Michigan Divorce and Innocent Spouse Relief: Imagine you discover before, during or shortly after your divorce that you have a large outstanding tax liability. You may have known nothing about it. Unfortunately, the IRS will likely hold you equally responsible for all tax due even if the income or improper deduction was the fault of only one party.
We see this issue often in Michigan divorce cases, and fortunately, the IRS has created a mechanism to provide relief under certain circumstances.
The program created by the Department of Treasury is called Innocent Spouse Relief and provides relief from tax exposure for qualified individuals.
If you want to blame your spouse for the tax obligation, Innocent Spouse Relief can play a role in accomplishing the goal and relieving you from exposure.
To qualify for Innocent Spouse Relief you must meet all of the following conditions:
You must meet all of the following conditions to qualify for “innocent spouse relief”:
- You filed a joint return that has an understatement of tax (deficiency) that is solely attributable to your spouse’s erroneous item.
- You establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax and
- Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.
The IRS has created a pamphlet on innocent spouse relief. A link to the pamphlet can be found here: http://www.irs.gov/taxtopics/tc205.html
At Findling Law, we believe that your divorce should create opportunities such as becoming debt free, providing you with the freedom you deserve for a fresh start. You deserve to be happy.
We are here to help you navigate this journey by focusing on your goals. If you have any questions concerning any aspect of the law, let me know. My direct line is 248-399-3300 or toll free: 877-968-7347.
Let our exceptional legal team help you . . .,
Let it be our privilege to help.
By: Daniel Findling
The Divorce Guy, Michigan Divorce Attorneys and Specialists