innocent spouse relief can resolve tax debt problems.
Your financial situation is different from someone else. The tax debt relief service that works for someone may not be the best choice for someone else. You should take the time to understand all the debt relief options available to you to find the best solution for your needs and goals.
What Is Innocent Spouse Relief?
The IRS provide a special form of tax debt relief status called innocent spouse relief. It is intended for those that are widowed, divorced or separated and are experiencing tax problems that arose out of the actions of a former spouse. This debt relief status could result in the IRS writing off your entire tax bill against you.
Who Is Eligible?
When both spouses are married and filing jointly, both taxpayers are legally responsible for the entire liability for the tax, and any additions to tax, interest, or penalties that arise from the joint return. This applies even if one spouse earned all the income or claimed improper deductions or credits. This is also true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns.
The IRS allows you to seek relief from undue taxes resulting from the actions of a current or former spouse. These actions by your spouse may be due to improperly reported or omitted items on a joint tax return. The IRS will consider all facts and circumstances in determining whether you had reason to know of an understatement of tax due to an erroneous item.
Eligibility | Reason To Know
What Else Should I Know?
Innocent spouse relief only applies to individual income or self-employment taxes. For example, Household Employment taxes, Individual Shared Responsibility payments, and business taxes and trust fund recovery penalty for employment taxes are not eligible for innocent spouse relief.
Partial Relief | Unfairness
Thoughts On Innocent Spouse Relief
You have the burden of proof to show to the IRS that your spouse (or ex-spouse) acted without your knowledge or consent. The IRS will inform your spouse/ex-spouse of your relief status claim. If you have a happy marriage, ponder your decision.
Applying for IRS Innocent Spouse Relief can be a challenging task. It is strongly recommended that you have professional advice and representation when dealing with the IRS.