Innocent Spouse
State
Do you think you may be an innocent spouse? The rules are complex but there is a provision in the IRS tax code that allows spouses or former spouses who have filed a joint tax return to be relieved of responsibility for any tax, interest, or penalties that may be due as a result of errors or discrepancies on the return. Unfortunately, not every state offers innocent spouse relief and those that do often have more restrictions in place than the IRS for assistance they can provide. As with the IRS, the tough part is demonstrating that you truly were innocent and providing a persuasive case to the State Tax Authorities. We have successfully sought relief for dozens of innocent spouses and we are happy to evaluate if your case meets the criteria. Please schedule a free 15-minute consultation today.
Questions?
Do I need to apply for innocent spouse with the IRS to qualify for relief with the State Tax Authorities?
There is no official requirement which stipulates that your must apply to the IRS for relief if you are seeking similar relief from a state taxing authority. However, if one return is incorrect or fraudulent, and you are receiving state tax bills as a result of your (former) spouse’s actions, you are probably receiving IRS bills and should seek relief for innocent spouse with the Feds as well.
Do state applications for innocent spouse relief look different than an application for relief with the IRS?
No, not really. The main thing to demonstrate in any application for relief is that the wayward spouse was the sole conspirator and beneficiary of the incorrect/fraudulent return they filed. All applications have that burden of proof, which is a tall order.
Why are most applications for innocent spouse denied by the State Tax Authorities?
Since the first battle in the war for innocent spouse relief is fought with the IRS, most applications for innocent spouse relief with the State Tax Authorities are denied because the IRS didn’t grant relief first. It’s also worth mentioning that since all states have their own tax laws, they grant relief when they see fit and just because the IRS granted relief does not mean they will follow suit. If your application has been denied, your options for appeal may be limited so please reach out today.