Category: Blog

Understanding the Difference Between Innocent and Injured Spouse Relief

Difference Between Innocent and Injured Spouse Relief

Innocent and injured spouse tax relief are two different avenues that can be pursued by couples filing joint tax returns if one party faces tax consequences due to the actions of their partner. Although the two scenarios are fairly different, they are both meant to release the innocent spouse from income tax liabilities that arise from joint tax filing. Before you request the IRS to consider you for innocent spouse relief or injured spouse relief, it is imperative to understand the differences between the two. We cover the basic differences in the blog post. Must Read: Innocent Spouse Relief :

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Appeals: The Gateway to Resolving IRS Tax Disputes

tax dispute resolution

Any discrepancy in the involved tax collection, proposed tax assessments, or other IRS actions can increase a taxpayer’s grievances. Once you receive a final notice from the IRS, you may seek tax dispute resolution through legal intervention. Filing appeals is a preferable, yet less formal approach than other court proceedings, but is independent of judicial mandates of evidence or procedure. In the past, appeals have helped settle a significant number of cases. Let us take a closer look at the various aspects of Appeals, and how you can benefit from the process. Must Read: IRS Appeal, Appeal Issues, and Appeal

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Debunking 5 Myths About the IRS Offer in Compromise Program

IRS Debt Forgiveness Program

The IRS is considered a brutal government agency by many taxpayers who become uneasy when filing time approaches and shake in their boots when contacted by the agency. There are a number of situations when the IRS can cut down the amount of tax debt, provided the taxpayer qualifies according to guidelines laid by the IRS. One of the IRS debt forgiveness programs that promises IRS tax debt relief is the “Offer in Compromise”, which taxpayers and businesses sinking under tax debt can give a shot. Despite the existence of such programs, delaying paying your taxes without good reason can

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Tax Relief Options for Couples on Joint Returns

irs innocent spouse relief

When couples file a joint return, they are jointly and severally liable for the tax, interest, or penalties that arise from the joint return, even if after they decide to go their separate ways. In the event of a delinquent spouse, the innocent spouse can file for three different types of tax relief from the IRS – innocent spouse relief, separation of liability relief, and equitable relief. You need to carefully determine which relief applies to your situation by thoroughly reviewing all three definitions given below and taking a close look at your joint income tax return. It is recommended

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4 Consequences of Unfiled Tax Returns

Unfiled Tax Returns what to do

Negligence or inability to file a tax return, when you owe the IRS is an invitation to trouble. Many taxpayers are unaware of the fact that an unfiled tax return is worse than filing a return and not paying the due amount. If you are unable to pay your taxes, the IRS has avenues to help you pay what you owe the agency. Not filing a tax return is a crime, and you could be severely punished by the IRS. This blog post gives a brief overview of the four main consequences of not filing a tax return. Read on.

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6 Must-Know Facts about Penalties on Late Filing and Late Payments

Penalties on Late Filing and Late Payments

Late payment is not the only condition when the IRS penalizes tax holders. The central tax authority may also penalize those who file their taxes after the deadline. If you owe taxes, and fail to file them in time, it may lead to interest and penalties. However, if you are due for a refund and fail to timely file your tax return, there will be no penalty from the IRS. This blog post discusses five facts about late tax filing and payment penalties every taxpayer must know. Take a look. 1. Possibility of Two Penalties The first important fact that

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Not Liable for Your Spouse’s Taxes? File for Innocent Spouse Tax Relief

Innocent Spouse Tax Relief

When a married couple has filed for a joint tax return, the liability for paying the taxes becomes joint and several. While some can trick an unsuspecting spouse into filing for a joint return on their taxes, others may withhold knowledge of an underpayment of taxes. When filing for divorce, a spouse can also file for innocent spouse tax relief. Whether you are filing for innocent spouse relief while married, or doing so after separation, there are a few innocent spouse tax relief requirements you must fulfil. Before proceeding to file for tax relief, let’s take a look at some

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4 Tips to Help Improve Chances of Offer in Compromise Approval

Get an offer in compromise approved

Individuals that owe huge amounts in unpaid taxes that cannot pay turn to an “offer in compromise”. OIC is an agreement between the IRS and a taxpayer to settle the taxpayer’s tax liability for less than the owed amount. The IRS reviews the income and assets of the taxpayer and documents every detail of their financial situation, before deciding whether or not sanctioning of an OIC is a justified decision. Many applications submitted to the IRS are often rejected due to negligence on the taxpayer’s part. Most taxpayers are not familiar with how to get an offer in compromise, which

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All You Need to Know about IRS Debt Forgiveness

IRS Debt Forgiveness

What Is IRS Debt Forgiveness? There are times when defaulting taxpayers genuinely want to pay their debt, but are unable to because of an ongoing financial crisis. The IRS recognizes such scenarios, and therefore, has several debt relief and debt forgiveness provisions to help well-intentioned taxpayers avoid any financial hardship that may arise if they are forced to pay more than what they can afford. In this blog post, we take a look at provisions that the IRS offers to taxpayers. Let’s begin. Offer in Compromise (OIC) Taxpayers may request the IRS to reduce their existing tax liability in a

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Innocent Spouse Relief : What You Need to Know

Innocent spouse relief

Married couples who decide to jointly file a tax return can reap certain tax benefits in the form of tax breaks and credits. When you file jointly, however, you are jointly and severally liable for tax debts and any additions to it, such as interest or penalties, which may arise later from the joint return. Both spouses who file a joint tax return are liable for an equal amount of tax return, even if they divorce in the future or only one spouse earned all the income or claimed improper credits or deductions. What is important to note is that

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