Tax Relief Services for Divorced Or Separated Taxpayers
- September 4, 2019
- Posted by: asal
- Category: Tax Relief
When you’re in the middle of a divorce or separation, tax relief services may be the last thing on your mind. However, when a family is unraveling, finances, and especially taxes often get neglected. The stress over dealing with other components of the divorce can become overwhelming. A divorce can put a strain on the taxpayer’s emotional and financial resources. Between selling a home, and partners are moving out, relevant documents can get lost. Stress can lead couples to misplace tax documents or forget to file or pay their taxes. IRS problems may come up before or during divorce, which can lead to more arguments. However, more significant tax problems may show up years after the divorce is final. Sometimes, divorced couples will not hear from the IRS for five to eight years, especially regarding audits or unfiled taxes.
How Do IRS Problems Arise After Divorce?
In a separation or divorce, audits and tax delinquencies can arise from a variety of factors, including:
– If one spouse controls all of the tax records and filings
– All of your financial resources went to legal fees or other expenses for divorce
– One spouse was the victim of abuse and moved out leaving essential documents behind
– Lost tax records
– You didn’t file tax returns, or you filed them incorrectly
– The coupe ignores audit notices or IRS tax notices
What Tax Relief Services Exist During Divorce Or Separation?
Even after many years have passed, divorced couples can still solve their IRS problems. The tax relief services available for your case will depend on your current situation. Additionally, the cause of your tax problem will also determine for which tax relief services you may qualify. If you receive a tax bill that seems wrong, you can ask the IRS to reopen that tax season through audit reconsideration. Additionally, you can submit any missing tax returns and claim your deductions. If you believe your spouse is to blame for the tax problem, you can file for Innocent Spouse Relief.
What Is Innocent Spouse Relief?
Married taxpayers who file joint tax returns are legally liable for any resulting tax debt or liability. Because this liability can significantly affect the financial situation of married taxpayers, the IRS introduced Innocent Spouse Relief. With Innocent Spouse Relief, the IRS allows taxpayers to be relieved of tax responsibility resulting from your ex-spouse. Innocent Spouse Relief can remove your responsibility for paying tax, interest, and penalties arising from your spouse or ex-spouse.
What Types Of Innocent Spouse Relief Exist?
There are various types of tax resolution services for married and divorced couples seeking tax debt assistance from their partner. The IRS provides three types of tax relief services for spouses who encounter debt because of their spouse or ex-spouse. The three types include:
– Innocent Spouse Relief: applies to a spouse who was not aware of the mistake and received no benefit from it
– Separation of Liability: provides for the separate allocation of additional tax owed between you and your spouse or ex-spouse
– Equitable liability: for those who do not qualify for Innocent Spouse Relief or Separation of Liability Relief. You can get equitable relief from an understatement of tax or an underpayment of tax.
One of the essential tax relief services for married or divorced couples is Innocent Spouse Relief.
How To Qualify for Innocent Spouse Relief
Divorced or separated individuals can qualify for the Innocent Spouse Relief tax relief service if they meet the following requirements:
– The couple filed a joint return with an understatement of tax due to erroneous items reported by the other filer. There must be proof of the jointly filed tax return; otherwise, the taxpayer will not qualify.
– A taxpayer must prove that at the time of signing, they didn’t know there was an understatement of tax. An underpayment typically means the taxpayer owed more tax than they paid. Additionally, the understatement must be from incorrect items reported, including:
- Wrongly reported income
- False deductions and credits
- Overclaims of exemptions
– If it’s unfair to hold the taxpayer liable for the understatement of tax. The taxpayer must demonstrate that they didn’t know that something was wrong with their partner’s tax reporting.
How Does The IRS Determine If You Qualify For Innocent Spouse Relief?
To determine if you qualify for this tax relief service, the IRS will assess the background of the applicant. The IRS will take into account the taxpayer’s:
– financial situation
– business experience
– education background
Additionally, the IRS will assess the tax return history of the taxpayers to determine if this is a recurring error. For the best chance of having your application accepted, you must present all relevant facts. Items to share with the IRS include the status of your marriage and if you have experience with tax matters.
Another requirement for relief is if you have not transferred property to one another as part of a fraudulent scheme. A fraudulent scheme includes a scheme to defraud the IRS or another third party.
Applying For Tax Relief Service For Divorced Or Separated Couples
If you have recently gone through a divorce or are separated, there are tax relief services for you. The expert team at Platinum Tax Defenders can determine if you qualify for Innocent Spouse Relief. You should not have to carry the tax burden of your spouse or ex-spouse. If you believe you have a tax debt you should not be responsible for, call Platinum Tax Defenders. The experts at Platinum Tax Defenders have decades of experience providing tax relief services to divorced and separated taxpayers. We understand the stress and heartache that comes along with a divorce. Tax problems should not add to the existing stress that a divorce or separation can cause. If you’re looking for tax relief services for debt resulting from an ex-partner, call Platinum Tax Defenders. We offer free consultations for new clients.