October 12, 2007, Newsletter Issue #32: Innocent Spouse Relief Defined

Tip of the Week

DebtHelp.com Tip: Innocent spouse relief is an IRS tax relief method that is provided as a way to relieve the joint liability of taxes, penalties, and interest owed due to a joint return being filed with incorrect items on it. The incorrect items have resulted in an understatement of tax, in most cases. Items were either improperly reported or omitted on the joint tax return. All joint tax return filers may qualify for the innocent spouse relief.

Innocent Spouse Relief provides qualified taxpayers with a legal way to receive IRS tax relief. The IRS will shift the unpaid tax bill to the responsible party, and remove the tax burden from the innocent spouse. Innocent spouse relief must be requested by the innocent spouse upon meeting certain qualifications as defined by the IRS.

You do not have to calculate the amount of your innocent spouse relief. The IRS will do that after you file the required Form 8857. IRS Publication 971 (Innocent Spouse Relief) provides more information about innocent spouse relief and the computation of taxes involved.

 

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