What is Innocent Spouse Tax Relief

Innocent spouse relief allows you, the taxpayer, to be relieved of the responsibility for paying tax, interests, and penalties if your spouse (or former spouse) incorrectly reported or omitted items on the tax return.

This responsibility would be both joint and individual for any tax, interests, and penalties that do not qualify for relief. Therefore, the IRS can collect these outstanding payments from you, your spouse (or former spouse). Usually, the tax, interests, and penalties that qualify for relief can only be collected from your spouse or former spouse. You must apply for relief within two (2) years of the IRS initiating collection.

There are some taxes that do not qualify for Innocent Spouse Relief. Some examples of these are:

  • Household Employment Taxes
  • Individual Shared Responsibility Payments
  • Business Taxes
  • Trust Fund Recovery Penalty for Employment Taxes

In order to qualify for the Innocent Spouse Relief, you must meet the criteria by ensuring that:

  • You filed a joint return which has an understatement of tax due to erroneous items (unreported income and/or incorrect deduction), of your spouse or former spouse.
  • You take into account all the facts and circumstances proving that it would be unfair to hold you liable for the understatement of tax.
  • You can prove that when you signed the joint return you were not aware of any errors or omissions.
  • You and your spouse (or former spouse) have not exchanged property between each other to defraud the IRS or any other third party, for example, a business partner.

At MWB Tax Solutions, our highly trained tax consultants will provide the information you need to qualify for innocent spouse relief. If you’re in Minneapolis or St. Louis Park, stop by and let’s discuss further. Otherwise, give us a call or fill out our contact us form for a free consultation. We will be happy to assist you.

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