Innocent Spouse Relief is a provision provided by the IRS that can potentially relieve you of responsibility for paying tax, interest, and penalties if your spouse or former spouse improperly reported items or omitted items on your joint tax return.
There are several types of relief available:
- Traditional Innocent Spouse Relief: Provides relief from additional tax owed if your spouse or former spouse did not report income, reported income improperly, or claimed improper deductions or credits.
- Separation of Liability Relief: Allocates additional tax owed between you and your spouse or former spouse if you are divorced, widowed, legally separated, or have not lived together for the past 12 months.
- Equitable Relief: Applies if you don’t qualify for the other types of relief but believe it is unfair to hold you liable for the understatement or underpayment of tax.
Eligibility
To qualify for Innocent Spouse Relief, you must meet all of the following conditions:
- You filed a joint tax return with your spouse that has an understatement of tax due to erroneous items (unreported income, incorrect deductions, etc.).
- You can demonstrate that when you signed the joint return, you didn’t know, and had no reason to know, that there was an understatement of tax.
- Considering all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.
How We Will Help You
We will spend time discussing your specific situation and determine if you are eligible for Innocent Spouse Relief. If this is the path you want to pursue, we will ask you to provide documentation that helps demonstrate your eligibility. This may include financial records, communication between you and your spouse, or evidence of abuse or financial control by your spouse.
Next, we will file Form 8857 to the IRS. This form requires detailed information about your marital status, financial situation, and the specific reasons you believe you qualify for relief.
The IRS will review your request and supporting documentation to determine if you qualify for relief under one of the three types of Innocent Spouse Relief. This process can take several months, and the IRS may contact you or your spouse for additional information. If the IRS denies your request for Innocent Spouse Relief, you have the right to appeal the decision. We will evaluate any response from the IRS, and assist you in any further action required by the IRS, including filing an appeal.