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.
You may qualify for this option when you and your husband filed jointly, and he is believed to have knowingly underestimated the amount of money he earned and the taxes he's responsible for. You can petition the IRS so as not to be liable yourself for any of his additional taxes, penalties, and interest. Laws change periodically, but the three classic requirements must be established. You must show that it was your partner who filed incorrect information about his own earnings.
Secondly, you must prove that, when you signed the returns, you had no knowledge that your partner was underestimating his taxes. There must have been no underlying reason for you to know. If you had knowledge, then your won't qualify for relief.
Thirdly, the Internal Revenue Service will review your information and investigate to determine if it's fair to hold you responsible for the taxes owed. They make this determination based on a number of things. First and foremost, they check to see if you materially benefited from the underestimation. They take things into consideration things like whether you are still married, legally separated, divorced, or have been abandoned.
If you think you qualify for this exception, you should file form 8857 with the IRS. When you are filling out the form, you need to put as much detailed information into it as possible. Where questions ask for explanations, you need to be specific and provide any documentation you think is pertinent. Giving the IRS as much information as possible will speed up the process.
You should know which type of relief you believe you qualify for and tailor your responses accordingly. Include a letter outlining your case and clearly point out the exact reasons, and your proof for them, that invalidate any responsibility for your partner's tax burden. If there are others who can validate your information, you need to include their notarized responses 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.
The IRS can deal harshly with someone who deliberately misleads them. You don't want to be in the middle of this kind of situation when you can help it. Filing as an innocent spouse is a good way to indicate you had no knowledge of any wrongdoing.
You may qualify for this option when you and your husband filed jointly, and he is believed to have knowingly underestimated the amount of money he earned and the taxes he's responsible for. You can petition the IRS so as not to be liable yourself for any of his additional taxes, penalties, and interest. Laws change periodically, but the three classic requirements must be established. You must show that it was your partner who filed incorrect information about his own earnings.
Secondly, you must prove that, when you signed the returns, you had no knowledge that your partner was underestimating his taxes. There must have been no underlying reason for you to know. If you had knowledge, then your won't qualify for relief.
Thirdly, the Internal Revenue Service will review your information and investigate to determine if it's fair to hold you responsible for the taxes owed. They make this determination based on a number of things. First and foremost, they check to see if you materially benefited from the underestimation. They take things into consideration things like whether you are still married, legally separated, divorced, or have been abandoned.
If you think you qualify for this exception, you should file form 8857 with the IRS. When you are filling out the form, you need to put as much detailed information into it as possible. Where questions ask for explanations, you need to be specific and provide any documentation you think is pertinent. Giving the IRS as much information as possible will speed up the process.
You should know which type of relief you believe you qualify for and tailor your responses accordingly. Include a letter outlining your case and clearly point out the exact reasons, and your proof for them, that invalidate any responsibility for your partner's tax burden. If there are others who can validate your information, you need to include their notarized responses 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.
The IRS can deal harshly with someone who deliberately misleads them. You don't want to be in the middle of this kind of situation when you can help it. Filing as an innocent spouse is a good way to indicate you had no knowledge of any wrongdoing.
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