Monday, October 22, 2007

An innocent spouse case

Innocent spouse involves the Internal Revenue Service, a spouse with tax problems, and another spouse who has no part in whatever caused the other spouse's tax problems. Sounds as clear as mud, right? Remember this is tax law.

The New Jersey Family Law Blog has the following post on the subject:

"The wife was not eligible for the benefits of 'Innocent Spouse' treatment under Internal Revenue Code Section 6015. Thus, the tax penalties, interest and liabilities in question were not solely attributable to the husband. The wife was deemed to have had actual knowledge of the understatements of income. This was because she was college-educated, she had access to the parties' joint bank accounts, she balanced the parties' checkbook, she admitted to her status as a member of the parties' Limited Liability Partnership, and she failed to satisfy her duty to make diligent inquiry. Golden et ux., v Commissioner, TC Memo 2007-299, October 8, 2007"
Tax intercepts caused my most common experiences with innocent spouse issues. That is where the joint tax return was taken by the State of Indiana to pay one spouse's child support arrears.

Get a lawyer if this problem happens to you.

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