Claiming innocent spouse relief has always been an uphill battle. The courts have set a very high standard to have a case settled in the taxpayer’s favor.
Lennon and McCartney wrote “I Should Have Known Better”. The same thing applies to an innocent spouse. If your husband pleaded guilty to tax evasion and bribery just a year prior to your claimed tax deficiency (as in the recently decided June 2024 Cotroneo v. Commissioner case), maybe you should have looked your tax return over a bit more closely.
Another thing to keep in mind. If you claim on your tax return that you made $35,000 yet you are living and benefitting like a 1 percenter, you are asking to be audited. Once again, a reasonable person should know better. You are not that innocent (as in the recently decided June 2024 Cotroneo v. Commissioner case).
Documentation is key. This works both ways. Documentation showing you could not have reasonably known that the offending spouse did whatever offence is being claimed will help your case. On the other hand, documentation showing that you should have known better will sink your case (as in the Cotroneo case, where a Morgan Stanley IRA distribution statement for the wife’s account clearing showed she took the money out).
To win an innocent spouse case you need claim complete ignorance. That is not an easy task which makes an innocent spouse case so challenging. If you truly believe you are not liable for a debt due to your spouse and only to your spouse, an Offer In Compromise Doubt as to Liability is another reasonable option.
If you feel you have met the considerably high bar set to win an innocent spouse case, set up a free 30 minute consultation with the Connecticut Tax Resolution Service by going to https://CtTaxResolution.com/appointment.