TAX SOLUTIONSInnocent Spouse Relief
When you and your spouse file joint tax returns, you both are responsible for the subsequent taxes owed. However, you may not have to pay if your spouse made significant errors on the return, such as inaccurately reporting income, not reporting income, or falsely claiming deductions or credits.
What is Innocent Spouse Relief?
Innocent spouse relief is an IRS policy that relieves you of your legal responsibility to pay tax, interest, or penalties if your spouse or former spouse did not properly report or purposefully omitted items on your joint tax return.
This relief program only applies to individual income or self-employment tax. Business taxes, Individual Shared Responsibility payments, Household Employment taxes, and trust fund recovery penalties for employment taxes are not considered eligible for innocent spouse relief.
How to Qualify
It is difficult to get approved for innocent spouse relief, and the application can be arduous. The IRS will examine each case individually and at length, meaning the process typically takes upward of six months.
If you want to qualify for innocent spouse relief:
- You and your spouse must file taxes jointly
- The error must be fully attributed to the other person
- You must prove your innocence according to IRS standards
- The circumstances holding you liable for the unpaid taxes must be compelling
All of the qualification details can be found in IRS Publication 971.
While there are some exceptions, you generally have to request innocent spouse relief no later than two years after the IRS started inquiring about the outstanding tax debt. You will need to show that you did not know and had no reason to know that your spouse made an error or did not properly report income.
Fairness will also be considered when determining whether to grant innocent spouse relief. The IRS will look at all aspects of the situation, including:
- The nature of the error
- Your financial situation
- Your educational background
- Marital status
- Whether the issue is part of a larger pattern
These cases can be very difficult to prove. It’s best to work with a professional tax professional who has the experience necessary to build your case and negotiate with the IRS.
Get Help
Schedule a free consultation with one of our tax associates and find out how we can help you leave your debt behind.
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TaxQuotes is a specialized team of tax professionals committed to resolving IRS and state tax issues. As innovators in the tax industry with over 50 years of combined experience, we are experts at resolving a wide range of tax problems, including:
- Unpaid tax balances
- Unfiled tax returns
- Penalties and penalty relief issues
- Underreporter notices
- Business and payroll tax issues
- IRS and state tax issues
Our service costs vary based on the complexity of your situation. The first step is to get your IRS records, evaluate your situation, and provide a customized resolution plan according to your specific situation. The cost for this service varies but it’s an important first step in thoroughly understanding your unique situation and what options are available to you.
Once we have discussed your situation with you, we will propose one fee to resolve your entire situation. You have no obligation to purchase unless you accept our plan, and you can pay your fees over the time it takes us to complete your case. Your tax consultant can estimate how long your case will take and the fee structure for our services.
Resolution time for tax issues varies based on the complexity of the case. Straightforward matters take a few weeks, while intricate issues may take a year or more. To streamline the process, our team will file a power-of-attorney authorization with the IRS, allowing us to work directly on your behalf.
When you owe back taxes, the IRS offers several options other than full payment. These include payment plans, extensions to pay, and hardship programs, such as not-collectible status and a tax settlement option called an Offer in Compromise. We will evaluate each option with you and get you the best option based on your circumstances.
Absolutely. Our tax resolution experts review your notice, assess your situation and work with you on a plan to resolve your situation. Once you engage us for services, we get right to work with you and the IRS. Our tax resolution specialists stick with you from beginning to end.
Each person’s circumstances are different. Our goal is to get you the best outcome available based on your circumstances. If you owe back taxes, we will review your unique situation for any potential relief.
