| One of the best ways to decrease tax liability is for a | | | | 1) Original Innocent Spouse Relief - Can relieve one |
| married couple to file a joint return. This is | | | | spouse of tax liabilities |
| commonplace, and the IRS has come to expect it. | | | | 2) Relief by Separation of Liability - Tax is allocated |
| When a joint return is filed however, both people are | | | | between both spouses |
| held responsible for any tax liability including interest and | | | | 3) Equitable relief - Tax relief for underpayment of tax |
| penalties. | | | | if you do not meet other two |
| Even if a divorce occurs, and the decree states that | | | | Most people who are searching for ISR will start with |
| one party is responsible for the money owed, the IRS | | | | the original method. But even though this was the first |
| can still go after both parties to get what is theirs. | | | | method offered, it is not the only one - you may have |
| Once again, you can see that the IRS is pretty much | | | | to think about taking advantage of one of the other |
| above everybody else when it comes to collecting | | | | two if needed. |
| money. | | | | If you are interested in filing for ISR you must complete |
| So what is Innocent Spouse Relief (ISR) all about? The | | | | Form 8857. Once you submit this form to the IRS you |
| IRS created this for one purpose: the ability to transfer | | | | will find out soon enough if you qualify for innocent |
| tax liability from one party to the next. | | | | spouse relief. Most tax experts suggest that you |
| The IRS has created three types of Innocent Spouse | | | | include a letter with this form stating why you feel you |
| Relief. If you do not qualify for one, you should consider | | | | qualify. |
| the other two as you never know which method is | | | | It is very difficult to receive ISR from the IRS. For this |
| going to work out best. Those who qualify usually find | | | | reason, it would be in your best interest to hire a tax |
| that they can be relieved of their tax debt, penalties, | | | | professional with experience in this area. A tax lawyer |
| and interest. In turn, all of this money is transferred to | | | | can be a good choice, or a Enrolled Agent would be a |
| the other party. | | | | good start. |
| The three types of innocent spouse relief include: | | | | |