Disputing Liability for a Spouse's Tax Fraud
Under the law, one spouse is generally accountable for taxes incurred by the other. Even if you filed separate tax returns and even if you have divorced, the Internal Revenue Service (IRS) or the state of North Carolina may come after you for unpaid tax liabilities of your spouse or former spouse.
The law does recognize an innocent spouse defense when the other spouse was involved in illegal activities or intentional deception. The Greensboro, North Carolina, tax attorneys of Ivey, McClellan, Gatton & Talcott, L.L.P., have successfully invoked this argument to shield clients from unfair tax assessments and to prevent liens, levies or garnishment. Contact us today to discuss the law and your tax situation.
Marriage, Divorce and the Innocent Spouse Defense
The innocent spouse defense recognizes that it is unfair to be blind-sided and burdened if your spouse was cheating the IRS. There are many scenarios in which an innocent spouse may not be accountable for taxes:
- One spouse operated a business and underreported income, but the other spouse was not involved in the business.
- A spouse who always filed the couple's tax returns claimed fraudulent deductions.
- Prior to divorce, one spouse failed to file tax returns, but lied to the other spouse.
- A tax audit reveals errors or fraudulent information on past returns prepared by the other spouse.
It is very common for one spouse to prepare a joint return and for the other spouse to blindly sign it. In asserting the innocent spouse defense, we must convince the IRS or NC Department of Revenue that you had no knowledge of the fraud or error or reason to be suspicious. We must also show that it would be inequitable to hold you accountable for the fraudulence or gross error of your spouse/ex-spouse.
If the IRS decides you are not eligible for innocent spouse relief or if that defense is unlikely to work, we can represent you in making an offer, negotiating an installment plan or requesting abatement of penalties and interest.
Innocent Spouse Representation in Audits and Tax Litigation
Your spouse/ex-spouse will have an attorney and you need separate legal counsel. Our tax lawyers have extensive experience and demonstrated results in tax litigation. Contact our firm to talk with a Greensboro innocent spouse defense attorney.
