| Filing a joint tax return with your spouse has many | | | | because of your spouse. |
| benefits, but can also cause problems. What if your | | | | - Did not know and had no reason to suspect tax was |
| spouse understates taxes? How about if deductions | | | | understated when you signed the return. |
| are made that shouldn't be? Many people find this type | | | | - Would be treated unfairly by being held liable for the |
| of situation particularly frustrating especially if divorced, | | | | understated tax. |
| separated, or deserted by their spouse. Despite | | | | - Are not attempting to transfer property between |
| misconceptions that both spouses are responsible for | | | | yourself and your spouse as part of a fraudulent |
| taxes due, there is a way out for innocent spouses. | | | | scheme. |
| Known as innocent spouse tax relief, innocent spouses | | | | - Request innocent spouse relief within 2 years after |
| can be relieved of paying tax, interest and penalties | | | | the date IRS began collection activity against you for |
| caused by a spouse or former spouse's omitted or | | | | the unpaid taxes. |
| wrongly reported items on a tax return. If you believe | | | | The IRS will notify the other spouse if one spouse files |
| you are qualified, file IRS Form 8857. | | | | a claim for innocent spouse relief. If one spouse is |
| Most people find themselves filing IRS Form 8857 | | | | granted tax relief from preliminary determination, the |
| when items on tax returns go wrongly reported. These | | | | other spouse may appeal the decision. |
| items may include underreported income or an | | | | Other types of tax relief for spouses include relief by |
| incorrect deduction, property basis, or credit claimed. | | | | separation of liability and equitable relief. Relief by |
| Though you and your spouse being divorced or | | | | separation of liability is where understated tax, interest, |
| separated may work in your favor when applying, the | | | | and penalties are divided. If you don't qualify for the |
| IRS may find it fair to hold you responsible if you | | | | other types of tax relief, you may be able to get |
| received a significant benefit from the tax | | | | equitable relief. Equitable relief is where having to pay |
| understatement either directly or indirectly. | | | | the tax would be unfair because you weren't part of a |
| You can receive innocent spouse tax relief though f | | | | fraudulent scheme, involved in tax evasion, and didn't |
| you meet the right criteria. You may qualify if you: | | | | know what your spouse was doing. |
| - File a joint return with an understatement of tax due | | | | |