Have an imposed tax liability by the IRS whose fault was not yours? If the tax debt seems to be of the fault of your current or ex-spouse, you may find that Innocent Spouse Relief can repel your tax liability. If your spouse or previous spouse incorrectly reported or omitted information on your joint tax return, this may be your sign to seek relief.
Three of the qualifying factors in order to qualify for Innocent Spouse Relief and have the IRS deem you not responsible for the tax debt include:
- You and your spouse (or former spouse) have filed jointly on your tax return.
- Your spouse (or former spouse) erroneously declared income on a combined return.
- You can demonstrate that when you signed the joint return, you were unaware that the income had been filed improperly.
Examples of Erroneous Items
- Unreported earnings – This is any unreported gross income earned by your spouse (or former spouse).
- Incorrect deductions, credits, or Basis – This includes any erroneous deduction, credit, or property basis claimed by your spouse (or former spouse).
3 Types Of Innocent Spouses
- Traditional Innocent Spouse Relief – The conventional innocent spouse relief means that you can be exempted from paying tax, interest, and penalties if your spouse (or former spouse) made a mistake on your tax return that you were unaware of.
- Separation Of Liability Relief – Relief via separation of liability implies that you and your spouse split the understatement of tax, including interest and penalties, on your joint return.
- Equitable Relief – If you do not qualify for the other two forms of innocent spouse relief, you may file this claim. If the IRS considers that holding one spouse liable for tax, interest, and penalties is inequitable or unjust, you may still be eligible for equitable relief. This generally entails the IRS taking into account other considerations like financial hardship or spousal abuse.
More Tax Debt Relief
Nobody wants to pay back taxes that they can afford. When tax debt gets too high, there’s one place to go. There’s a relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!
See if you qualify for the Fresh Start Program today!
Resolve your tax debt before the IRS surprises you with late fees and penalties!
- Answer a few questions
- Qualify and be presented with a resolution – click here
- Enroll in Fresh Start
You can click here to be connected with a verified partner of IRS Fresh Start Initiative