Chair of Starr Gern Tax Department Harvey R. Poe and Associate Jeffrey R. Pittard obtained Innocent Spouse Relief for client, fully relieving her of joint responsibility for over $3,000,000 in assessed taxes, penalties and interest.
Client’s husband incorrectly reported the character of gain from a business transaction on their joint income tax return. As a result, the Internal Revenue Service assessed the client and her husband additional income tax, penalties and interest in an amount that exceeded $3,000,000. Because the firm’s client filed her income tax returns jointly with her husband, she was held liable for the additional amounts due to the IRS. The firm filed an innocent spouse relief request with the IRS and took the position that the client should not be held responsible for a reporting mistake caused by a business decision made by her husband. During an appeals hearing on the matter, the firm was able to convince the IRS to overturn its initial denial of Innocent Spouse Relief and to grant full relief for the additional income tax, penalty and interest that resulted from the husband’s reporting mistake.