Filing your taxes jointly can provide many benefits as you probably know, but sometimes it can create problems. Innocent spouse tax relief can fix problems your spouse or ex spouse created with your taxes.
When you are married and file a joint return together it means that both individuals are jointly and individually responsible for the taxes that are owed, end of story. If the IRS says a joint return was filed that there was a deficiency in tax, the IRS is authorized to go after each spouse individually. The IRS will send a notice to both spouses jointly at the last known address. When the IRS does this, it does not know that the spouses may be former spouses and are now living apart and preparing separate returns. Sometimes the spouse receiving this notice is completely innocent of the items the IRS is pointing out. If the spouse who caused the tax penalties makes themselves inaccessible for the collection process (which is not out of the ordinary) the IRS will after the “innocent spouse”. This is where innocent spouse tax relief needs to come into play.
There are 3 types of innocent tax spouse relief which are:
- Classic” Innocent Spouse Relief Requirements
Classic type of relief available for an understatement of tax while filing a joint return. You must prove you had no knowledge of the penalties in question.
2.Relief by Separation of Liability Requirements
Under this form of relief the understatement of tax is allocated between you and your spouse or former spouse
3.Equitable Relief Requirements
Relief is available for an understatement of tax as well as an underpayment of tax. This type of relief is used if someone does not qualify for the first two types of relief but it would be unfair to hold them liable for the tax amount owed.
If you think you may be a candidate for innocent spouse tax relief, contact a tax attorney for a free consultation.
This is an excerpt from the Innocent Spouse Tax Relief Website. If you want to learn all about innocent spouse tax relief you should go there or read the IRS’ PDF.
