Filing a joint tax return with your spouse can seem like a straightforward way to simplify taxes and potentially enjoy some financial benefits. However, joint filings also mean joint responsibility for any tax liability. If your spouse (or former spouse) underreported income, improperly claimed deductions, or otherwise caused a tax problem, you might find yourself on the hook for their mistakes—or worse, their intentional misconduct.
Fortunately, the IRS offers a potential solution: Innocent Spouse Relief. This provision is designed to protect individuals who didn’t know about or couldn’t reasonably have known about their spouse’s tax issues.
What Is Innocent Spouse Relief?
Innocent Spouse Relief provides financial and legal protection by relieving one spouse from joint liability for tax debts, penalties, and interest caused by the other spouse. To qualify, you must meet specific IRS criteria that prove you were unaware of the tax problem when you signed the return and that holding you liable would be unfair.
Who Can Qualify for Innocent Spouse Relief?
The IRS evaluates applications for Innocent Spouse Relief on a case-by-case basis. To be eligible, you generally need to prove:
- You Filed Jointly: The tax return in question must have been a joint filing.
- There’s an Understatement of Tax: The tax liability was understated due to your spouse’s errors, such as unreported income or improper deductions.
- You Were Unaware: At the time you signed the tax return, you didn’t know (and had no reason to know) about the understatement.
- It Would Be Unfair to Hold You Responsible: The IRS considers factors like your financial situation, whether you benefited from the understatement, and whether you were subjected to abuse or duress by your spouse.
Types of Spousal Relief
Innocent Spouse Relief is just one of the three types of relief the IRS offers:
- Innocent Spouse Relief: For cases involving understated tax liabilities.
- Separation of Liability Relief: Allows you to divide the liability between yourself and your former spouse.
- Equitable Relief: Covers situations where neither of the above applies, but holding you liable would still be unjust.
How to Apply for Innocent Spouse Relief
To request relief, you’ll need to file Form 8857: Request for Innocent Spouse Relief with the IRS. This form requires detailed information about your circumstances, including why you believe you shouldn’t be held liable for the tax debt. Supporting documentation, such as financial records and proof of your lack of knowledge, is often required.
It’s crucial to act quickly, as there are time limits for filing. In most cases, you have two years from the date the IRS begins collection activity against you to apply.
Why You Need Professional Help
Applying for Innocent Spouse Relief is a complex process that requires a strong understanding of tax law and the ability to present a compelling case to the IRS. Missteps can lead to delays or denials, leaving you stuck with an unjust tax liability.
That’s why it’s essential to work with an experienced tax attorney who understands the intricacies of spousal relief and can navigate the process on your behalf. A skilled attorney can help you:
- Determine which type of spousal relief you qualify for.
- Gather and submit the necessary evidence to strengthen your case.
- Communicate directly with the IRS to resolve your issue efficiently.
Trust COTTS LAW to Fight for Your Rights
Attorney Daniel Cotts at COTTS LAW has over 25 years of experience helping clients successfully resolve complex tax issues, including Innocent Spouse Relief cases. With a proven track record of thousands of happy clients, he knows how to protect your rights and help you break free from unfair tax liabilities.
Call Today for a Free Consultation
If you believe you may qualify for Innocent Spouse Relief, don’t wait. Call COTTS LAW at (361) 866-3819 today for a free consultation. Attorney Daniel Cotts will guide you through the process and fight to ensure you’re treated fairly by the IRS. Let an experienced tax attorney handle your case so you can move forward with confidence and peace of mind.
