Innocent spouse relief is a kind of tax relief that can provide relief from tax liabilities when you file your tax return jointly with your ex-spouse or current spouse. When Internal Revenue Service (IRS) smells of an error in the joint filing of your return, it can collect the entire amount or penalty from either both or one of the spouses available. If you have evidence to prove that you are the innocent party in this fraudulent return, then IRS comes to your recue through this Innocent Spouse Relief. It can relieve you of unpaid tax amount, penalties or acquired interest on the unpaid tax amount.
Step 1 – Check your Eligibility
There are certain strict criteria set by the IRS to determine your eligibility under this relief scheme. There are various forms of this relief like equitable relief, classic relief and relief by separation of liability. Hence, get the details and find which one suits your situation and whether you are eligible at all for this relief.
Step 2 – Request Appropriate Forms
You are eligible for this relief only if you file this request within 2 years of getting notice from IRS for unpaid tax in the joint-returns, so act quickly to place the request. Get a form named IRS 8857 for requesting an Innocent Spouse Relief. [Whenever you file such a relief, IRS will inform it to your ex-spouse or the current spouse without any exceptions.]
Step 3 – Fill and Submit
Fill in the 8857 form and provide all documentation that can help you winning the relief. For example, documents like account books, sales receipt which proves your innocence in your spouses’ debt can be submitted along with the form. Additionally, you can attach a letter that explains your innocence in this case.
Step 4 – Wait and Re-submit
It takes approximately 4 months for the IRS to review your forms and revert back. When there is no reply from the IRS even after 4 months, it is advisable to re-submit or to take the help of a tax professional because only such professionals can assist you in submitting required documents for backing your case.
Get Legal Help
Though you have understood the steps of getting this relief, many requests are denied by IRS. Hence, it becomes essential to understand the nuances of this tax relief clearly in order to avoid negative consequences. You can approach a taxation professional or a tax attorney to get details and legal advice about this innocent spouse relief.
