Understanding Innocent Spouse Tax Relief
When married couples file their tax returns they are both jointly responsible for the tax amount owed, with one exception. The one exception to this rule is the "innocent spouse" rule. When these claims are made, they are typically made by divorced couples but they can also be made by married couples. The three basic requirements for innocent spouse relief are the following:
1. There is an understatement of tax due to erroneous items from the other spouse.
2. The "innocent spouse" did not know, nor would have any reason to know that there was an understatement of tax caused by the other spouse.
3. It would be unfair to hold the "not guilty spouse" liable for the tax amount that is owed.
In recent years the IRS has eased the requirements to qualify for this type of relief and it is being accepted more than ever before. The IRS even allows for individuals to be partially innocent now and will offer relief by apportioning the tax liability. This type of relief still is not easy to obtain, there is a good amount of paperwork to file and many things you must prove.
The most common reason why this type of tax relief is denied is because the "innocent spouse" cannot successfully prove that they did not have knowledge of the tax amount that was reported by the other spouse because they did in fact voluntarily sign the tax return. Most of the time, it must be proved that the tax return was signed under duress, or the signature was forged in order to prove innocence.
To receive this type of relief you must file IRS form 8857. With this one form, you can file for all 3 types of innocent spouse relief available (classic relief, equitable relief, relief by separation of liability). It is important to keep in mind the detailed requirements for this type of relief when filing. IRS publication 971 contains the most up-to-date requirements. For each question you should refer to publication 971 and determine what the question is trying to get at and then show how you meet that specific requirement they are asking about. It is also required to attach a letter to stress how you meet the requirements.
If you feel you do qualify for this type of relief and you owe over $8,000, it will most likely be worthwhile for you to hire a tax professional to help you. These claims can be complicated and having someone who has been through many of them can ensure you do receive this type of relief. Most tax professionals will offer you a free consultation prior to helping you and they will be able to determine the likelihood of them being able to successfully handle your case. Even if you are unsure if you will qualify for not, it is a good idea to contact a tax professional and see what they have to say. It is highly unlikely they will take on your case if they feel you won't qualify.
Find more information on Innocent Spouse Relief. Site contains required forms, answers to common FAQ, detailed requirements, and connections to innocent spouse tax professionals.
Article Source: http://EzineArticles.com/?expert=Manny_Vetti
1. There is an understatement of tax due to erroneous items from the other spouse.
2. The "innocent spouse" did not know, nor would have any reason to know that there was an understatement of tax caused by the other spouse.
3. It would be unfair to hold the "not guilty spouse" liable for the tax amount that is owed.
In recent years the IRS has eased the requirements to qualify for this type of relief and it is being accepted more than ever before. The IRS even allows for individuals to be partially innocent now and will offer relief by apportioning the tax liability. This type of relief still is not easy to obtain, there is a good amount of paperwork to file and many things you must prove.
The most common reason why this type of tax relief is denied is because the "innocent spouse" cannot successfully prove that they did not have knowledge of the tax amount that was reported by the other spouse because they did in fact voluntarily sign the tax return. Most of the time, it must be proved that the tax return was signed under duress, or the signature was forged in order to prove innocence.
To receive this type of relief you must file IRS form 8857. With this one form, you can file for all 3 types of innocent spouse relief available (classic relief, equitable relief, relief by separation of liability). It is important to keep in mind the detailed requirements for this type of relief when filing. IRS publication 971 contains the most up-to-date requirements. For each question you should refer to publication 971 and determine what the question is trying to get at and then show how you meet that specific requirement they are asking about. It is also required to attach a letter to stress how you meet the requirements.
If you feel you do qualify for this type of relief and you owe over $8,000, it will most likely be worthwhile for you to hire a tax professional to help you. These claims can be complicated and having someone who has been through many of them can ensure you do receive this type of relief. Most tax professionals will offer you a free consultation prior to helping you and they will be able to determine the likelihood of them being able to successfully handle your case. Even if you are unsure if you will qualify for not, it is a good idea to contact a tax professional and see what they have to say. It is highly unlikely they will take on your case if they feel you won't qualify.
Find more information on Innocent Spouse Relief. Site contains required forms, answers to common FAQ, detailed requirements, and connections to innocent spouse tax professionals.
