When Your Spouse Commits Tax Fraud

The Ultimate IRS Betryal

Imagine starting your weekend, as you do any other, but are interrupted by the arrest of your spouse! As divorce attorneys, we see a lot of adultery, which is the ultimate relationship betrayal. To the IRS, the ultimate betrayal is tax fraud or evasion. It is not something they take lightly, nor should they. The tax system, similar to the marital system is not perfect. However, they both rely on a pact of trust that one hand will essentially wash the other. So, what happens when your spouse commits tax fraud and betrays the IRS?

Are You Innocent?

There are measures that the IRS has put into place for those who may indeed truly be innocent in these matters. There is something called the Innocent Spouse Relief form that may relieve you from paying additional taxes. This form is for spouses who are truly innocent and you must qualify for this type of relief. For example, Ruth Madoff was granted the “innocent spouse” status in her settlement negotiations during her husbands trial.

Taking Responsibility

It’s crucial to keep in mind that even with relief, Ruth Madoff still owed the IRS compensation. Admittingly, the amount was a fraction of what her spouse would have paid, she was still responsible for something. So, while the government is willing to make concessions, it doesn’t absolve one’s responsibilities completely. In addition, the family also faced a docket of civil lawsuits. In conclusion, the most important takeaway here is that financial responsibility does go both ways in a marriage. Keep the lines of communication open. Understand that it’s your right and responsibility to be aware of you as well as your spouse’s financial behaviors.

Do You Qualify?

If you suspect or have knowledge of financial wrongdoing in your marriage, take action immediately. We serve clients in the Dallas-Fort Worth areas as well as other areas by request. Reach out to us on our website, DM or call us today at 888-981-7509 for an in-depth consultation to determine your tax options.


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