What if your ex-spouse or your spouse filed the wrong returns? Alternatively, perhaps the IRS found some errors on the filings? You have an option for tax debt relief, which is called Innocent Spouse.
Here’s a typical example – your ex-spouse pulled out $100,000 in his 401K. In the process, he didn’t take out a tax on the distribution and this information was not known to you. On that year, you also filed joint returns and so that makes you liable for the tax that is due within the year. Now that you’re separated, the IRS is pursuing you for your tax debts.
You can file for the innocent spouse relief, but you have to prove that you are innocent. The agency will not easily believe that you’re innocent, and so you have to prove to the IRS. In order to qualify, you should be able to show that the erroneous deductions or omitted income was from your spouse, and that you were not aware of it when you signed the return. These are two requirements that you should meet.
Secure the form 8857 within 2 years because this is also the time when the IRS will start with the collection activities. You will need the services of an expert, an attorney who will defend you. You see, your ex will be sent a copy of your claims, and he can dispute it.
Once your ex spouse disputes your claims, the process will only become complicated. Without an attorney, your efforts will just go to waste. If you decide to opt for the Innocent Spouse, you should already hire a competent attorney.
Your attorney will represent you through the process until you’ve finally secured such an option. If you’re innocent, you will surely get the attention of the IRS. If you can beat your spouse’s dispute, you are now innocent and your ex will be liable for the entire tax debts.
So what are you waiting for? Work with a competent attorney now and file for the Innocent Spouse. Prepare to defend yourself because you’re in for a battle. The tax debt relief can benefit you a lot, and you can also get back at your ex spouse!