Monthly Success Story : October 2025
Success Story: Fighting for Innocent Spouse Relief—And Winning
D.D. came to us burdened by over $48,000 in tax debt — $39,326 to the IRS and $9,251 to the FTB—stemming from his ex-wife’s undisclosed income in their 2013 joint return. Despite a divorce agreement assigning tax responsibility to her, the document mistakenly referenced 2012, leaving D.D. legally exposed.
He had no access to bank records, no copy of the return, and no proof of abuse—factors that made his innocent spouse claim nearly impossible. The IRS denied his request, while the FTB aggressively levied his wages during a period of unemployment and housing instability. D.D. had lost faith in the system and operated entirely in cash, frustrated and isolated.
Client:
D.D.
Issue: IRS & FTB Tax Debt from 2013
Resolution Date: July 9, 2025
We stepped in with a clear plan and relentless advocacy:
Filed a financial hardship hold with the FTB to pause collections.
Proved that the IRS’s two-year deadline for Form 8857 should start from 2019—when D.D. first received notice.
Reconstructed the timeline of events and demonstrated that D.D.’s ex-wife had filed the return without his review or consent, omitting a $24,298 bonus check.
Leveraged deep knowledge of IRS procedures and the Internal Revenue Manual (IRM) to appeal the denial.
Used advanced tax resolution software to calculate CSED, analyze transcripts, and track levies.
Presented a bulletproof case during the IRS appeal call—resolved in just 30 minutes.
Results:
FTB refunded $10,381, including interest, from levied wages and accounts.
IRS granted full innocent spouse relief for the 2013 debt.
$21,233 reduction in 2022, followed by a $20,830 reduction in 2025.
A $204 refund from the 2020 return is pending.
Collections are now suspended pending final mirror procedures, which will eliminate all liabilities, penalties, and interest for 2013.
“Tax compliance isn’t just about filing forms — it’s about building trust and transparency between taxpayers and the system.”
— Dr. Nina Olson, Former IRS National Taxpayer Advocate
This case is a testament to our core belief:
Once we commit to a client, we fight until results are achieved. Through consistency, strategic education, and mastery of tax resolution tactics, we protect taxpayer rights—even when the odds are stacked against them.