Innocent Spouse Relief is a program the IRS initiated to grant discharge of taxes owed by one person of a married couple. This discharge is granted once it is proven that the other person in the relationship has tried to evade tax payments or been accused of another type of tax offense.
If a taxpayer filed a joint tax return, but later discovered that his or her spouse understated taxes owed, was part of tax fraud, or committed a tax offense, he or she might be eligible for tax relief. For this to happen, it must be proved that he or she knew nothing of the offenses.
This type of tax relief can also apply if your spouse has deserted you, leaving you with tax debts for which you are not responsible. You can be absolved of these tax debts if you were unaware of any tax fraud. After due consideration of the circumstances, you may qualify for this type of tax relief.
How do you qualify as an innocent spouse?
If you meet the following requirements, the IRS may exempt you from paying taxes:
- You filed joint returns
- Your spouse or former spouse reported incorrect income on the joint returns
- When you signed the joint returns, you did not know of the inaccuracy, and had no reason to know
An Injured Spouse Allocation obtains tax refunds from joint returns that have been unfairly used for one person’s outstanding past debts. For example, if you filed for a joint return and the tax returns were used for paying off your spouse’s student loans without your knowledge, you may be able to reclaim your share of the money if:
- You aren’t personally required to settle the debts
- During the year in question, you had income reported on a Form 1040, had income taxes withheld from you, or made estimated tax payments
To qualify for innocent spouse relief, apart from the requirements mentioned above, you must file for it within 2 years of the date of the first IRS collection activity.
The highly qualified experts at Long Island Tax Resolution will completely analyze your situation and circumstances to determine if you’re eligible for Innocent Spouse Relief. With our team at your side, you won’t worry about complicated documentations and procedures. Simply supply us with the necessary information, and we will put you on the optimal path for eliminating this type of tax debt.