return? This is a tough standard to meet, especially since you signed the joint tax return. Also, it can be difficult to show why it is unfair to hold you jointly responsible when you had the option of filing “married filing separately.”
Call an Atlanta Tax Attorney Today
Innocent spouses shouldn’t suffer IRS collection actions when they aren’t to blame for errors on a tax return, but you’ll need an aggressive tax attorney in your corner. Jeffrey L. Cohen, Attorney at Law, has three decades of experience in IRS tax law and is available to help. Call for a free teleconsultation at 404-937-1414 or complete anonline contact form.
IRS Fresh Start Tax Program Have you received an IRS Audit letter indicating that you owe money for back taxes? Have you been subject to a tax lien? Is your business suffering due to unpaid taxes? For those who qualify, the IRS Fresh Start Tax program may provide some help. The program has three provisions:…
What if I Cannot Pay Taxes This Year? Every tax season lots of people are looking forward to a healthy tax return check. But some individuals might be surprised to see that they will not receive a tax return. In fact, they will owe money to the Internal Revenue Service (IRS). While their first impulse may…
Dealing with the IRS is often complicated and stressful for someone who is unaware of their practices. If you require IRS tax debt relief, understanding how to stop IRS wage garnishments may be helpful. Wage garnishments are where the IRS takes a portion out of your paycheck to make up for missing tax payments. The…
Options Settling Tax Debt The IRS is one of the federal government departments that most citizens do not enjoy dealing with. And the agency’s budget cuts in the past years have left its customer service department understaffed. This has made any attempt settling tax debt extremely difficult. But, recent Federal funding is being put into…
People in financial trouble often file for bankruptcy. Bankruptcy is a legal protection that halts collection efforts on existing debts and can allow debtors to wipe out debts completely or reorganize their finances to pay off those debts, perhaps at a reduced amount. But do these bankruptcy protections apply to tax debts? The answer is, it depends on your circumstances.
In many instances where a married couple files taxes jointly, one spouse will take responsibility filing the taxes every year. When those returns are done incorrectly, resulting in tax problems, both spouses can be held liable for the resulting debt even after a divorce or death.
Many times, the Internal Revenue Service (IRS) will assess and attempt to collect tax from the spouse who did not earn the income or was unaware of the unreported income. If the IRS is pursuing back taxes on income your spouse failed to report, contact an experienced Atlanta innocent spouse tax attorney today. The right lawyer may be able to prove why you should not be held responsible for the back taxes owed to the IRS.
Seeking to Provide You With the Equitable Relief You Deserve
Trust your tax debt defense to attorney Jeffrey L. Cohen. He has more than 30 years of tax law experience and has a master’s in tax law from Emory University School of Law. He is a skilled negotiator who helps many of his clients address tax problems and controversies with the IRS or the Georgia Department of Revenue.
Mr. Cohen understands the unfairness of paying back taxes, if you were unaware of a misfiling with the IRS. He will work diligently to help you obtain innocent spouse relief. As your attorney, he will build a case on your behalf to demonstrate that you were unaware of or not responsible for your former spouse’s tax indiscretions or bad business dealings. He will work vigorously to release you from tax liability.
Contact a Skilled Georgia IRS Defense Attorney
For a free, phone consultation with an experienced innocent spouse tax attorney in Atlanta, call Jeffrey Cohen today at 404-937-1414. You may also contact him online, if you prefer.[/fusion_text][fusion_separator style_type=”none” top_margin=”15″ bottom_margin=”15″ sep_color=”” border_size=”” icon=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” class=”” id=”” /][/fusion_builder_column][fusion_builder_column type=”1_3″ layout=”1_3″ last=”no” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_size=”0px” border_color=”” border_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ class=”” id=”” min_height=”” hover_type=”none” link=”” border_position=”all”][fusion_text]
For a free phone consultation with an experienced tax law, business law and estate planning lawyer, call Jeffrey Cohen today at 404-937-1414. You may also contact us online to discuss your business, tax or estate planning needs. Mr. Cohen’s tax and business law firm online.
