What is the name of your state (only U.S. law)? California
I have a complicated scenario. For the last few years, my spouse and I have filed jointly. We each gather our own documents W-2s etc. and send them to my brother in law who files for us and signs for us using a pin. i personally have never seen our returns before they are filed but i know from the irs letter that this issue is entirely my fault. In 2013, I received a settlement from a former employer who wrongfully terminated me and there were some medical issues as a result of some stress they caused. either way, my husband did not now about the money. I handled all our finances. I was a bookkeeper for 7 years so he trusted me to handle our finances. I did not give him any money and he did not benefit from it. I did not tell the tax preparer either since this was his brother and I didn't want him to know. Quite frankly, I didn't think the settlement was taxable and i didn't want anyone to know about the money. I paid off some personal debt acquired before we got married and invested and lost some of it. This year we got a letter in the mail stating that we owed $11,000. He questioned me about it and found out about my unclaimed money and subsequent lack of taxes being paid on it. They are holding our refund because of the money owed. He is the only one who worked so the refund is entirely from his contributions. He always pays his taxes but now gets nothing because of me. I feel really bad for him because it has put him under a lot stress and he isn't even guilty of anything. Can he file for innocent spouse relief? I know they consider education but I don't know how much it matters. I am graduating with a degree this May. He had less than a high school education when I met him but now has a GED and a few college classes. Will he get approved if he files himself? If I give him a notarized letter from me taking the blame, will that help? We have never, ever not claimed something before. We both file every form we get, but since I didn't think it was taxable, I didn't think anyone needed to know about it. What are the options?
I have a complicated scenario. For the last few years, my spouse and I have filed jointly. We each gather our own documents W-2s etc. and send them to my brother in law who files for us and signs for us using a pin. i personally have never seen our returns before they are filed but i know from the irs letter that this issue is entirely my fault. In 2013, I received a settlement from a former employer who wrongfully terminated me and there were some medical issues as a result of some stress they caused. either way, my husband did not now about the money. I handled all our finances. I was a bookkeeper for 7 years so he trusted me to handle our finances. I did not give him any money and he did not benefit from it. I did not tell the tax preparer either since this was his brother and I didn't want him to know. Quite frankly, I didn't think the settlement was taxable and i didn't want anyone to know about the money. I paid off some personal debt acquired before we got married and invested and lost some of it. This year we got a letter in the mail stating that we owed $11,000. He questioned me about it and found out about my unclaimed money and subsequent lack of taxes being paid on it. They are holding our refund because of the money owed. He is the only one who worked so the refund is entirely from his contributions. He always pays his taxes but now gets nothing because of me. I feel really bad for him because it has put him under a lot stress and he isn't even guilty of anything. Can he file for innocent spouse relief? I know they consider education but I don't know how much it matters. I am graduating with a degree this May. He had less than a high school education when I met him but now has a GED and a few college classes. Will he get approved if he files himself? If I give him a notarized letter from me taking the blame, will that help? We have never, ever not claimed something before. We both file every form we get, but since I didn't think it was taxable, I didn't think anyone needed to know about it. What are the options?
