Life happens. We all experience it. There are times when life events can result in tax returns being filed late. Our tax laws offer little in way of leniency when this happens. The IRS will assess late filing penalties. Worse yet, amounts that were already timely paid to the IRS may not be refunded to…
Category: Innocent Spouse Relief
Innocent Spouse Relief
Relief from joint and several tax liability for innocent spouses or former spouses who meet certain criteria. Give us a call to see how we can help, (713) 909-4906.
A New Beginning for Innocent Spouse Relief
The Taxpayer First Act of 2019 made several changes that impact how tax cases are handled. We are just now seeing some of these changes play out administratively and in court. The recent Bacigalupi v. Commissioner, Docket No. 20480-21 (U.S. Tax Court 2022) is an example of this. It is an innocent spouse case that…
Saving Taxes: The Cooperative But Innocent Spouse
Innocent spouse relief can provide an excellent remedy to allocate taxes between spouses. While the innocent spouse rules are not all that complex, the application of the rules can be. Part of the complexity comes from the varying motives of the parties. Spouses and former spouses can have a number of different motives for requesting…
Filing Jointly v. Separately: Impact on Innocent Spouse Relief
There are a number of factors those who are married have to consider when deciding on their tax filing status. If you were to search for information about the difference between filing jointly v. separately (or mfj vs mfs), you would likely find articles that explain the mathematical calculation. They explain which tax deductions and…
Factors Showing Innocent Spouse Relief
The IRS has wide discretion in how it administers our tax laws. This discretion is power in its purest sense. This power can be wielded to destroy hard-won reputations, careers, and fortunes and it can even cost individuals their freedom. These powers can come from ambiguities in our laws. They can come from restrictions in…
Tax Refunds for Equitable Innocent Spouse Relief
Innocent spouse relief can provide a remedy for spouses who file joint tax returns. This relief is particularly useful if the innocent spouse can obtain a tax refund for amounts previously paid. But not all innocent spouse requests can result in refunds. One has to be careful what they ask for. The Henry v. Commissioner,…
Does an IRS Appeals Protest Count as a Refund Claim?
Taxpayers generally have to submit refund claims to recoup taxes paid to the IRS. The law generally says that these claims have to be in writing, but not necessarily on the IRS’s official forms. Taxpayers submit a number of documents to the IRS. Written protests submitted to the IRS are an example. Can such a…
Innocent Spouse Relief for One’s Own Income
While taxpayers are often aware that innocent spouse relief can eliminate their liability for tax on items of income earned by their spouse (or ex-spouse), fewer taxpayers realize that innocent spouse relief can also help with tax on income they earned themselves. The recent Heydon-Grauss v. Commissioner, T.C. Memo. 2018-209, case provides an opportunity to…
Tax Court Expands Innocent Spouse Relief for Divorced Taxpayers
Innocent spouse relief can allow a taxpayer to avoid joint liability for taxes that arose during the marriage. There is an exception for the would-be innocent spouse if they had actual knowledge of the item that resulted in the tax. The U.S. Tax Court addressed this limitation in McDonald v. Commissioner, T.C. Summary Opinion 2016-79,…
Innocent Spouse Relief Granted Despite Knowledge of Error on Return
Innocent spouse tax relief can provide a remedy for spouses who are liable for taxes reported on a jointly filed income tax return. It is an equitable remedy. But is it available if the tax is due to an obvious error on the tax returns that the spouses both signed? The court addressed this in Denton…