‘Innocent Spouse’ Relief Was Key to Unlock Client From Debt
Harriet is a single mother who divorced her abusive husband several years ago, but remained financially tied to him based on debts he owed to the IRS. The result of his bad acts was that the IRS could legally withhold her tax refunds to help pay on that debt incurred before the divorce.
Harriet sought help from Legal Aid’s Low Income Tax Clinic (LITC). The LITC attorney filed a “Request for Innocent Spouse Relief” with the IRS. After the request was reviewed, the agency granted the innocent spouse request based on equitable relief, relieving Harriet of more than $120,000 of tax debt that was not incurred as a result of anything she did.
Based on this decision, Harriet, who earns a modest wage, is now able to file tax returns claiming eligible tax credits and receive the tax refund owed her rather than having those funds withheld to pay on her ex-husband’s tax debt.
Harriet sought help from Legal Aid’s Low Income Tax Clinic (LITC). The LITC attorney filed a “Request for Innocent Spouse Relief” with the IRS. After the request was reviewed, the agency granted the innocent spouse request based on equitable relief, relieving Harriet of more than $120,000 of tax debt that was not incurred as a result of anything she did.
Based on this decision, Harriet, who earns a modest wage, is now able to file tax returns claiming eligible tax credits and receive the tax refund owed her rather than having those funds withheld to pay on her ex-husband’s tax debt.