Innocent Spouse Relief
Innocent Spouse Relief Lawyer Austin
When a spouse is involved in committing tax fraud, it can feel overwhelming for the entire family. Perhaps you are concerned that you will be liable for the penalty fees or criminal consequences that result from the tax fraud that your spouse has committed. If this concerns you, then you should get in touch with an Austin lawyer who can help you to file for innocent spouse relief. This will ensure that you do not have to suffer the consequences of the fraud that your spouse has created.
When two spouses file a joint tax return, this means that they are both liable for any penalties, late fees and other taxes owed to the IRS. If there is an issue with a joint tax filing, then the IRS will typically send a notice to both spouses who are listed on the tax return. There are a variety of instances in which one spouse may perpetuate fraud in a tax filing. A spouse may underreport income that was earned in the prior year or overestimate the deductions that may be taken. A spouse may fail to report gifts or other types of distributions of income that were made in the prior year. These would all be instances in which the IRS has grounds for asserting a claim of fraud against these spouses.
A lawyer will help you in the process of filing a petition for Innocent Spouse Relief. You will need to show that the mistakes made on the tax return were the full responsibility of your spouse. If you are able to prove this, then the court will completely relieve you of any responsibility in paying taxes for your case. You will not be liable for paying any taxes or fees that are owed to the IRS if you qualify for this type of relief.
If you decide to file for this type of relief, then an Austin tax lawyer will need to help you in the process of filing Tax Form 8857. You must submit this form directly to the IRS if you wish to petition for Innocent Spouse Relief. If you need to submit a petition for multiple years in which a spouse committed tax fraud, then you can still submit the one form. Submitting the single form will suffice for any years in which a spouse was engaged in tax fraud.
Your lawyer may have to go to court to meet with opposing counsel from the IRS. In tax court, a judge will consider a variety of factors in determining whether you qualify for Innocent Spouse Relief. The judge may consider your business or educational experience. The judge may also consider any participation that you had in filling out the tax returns with your spouse. A judge will also consider any economic hardship that you face. If you directly benefitted from failing to disclose a particular asset to the IRS, then it will be more difficult for you to qualify for the Innocent Spouse Relief. A court will likely find in your favor if you did not have any direct benefits from the failure to disclose certain assets.