Innocent Spouse Relief
What is IRS Innocent Spouse Relief?
IRS innocent spouse relief is a form of tax relief for some taxpayers that qualify. If you’re able to prove that your spouse, or former spouse, failed to report or underreported income without your knowledge, or fraudulently claimed deductions you can be fully relieved from that tax burden.
The Three Types of Spousal Tax Relief
Separation of Liability Relief
In a separation of liability relief case the IRS basically splits the tax liability between you and your spouse. In this case you’re only responsible for the portion allocated to you.
Injured Spouse Relief
In the case of injured spouse relief if your refund is taken to satisfy your spouse's debt, such as child support, you may be able to get your money back through an injured spouse claim.
Equitable Relief
Equitable relief is in most cases requested when you are ineligible for the other two types of relief. In this case, the IRS must agree that it would be unfair to hold you liable for your spouse’s tax debt.
Innocent Spouse Relief Requirements
Just like all the other IRS tax relief programs you must meet certain qualifications in order to receive the benefits. The IRS says that you may qualify for Innocent Spouse Relief if ALL of the following are true for you:
- You filed a joint tax return for the year(s) in question
- The tax liability resulted from erroneous items of the person with whom you filed the joint return (such as unreported income or an incorrect deduction, credit, or basis).
- You can show that you did not participate or possess any knowledge of the existence of the understated tax
- Taking all facts and circumstances into account, it would be unfair to hold you responsible for the tax debt
- You and your spouse (current or former) have not transferred any property to one another in an effort to defraud the IRS
You must provide the IRS with adequate information to prove your case. It’s important not to exaggerate or falsify any information on your application as it can result in penalties. The Tax Hardship Center can file an IRS Innocent Spouse Relief request on your behalf, ensuring all your documents are accurate and every detail the IRS looks for is included.
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Questions About Innocent Spouse Relief
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Once you’ve filed the correct forms and formally requested relief, the IRS may take up to six months to make a decision on your case. During that time, the IRS will be reviewing your tax information and contacting the spouse or former spouse with whom you filed a joint tax return.
Yes, the IRS is required by law to contact your spouse/former spouse.
Typically you must file Form 8857 no later than two years after the first IRS attempt to collect the tax debt. There are exceptions to this rule, however, and our tax professionals can help you navigate those confusing rules.
Whether you’re married, separated, or divorced, the IRS will not let you off the hook if the tax debt was assessed during your marriage and you filed jointly. However, IRS Innocent Spouse Relief can provide you with relief for the due balance.
Work with the Tax Hardship Center
If you owe money to the IRS, the Tax Hardship Center is here to help. With an A+ rating from the Better Business Bureau and business licensure in all fifty states, you can feel confident that we are here to help. Our tax professionals have experience in dealing with every type of tax problem and working directly with the IRS to solve these problems for our clients.