Filing Separately Could Cost You More on Back Taxes - Clear Start Tax Explains Smarter Options for Married Couples
IRVINE, CA / ACCESS Newswire / July 11, 2025 / Married taxpayers dealing with back taxes are often surprised to learn that filing separately to 'protect' one spouse from IRS collections can actually lead to higher tax bills, lost credits, and fewer resolution options. According to Clear Start Tax, understanding the pros and cons of married filing jointly vs. separately is critical for couples hoping to resolve tax debt while preserving as much income as possible.
'Filing separately might feel safer when one spouse has IRS issues – but it usually ends up being more expensive,' said the Head of Client Solutions at Clear Start Tax. 'In many cases, joint filing opens the door to relief programs, better deductions, and faster resolution.'
Why Filing Separately Can Backfire for Couples With Tax Debt
Some couples assume that filing separately shields one spouse's income or refunds from being seized. While separate filing may delay IRS collection on a refund, it doesn't always protect shared income or assets, especially in community property states. And in many cases, filing separately ultimately results in:
Higher overall tax liability
Loss of key deductions and credits (like the Earned Income Credit or Child Tax Credit)
Reduced access to Fresh Start benefits or less favorable Offer in Compromise terms
Longer resolution timelines and more paperwork
How Filing Together Could Be the Smartest Move for Tax Relief
Even when one spouse owes back taxes, joint filing can result in lower taxes and greater access to IRS relief programs. Clear Start Tax helps couples explore the advantages of working together, not separately.
For situations where only one spouse is responsible for the debt, programs like Innocent Spouse Relief or Injured Spouse Allocation may protect the non-liable spouse, without sacrificing the benefits of joint filing.
'The IRS gives couples a way to protect the innocent spouse while still getting the best outcome,' said the Head of Client Solutions. 'We help clients understand their rights and design a strategy that keeps more money in their household.'
The Fresh Start Program Can Help Couples Settle Tax Debt Together
This IRS initiative allows struggling taxpayers – including married couples – to settle or restructure their tax debt based on what they can reasonably afford. Clear Start Tax walks couples through every step of the process.
Settlements for less than the full amount owed
Reduced penalties and halted interest
Affordable payment plans based on household income
By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.
Joint Returns Come With Risk – But Also With Options
While joint returns mean both spouses are legally responsible for the full tax bill, Clear Start Tax helps clients explore:
Partial-pay agreements
Spousal relief requests
Asset protection strategies
Custom IRS settlement negotiations
These strategies can balance legal responsibility while still maximizing the couple's chances of saving money and moving forward.
About Clear Start Tax
Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
(888) 710-3533
Contact Information
Clear Start Tax
Corporate Communications Department
seo@clearstarttax.com
(949) 535-1627
SOURCE: Clear Start Tax
View the original press release on ACCESS Newswire
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
If you're a cryptocurrency investor, you might soon hear from Uncle Sam in the form of an IRS letter detailing your tax obligations. Read Next: Find Out: The letters are designed to warn taxpayers that crypto investments they declared on their most recent tax returns might not be accurate, Fortune reported — and there are a lot more of those letters being issued. In May and June alone, the number of support conversations on crypto tax platform CoinLedger that included the words 'IRS letters' totaled nearly 800. That represented a nine-fold increase compared to the same period in 2024, CoinLedger CEO David Kemmerer told Fortune. 'Thousands of investors are getting these,' Kemmerer said. 'Naturally, when that happens, we get a flood of customers coming to us being like, 'Hey, what do I do?'' The letters come in three basic forms, according to a recent blog from Corrigan Krause, an Ohio-based tax, accounting and consulting firm. One of them, titled letter 6173, is sent when the IRS believes you didn't meet your U.S. tax filing and reporting requirements for virtual currency transactions. The others — letters 6174 and 6174-A — are sent when the IRS believes you have or have had 'one or more accounts containing virtual currency' but might not know the reporting requirements, Corrigan Krause noted. You don't have to respond to a letter 6174 or 6174-A. However, you should check your form 1040 filing to determine if it needs to be amended. You should also keep an eye out for further IRS correspondence. If you receive a letter 6173, you are required to act. Depending on the situation, here are three things you might need to do if you get a letter 6173, according to Corrigan Krause. If you failed to file one or more income tax returns, you'll need to file delinquent returns and report your crypto transactions as soon as possible. If you made a mistake on your income tax return, such as not reporting your crypto transactions or incorrectly calculating your income, gain or loss, then you should file an amended return as soon as possible. If you think you met all your reporting requirements and have received a letter 6173 in error, you'll need to follow certain steps. First, check the top of the letter to find an address and eFax number that you'll need to send the following documentation to: Your contact information. A 'statement of facts' explaining your position. This should include a full history of previously reported income from your crypto transactions as well as an explanation of the actions you took to become compliant with U.S. reporting requirements. Provide copies of previously filed documents that confirm your compliance. Your signed and dated letter 6173 section stating that you, under penalties of perjury, are sending the IRS documents proving you are compliant with U.S. reporting requirements. