Tax debt can be overwhelming, but it becomes even more stressful when you’re being held responsible for a spouse’s (or ex-spouse’s) mistakes. Fortunately, the IRS offers a program called Innocent Spouse Relief, which allows eligible taxpayers to be relieved of liability for taxes, interest, and penalties caused by their spouse’s actions.
What Is Innocent Spouse Relief?
Innocent Spouse Relief is a program that allows taxpayers to avoid being held responsible for underreported or unpaid taxes caused by a spouse or former spouse when filing a joint tax return.
When couples file jointly, both spouses 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 come after you for the full balance.
This is where Innocent Spouse Relief comes in—it allows you to be legally 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 circumstances:
- Innocent Spouse Relief:
- Available when a spouse (or ex-spouse) underreported income or claimed false deductions/credits without your knowledge.
- You must prove 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.
- Available only for divorced, legally separated, or widowed taxpayers.
- Equitable Relief:
- For cases where you don’t qualify for the first two, but the IRS agrees it would be unfair to hold you responsible for the tax debt.
- This relief may apply to unpaid taxes (not just underreported income).
Who Can Qualify for Innocent Spouse Relief?
To qualify, you must meet the following criteria:
- You Filed a Joint Tax Return:
- The tax debt must be related 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 that your spouse misreported income, claimed false deductions, or failed to pay taxes.
- It Would Be Unfair to Hold You Responsible:
- The IRS considers whether you benefitted from the underreported income.
- Factors such as divorce, financial hardship, or domestic abuse may strengthen your case.
- You Apply Within the Deadline:
- Requests must be filed within two years of the IRS beginning collection efforts.
Innocent Spouse Relief Example
Scenario:
Lisa and her husband filed joint tax returns for several years. Unknown to Lisa, her husband underreported income from a side business, leading to a $30,000 tax bill. They later divorced, and the IRS sent Lisa a collection notice demanding full payment.
Lisa consults a tax resolution specialist, who determines she qualifies 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 would be unfair to hold her responsible for her ex-husband’s actions.
Result:
The tax specialist submits an Innocent Spouse Relief request on Lisa’s behalf. The IRS removes her liability, and she is no longer responsible for the $30,000 debt.
How We Can Help You with Innocent Spouse Relief
Requesting Innocent Spouse Relief requires strong evidence, proper documentation, and an understanding of IRS regulations. We specialize in helping clients prove their case and get the relief they deserve.
Here’s How We Help:
- Evaluating Your Case: We assess your situation and determine if you qualify for Innocent Spouse, Separation of Liability, or Equitable Relief.
- Preparing Your Request: We gather the necessary documentation to build a strong case for IRS approval.
- Handling IRS Communication: We negotiate on your behalf to increase your chances of a favorable outcome.
- Protecting Your Rights: If you’re facing IRS collection actions, we 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 wait—you may have a limited time to request relief. Contact us today for a free consultation, and let’s get you the financial relief you deserve!
Schedule an Appointment Below!
M.A. Rubin CPA, PLLC
Tel: 833-MA-Rubin (627-8246)
Email: Blog@RubinTaxRelief.com
Disclaimer: This blog post is for informational purposes only and does not constitute legal or tax advice. Consult with a qualified professional for specific advice regarding your business.
