| What is Innocent Spouse Relief? | | | | each spouse instead of holding them equally liable for |
| In order to help protect a taxpayer from being forced | | | | the entire amount. To qualify for this form of relief, the |
| to pay for incorrect information reported by the | | | | tax debt needs to have stemmed from an error such |
| taxpayer’s spouse on their return, the IRS set up | | | | as under reporting of income, or incorrectly calculating |
| the Innocent Spouse Relief Program. If a taxpayer can | | | | your tax liability. You and your spouse must also be in |
| prove that he or she is legitimately not responsible for | | | | compliance with the following conditions: |
| owed tax debts stemming from the years the | | | | You and your spouse did not fraudulently transfer |
| taxpayer was married, then the IRS may decide to | | | | assets to each other as part of a scheme to defraud |
| collect from only the spouse or ex-spouse. There are | | | | any third party, including the IRS, creditors, business |
| three different forms of spouse relief, which are all | | | | partners, etc. |
| described in more detail below. If a taxpayer does not | | | | You had no knowledge of erroneous items on your |
| qualify for one type, then it is possible that he or she | | | | tax return at the time it was filed. |
| may qualify for another. | | | | Equitable Relief |
| Classic Innocent Spouse Relief | | | | Taxpayers who do not qualify for Classic Innocent |
| The original form of spouse relief will fully relieve a | | | | Spouse Relief or Relief by Separation of Liability may |
| taxpayer of their spouse’s tax liability. According to | | | | qualify for the Equitable Relief program. This form of |
| the IRS, the following conditions must be met before | | | | innocent spouse relief is the only one that will allow you |
| innocent spouse relief will be granted: | | | | to request relief from an underpayment of tax where |
| A taxpayer filed a joint return, which had incorrect | | | | the tax liability was listed correctly on a taxpayers |
| information relating to the taxpayer’s spouse. | | | | return, but was not paid. According to the IRS, you |
| The taxpayer proves that, at the time he or she | | | | must meet the following conditions to qualify for |
| signed the joint return, the taxpayer did not know, and | | | | equitable relief. |
| had no reason to know, that there was incorrect | | | | You do not qualify for Classic Innocent Spouse Relief |
| information reported by the taxpayer’s spouse on | | | | or Relief by Separation of Liability. |
| the return. | | | | The IRS deems it unfair to hold you liable for the |
| Given all of the facts, the IRS determines that it would | | | | underpayment of taxes taking into account all of the |
| be unfair to hold the innocent taxpayer responsible for | | | | facts and circumstances of your case. |
| the incorrect information reported by the | | | | You and your spouse did not transfer assets as part |
| taxpayer’s spouse on the return. | | | | of a fraudulent scheme. |
| The innocent taxpayer applies for relief within two | | | | Your spouse did not transfer property to you for the |
| years of the IRS’s first attempt to collect the | | | | main purpose of avoiding taxes. |
| amount owed. | | | | You did not file your return with the intent to commit |
| Relief by Separation of Liability | | | | fraud. |
| Under this form of innocent spouse relief, the IRS can | | | | You did not pay the tax. |
| allocate different amounts of the original tax liability to | | | | |