Help needed with filing for innocent spouse (cover letter and application)?

Question

I had recently come from the U.K and did not know much about tax filing in the US . My husband owned his own business on his social security. He was an upright citizen who always paid his taxes. That is until he was diagnosed with lung cancer. Whilst struggling with the disease for 2 years he accumalated tax debt amounting to $22000.00 which i was unaware of until he passed away. Whil'st I was married to him I did not work and was a housewife. I have been financially struggling to meet the basic needs of my daughters and myself ever since his death. I worked over the last 3 years and made a small salary of $23,000.00 which barely covers all the expenses. Our family home has been threatened with fore closure twice. I would like to appeal to the IRS to return any money that i am entitled to. Does anybody have any experience of applying for innocent spouse status. What kind of cover letter should i send with my form. I cannot afford an attorney and would appreciate any help. Thanx

Answer 1

This is really a situation that needs to be done properly, is there a legal aid office in your community?

Best to answer the questions on the form if you do it yourself. You do not want to write or say anymore than that, no lengthy discussions in a cover letter.

I will say to you what I said to my clients for 30 years (retired now) , KEEP YOUR MOUTH SHUT.

Answer 2

1) You need to see a Tax Professional. Not a Tax Attorney. A CPA or EA in your area.

2) Innocent Spouse relief is tough to get because: a) you must prove that you didn't know about the other income; and b) your lifestyle did not benefit from the income.

3) An "Offer In Compromise" may be a better way to go depending on what you have for assets, including equity in your home.

4) See #1 above.

Answer 3

From what I can tell, you may not actually be an Innocent Spouse. An Innocent spouse is one who signs the tax return without the knowledge the spouse lied on the income tax return. An Injured spouse is a spouse which has a joint tax refund intercepted to pay some other debt due soley to the other spouse (ie, the husband had delinquent student loans or child support outstanding which you are not liable for)

You may want to consider an Offer In Compromise (an OIC). Another option would be an installment agreement But please see a tax professional to discuss all your options!

Answer 4

You can send in the form for Innocent Spouse Relief:

http://www.irs.gov/pub/irs-pdf/f8857.pdf


And with it, the accompanying Questionnaire for Requesting Spouse:

http://www.irs.gov/pub/irs-pdf/f12510.pdf


and hope for the best. A cover letter is not necessary, just do the questionnaire. If that doesn't solve the problem, you must get a professional to help you pursue other options.

Answer 5

Based on your narrative, you are "entitled" to nothing as an innocent spouse from the IRS so there is nothing to apply for. If you filed a joint income tax return, you are liable for everything on it.

Based on what IRS considers reasonble living expenses, it should conclude that your account is currently not collectable and, after providing them the appropriate information, will put it on ice until your situation improves or you sell or refinance your home.

If there is no equity in your home or other assets, you could file an offer in compromise and, if approved, settle the account for less than full payment but you may not have the resources to do that, the ability to complete the paperwork or funds to pay an CPA or Enrolled Agent like me to represent you.

Answer 6

You do not need an attorney, however you would be well served to see a tax professional for this matter. Most experienced tax professionals will be able to assist you for very little charge. Call around to tax services in your area.

Answer 7

You need a tax professional for this matter. This needs to be handeled by someone familiar with the laws and requirments.