What Is Innocent Spouse Relief?
Innocent spouse relief is an IRS procedure that protects an individual from paying additional taxes, penalties, and interest if a former or current spouse failed to report their income, misreported their income, omitted items on a tax return, or claimed tax deductions or credits incorrectly. Individuals who apply for innocent spouse relief must meet all of the following conditions to qualify:
- You filed a joint return but there is an understatement of tax containing erroneous items for which your spouse is solely responsible.
- You confirm that you didn’t have any knowledge of the inaccurate tax representation when you signed the shared tax return.
- With all facts and circumstances in mind, holding you liable for the understatement of tax would be unjust and undeserved.
Do You Qualify for Innocent Spouse Tax Relief?
There are a number of scenarios where someone might seek innocent spouse relief. Here are a few questions that may apply to you: Do you owe taxes that were caused by the actions of your spouse? Did your spouse fail to pay his or her taxes and now your refund has been seized? Do you now owe taxes because of a spouse’s failed business?
Innocent spouse relief relieves the taxpayer of any owed taxes incurred due to a spouse or former spouse who neglected to pay the joint IRS tax obligations. These are just a few of the scenarios in which you may qualify for IRS innocent spouse relief, a program designed to negate any liability for taxes owed by a former or current spouse.
Although married couples agree to pay all taxes, penalties, and interest due on a joint return (even if they get divorced or reach a settlement agreement), there are certain provisions that may protect one spouse from another if he or she made significant mistakes. In addition to innocent spouse relief, separation of liability and equitable relief may also be options.
There is only one way to know for sure, and that’s by contacting us today to learn more about innocent spouse relief. We will provide information on how you may qualify and what you can expect during the IRS’s investigation of whether or not you qualify for relief from liability.