In our professional practice, we will often run into situations where a client hires us to resolve a tax debt they did not know existed. It’s not until they discover their bank accounts have been levied and/or their wages are being garnished that the debt is fully revealed tot hem. Often, the spouse will hire us after such enforcement has occurred and they need to know what can be done to relieve them of this burden, given they had no idea of its existence.
In such situations, there are two very distinct types of cases that may arise given the factual circumstances of the case. They are Innocent Spouse Relief and Injured Spouse Relief. The professionals at Capstone will be able to discuss both types of resolution with you during your free consultation, but this post will explore them both to give you some guidance in your discussion with our firm so that we can best determine the scope of our representation.
Innocent Spouse Relief, in our experience, is the more common of the two cases. An Innocent Spouse case is one where the spouse received notices about a tax debt that come as a complete shock to them. Typically, their spouse will have had them sign a return or filed a return without their consent while telling them that the return was filed without a balance owed and they need not be concerned with it. The reason this is the most common is two-fold; 1) we trust our spouses to do what’s right and 2) the notices are hard to hide when they start flooding the mailbox.
If you find yourself in a situation where the Internal Revenue Service is sending debt notices to your house by mail, they are addressed to you and your spouse, and they are coming as a complete surprise; you may be entitled to file for this form of relief. By working with a professional to represent you in this matter you can use this program to relieve you from the debt completely.
Regardless of which program may be available to you, it’s important to know your rights and remedies when you find yourself facing a tax debt or tax seizure for a liability you didn’t know existed. To find out more about what you can do to resolve this matter, please contact one of our professionals at Capstone Tax Consulting, Inc. for a free consultation to regain control of the situation and resolve it in your best interest.