Innocent & Injured Spouse Relief

Understanding Innocent & Injured Spouse Relief

IRS Innocent and Injured Spouse Relief provides tax relief for eligible taxpayers who qualify. Innocent Spouse Relief applies if you can prove that your spouse or former spouse failed to report income, underreported earnings, or fraudulently claimed deductions without your knowledge, allowing you to be fully relieved of the resulting tax liability. Injured Spouse Relief, on the other hand, protects your portion of a joint tax refund if it was unfairly used to cover your spouse’s past debts, such as unpaid taxes, child support, or student loans.

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The Three Types of Spousal Tax Relief

Relief Through Separation of Liability

In a Separation of Liability Relief case, the IRS divides the tax liability between you and your spouse. You are only held responsible for the portion of the debt assigned to you.

Relief for Injured Spouse

In the case of Injured Spouse Relief, if your tax refund is used to cover your spouse's debt, such as child support, you may be able to recover your portion of the refund by filing an injured spouse claim.

Equitable Relief

Equitable Relief is typically requested when you do not qualify for the other two types of relief. In this case, the IRS must determine that it would be unjust to hold you responsible for your spouse's tax debt.

Innocent Spouse Relief Requirements

As with other IRS tax relief programs, you must meet certain criteria to qualify for Innocent Spouse Relief. According to the IRS, you may be eligible for this relief if ALL of the following apply:

You filed a joint tax return for the year(s) in question.
The tax liability arose from errors made by the person with whom you filed the joint return (such as unreported income or incorrect deductions, credits, or basis).
You can demonstrate that you had no knowledge of, nor involvement in, the understated tax.
Considering all facts and circumstances, it would be unfair to hold you responsible for the tax debt.
You and your current or former spouse have not transferred any property to one another with the intent to defraud the IRS.

You will need to provide the IRS with sufficient documentation to support your case. It is crucial that you do not exaggerate or falsify any information, as doing so could lead to penalties. Taxprofix can assist in filing your Innocent Spouse Relief request, ensuring that all required documentation is accurate and meets the IRS’s criteria.

Frequently Asked Questions About Innocent Spouse Relief

How Long Does the Innocent & Injured Spouse Relief Process Take?

After submitting the necessary forms and formally requesting relief, the IRS may take up to six months to make a decision on your case. During this period, the IRS will review your tax information and may contact your spouse or former spouse with whom you filed the joint tax return.

If I am separated or divorced, am I still liable for my former spouse’s tax debts?

Yes, by law, the IRS is required to contact your spouse or former spouse.

Is there a deadline for filing Innocent Spouse Relief?

Generally, you must file Form 8857 within two years of the IRS’s first attempt to collect the tax debt. However, there are exceptions to this rule, and our tax professionals can assist you in understanding and navigating these complex guidelines.

Am I still responsible for my former spouse’s tax debts if I am separated or divorced?

Whether you are married, separated, or divorced, the IRS will still hold you accountable for any tax debt assessed during your marriage if you filed jointly. However, IRS Innocent Spouse Relief may help provide relief from the outstanding balance.