Innocent spouse tax relief is available from the IRS if you require tax debt relief from taxes and penalties that were acquired from a joint tax return that you filed with your spouse or ex-spouse. The IRS offers innocent parties a way to get out from under tax debt liability that is the result of mistakes or errors not made by another party on a joint tax return. Innocent spouse relief is a good option for people who are burdened with tax debt through the fault of their spouse. The IRS usually holds both spouses equally responsible for what is filed on a joint tax return which means that all taxes and penalties are the responsibility of both parties regardless of who made a mistake. However, if you were not aware of the mistake or your spouse knowingly committed tax fraud without your knowledge you can be relieved of the debt.
If you discover that you owe taxes or penalties because of your spouse and you were not aware of the error but your spouse was, you can file IRS form 8857 to ask for innocent spouse relief. If you were not a party to the intentional or unintentional under-reporting or erroneous reporting of income or of unqualified claimed deductions, you can file for innocent spouse relief. If you do qualify for relief but don"t apply for it, you can still be subject to a federal levy of your wages, bank accounts, or other assets that can be seized to satisfy the tax debt. The IRS can even place a lien on your home to satisfy tax debt. This will also damage your credit rating and any penalties or interest will increase the original tax debt and will also require payment. This is why it is so important to apply for innocent spouse relief if you qualify.
In order to qualify for innocent spouse tax relief, you must meet some requirements. You have to have filed a joint tax return which has an understatement of tax liability due to erroneous items of your spouse or ex-spouse. You also have to prove that when you signed the joint return you were not aware of and had no reason to know that there was an understatement of tax or other error. You also have to show that it would be unfair for you to be held liable for the falsely claimed exemptions or understatement of tax liability. You will not be eligible for innocent spouse relief if the IRS can prove that you and your spouse transferred property to one another as part of a fraudulent scheme.
Although many people dislike the IRS, it recognizes that there are some cases where it would not be fair to hold a spouse liable for their partner or ex partner"s tax obligations, mistakes, or liabilities. You can file for Innocent Spouse Tax Debt Relief by filing the IRS form 8857. If you feel as though you need to file for innocent spouse relief, it is advisable to consult a tax professional who is knowledgeable in IRS tax law and can advise you on your rights and the best course of action.