Listen, I know filing taxes jointly makes things easier, but it also means sharing responsibility. What happens if your spouse’s mistakes leave you with a hefty tax bill? It’s frustrating, but something called innocent spouse relief could help.
A recent tax court case (Kraszewska v. Commissioner) highlighted this option. Basically, if you had no idea your spouse was hiding income or inflating deductions (like Ms. Kraszewska), you might be able to get some protection from the IRS, especially if you keep your finances separate.
Consider innocent spouse relief in these three key situations:
- Unaware of Misconduct: If you did not know your spouse was underreporting income or inflating deductions—as was the case for Ms. Kraszewska—you might qualify for relief, particularly if you maintain separate finances.
- Facing Financial Hardship: Are you paying a daunting tax bill because of your spouse’s inaccuracies? Innocent spouse relief could significantly reduce or even erase your liability.
- Limited Knowledge of Finances: If your role was minimal in the family’s financial decisions and tax preparations, this might be your route to relief.
Keep in mind that being eligible for innocent spouse relief requires a detailed review by the IRS. It’s not a given for every situation. If you suspect you might be liable for your spouse’s tax errors, schedule your tax assessment today by clicking the link below or calling us at (408) 708-9330.
Don’t wait! You have to request innocent spouse relief no later than two years after the IRS started trying to collect the tax from you.