Innocent Spouse Relief is in some cases difficult to prove however can be of terrific use to you if you owe the IRS money because of your ex spouse.
Do you have any liability as the spouse of somebody who has a tax debt? Exactly what if you are going through a divorce and technically the financial obligation is your spouse’s.
Here’s the answer to these questions. If, you filed joint returns with your partner throughout your marital relationship and you both signed the returns you filed every year, you both share equally in the tax obligation that was accumulated during the marital relationship. It is a hard area to get relief from the IRS and only one circumstances where the IRS feels this might be a genuine defense. This defense is called Innocent Spouse.
Just understand that it is difficult to obtain this approved and there are a number of criteria you will need to satisfy.
Here they are:
You have submitted a joint return.
The Tax Debt has to be DIRECTLY connected to only your partner.
You need to show you had no idea what your partner was doing with the return once you signed it
This needs to be claimed within 2 years of the IRS taking action against you.
Your best opportunity is to be legitimately separated or divorced for a minimum of a year prior to making your Innocent Spouse Claim.
And again there are three types of Innocent Spouse Claims. You will need to choose which one is best for your claim.
Classic Innocent Spouse: You are saying that you did not understand your partner was not paying your taxes. Lack of knowledge!
Separate Liability Election: During your marriage you had the proper deductions secured of your incomes. Even though you might have filed jointly with your partner, you will have to re-file independently and show the following:
That you did submit a joint return
The return in concern did consist of an underestimated tax
You have been separated from your spouse for a minimum of 12 months and has been under 2 years considering that the IRS took action versus you.
Equitable Relief: This is where you definitely had no idea exactly what was going on. You didn’t assist with finances at all. You didn’t contribute to running the household company. You just signed a return and presumed everything was being taken care of. The credentials are:
You must have filed a joint return
You are not able to get relief under Classic Spouse Relief or Separate Liability
No more than two years have actually passed since the IRS acted against you
You have to prove that no deceptive possession transfer has occurred in between you and your spouse
You have to prove that you or your partner hasn’t moved home to avoid paying the taxes due
You need to prove that it is unjust to hold you accountable for your partner’s tax bill