Typically, those that are married file a joint tax return, often unaware of the implications. By filing a joint tax return, the IRS will hold both parties jointly and severally liable for any taxes, interest and penalties. This will hold true even if a divorce decree or other agreements between the spouses are made.

However, the IRS does make certain provisions for the mistakes or wrongful behavior of another.

If this is your case, you may qualify for one or more of the following types of relief:

Tax Relief For An Innocent Spouse

If there is a deficiency on the tax return due understatement or erroneous items of a spouse or former spouse you may qualify for this type of relief. The taxpayer must demonstrate that they did not know nor had any reason to know that the understatement of tax existed. The IRS will take into account the circumstances or facts that would cause the spouse seeking relief to be held responsible for the understatement of tax.

Separation of Liability

If there is an understatement of tax or deficiency on the tax return, the liability for the understated tax may be separated so that the requesting taxpayer may be granted relief from the liability. There are two requirements for this type of relief:

1. You are no longer married to, or are legally separated from, the spouse with whom you are requesting relief.
2. You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12 month period ending on the date you file.

Equitable Relief

If the taxpayer does not qualify for Innocent spouse relief or separation of liability, the taxpayer may still qualify for equitable relief. The IRS will take into account all the facts of circumstances and facts to see if the spouse seeking relief should not be held responsible.

The IRS is required to contact the spouse or former spouse of the taxpayer requesting relief.

IRS Leniency on Abuse Victims

The IRS has recently reviewed their Innocent Spouse Program and determined that if the requesting spouse has been abused by the non-requesting spouse and because of that may not have been able to challenge the treatment of any of the items on the joint return, question the payment of the taxes reported as due on the joint return, or challenge the non-requesting spouse’s assurance regarding the payment of that taxes, a leniency will occur in the IRS consideration.  As a result, this proposed revenue procedure provides that abuse or lack of financial control may mitigate other factors that might otherwise weigh against granting equitable relief under section 6015(f).

Abuse might cancel out the “knowledge factor” in granting equitable relief, a greater deference in the case. What was known or should have been known that the return was wrong or that the taxes would not be paid.

With over 20 years of experience we will be able to evaluate your unique situation to see if you would qualify for an Innocent Spouse.

If you have questions concerning an Innocent Spouse, please contact us at 888-894-2005 or fill out the Free Evaluation Form below.