Innocent Spouse

Innocent Spouse Tax Relief:

Facing unexpected tax liabilities from the Internal Revenue Service (IRS) or California Franchise Tax Board (FTB) due to your spouse’s actions? You may qualify for Innocent Spouse Relief, a powerful remedy that can reduce or eliminate your responsibility for taxes, penalties, and interest arising from your spouse’s unreported income, disallowed deductions, or other tax issues. At Tax Lawyers Group APC, our Los Angeles-based tax attorneys specialize in securing Innocent Spouse Relief, helping clients avoid unfair tax burdens and safeguard their financial future.

What is Innocent Spouse Tax Relief?

Innocent Spouse Relief is a provision under IRS and FTB regulations that protects individuals from being held liable for tax debts caused by their spouse or former spouse. When you file a joint tax return, both spouses are jointly and severally liable, meaning the IRS or FTB can pursue either spouse for the full amount of taxes, penalties, and interest, regardless of who caused the issue. However, if your spouse’s actions—such as unreported income, improper deductions, or fraudulent reporting—led to the tax debt, you may be eligible for relief if you had no knowledge of or benefit from the issue.

Innocent Spouse Tax Relief can provide significant benefits, including:

• Elimination of Tax Debt: Full or partial relief from taxes owed due to your spouse’s actions.
• Removal of Penalties and Interest: Relief from penalties (e.g., accuracy-related or failure-to-pay penalties) and interest, which often exceed the original tax amount.
• Protection of Assets and Credit: Prevention of tax liens, wage garnishments, or bank levies, preserving your credit rating and financial stability.

The IRS and FTB evaluate Innocent Spouse claims based on specific criteria, and the process requires timely filing and compelling evidence. Tax Lawyers Group APC has a proven track record of securing relief for clients, ensuring they are not unfairly penalized for their spouse’s tax missteps.

Do You Qualify for Innocent Spouse Tax Relief?

You may be eligible for Innocent Spouse Relief if you can answer “yes” to any of the following questions about your situation:

• Did the IRS or FTB increase your taxes due to your spouse’s unreported income or disallowed deductions? For example, your spouse failed to report income from a side business, gambling, or illegal activities.
• Did you sign a joint return believing the taxes were paid? You trusted that your spouse handled the taxes correctly, only to discover later that they underreported income or claimed improper deductions.
• Did your spouse forge your signature on a tax return? You were unaware of the return’s filing or its contents due to your spouse’s fraudulent actions.
• Did your spouse earn income through gambling or illegal sources? The tax debt stems from income you did not know about or could not reasonably have known about.
• Did you receive little or no benefit from your spouse’s income? The unreported income was used solely by your spouse or did not contribute to your household’s lifestyle.
• Were you separated, divorced, or living apart during the tax year? Your separation may support your claim that you were unaware of your spouse’s financial activities.
• Are you surprised by the IRS or FTB’s demand for payment? You had no reason to suspect tax issues until receiving a notice from the taxing agency.

If any of these scenarios apply, you may qualify for one of three types of Innocent Spouse Relief:

1. Classic Innocent Spouse Relief: You were unaware (or had no reason to know) of the understatement of tax on a joint return, and it would be unfair to hold you liable.
2. Separation of Liability Relief: You are divorced, legally separated, or no longer living with your spouse, and the tax debt can be allocated to your spouse based on their actions.
3. Equitable Relief: You don’t qualify for the above but can show that holding you liable would be unfair due to exceptional circumstances, such as economic hardship or spousal abuse.

Each case is unique, with thousands of potential fact patterns that could support a claim. Tax Lawyers Group APC carefully evaluates your situation to identify the strongest basis for relief.

Key Requirements for Innocent Spouse Relief

To succeed with an Innocent Spouse Relief claim, you must meet specific IRS and FTB criteria and submit a timely, well-documented request. Key requirements include:

• Joint Return: The tax debt must arise from a jointly filed tax return (federal Form 1040 for IRS or equivalent for FTB).
• Timely Filing: For IRS claims, you generally must file within two years of the first collection action (e.g., a lien or levy notice). FTB deadlines may vary, but prompt action is critical.
• Lack of Knowledge: You must demonstrate that you had no actual or constructive knowledge of the tax understatement at the time you signed the return (or that your spouse filed without your consent).
• Unfairness: It must be inequitable to hold you liable, considering factors like your marital status, financial benefit from the income, and any abuse or coercion by your spouse.

Supporting evidence is crucial, such as:

• Divorce or separation agreements showing your marital status.
• Financial records proving you did not benefit from the unreported income.
• Documentation of spousal abuse, mental health issues, or other factors that limited your involvement in tax matters.
• Correspondence with the IRS or FTB showing your surprise at the tax demand.

The complexity of these requirements underscores the need for experienced legal representation. Tax Lawyers Group APC ensures your claim is thoroughly prepared and persuasively argued.

