Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Innocent Spouse Relief and other Tax Relief topics.
DebtHelp.com Tip: Jane and Joe Hanes filed a joint tax return for the 2006 tax year. The IRS, upon receiving third party information, found out that the tax amount due on the Hanes' tax return was understated. The IRS had reason to believe that Joe Hanes had received $40,000 worth of unreported income from investments he owned. Jane Doe had no knowledge of, nor reason to know, that Joe had these investments. He had never mentioned the investments, nor had she seen any statements in the mail about them.
The IRS penalized the Hanes for underreported income. Jane Hanes can request innocent spouse relief. Innocent spouse relief will decrease, or eliminate, Jane Hanes tax debt. She incurred this tax debt due to her filing a joint tax return containing underreported income due to her husband's erroneous item.