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.
Next you have to prove that, when you signed the tax returns, you didn’t know anything about earnings being misreported. You also have to prove that there would have been no reason for you to know. If there is doubt about this, you will not qualify.
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.
Once you have determined, in your mind, that you should qualify, you need to file form 8857. You need to do this carefully, with as much detail as possible. On the questions that ask for an explanation, you should give one fully with as much documentation attached as is pertinent. The more information you provide the better your chances that the Internal Revenue Service will approve your petition.
The answers you give need to be pertinent to the type of relief you are filing for. Adding a letter along with the form outlining the facts and citing examples is a good idea. You need to provide as much proof as possible for the examples you give. If other people have information that would be useful to your case, it needs to be notarized and included with your letter and form.
The sooner you file form 8857 the better off you will be. Although the Internal Revenue Service has extended the time limit for filing the form, you should not wait any longer than necessary. If you are unsure about whether or not you are in jeopardy, a notice informing you of an investigation should be proof enough.
An IRS investigation is scary. If your partner has misled you, along with the IRS, you should not be held responsible for penalties, interest, and back taxes. You have to prove to the Internal Revenue Service that you didn’t know anything about it, and didn’t benefit from it, though.
If you are looking for information about innocent spouse relief Houston TX residents can come to our web pages online today. More details are available at http://znbcpa.com/accounting-services/ now.