Innocent Spouse Relief
By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse or former spouse.
You must meet all of the following conditions to qualify for innocent spouse relief.
- You filed a joint tax return;
- There is an understated tax on the return that is due to erroneous items of your spouse (or former spouse;
- You can show that when you signed the joint return you did not know, and had no reason to know, that the understated tax existed;
- Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated tax
Separation of liability
Under this type of relief, the understated tax (plus interest and penalties) on your joint return is allocated between you and your spouse (or former spouse). The understated tax allocated to you is generally the amount you are responsible for. This type of relief is available only for unpaid liabilities resulting from the understated tax (refunds are not allowed). The relief discussed here does not apply to any part of the understated tax due to your spouse’s erroneous items of which you had actual knowledge except where you were the victim of spousal abuse or domestic violence.
If you do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law, you may still be relieved of responsibility for tax, interest, and penalties through equitable relief.
You may qualify for equitable relief if you meet all of the following general conditions.
- You are not eligible for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law;
- You have an understated tax or an underpaid tax;
- You have not paid the tax;
- Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated or underpaid tax;
- You did not transfer assets to one another as a part of a fraudulent scheme, or to avoid tax or payment of taxes
How Can We Help You?
Talk with us to see if you qualify. We can help guide you through the process, represent your before the IRS and prepare the paperwork fairly quickly and easily.