Virtually no American wants to receive unexpected mail from the Internal Revenue Service. It's never good news, and it can be scary. If you have gotten a notice that the IRS is reviewing your tax returns because they are suspicious that you and your spouse underestimated your tax obligation, you have a few options. First you have to understand the basics of the innocent spouse relief Houston TX husbands and wives apply for.
When couples file jointly, and the primary earner misleads the government about the amount of money earned, the other spouse may avoid being held responsible for the additional taxes, interest, and penalties owed if she qualifies under IRS guidelines. In order to qualify under the classic requirements, you must establish three things. First, you have to show that it was the other partner who reported incorrect information on his earnings.
Next you have to prove that, when you signed the tax returns, you didn't know anything about earnings being misreported. You also have to prove that there would have been no reason for you to know. If there is doubt about this, you will not qualify.
Lastly, the IRS will determine, based on information they can obtain, that it would not be fair to hold you responsible for the taxes owed. They base their decision on a number of factors. These include whether or not you directly benefited from the underestimate. They will check your marital status to find out if you are divorced or legally separated. They will also take it into account if your spouse has abandoned you.
If you believe you are a good candidate for this exception, you have to file form 8857. You must be very thorough in the information you give. Questions that require explanations should be filled out in meticulous detail. Providing documentation for your explanations is a very good idea. The more details you can substantiate, the more likely the IRS will make an exception for you.
The answers you give need to be pertinent to the type of relief you are filing for. Adding a letter along with the form outlining the facts and citing examples is a good idea. You need to provide as much proof as possible for the examples you give. If other people have information that would be useful to your case, it needs to be notarized and included with your letter and form.
Although the IRS has changed the deadline to file one of these petitions, the sooner you do it the better. The deadline was two years, but has been increased. You may get an indication that something is wrong if you get a notice that your tax returns are being investigated. This notice will tell you that the IRS suspects taxes have been underestimated.
Dealing with the IRS isn't something most people want to do. It is better to work with them however than to try and avoid a serious issue. You may not be held liable for your partner's misconduct, if can prove you had no knowledge of it and didn't benefit from it.
When couples file jointly, and the primary earner misleads the government about the amount of money earned, the other spouse may avoid being held responsible for the additional taxes, interest, and penalties owed if she qualifies under IRS guidelines. In order to qualify under the classic requirements, you must establish three things. First, you have to show that it was the other partner who reported incorrect information on his earnings.
Next you have to prove that, when you signed the tax returns, you didn't know anything about earnings being misreported. You also have to prove that there would have been no reason for you to know. If there is doubt about this, you will not qualify.
Lastly, the IRS will determine, based on information they can obtain, that it would not be fair to hold you responsible for the taxes owed. They base their decision on a number of factors. These include whether or not you directly benefited from the underestimate. They will check your marital status to find out if you are divorced or legally separated. They will also take it into account if your spouse has abandoned you.
If you believe you are a good candidate for this exception, you have to file form 8857. You must be very thorough in the information you give. Questions that require explanations should be filled out in meticulous detail. Providing documentation for your explanations is a very good idea. The more details you can substantiate, the more likely the IRS will make an exception for you.
The answers you give need to be pertinent to the type of relief you are filing for. Adding a letter along with the form outlining the facts and citing examples is a good idea. You need to provide as much proof as possible for the examples you give. If other people have information that would be useful to your case, it needs to be notarized and included with your letter and form.
Although the IRS has changed the deadline to file one of these petitions, the sooner you do it the better. The deadline was two years, but has been increased. You may get an indication that something is wrong if you get a notice that your tax returns are being investigated. This notice will tell you that the IRS suspects taxes have been underestimated.
Dealing with the IRS isn't something most people want to do. It is better to work with them however than to try and avoid a serious issue. You may not be held liable for your partner's misconduct, if can prove you had no knowledge of it and didn't benefit from it.
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