If you’ve ever found yourself knee-deep in tax trouble because of something your spouse or ex-spouse did, you’re not alone. The IRS can seem persistent when it comes to collecting taxes, but there’s a lesser-known way to ease the burden if you’re unfairly caught in the crossfire: innocent spouse relief. 

This IRS provision might be the lifeline you didn’t know you needed. So, what is innocent spouse relief, and how do you know if you qualify? We’ll break everything down in this month’s blog.

What Is Innocent Spouse Relief?

Innocent spouse relief lets you avoid being responsible for tax debt caused by your spouse’s errors on a joint tax return. It allows you to separate yourself from their tax liabilities and start fresh. There are three types of innocent spouse relief available under Internal Revenue Code 6015. These are known as innocent spouse relief, separation of liability, and equitable relief.

Do You Qualify for Innocent Spouse Relief?

Now, before you breathe a sigh of relief, it’s important to know that not everyone qualifies. The IRS doesn’t hand this out easily. There are specific criteria you must meet to be considered “innocent” in the eyes of the taxman:

  • Joint Return Filed: You must have filed a joint return with your spouse, which led to the tax debt.
  • Erroneous Items: The understatement of tax must be due to “erroneous items” on the return. This could be anything from unreported income to improperly claimed deductions or credits. Essentially, your spouse fudged the numbers, and now the IRS is looking to you for the difference.
  • Lack of Knowledge: You must prove that when you signed the joint return, you didn’t know and had no reason to know about the error. The IRS wants to see that a reasonable person in your shoes wouldn’t have caught the mistake either.
  • Equity: Lastly, it has to be clear that it would be unfair to hold you responsible for the tax debt. This is where the IRS weighs all the facts, like your financial situation and the role you played (or didn’t play) in the error.

How to Apply for Innocent Spouse Relief

Applying for innocent spouse relief isn’t a walk in the park, but it’s worth it if you qualify. Here’s the rundown:

  • File Form 8857: This is the official request form for innocent spouse relief. Be sure to include all relevant information and documentation that supports your claim.
  • Time is of the Essence: You need to file for relief no later than two years after the IRS first tried to collect the tax debt from you. However, certain situations might allow for more flexibility.
  • Get Professional Help: Taxes are complicated, and dealing with the IRS can be nerve-wracking. Consider consulting with a tax professional who can guide you through the process and help strengthen your case.

When Relief is Granted

If the IRS grants you innocent spouse relief, it’s like a weight lifted off your shoulders. You won’t be held responsible for your spouse’s tax debt, and the IRS will stop trying to collect from you. But remember, this relief only applies to the specific tax year or years in question. It’s not a get-out-of-jail-free card for any future tax issues.

Conclusion

If you believe you may qualify for innocent spouse relief, we’re here to guide you through the process. Our team is committed to helping you navigate the complexities of tax law, ensuring you receive the support and relief you deserve. Call us today at (956) 997-0067 or visit our website mruiz-cpa.com to learn more about how we can help you achieve a fresh start.