Innocent Spouse Relief: A Lifeline for Unfair Tax Burdens

Episode Summary In this episode of Resilience and Resolve, attorney Lance Drury joins host Kevin Rosenquist to unpack the complexities of innocent spouse relief—a provision that can protect one spouse from tax liabilities incurred by the other. Lance shares real-life examples, breaks down eligibility requirements, and offers insight into the IRS’s review process, including how long it takes and why documentation is critical. If you're facing an unjust tax situation due to your spouse or ex-spouse's actions, this episode is a must-listen. Timestamps 00:00 – Welcome to Resilience and Resolve 00:29 – What is innocent spouse relief? 01:46 – Real case example involving $100K liability 01:54 – Can married couples apply or just divorced ones? 03:22 – What qualifies someone for innocent spouse relief? 04:03 – Is it difficult to prove eligibility? 04:34 – How innocent spouse relief protects assets 05:14 – Steps to take if you believe you qualify 05:38 – IRS processing times and bureaucratic delays 08:36 – The state of the IRS and resource challenges 09:09 – What happens after the form is submitted 10:15 – Alternatives if the claim is denied 10:51 – Is there gray area in qualification? 11:30 – Importance of documentation in tax cases 13:15 – How involvement in a business affects eligibility 13:52 – Can the other spouse contest the relief request? 14:40 – IRS review process: documentation vs. hearsay 16:00 – IRS national standards and proving expenses 17:22 – Record-keeping in the digital age 17:42 – Lance’s old-school approach to documentation About the Show Resilience and Resolve with Lance Drury delivers expert legal insights on tax issues, IRS disputes, and financial resilience. Hosted by Kevin Rosenquist, each episode features candid discussions with attorney Lance Drury about navigating the murky waters of tax law and staying financially secure in a complicated world.