Innocent Spouse Relief

Posted by Jeffrey Siegel on May 31, 2016

Innocent Spouse Relief

By requesting innocent spouse relief, a taxpayer can be relieved of responsibility for paying tax, interest, and penalties if the taxpayer’s spouse (or former spouse) improperly reported items or omitted items on the joint tax return. Generally, if relief is granted, the tax, interest, and penalties that qualify for relief can only be collected from the spouse (or former spouse). However, both spouses are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief if a joint return was filed. The IRS can collect these amounts from both spouses.

All the following conditions must be met to qualify for innocent spouse relief.

  1. There was a joint return filed which had an understatement of tax due to erroneous items claimed by your spouse (or former spouse).
  2. The Innocent Spouse establishes that at the time she signed the joint return she did not know, and had no reason to know, that there was an understatement of tax.
  3. Taking into account all the facts and circumstances, it would be unfair to hold the Innocent Spouse liable for the understatement of tax.
  4. A request for innocent spouse relief will not be granted if the IRS proves that either spouse transferred property to one another as part of a fraudulent scheme. A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, ex-spouse, or business partner.

Call Jeffrey R. Siegel, your Kansas City Tax Attorney at (913) 735-4829/