Innocent Spouse Relief – Basic Qualifications

What Is Innocent Spouse Relief? 

Innocent spouse relief relieves a person from paying additional taxes if their spouse understated taxes due on their joint tax return and they didn’t know about the errors. Innocent spouse relief can only be considered when the additional taxes are due to one spouse’s income from employment or self-employment. Innocent spouse relief is not available for taxes on personal income, household employment, individual shared responsibility payments, or business taxes.

Who Is Eligible? 

If you and your spouse filed a joint tax return and there were errors that resulted in understated taxes, you may qualify for innocent spouse relief. However, there are certain criteria you must meet to be eligible. Firstly, the errors that caused the understatement of taxes must have been unknown to you. Additionally, you must reside in a community property state. It is crucial to work with competent IRS representation, as the administrative process can be complex and can have disastrous consequences if not handled correctly.

Exception for Victims of Domestic Abuse

You may still be eligible for tax relief even if you were aware of errors on your tax return. This is possible if you were a victim of spousal abuse or domestic violence prior to signing the return, if you didn’t dispute the items on the return due to fear, or if you signed the joint return under pressure or threat.

What to Do If You Receive a Notice

If you have received a notice stating that you owe taxes for a joint return, it is important to take prompt action and follow the instructions provided in the letter. Depending on the assessed amount, it may be advisable to consider hiring a representative as soon as possible. This is because the IRS can escalate collection activity, so getting competent assistance immediately is crucial.