Article Source: http://EzineArticles.com/?expert=Manny_Vetti
When married couples file their tax returns they are both jointly responsible for the tax amount owed, with one exception. The one exception to this rule is the "innocent spouse" rule. When these claims are made, they are typically made by divorced couples but they can also be made by married couples. The three basic requirements for innocent spouse relief are the following:
1. There is an understatement of tax due to erroneous items from the other spouse.
2. The "innocent spouse" did not know, nor would have any reason to know that there was an understatement of tax caused by the other spouse.
3. It would be unfair to hold the "not guilty spouse" liable for the tax amount that is owed.
In recent years the IRS has eased the requirements to qualify for this type of relief and it is being accepted more than ever before. The IRS even allows for individuals to be partially innocent now and will offer relief by apportioning the tax liability. This type of relief still is not easy to obtain, there is a good amount of paperwork to file and many things you must prove.
The most common reason why this type of tax relief is denied is because the "innocent spouse" cannot successfully prove that they did not have knowledge of the tax amount that was reported by the other spouse because they did in fact voluntarily sign the tax return. Most of the time, it must be proved that the tax return was signed under duress, or the signature was forged in order to prove innocence.
To receive this type of relief you must file IRS form 8857. With this one form, you can file for all 3 types of innocent spouse relief available (classic relief, equitable relief, relief by separation of liability). It is important to keep in mind the detailed requirements for this type of relief when filing. IRS publication 971 contains the most up-to-date requirements. For each question you should refer to publication 971 and determine what the question is trying to get at and then show how you meet that specific requirement they are asking about. It is also required to attach a letter to stress how you meet the requirements.
If you feel you do qualify for this type of relief and you owe over $8,000, it will most likely be worthwhile for you to hire a tax professional to help you. These claims can be complicated and having someone who has been through many of them can ensure you do receive this type of relief. Most tax professionals will offer you a free consultation prior to helping you and they will be able to determine the likelihood of them being able to successfully handle your case. Even if you are unsure if you will qualify for not, it is a good idea to contact a tax professional and see what they have to say. It is highly unlikely they will take on your case if they feel you won't qualify.
Find more information on Innocent Spouse Relief. Site contains required forms, answers to common FAQ, detailed requirements, and connections to innocent spouse tax professionals.
Article Source: http://EzineArticles.com/?expert=Manny_Vetti
1. There is an understatement of tax due to erroneous items from the other spouse.
2. The "innocent spouse" did not know, nor would have any reason to know that there was an understatement of tax caused by the other spouse.
3. It would be unfair to hold the "not guilty spouse" liable for the tax amount that is owed.
In recent years the IRS has eased the requirements to qualify for this type of relief and it is being accepted more than ever before. The IRS even allows for individuals to be partially innocent now and will offer relief by apportioning the tax liability. This type of relief still is not easy to obtain, there is a good amount of paperwork to file and many things you must prove.
The most common reason why this type of tax relief is denied is because the "innocent spouse" cannot successfully prove that they did not have knowledge of the tax amount that was reported by the other spouse because they did in fact voluntarily sign the tax return. Most of the time, it must be proved that the tax return was signed under duress, or the signature was forged in order to prove innocence.
To receive this type of relief you must file IRS form 8857. With this one form, you can file for all 3 types of innocent spouse relief available (classic relief, equitable relief, relief by separation of liability). It is important to keep in mind the detailed requirements for this type of relief when filing. IRS publication 971 contains the most up-to-date requirements. For each question you should refer to publication 971 and determine what the question is trying to get at and then show how you meet that specific requirement they are asking about. It is also required to attach a letter to stress how you meet the requirements.
If you feel you do qualify for this type of relief and you owe over $8,000, it will most likely be worthwhile for you to hire a tax professional to help you. These claims can be complicated and having someone who has been through many of them can ensure you do receive this type of relief. Most tax professionals will offer you a free consultation prior to helping you and they will be able to determine the likelihood of them being able to successfully handle your case. Even if you are unsure if you will qualify for not, it is a good idea to contact a tax professional and see what they have to say. It is highly unlikely they will take on your case if they feel you won't qualify.
Find more information on Innocent Spouse Relief. Site contains required forms, answers to common FAQ, detailed requirements, and connections to innocent spouse tax professionals.
Article Source: http://EzineArticles.com/?expert=Manny_Vetti
posted by zzzzzzzzzzz at
10:37 PM
1 Comments:
Thanks for this reminder. Online payroll services are real quick one! Payroll-Nevada way was a speedy one and became quicker because of this online thing.
Regarding your post, what if my husband is also my business partner? Is there any tax exemption?
Post a Comment
Subscribe to Post Comments [Atom]
<< Home