Innocent Spouse Relief: Do You Qualify?

Are you looking for help with Innocent Spouse Relief as a result of tax issues that were created by a current or former spouse? You may be able to avoid your tax liability with the IRS if you meet certain criteria. By default, both spouses are considered liable for owed taxes on a joint return. However, the IRS will release you from your liability if your situation meets the requirements for Innocent Spouse Relief. This means that you will be alleviated from the owed tax and associated tax penalties.

What is Innocent Spouse Relief?

Innocent spouse relief can relieve taxpayers from tax debt acquired from a current spouse or ex spouse who understated taxes due on their joint tax return. The spouse who is seeking Innocent Spouse Relief should be able to prove that they didn’t know about the errors. Innocent spouse relief is only for taxes due on your spouse’s income from employment or self-employment.

Does Divorce Free Me Of My Liability?

What happens in a separation or divorce of the jointly filing taxpayers? The answer to that is – nothing. Both spouses still owe the IRS and the IRS will go after both spouses to collect the back taxes. Even a divorce and a court decree for one spouse to pay the outstanding tax bill will not be enough to keep the IRS from pursuing both taxpayers for the back taxes. If the taxpayers don’t pay the bill or make arrangements to pay, the IRS will pursue collection on both parties. This includes potential wage garnishments or levies, tax liens, and potential passport restrictions for large tax bills.

Innocent Spouse Tax Relief Is Available Even if You Filed Jointly

Many couples choose to file jointly because this option often provides many benefits. Unfortunately there are many spouses who have filed jointly and found themselves in a tough situation when they realized that their spouse had provided incorrect tax information. There are disadvantages in filing a joint tax return when married.  Under Section 6013(d)(3) of the Code, if the parties file a joint tax return for any year, both spouses  are jointly and severally liable for all of the tax debts associated with the joint return.  This means that the IRS can go after either spouse for any additional tax and/or failure to pay tax showing on the return. Many people facing tax issues incorrectly assume that they don’t have any relief options to work with because they filed jointly with a spouse. However filing jointly does not prevent you from seeking relief on your own.

Am I Responsible for Taxes Owed Even if I Didn’t Earn the Income Being Questioned?

People who have filed jointly with a spouse may wonder if they are still responsible for owed taxes and fees if they didn’t earn any of the income that was declared. Unfortunately, the IRS doesn’t look at who earned the income that was reported. The IRS is only concerned with the fact that a tax return was filed jointly when assigning tax bills and penalties. If you find yourself in this situation you will need to take steps to be relieved of repercussions even if your spouse earned all of the income that is being questioned during an IRS inquiry.

Who Can Qualify for Innocent Spouse Tax Options?

In order to qualify for Innocent Tax Relief you would need to prove that you lacked knowledge regarding the incorrect or fraudulent information that was included on the tax return. The responsibility to prove that you are not liable will rest on your shoulders. Here’s a look at the criteria that may qualify you:

• You filed a joint return with an incorrect understatement of tax responsibility relating directly to your spouse
•  You had no knowledge of the understatement error that was made
•  You’re  applying for relief within two years of the IRS’s collection efforts
•  The IRS must agree that it would be fair for you to be relieved of the tax burden in question

What Qualifies as an Understatement of Tax?

The IRS takes understatement of income very seriously. An understatement can be made regarding reportable taxable income, deductions, and tax credits. You may have signed tax documents without realizing that the amount of income was reported incorrectly. Luckily CuraDebt Tax is able to assist you with all of your tax needs.

How Can CuraDebt Tax Help With IRS Innocent Spouse Relief?

Are you dealing with the IRS due to tax errors that were made by your current spouse or ex spouse? You should be aware that you may be able to resolve the tax issue without being responsible for owed taxes or penalty amounts. Our team of licensed tax professionals at CuraDebt Tax can look at the specifics of your situation and figure out the appropriate steps for avoiding liability are. We can provide you with guidance and information regarding Innocent Spouse Relief and other tax relief solutions. Contact us today to learn more about Innocent Spouse IRS requirements to see if they apply to your case! 1-877-999-0486