How Will a Divorce Affect My Taxes?

When making a commitment as big as marriage, you base it on trust. You trust that the person you have chosen to spend the rest of your life with will be open and honest in all aspects of your relationship for the well being of your future together. But what happens when a marriage comes to an end and you find out that your spouse has been lying about financial matters. If a faulty tax return was filed, both spouses are responsible for paying back any tax, interest or penalties that arise as a result.

The Innocent Spouse Relief

If you file for divorce and you receive a notice from the IRS due to faulty tax returns filed by your ex-spouse, a tax attorney can help protect you by implementing the Innocent Spouse Relief in your defense. Dealing with the IRS on your own can be confusing and stressful, so it is always advised to seek the help of a tax lawyer to help with your tax issues. The IRS does not care if you had knowledge or not about the mismanagement of your household’s finances, they’re only interested in getting back their money.

The implementation of the Innocent Spouse Relief is a common law procedure, since in most cases one spouse makes the majority if not all the income. In order to use the Innocent Spouse Rule, a few things must be proven first.

  • Prove the faulty tax return was filed by your spouse.
  • That you had no knowledge of the misleading activities acted out by your spouse.
Timing Is Everything

When applying for the Innocent Spouse Rule, make sure that you file within two years of the IRS investigation, if you wait too long you will be out of luck and you will also be held responsible for any back taxes owed. Once your application has been filed, the IRS will take a number of factors into consideration:

  • If you were abandoned by your ex-spouse.
  • If you were divorced or at legally separated.
  • The IRS will determine if you received an benefit from the faulty return.

Regrettably, the mishandling of taxes is all too common in divorce cases. If you filed a joint tax return with your (ex) spouse and are now facing issues with the IRS, call a tax attorney immediately to give you the best chances of proving and settling your case.