Navigating your taxes and your tax liability after a divorce can be challenging, particularly if there’s any miscommunication between you and your former spouse about expectations or financial responsibility. In some particularly difficult situations, a divorced partner sometimes even knowingly tries to saddle their former spouse with tax costs that shouldn’t have anything to do with them. These can include taxes, interest, and penalties owed, and can grow into a major financial problem if not addressed right away.
In most cases, you’ll only find out that your ex-spouse has either accidentally or intentionally passed on a tax burden to you when the IRS sends you a notice, or when they contact you to say they are reviewing your tax return and may increase your tax liability.
If this happens, don’t panic! The IRS knows that when two people have been in a personal and financial partnership, and then end that partnership, the waters can get murky. That’s why there’s a whole area of the tax code addressing “innocent spouse relief.” If you find out that the IRS is calling for you to pay taxes, interest, or penalties that should be the responsibility of your ex-spouse, filing for innocent spouse relief can be a great option.
You can also apply for innocent spouse relief if you are still married and find yourself in a similar situation.
If you’re facing tax costs that should, by rights, be shouldered by your current or former spouse, talk to the tax experts at Taxation Solutions, Inc. We can help you look at all of your options and assist you in deciding if filing for innocent spouse relief is the right choice for your situation. Call our pros today!