[T]axpayers risk trouble with the IRS simply because of their spouses or ex-spouse’s actions...arising from underreported income and/or underpayment of taxes.
Santa Monica, California (PRWEB) May 21, 2014
In an effort to reduce the federal government’s budget shortfall, the IRS has been charged with the obligation to increase its enforcement efforts to pursue taxpayers for back taxes owed to the government. For couples filing joint tax returns, each spouse is completely liable for joint tax debt owed, even if one spouse has no idea about the financial activity of the other.
Veteran Madison Debt and Tax Relief Attorney Paul Vargas notes that “taxpayers risk trouble with the IRS simply because of their spouses or ex-spouse’s actions. Even the IRS realized that all too often they were pursuing the innocent. As a result, there developed a line of tax laws designed that protect qualifying innocent spouses from the liable spouse’s actions arising from underreported income and/or underpayment of taxes.”
In order to resolve back taxes and IRS penalties, Madison Debt and Tax Relief can seek to qualify taxpayers for tax relief as an Innocent Spouse if the taxpayer is presently divorced, separated or living apart and can establish that they are innocent because they did not know, or had no reason to know their (liable) spouse understated their income or underpaid their tax. Just last month, the IRS announced in a rare move that an innocent spouse no longer must seek relief within two years after the date on which the IRS first began collection activity and that those taxpayers denied innocent spouse status solely due to the application of the former two-year limit, may now re-apply.
This area of the tax law is complex and requires an experienced tax resolution attorney to help innocent spouses increase their chances of reducing their tax liability, interest and avoiding IRS penalties. Madison Debt and Tax Relief can help spouses understand whether this relief applies to their specific situation and how best to present the facts necessary to obtain Separation of Liability and Equitable Relief.
To learn more about how to qualify for tax relief as an innocent spouse, visit http://www.madisondebtandtaxrelief.com/services/innocent-spouse-spousal-relief-california-tax-lawyer/. Madison Debt and Tax Relief is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS or State Tax Authorities. For more information or to receive a free tax relief consultation, call (800) 441-2615 or visit http://www.madisondebtandtaxrelief.com.