Historically, the tax issue of bad marriage has been categorized as "good or bad" for marriage. The IRS did not give tax exemptions to innocent spouses, but it changed that mindset.
Innocent spouse and IRS
When there is a problem with marriage, finance is almost always one of the contributing factors to the conflict. This is especially true if both spouses file a joint tax return signed as a taxpayer. The IRS has historically held both spouses responsible for the consequences if the tax return information is false or inaccurate. If the tax in question has not been paid, the IRS will try to get both spouses to pay the refund. In the worst case, it may include criminal accusations of tax evasion.
Fortunately, the IRS has changed its view of corporate taxpayers' collective liability. The IRS currently admits that an innocent spouse cannot manage an inactive ex-spouse. This allows these innocent spouses to claim three types of tax exemptions.
1.1. Innocent Marriage Relief
- Exemption from separation of responsibilities
- Fair compensation
If the IRS requires tax obligations from your ex-spouse, you can seek tax exemption based on these three theories if all of the following requirements are met: First, I submitted a joint return containing inaccurate information. Second, he was unaware of the inaccuracies and had no reason to do so. Finally, if you take the situation into account, it is unfair to hold you tax liable.
The IRS will evaluate your application and make decisions about your application. The IRS may simply waive your tax claims and agree to track your inactive spouse as the sole debtor. Alternatively, the IRS can split the taxes on his and her accounts and require you to pay only half of the amount payable. This may sound less, but it cuts your tax bill in half. In rare cases, you can ask the IRS for fair relief. Fair bailout is another way of saying that paying taxes is unfair. You and your spouse did not transfer assets as part of a fraudulent plan, did not transfer assets for tax evasion purposes, did not intend to commit fraud, did not have to pay taxes , And you have to show what you don't know your spouse is doing. Fair compensation claims should be handled with the utmost care, as the IRS looks very cynical. However, this is the last step you can take if everything else fails.