Typically, parties that apply and qualify for innocent spouse relief don’t have to pay the tax, interest, or penalties in question. In some cases the spouse may be relieved in full, in other cases in part.
You cannot seek innocent spouse relief for sales and excise tax, household employment tax, trust fund recovery, or individual shared responsibility payments.
Qualifying for Innocent Spouse Relief
To qualify for innocent spouse relief, you must:
- Have filed a joint return, which includes errors that resulted in an understatement of income, with your current or former spouse
- Prove that when you signed the tax filing in question, you had no idea about the error
- Establish that it would be unreasonable to hold you liable for the mistake and subsequent understatement
- Prove that you and the other party haven’t engaged in property swapping as part of a larger scheme
What counts as an “erroneous item” in terms of innocent spouse relief?
- Unreported income
- Improper deductions, credits, or property claims
Actual Knowledge vs. Reason to Know
People with “actual knowledge” or “reason to know” about the erroneous claim don’t qualify for innocent spouse relief. Actual knowledge is fairly straight forward, but reason to know is nuanced.
Theoretically, if your business or educational background is impressive, the IRS could deny your innocent spouse claim on the premise that you “should” have known.
Ignorance, or not asking about certain items on a return, may also not be a good excuse in the eyes of the IRS.
Find Out If You Qualify for Innocent Spouse Relief
Gordon Law Group has helped countless people qualify for innocent spouse tax relief. We have the experience and knowledge you need to get the job done right.
It may be tempting to go it alone, but doing so demolishes your chances, because a single misstep can knock you out of contention.
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Contact our innocent spouse relief attorneys
If you need to file for innocent spouse relief, get in touch today and let’s see if we’re the right fit for you.