Innocent spouse relief

What Is The Innocent Spouse Rule? | How to file Innocent Spouse Tax Relief? | What Are The Innocent Spouse Relief Requirements?

The IRS will try to garnish a taxpayer’s wages, or attack bank accounts and properties simply because the taxpayer filed a joint tax return with a spouse who failed to report all the income on the joint tax return.

Even after a divorce or death of the spouse, the IRS will try to hold the innocent spouse taxpayer, who simply signed the joint tax return, also liable for the failure of the other spouse to report all the incomes and back taxes.

Fortunately, the IRS now recognizes the problem and provides a solution under its rule the “Innocent Spouse Relief”. But what is the innocent spouse rule?. To understand the rule and understand the Innocent spouse relief requirements , the taxpayer may qualify for three types of “innocent spouse relief”:

1- General liability relief: the taxpayer (innocent spouse) may file for this relief if a joint return was filed, had an understatement of tax due to erroneous items, the requesting spouse had no reason to know about the understatement, if it would be equitable to hold the requesting spouse liable for the understatement, and if the requesting spouse elects 6015(b) relief no later than two year after the date of the first collection activity.
This innocent spouse relief is not available for liabilities properly reported on the return but not paid.

2- Allocated Liability relief: this tax relief might be sought if a joint return was filed; the requesting spouse is no longer married, legally separated, or has not been member of the same house hold as the non-requesting spouse at any time during the 12 month ending on the date of the filing the 6015(c); the application is filed no later than two years after the date of the first collection activity; and the deficiency remain unpaid.
This relief will be denied if the IRS establishes that assets were transferred between spouses as a fraudulent scheme. The IRS will also deny the case if it demonstrates that the requesting spouse knew about an item raising a deficiency at the time of the filing of the return.
This relief is not available for liabilities properly reported on the return but not paid.

3- Equitable relief: the IRS is authorized to grant “equitable relief” to a spouse who does not qualify for either 6015(b) relief or 6015(c), and determines that it would be inequitable to hold a requesting spouse liable for any unpaid tax or deficiency. The “equitable relief” will be granted if the requesting spouse is divorced, legally separated from the non-requesting spouse or has not been member of the same household as the non-requesting spouse for 12 months.
It will be granted if the requesting spouse had no knowledge or reason to know about the unpaid taxes, and that the requesting spouse will suffer economic hardship if the relief is not granted.

If you believe there is something wrong with your joint tax return, don’t sign it. If your spouse won't agree to file a correct return, file separately. Although filing a joint return will usually result in a lower immediate tax liability, filing an incorrect return can result in a liability.

If you think that you are an innocent spouse, that your hunsband cheated on your joined taxes or simply understated your joint income, call our office and speak with Mr. Moore, to evaluate your case. Dont wait untill it is too late 714-541-2500

Connect with US
taxbizlawyer facebook accounttaxbizlawyer google accounttaxbizlawyer linkedin taxbizlawyer twittertaxbizlawyer justia
Contact US

The use of this form for communication with the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.