The Innocent Spouse Tax Relief Process

Securing Innocent Spouse Relief involves a structured process that demands attention to detail and strategic advocacy. At Tax Lawyers Group APC, we guide you through each step:

1. Comprehensive Case Review:
   • We conduct an in-depth consultation to gather all relevant facts about your marriage, financial situation, and the tax debt.
   • We review tax returns, IRS/FTB notices, and other documents to assess your eligibility for relief.
2. Evidence Compilation:
   • We help you collect supporting documentation, such as bank statements, court records, or affidavits, to substantiate your claim.
   • If abuse or coercion is a factor, we work sensitively to document these circumstances while protecting your privacy.
3. Filing the Claim:
   • We prepare and file IRS Form 8857 (Request for Innocent Spouse Relief) or the equivalent FTB form, ensuring accuracy and compliance with deadlines.
   • Our attorneys craft a detailed narrative, supported by evidence, to demonstrate your lack of knowledge, lack of benefit, and the unfairness of holding you liable.
4. Negotiation and Appeals:
   • We represent you in communications with the IRS or FTB, responding to requests for additional information and advocating for approval.
   • If the claim is denied, we pursue appeals through the IRS Office of Appeals or FTB administrative processes, presenting a robust case for reconsideration.
5. Post-Relief Support:
   • Upon approval, we ensure tax liens are removed, collection actions are halted, and your credit is protected.
   • We provide guidance on maintaining tax compliance and addressing any remaining tax obligations.

Our meticulous approach maximizes your chances of a successful outcome, restoring your financial peace of mind.

Consultation with a Tax Attorney

At Tax Lawyers Group APC, our Los Angeles tax attorneys bring unparalleled expertise and a client-centered approach to Innocent Spouse Relief claims. Here’s why we’re the trusted choice:

• Specialized Expertise: Our team has extensive experience with IRS and FTB regulations, navigating the nuances of Innocent Spouse Relief with precision.
• Proven Success: We’ve secured relief for numerous clients, eliminating tax debts, penalties, and interest, and protecting them from unfair liability.
• Comprehensive Analysis: We thoroughly evaluate every aspect of your case, uncovering all relevant facts to build a compelling claim.
• Compassionate Tax Advocacy: We handle sensitive issues, such as spousal abuse or financial coercion, with discretion and empathy, ensuring your story is told effectively.
• Total Tax Solution: Beyond Innocent Spouse Relief, we explore additional options, such as penalty abatement, Offers in Compromise, or installment agreements, to fully resolve your tax issues.

Our commitment to personalized service and strategic advocacy sets us apart. We understand the emotional and financial toll of unexpected tax demands, and we’re dedicated to helping you achieve justice and relief.

Common Scenarios for Innocent Spouse Relief

Innocent Spouse Relief can apply in a variety of situations, including:

• Unreported Income: Your spouse failed to report income from a business, investments, or illegal activities, and you were unaware of the earnings.
• Fraudulent Filings: Your spouse forged your signature or filed a joint return without your knowledge, leading to a tax debt.
• Abusive Relationships: You were coerced into signing a return or were unable to question your spouse’s tax practices due to emotional, physical, or financial abuse.
• Divorce or Separation: You were divorced or living apart and had no involvement in your spouse’s financial activities during the tax year.
• No Financial Benefit: Your spouse’s unreported income was spent on personal expenses (e.g., gambling or luxury purchases) rather than household needs.

Our Los Angeles tax attorneys have successfully represented clients in these and other scenarios, leveraging our expertise to secure substantial relief.

Are You an Innocent Spouse?

Did the IRS increase your taxes based on your spouse’s unreported income or disallowed deductions? Did you signed a return with your spouse and were under the belief that your taxes were paid? Did your spouse forge your signature? Did your spouse make money through gambling or illegal sources? Did you receive little or no benefit from your spouse’s income? Were you separated, divorced or living apart during the tax year? Are you surprised with the demand the IRS is making against you to pay the tax?

If you answered yes to any of the questions listed above, you may qualify for reduction or complete elimination of your taxes under the INNOCENT SPOUSE relief. In addition, you will not be responsible for any penalties and interest which can often be much greater than the taxes owed.

To have your Innocent Spouse claim considered, you must file your request for this relief on a timely basis. It is important that you or your tax attorney obtain all your information concerning the circumstances surrounding your claim and be prepared to argue your case. There are virtually thousands of different cases and facts which could lead the IRS to determine that you are an INNOCENT SPOUSE. A meeting is usually required to flush out all the relevant facts and structure proper arguments for your case. A successful determination of INNOCENT SPOUSE means that your credit record will be clean again, tax liens will be removed and that your wages and bank accounts will be safe from the tax collector.

Contact Us

Don’t let your spouse’s tax mistakes ruin your financial future. Innocent Spouse Relief can protect you from unfair tax debts, penalties, and interest, restoring your credit and peace of mind. At Tax Lawyers Group APC, our Los Angeles tax attorneys are ready to evaluate your case, build a strong claim, and fight for the tax relief you deserve.

Contact us today at (310) 788-9820 to schedule a confidential consultation. We’ll review your situation, gather the necessary evidence, and develop a tailored strategy to secure Innocent Spouse Relief.