Innocent Spouse Relief

 

Most spouses file a joint income tax return because it’s simpler and results in less tax.  The drawback is that both spouses are fully liable for the full amount due.  Sometimes it might be unfair to hold both spouses liable.  This is where Innocent Spouse Relief comes in.

 

There are three types of Innocent Spouse Relief

 

Innocent Spouse Relief

 

Innocent Spouse Relief may be available where:

(1) a joint tax return was filed;

(2) your spouse understated the tax owed;

(3) you unknowingly signed the return; and

(4) it would be inequitable to hold you liable for the tax deficiency, penalties and/or interest.

 

If you qualify for Innocent Spouse Relief, you don’t have to pay the additional tax, interest, and/or penalties related to the understatement of tax owed.

 

Separation of Liability

 

Separation of Liability may be available where:

(1) a joint return was filed;

(2) your spouse understated the tax owed; and

(3) you are no longer married to, legally separated from, or have lived apart from your spouse for more than 12 months.

 

If you qualify for Separation of Liability you will only have to pay tax on your income and not your spouse’s.

 

Equitable Relief

 

Equitable Relief may be granted where the original return was correct, but your spouse failed to pay the tax.

 

Equitable Relief may be available where:

(1) a joint return was filed;

(2) you don’t qualify for Innocent Spouse or Separation of Liability;

(3) the tax debt owed is from your spouse’s income, not yours; and (3) you did not benefit from the income.

 

If you qualify for Equitable Relief you won’t have to pay the tax on your spouse’s income from which you didn’t benefit.

 

 

reading-woman

 

Call us now at (414)445-2590.