Innocent Spouse Tax Relief
Find Peace in Partnership: Innocent Spouse Tax Relief
INNOCENT SPOUSE TAX RELIEF: HOW TO FILE INNOCENT SPOUSE TAX FORM
The regulations are extensive and complex, but you shouldn’t be burdened with your spouse’s tax debt!
Dreis Tax Services is here to assist you. Contact us today, and we can determine your eligibility.
The latest guidelines for applying for Innocent Spouse tax relief could be your solution.
Learn how to file for Innocent Spouse tax relief below.
Receive a free tax consultation. Contact Dreis Tax Services today!
NEW INNOCENT SPOUSE TAX RELIEF
Dreis Tax Services is pleased to inform you that the IRS has announced an extension of assistance to more innocent spouses by doing away with the previous two-year time constraint that applied to certain relief requests.
Upon careful examination:
- The IRS will no longer enforce the two-year limit for new equitable relief requests or those currently under consideration by the agency.
- A taxpayer, who had an equitable relief request denied solely due to the two-year limit, may reapply using IRS Form 8857 Request for Innocent Spouse Relief, provided the collection statute of limitations for the relevant tax years has not expired.
- Dreis Tax Services also notes that the IRS will not implement the two-year limit in any ongoing litigation related to equitable relief, and where the litigation is finalized, the agency will halt collection efforts under specific conditions.
THE NEW INNOCENT SPOUSE RELIEF (INCLUDING SEPARATION OF LIABILITY AND EQUITABLE RELIEF)
Many married individuals opt to file a joint tax return due to the specific benefits this filing status provides.
When filing jointly, both taxpayers are jointly and severally liable for the tax, along with any additions to tax, interest, or penalties that result from the joint return, even if they subsequently divorce.
Dreis explains that joint and several liability implies that each taxpayer is legally accountable for the entire liability. This means that both spouses are typically held responsible for all the tax due, even if one spouse earned all the income or took improper deductions or credits.
This remains true even if a divorce decree specifies that a former spouse will be responsible for any amounts due on previously filed joint returns.
However, Dreis notes that in certain situations, a spouse may obtain relief from the obligations of joint and several liability.
INNOCENT SPOUSE TAX RELIEF: HOW TO FILE INNOCENT SPOUSE TAX FORM
THERE ARE THREE TYPES OF RELIEF FROM JOINT AND SEVERAL LIABILITY FOR SPOUSES WHO FILED JOINT RETURNS:
Dreis Tax Services explains the different kinds of relief available to you if your spouse or former spouse has caused additional tax liability:
- Innocent Spouse Relief: This gives you relief from extra tax you owe if your spouse or former spouse failed to report income, reported it improperly, or claimed improper deductions or credits.
- Separation of Liability Relief: This offers the division of additional tax owed between you and your former spouse or your current spouse if you’re separated, due to an incorrect report on a joint return. The portion of tax allocated to you is what you’re responsible for.
- Equitable Relief: If you don’t qualify for innocent spouse relief or separation of liability relief due to an incorrect report on a joint return, generally attributed to your spouse, you might qualify for equitable relief. This relief may also apply if the correct amount of tax was reported on your joint return but remains unpaid.
Please keep in mind:
You must request innocent spouse relief or separation of liability relief within 2 years after the date the IRS first tried to collect the tax from you. For equitable relief, you must request it within the time the IRS has to collect the tax.
If you seek a refund of tax you paid, your request must be made within the general refund period, usually three years after the date the return is filed or two years following the payment of the tax, whichever comes later.
YOU MUST MEET ALL OF THE FOLLOWING CONDITIONS TO FILE AND QUALIFY FOR INNOCENT SPOUSE RELIEF:
Guidelines for Joint Return Relief
Erroneous Item
This refers to income your spouse received but omitted from the joint return, or if deductions, credits, and property basis are wrongly reported on the joint return.
Innocent Spouse Relief Criteria
You must prove that when you signed the joint return, you didn’t know and had no reason to know about the understatement of tax, and considering all the facts, it would be unjust to make you liable for the understatement.
Separation of Liability Relief
To be eligible, you must have filed a joint return and meet one of these conditions when requesting relief:
- You are divorced or legally separated from the spouse with whom you filed the joint return,
- You are widowed, or,
- You have not lived with the spouse with whom you filed the joint return at any time during the 12 months ending on the date you file Form 8857, Request for Innocent Spouse Relief.
- Note: If you knew about the item causing the understatement of tax when you signed the joint return, you may not qualify for this relief.
Equitable Relief
You may be eligible if you can show that, under all the circumstances, it would be inequitable to make you responsible for the understatement or underpayment of tax.
TO SEEK QUALIFY FOR INNOCENT SPOUSE RELIEF, SEPARATION OF LIABILITY RELIEF, OR EQUITABLE RELIEF:
To apply for innocent spouse relief, separation of liability relief, or equitable relief, you should submit a completed Form 8857 (PDF), Request for Innocent Spouse Relief, or a written statement with the same information required on Form 8857, signed under penalties of perjury, to Dreis.
If you request relief from joint and several liability, Dreis is required to notify the spouse with whom you filed the joint return of your request and allow him or her to provide information for consideration regarding your claim.
IN APPLYING TO QUALIFY FOR INNOCENT SPOUSE TAX RELIEF IF YOU LIVED IN A COMMUNITY PROPERTY STATE
Should you reside in a community property state and have filed as “married filing separately” instead of “married filing jointly,” you may still be eligible for relief with Dreis.
The community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
It’s essential not to confuse relief from joint and several liability with an injured spouse claim. You qualify as an “injured spouse” if you file a joint return, and all or a part of your share of the refund has been or will be applied against your spouse’s separate past-due obligations, such as federal tax, state tax, child support, or federal non-tax debt like a student loan, with whom you filed the joint return.
If you fall into the category of an injured spouse, you may have the right to reclaim your portion of the refund.
HOW TO FILE INNOCENT SPOUSE TAX FORM
Why Use Dreis Tax Services To Apply For Innocent Spouse Tax Relief?
- We are Dreis Tax Services, tax professionals and Managers,
- We have served in the local, district, and regional offices of the IRS.
- We are genuine IRS tax experts in Innocent Spouse Tax Relief.
- Our team consists of Board Certified Tax Attorneys, CPAs, and tax professionals, Managers, and Instructors.
- With over 28 years of experience, we are well-versed in the field.
- We stand as one of the most respected, trusted, and seasoned tax firms in the tax resolution industry.
- We understand the precise process of qualifying for innocent spouse tax relief, and we can help you navigate this path, saving you both time and money.
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