As a tax resolution attorney, I understand how overwhelming tax debt can be, especially when you find yourself responsible for a spouse’s or ex-spouse’s mistakes. Fortunately, the IRS has a program called Innocent Spouse Relief, which allows eligible taxpayers like you to be relieved of liability for taxes, interest, and penalties caused by your spouse’s actions.
What Is Innocent Spouse Relief?
Innocent Spouse Relief is designed for taxpayers who have filed joint tax returns but were unaware of underreported or unpaid taxes caused by their spouse or former spouse. When couples file jointly, both are legally responsible for any taxes owed, even if only one person earned the income or made errors on the return. If your spouse misreported income, took improper deductions, or failed to pay taxes, the IRS could pursue you for the entire balance.
This is where Innocent Spouse Relief becomes invaluable. It allows you to be separated from your spouse’s tax mistakes and have your liability removed.
Types of Innocent Spouse Relief
The IRS offers three forms of relief depending on your specific situation:
- Innocent Spouse Relief:
- Available when a spouse (or ex-spouse) underreported income or claimed false deductions/credits without your knowledge.
- You must demonstrate that you had no reason to know about the errors when signing the return.
- Separation of Liability Relief:
- Divides tax liability between you and your ex-spouse for taxes owed on a joint return.
- This option is only available for divorced, legally separated, or widowed taxpayers.
- Equitable Relief:
- This applies if you don’t qualify for the first two options, but the IRS agrees that holding you responsible for the tax debt would be unfair.
- Equitable relief may apply to unpaid taxes, not just underreported income.
Who Can Qualify for Innocent Spouse Relief?
To qualify for Innocent Spouse Relief, you need to meet several criteria:
- You Filed a Joint Tax Return:
- The tax debt must relate to a joint return filed with your spouse or ex-spouse.
- Your Spouse Made Errors Without Your Knowledge:
- You must show that you didn’t know and had no reason to know about any misreported income, false deductions, or unpaid taxes.
- It Would Be Unfair to Hold You Responsible:
- The IRS considers whether you benefited from the underreported income. Factors like divorce, financial hardship, or domestic abuse can strengthen your case.
- You Apply Within the Deadline:
- Requests must be filed within two years of the IRS starting collection efforts.
Innocent Spouse Relief Example
Let me share a scenario that illustrates this process:
Lisa and her husband had filed joint tax returns for several years. Unbeknownst to Lisa, her husband had underreported income from a side business, leading to a $30,000 tax bill. After their divorce, the IRS sent Lisa a collection notice demanding full payment.
When Lisa consulted me, we determined she qualified for Innocent Spouse Relief because:
- She had no knowledge of her ex-husband’s hidden income.
- She did not benefit from the tax underreporting.
- It was unfair to hold her responsible for her ex-husband’s actions.
As her attorney, I submitted an Innocent Spouse Relief request on Lisa’s behalf. The IRS accepted our case and removed her liability, meaning she was no longer responsible for the $30,000 debt.
How I Can Help You with Innocent Spouse Relief
Requesting Innocent Spouse Relief requires strong evidence, proper documentation, and a solid understanding of IRS regulations. My practice at Tax Resolution, Esq focuses on helping clients prove their cases and obtain the relief they deserve. Visit www.taxresolution.esq for more information.
Here’s How I Can Assist You:
- Evaluating Your Case: I will assess your situation to determine if you qualify for Innocent Spouse, Separation of Liability, or Equitable Relief.
- Preparing Your Request: I will gather the necessary documentation to build a compelling case for IRS approval.
- Handling IRS Communication: I negotiate on your behalf to enhance your chances of achieving a favorable outcome.
- Protecting Your Rights: If you’re facing IRS collection actions, I will work to pause enforcement while your request is under review.
If you’re being unfairly held responsible for a spouse’s tax mistakes, don’t hesitate—time may be limited for you to request relief. Contact me today for a free consultation, and let’s work together toward the financial relief you deserve!
By
