Innocent Spouse Relief

Innocent spouse relief

If your spouse or former spouse misrepresented a portion of the income on your joint tax return you need a tax attorney to protect your finances and your rights. According to IRS guidelines, when a married couple files their taxes jointly, both parties are liable for the taxes owed no matter how much taxable income each person earned individually. The IRS doesn't care who made the errors, they will go after whoever they can find first. Even if you're divorced, they will do all they can to recover back taxes, penalties, and interest. In cases like these, you may qualify for innocent spouse relief. This special provision ensures that you won’t be responsible for back taxes and fees owed on a joint tax return that was not approved by you. Sandeep Singh at StoneBridge Counsel can help you determine if you qualify for this form of tax relief.

IRS Requirements for Innocent Spouse Tax Relief

According to the IRS rules, you must meet a few basic conditions to qualify:

  • The joint return you filed had an understatement of tax that is solely attributable to your spouse's erroneous item
  • At the time you signed the joint return you didn't know that there was an understatement of tax
  • Taking all the facts and circumstances into account shows that it would be unfair to hold you liable for the understatement of tax

Types of Innocent Spouse Relief

Classic Innocent Spouse Relief

With classic innocent spouse relief, you won’t be responsible for paying back taxes, penalties, and interest if your spouse or former spouse failed to report income on your joint tax return.

Relief by Separation of Liability

This type of tax relief allows you to divide the understatement of tax plus interest and penalties between you and the other party.

Equitable Relief

If you don’t qualify for the other types of innocent spouse relief, you may still be able to get relief for an underpayment or understatement of tax through Equitable Relief.

Call tax attorney Sandeep Singh at 925-255-0121 now or request a consultation online to get started today.