I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

As we continue with our series in discussing “innocent spouse” relief, and what we anticipate to be the rise of this defense as the IRS gets back to normal enforcement activity (by year’s end 2022 according to them).  Innocent Spouse cases are almost always initially rejected, and are commonly rejected at appeals, however, the key to winning such cases are like most things, in the details of the case.  Everything is on the table to be used, affidavits from witnesses of abuse, whistleblowing (careful, taxpayer filing for innocent spouse cannot have been complicit in the fraud or wrongdoing in the first place. And once this (Pandora’s) box is opened and cannot be closed.).  “Innocent Spouse” should calculate their RCP as well and have the analysis handy to be used to make the case.

Here is an example of letter written to the Internal Revenue Service in support of a taxpayer making an innocent spouse filing:

To whom it may concern

I represent the above-mentioned taxpayer. Enclosed please find form 8857 Request for Innocent Spouse Relief, along with supporting documentation for the claim. The taxpayer should not be held responsible for unpaid taxes, which are a result of her husbands’ business, with which she had no involvement. Her soon to be ex-husband managed all finances for the household.

The taxpayer is a 64-year-old and suffers from severe depression which started in 2013 and was later diagnosed with PTSD. She now takes medications and regularly sees a therapist. She has also been diagnosed with breast cancer. On November 23, 2019 her son passed away suddenly, and she now shares custody of her eleven-year-old grandson. She is currently in the process of a legal separation from her husband. She also has no ability to pay the liabilities and any enforcement will cause a hardship. 

You may say that this letter is trying to garner sympathy, but what it is actually doing is telling the IRS that the taxpayer has no means of paying, and thus should be relieved of the burden. And its always wise to raise the issue of collectability.

If ever you’re feeling overburdened by your tax situation or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs.  Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us with any questions you may have in approaching your specific tax scenario.