How to File the Innocent Spouse Tax Form: Innocent Spouse Tax Relief

Keep your spouse’s tax debt from becoming a burden for you. Even though the rules are intricate, we can assist. See if you are eligible for Innocent Spouse Tax Relief by giving us a call today.

The New Guidelines for Requesting Tax Relief for Innocent Spouses

The IRS removed the two-year deadline for some relief requests in order to amend the regulations and assist more innocent spouses.

  • Recent IRS Changes:
    • The two-year limit will no longer apply to newly submitted or pending requests for equitable relief.
    • If an application was previously rejected because of the two-year limit, it may be reapplied using IRS Form 8857 as long as the statute of limitations for collection has not run out.
    • In some situations, collection actions for ongoing and completed litigation involving equitable relief may be put on hold.

Recognizing Innocent Spouse Relief (Including Equitable and Separate Liability)

Benefits of filing a joint tax return include the fact that both spouses are accountable for any tax debt, including penalties and interest, even after a divorce. However, there are some circumstances in which relief from joint and several liability may be granted.

Different Forms of Joint and Several Liability Relief:

  • Innocent Spouse Relief: Relief from additional taxes due in cases where your spouse or ex-spouse failed to file taxes, reported income incorrectly, or made incorrect claims for credits or deductions.
  • Relief from Separation of Liability: This remedy divides extra taxes that you and your ex-spouse owe each other for inaccurately filing a joint tax return.
  • Equitable Relief: Applicable in cases where you do not meet the requirements for the aforementioned reliefs but it would be unjust to hold you accountable for undervaluing or underpaying taxes.

Important Terms and Deadlines:

Request Relief:

  • From separation of liability or innocent spouse status within two years of the IRS’s initial attempt at collection.
  • While the IRS is collecting, ask for equitable relief.

Request a Refund:

  • Within two years of the tax payment or three years after the return was filed.

How to Apply for Relief for Innocent Spouse:

  • Filed a joint return with an understatement of taxes because of an error made by your spouse.
  • When they signed the joint return, they were unaware that the tax was understated.
  • It would be unfair to hold you liable for the understatement of tax.

Being Eligible for Liability Relief Separation:

Filed a joint return and attended one of the events listed below:

  • Separated by law or divorced.
  • Unmarried.
  • Not residing with the spouse in the year prior to submitting Form 8857.

To be eligible for equitable relief, you must demonstrate that it is unjust to hold you accountable for understating or underpaying taxes in light of all relevant facts and circumstances.

Requesting Relief: Under penalty of perjury, file Form 8857 or a signed written statement containing the necessary data. Your spouse will be informed by the IRS and given the opportunity to submit information for review.

Special Considerations for States with Community Property:

  • If you filed as “married filing separately” and lived in a state with community property, you may still be eligible for relief.

Separate filing requirements apply for innocent and injured spouse claims.

  • Recovering your portion of a refund applied to your spouse’s independent debts is the goal of an injured spouse claim.

Reasons to Select Clarity Tax Resolutions for Relief from Innocent Spouse Tax:

  • Expert Team: With over 15+ years of combined professional tax experience, this team consists of former IRS agents, managers, CPAs, Board Certified Tax Attorneys, and tax instructors.
  • Excellent Rating: The Better Business Bureau awarded it an “A” Plus rating.
  • Process Trusted: Comprehensive understanding of the Innocent Spouse Relief application procedure.