How Does Someone Qualify For Innocent Spouse Relief Of Federal Income Taxes With The IRS? :

Some marriages end in divorce. The fact is, in the United States, divorce occurs in almost 50% of marriages. In some cases, tax problems can occur after a divorce or separation is finalized.

What exactly is Innocent Spouse Relief?
If you previously filed a joint return with your spouse, and you believe that you should not be held accountable for mistakes made (or fraud committed) by your spouse, then you could be a candidate for Innocent Spouse Relief from the IRS.

The Three Types of Innocent Spouse Relief:

Traditional Innocent Spouse Relief – Your spouse filed something wrong on your joint return and you are potentially not liable for the tax debt that occurs after the error is corrected.

Separation of Liability – If there is a balance due on your joint return, you could be responsible for only your portion of the amount due. This is based directly on your income and withholdings and/or payments you made.

Equitable Relief – If you do not qualify for the first two types of Innocent Spouse Relief, the IRS may grant you Equitable Relief because it would be unfair to hold you responsible.

The following requirements must generally be met in order to apply for Innocent Spouse Relief:

You must file Form 8857 no later than two years after collection on the liability starts

You must file a joint return

You must have an understatement of tax (you owe the IRS money) due to error(s) by the other, non-requesting spouse

At the time of the signing of the return, the requesting spouse did not know of understatement of tax (and can prove this)

It is inequitable to hold the requesting person who did not know of the error liable for the additional tax

What Are My Chances for Obtaining Relief?
Assuming that you meet the above requirements, www.irs.gov shows the following eight factors show what would improve your chances of having an Innocent Spouse Relief claim approved and those that would decrease your chances for approval:

Factors for Relief

1. Your marital status is divorced or separated (for Separation of Liability, it is required for at least the past 12 months)

2. Requesting spouse will suffer a hardship due to the error

3. The requesting spouse has suffered abuse

4. In a divorce decree or separate legal arrangement, the non-requesting spouse is obligated to pay the liability (it is helpful if the decree states why the non-requesting spouse is liable – i.e. it was their error that was not known to the requesting spouse)

Factors Against Relief

1. The understatement is attributable to an error made by the requesting spouse

2. The requesting spouse had knowledge, or a reason to know, of the omission or error

3. The requesting spouse received significant benefit from the income that was understated

4. In a divorce decree or separate legal arrangement, the requesting spouse is obligated to pay the liability

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