The innocent spouse – Nowy Dziennik

Wiesław Cyprys

Jointly signing a tax return is not the best solution for a spouse whose other half has tax sins on his conscience.

Before the date by which settlements with the tax office are due, or rather by when the tax return should be sent, people panic. This year it is April 15.

Those who expect to receive a refund of overpaid taxes usually complete their returns in advance. C, who have to pay extra, wait until the last minute, because why should they get rid of funds several months ahead of time, which they most often do not have.

Among the several options that married couples have, the most common is filing jointly. In 2021, 54 million U.S. taxpayers – representing one-third of all taxpayers – collectively signed their tax returns. Is this the best solution for a spouse whose other half has tax sins on his conscience?

A widow recently found out that this is not the case. Her late husband told her before he passed away that he had “dealt” with his back taxes, which turned out to be untrue. The case went to court, where a lawsuit was filed by the Internal Revenue Service, to which Ms.

Why does the IRS demand payment from the widow when the tax matters were her husband’s responsibility and she had no knowledge of it? This is because when she settles jointly with her spouse, she is responsible to the same extent as he is. This is a shock for most taxpayers in this group, as they believe that the Tax Office divides the responsibility between spouses. Those who do not feel guilty can appeal directly to the IRS, and if the office’s decision is not in their favor, file an appeal in the Tax Court. A positive result of the claim absolves the person from paying taxes that were not paid or underpaid by the spouse.

But cases of an innocent spouse are difficult to win, because all it takes is a small detail – which investigators look for thoroughly in finances and private life – to lose the case. One such damning detail against Mrs. X was a blog post about her custom-designed wigs.

The defense presented by her lawyer in court was not helped by the fact that the defendant’s husband, who died before the case went to trial, did not present his version. Mrs.

This is the oldest and most frequently used argument in the book, intended to whitewash the accused, especially when the partner cannot testify because he is dead. As can be seen in the above example, the lack of verification from the main perpetrator does not release the co-responsible person from the guilt.

“Did the defendant benefit significantly from the unpaid taxes?” – the judge asked. And he replied that yes, because while the tax agency was waiting for the money, Mrs. X went to Europe and traveled to other places and paid $1,000 for her daughter’s ticket to Hawaii.

Mrs. Her fear of him was so great that she did not discuss financial matters, especially taxes, in conversations with him, because these enraged him the most. However, the judge did not believe her words because he did not see any signs of abuse by her spouse towards the defendant.

In contrast, in 2018, factory worker Rick Jacobsen won an “innocent spouse” case in the Tax Court after his then-wife misappropriated more than half a million dollars from her employer. Appearing in court as his own lawyer, he convinced the judge that he had nothing to do with the theft and did not derive any financial benefits from it. His wife spent the entire amount in the casino without his knowledge or consent.

I asked an expert in my family what should someone do if they suspect their spouse of tax wrongdoing? It is best to change your tax return as a married person filing separate tax returns. In this way, you will not avoid responsibility for your partner’s sins, but you can minimize your costs.

The tax return filing date is just around the corner… Anyone who hasn’t done so yet should hurry. He can also change the category if he feels he may be in trouble.