Innocent Spouse Tax Relief
Recently, we prepared a joint individual tax return for Kathy, who earned $42,500 for the year and expected a refund of $1,750 to be deposited into her checking account. Her husband had no income. The IRS kept the $1,750, unbeknownst to her.
TDRS stepped in for Kathy and filed for Innocent Spouse Relief. The debt with the IRS was due to unpaid gambling winnings of Kathy’s husband. TDRS notified the IRS that Kathy was not responsible for her husband’s unpaid gambling debt. TDRS was able to recover 100% of the $1,750 that Kathy was expecting.
Innocent Spouse Relief
TDRS will quickly work with you and the IRS. We will work to recover what is rightfully yours.
Besides unpaid debt with the IRS, you may want to request Innocent Spouse Relief for:
- Unreported income by your spouse (or ex-spouse).
- Incorrect deductions, credits or basis calculations.
If you were aware of the unreported income or incorrect deductions or credits and signed the joint tax return, then you are not eligible for Innocent Spouse Relief.
More often than you think, spouses or ex-spouses are caught paying IRS debt when they could have filed for Innocent Spouse Relief and received their refund in full or reduced their tax liability.