There are many things people rarely think of when they walk down the aisle. Marrying into another person’s tax debt can be one of them.

You marry for better or worse, richer or poorer… tax debt or not, whether you are aware of it (or not).

It is arguably worse when, after the honeymoon is long-over, your trusted spouse wracks up tax debt you know nothing about.

In these situations, there is a remedy.

The IRS has a provision for innocent spouse relief.

What You Need to Know about Claiming Innocent Spouse

This is not an easy path, by any means.

Among other requirements, the IRS wants you to prove you could have no knowledge that the money flowing into the household was much greater in proportion to what you claimed your tax debt was.

For example, let’s say you have a 4,000-square-foot home on the water with a low mortgage balance, a yacht, and two paid-for luxury cars, but your tax debt is near zero. In this case, you’d have a hard time selling ignorance.

It’s true that some spouses wholeheartedly trust that the other spouse is handling finances correctly. Sometimes those spouses will simply sign whatever is put in front of them.

Don’t be One of those Spouses

What’s at risk if you don’t stay plugged into what is going on in your household?

Your money, your well-being and your future status with the IRS is on the line.

After all, you can divorce your spouse. You may not be able to so easily divorce your tax debt. Therefore, you need to do your best to understand what you are getting into.

Take your tax return to an experienced Enrolled Agent to look it over for you, or better yet, have him or her prepare one.

Fraud & Substitute for Return

There are other ways to get attached to a tax debt that isn’t yours (or you think isn’t yours).

Although the IRS continues to fight it, identity theft still exists. That’s why you need to monitor what comes to you from the IRS closely. For example, don’t cash a refund check unless you filed a return claiming that exact refund.

Then, there are times you may get an IRS notice stating that you owe tax, interest, and penalties from an old return – even one from 15 years ago (or more).

“You are shocked, as you do not remember filing a return way back then. Other than identity theft, a return may also have been prepared for you. Who would do that? The IRS, that’s who,” said Jeffrey Schneider in his book Now What? I Got a Tax Notice from the IRS. Help! 

Substitute for Return is what the IRS can prepare for you in the event you do not file your taxes. Based on the information they have received about you from employers, financial institutions, and clients, the IRS compiles a tax return for you. If you owe tax, you will receive a notice in the mail that lets you know you owe the tax, plus penalties and interest.

Incidentally, if it is a 15-year-old return, that would be a lot of interest as well as a penalty of up to 25% of the tax due (and perhaps one for failure to file as well).

How an Enrolled Agent can Help

Enrolled Agents are held to the highest ethical standards, both personally on their own returns as well as professionally with their clients’.

They will question and dig into anything they find that is outside the bounds of the law. They will also ensure that each spouse is aware of the situation they are in, and can help with identity theft as well as Substitute for Returns. 

No matter what the issue is, a visit to an EA can put you well on the road to fixing your tax issues.

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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax Problem Solutions, visit http://sfstaxproblemsolutions.com/
For more on SFS Tax & Accounting Services, visit http://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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