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
Wall Street Journal
a day ago
- Wall Street Journal
Want to Repair Social Security? Enlist the IRS
Trustees estimate that the Social Security Trust Fund will run dry by 2032 ('Fears for Social Security Stir Search for a Fix,' U.S. News, July 7). When this happens, the $1.6 trillion paid out each year will decrease by an estimated 23%, or $368 billion. The Trump administration could head off this problem by providing sufficient resources to the Internal Revenue Service to enable it to close the estimated $118 billion employment-tax gap, the amount of employment taxes the IRS fails to collect every year. If the administration decided to close the entire tax gap of $606 billion and dedicate the additional funding to the trust fund, benefit cuts may be avoided. Yet after the rescission of much of the $80 billion Inflation Reduction Act funding for the IRS, an indefinite hiring freeze, the firing of approximately 7,000 probationary employees and the deployment of special agents to arrest foreign nationals in the country without proper authorization instead of working tax cases, the chances of this happening are infinitesimally small.
Indianapolis Star
a day ago
- Indianapolis Star
Filing Separately Could Cost You More on Back Taxes - Clear Start Tax Explains Smarter Options for Married Couples
Clear Start Tax shows married couples how to avoid costly filing mistakes and save more when back taxes are involved. IRVINE, CA / ACCESS Newswire / July 11, 2025 / Married taxpayers dealing with back taxes are often surprised to learn that filing separately to 'protect' one spouse from IRS collections can actually lead to higher tax bills, lost credits, and fewer resolution options. According to Clear Start Tax, understanding the pros and cons of married filing jointly vs. separately is critical for couples hoping to resolve tax debt while preserving as much income as possible. 'Filing separately might feel safer when one spouse has IRS issues – but it usually ends up being more expensive,' said the Head of Client Solutions at Clear Start Tax. 'In many cases, joint filing opens the door to relief programs, better deductions, and faster resolution.' Why Filing Separately Can Backfire for Couples With Tax Debt Some couples assume that filing separately shields one spouse's income or refunds from being seized. While separate filing may delay IRS collection on a refund, it doesn't always protect shared income or assets, especially in community property states. And in many cases, filing separately ultimately results in: Higher overall tax liability Loss of key deductions and credits (like the Earned Income Credit or Child Tax Credit) Reduced access to Fresh Start benefits or less favorable Offer in Compromise terms Longer resolution timelines and more paperwork How Filing Together Could Be the Smartest Move for Tax Relief Even when one spouse owes back taxes, joint filing can result in lower taxes and greater access to IRS relief programs. Clear Start Tax helps couples explore the advantages of working together, not separately. For situations where only one spouse is responsible for the debt, programs like Innocent Spouse Relief or Injured Spouse Allocation may protect the non-liable spouse, without sacrificing the benefits of joint filing. 'The IRS gives couples a way to protect the innocent spouse while still getting the best outcome,' said the Head of Client Solutions. 'We help clients understand their rights and design a strategy that keeps more money in their household.' The Fresh Start Program Can Help Couples Settle Tax Debt Together This IRS initiative allows struggling taxpayers – including married couples – to settle or restructure their tax debt based on what they can reasonably afford. Clear Start Tax walks couples through every step of the process. Settlements for less than the full amount owed Reduced penalties and halted interest Affordable payment plans based on household income By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. Joint Returns Come With Risk – But Also With Options While joint returns mean both spouses are legally responsible for the full tax bill, Clear Start Tax helps clients explore: Partial-pay agreements Spousal relief requests Asset protection strategies Custom IRS settlement negotiations These strategies can balance legal responsibility while still maximizing the couple's chances of saving money and moving forward. About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: (888) 710-3533 Contact Information Clear Start Tax Corporate Communications Department seo@ (949) 535-1627 SOURCE: Clear Start Tax View the original press release on ACCESS Newswire
