Articles

I.R.S. Innocent Spouse

Relief

While filing taxes jointly with your spouse, or ex-spouse initially created benefits, it can also create problems. When you are married and file tax returns jointly, both individuals are jointly and individually responsible for the taxes owed, even if one spouse made all or most of the taxable income.  If the taxing entity determines that tax was owed, then the IRS or other taxing entity can go after each spouse separately.  Normally, you will receive a notice of adjustment or another formal notice at your last known address.  However, many people move and do not receive the notices.  For example, the taxing entity may not realize you are now divorced, if a divorce occurred.  Typically, the spouse who caused the tax to be owed hides from the taxing entity that is collecting you.  Therefore, the IRS goes after the "innocent spouse."  This is why the relief is called “innocent spouse relief.”  However, many people call it the "injured spouse" relief.

Innocent spouse relief exists because in some cases it would be unfair to hold a spouse liable for the taxes owed.  Innocent spouse relief can relieve you from taxes, penalties and interest from the joint tax return, from your spouse or ex-spouse.   Your spouse or ex-spouse will remain liable for the tax debt, if you receive innocent spouse relief.  There are requirements for the three types of innocent spouse relief.  The three types of relief are Classic Innocent Spouse Relief, Relief by Separation of Liability Requirements, and Equitable Relief Requirements.

Call us today at 317-770-0000 to set up an appointment and we can help to determine if you qualify for innocent spouse relief.