Innocent Spouse Relief Taxpayers often face serious IRS or state tax problems due to the actions of their current or former spouse. The IRS recognizes these situations and offers Innocent Spouse Relief and other spousal relief programs.
What is Innocent Spouse Relief? Innocent Spouse Relief helps taxpayers who are dealing with tax problems caused by their current or former spouse. If your situation fits within the guidelines, you may not be responsible for the tax issues caused by your spouse. This relief is available when you owe taxes because you filed jointly with a spouse who underreported their tax on your joint return. There are different rules and results for each Spousal Relief program, so it’s important to find the one that best fits your situation.
What are the Spousal Relief rules? There are three types of relief available if you have outstanding tax issues due to your current or former spouse:
Innocent Spouse Relief: Applies when there is an understatement of tax due to a spouse’s unreported income or incorrect deduction, credit, or basis. The innocent spouse may not owe the additional tax.
Relief by Separation of Liability: Applies when there is an understatement of tax on the joint tax return. The understatement of tax is allocated between the spouses.
Equitable Relief: Can be used if you do not qualify for Innocent Spouse Relief or Relief by Separation of Liability, or if you have tax liability arising from community property law. Applies when there is an understatement or underpayment of tax. Equitable Relief can provide relief from owing the additional tax or paying the tax liability.
Navigating Innocent Spouse and other Spousal Relief programs can be challenging on your own. Let us help you find the best solution for your situation