Innocent Spouse, Installment, Penalty Release, and Transcript

Innocent Spouse Relief

Innocent Spouse Relief exists to alleviate unjust situations where one spouse is clearly not responsible for the tax liability created by their spouse or former spouse. There are three different solutions for this tax relief.

These solutions were based on a three-part set of rules encompassing Innocent Spouse, Separation of Liability, and Equitable Relief. The appropriate portion of the solution depends on each taxpayer’s situation.

These special rules exist to protect an innocent spouse from exposure to IRS collection actions related to a spouse’s tax liability. If the IRS is trying to collect taxes related to the income of a (current or former) spouse that you believe you should not be forced to pay, call us for a free consultation. If their actions seem unfair, this program may be exactly what you need.

Installment Agreements

You may find yourself cannot afford to pay in full after having your taxes prepared. If you do not qualify for the Offer-In-Compromise program, a Payment Plan may be the way to resolve your problem.

We can secure an agreement with the IRS to allow monthly payments on your tax liability. The installment agreement keeps IRS or the State from levying as long as the payments are paid as agreed. Without an agreement, the IRS or State may take all of your paycheck, levy bank accounts, and file liens on all of your assets including your home.

Unfortunately, IRS or the State continues to add penalties and interest to any unpaid balance. A major benefit of a well-negotiated plan is the amount of payment takes into account your living expenses and provides protection from enforced actions. Additionally, they will release levies they have filed once your payment plan is approved. They will not file any new levies as long as you make the agreed upon payment.

Penalty Abatement

In every case, the large chunks of the tax due by tax payers were penalty and interest on top of the unpaid tax. Thanks to the penalties and interest, the ballooning balance quickly becomes unmanageable. Penalties and interest might be reduced or eliminated if you can demonstrate reasonable cause and prudent action. Further, we may be able to couple Penalty Abatement with an Installment Agreement.

Tax Transcripts and Your IRS File – What IRS Knows About You.

Most people do not know that their IRS file containing more information about them than they are aware of. Your IRS file includes information that third parties have sent to the IRS about your income from various sources. It includes a record of your IRS filings and a record of actions IRS has taken related to you and much more. Reviewing this information is critical to constructing the best approach to resolving your tax problem.

We will secure your IRS file without raising any red flags. Under the Freedom of Information Act, we can secure, review, and interpret the IRS transcripts for you. This record reveals your history with the IRS (according to them.) We may also anticipate their coming actions based on the information posted to your account.