Give Me a Break: Innocent Spouses Need Tax Relief

Posted June 24, 2011 in Taxation by Arthur Buono
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Innocent spouse relief is like a godsend to spouses who’ve been duped or worse by their mates. In some cases, an innocent spouse can avoid paying taxes, penalties and interest racked up in a marriage. The trick to getting it is asking for it in time.

     
  • "Innocent spouses" can be excused from paying joint tax debt
  • Time frame for requesting relief too short, critics claim
  • Innocent spouse prevented from seeking help by same facts as created debt
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But the Innocent Spouse Rule Often Ignores Reality

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Asking for it in time is a problem, notes USA Today. An innocent spouse has two years from the start of collection activity for unpaid taxes to ask for relief. There are obvious problems with the time frame. Many innocent spouses aren’t aware collection’s begun until too late. Two years is not a long time in the typical case of an innocent spouse who’s been duped, abused or otherwise kept in the dark financially.

The IRS and Congress are considering ways to make the rule fairer. At the same time they should consider the wisdom of saddling an innocent spouse with a debt she’ll never be able to repay anyway. Last fall the IRS announced it would lighten up with liens and other collection efforts that were simply making matters worse for people who can’t square their debts as it is.

In the meantime an innocent spouse shouldn’t try to go it alone. We all can’t afford to hire former IRS Commissioners to argue for us. And not every lawyer will want to take your case. But until the innocent spouse rule sees major reform, a lawyer’s your best bet to put your best case forward. Keep looking ’til you find one.

Related Apps for Your Smartphone*

- iDonatedIt – Charitable donation tracking application. $2.99.
- IRS2Go – Offers refund tracking and helpful tax information. Free.
- Receipt Filer Lite – Expense tracking application. Free.
- TurboTax – Offers several mobile apps, including a tax preparation app, a tax estimator and a refund tracker. Prices vary.

*Please note that these apps are for informational purposes only, and neither LexisNexis nor Lawyers.com endorses these apps or accepts liability for their use.

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