What are some innocent spouse relief rules?
To qualify for innocent spouse relief, you must meet all of the following conditions (also known as IRS innocent spouse rules):
- You must have filed a joint return which has an understatement of tax.
- The understatement of tax must be due to erroneous items caused by your spouse. Erroneous items would be any unrecorded gross income item received by your spouse; and any incorrect deductions, property basis, and/or credits reported on your joint tax return.
- You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understatement of tax. The IRS will determine what a “reasonable person” would believe. If you had any actual knowledge, or a reason to know, about the improper items you would not qualify for the innocent spouse relief. The only exception to this would be if you were involved in a domestic abuse situation.
The “reason to know” determination made by the IRS involves a variety of situations. The nature and amount of the erroneous items will be considered (obviously a larger amount would stick out...and why wouldn't you question that?). The IRS will also review your educational background and business experience. They also will look into your extent, if any, of participating in the activity that results in the erroneous item(s).
The “reason to know” determination is important to the IRS in innocent spouse relief requests since the IRS will try to defeat your claim based on this.
- Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understatement of tax. This area, also, involves a variety of considerations made by the IRS. They will review whether your spouse deserted you, whether you are divorced or separated, and whether you gained any benefit from the erroneous items.
- You must request your innocent spouse relief using IRS Form 8857.
- You must request relief within 2 years after the date on which the IRS first began collection activity against you
- You must not be involved in an Offer in Compromise payment program with the IRS. The Offer in Compromise program legally closes the tax year that any of your unpaid taxes are applied to. Taxes cannot be re-determined once that happens.
Tax Relief Frequently Asked Questions
What is one IRS Penalty?
Is there a penalty for not reporting my social security number?
What is the IRS penalty for not filing my tax return?
What is a frivolous return?
Is there a penalty for paying taxes late?
What is an example of a tax evasion case?
What is tax fraud?
What is tax evasion?
What is innocent spouse relief?
Can I see an example of innocent spouse relief?
When does innocent spouse relief not apply?
What form do I need to request innocent spouse relief?
How can I appeal an innocent spouse relief?
What are some innocent spouse relief rules?
Am I eligible for innocent spouse relief?
Where do I mail my IRS Form 8857?
What is corporate tax evasion?
What are some payroll taxes?
How about an actual case about corporate tax evasion?
What are some fringe benefits?
What is tax relief from a tax loss?
How can state taxes paid provide tax relief?
What is some small business tax relief?
What happens with unpaid payroll taxes?
What is an automatic IRS installment plan?
What are some documents needed for payment plans?
What is the drawback to an IRS installment plan?
What if I fall behind in my tax payments?
How can I make payments on my IRS payment plan?
What form do I need for requesting an IRS installment plan?
How do I request an IRS Payment plan?
What is an IRS tax installment agreement?
What are the guidelines for applying for an OIC?
Be weary of what?
Are there examples of OIC case studies?
How do I calculate my OIC offer?
When can I apply for an OIC?
What is an offer in compromise?
What are the procedures for an OIC?
What is an uncollectible account?
What are back property taxes?
Where can I get federal tax lien information?
What is a release of federal tax lien?
What is a notice of federal tax lien?
What property can be subject to a tax lien?
What is the tax lien process?
How do I perform a tax lien search?
What is a high risk taxpayer for tax liens?
What is a tax lien?
What assets can be levied?
How do I appeal an IRS levy?
What is a bank levy?
What starts the levy process?
What is a Notice of Levy?
How can I release a tax levy?
What is a state tax levy?
What is the difference between a tax lien and levy?
What is a wage levy?
What are some high risk trigger areas?
What are some IRS audit red flags?
Can I represent myself during an audit?
How long does the IRS have to audit me?
How do I prepare for my IRS audit?
How do I protect myself from an audit?
What is the IRS Taxpayer Bill of Rights?
What are some types of IRS audits?
How do I appeal a wage garnishment?
Can I see a wage garnishment case?
What is a wage garnishment?
What is a IRS warning?
What if I am self-employed?
How do I stop wage garnishment?
How do I release a wage garnishment?
Why do I have a wage garnishment?
What is my responsibility with wage garnishments?
How can an amended return give me tax debt help?
What is bankruptcy?
What is the debt calculator?
What is state tax debt?
What is a tax debt help mistake?
Who is a tax debt pro?
What is the Taxpayer Advocacy Services?
What is an uncollectible category?
What is a back tax form?
How do I file back taxes?
How do I pay back taxes?
What is the IRS statute of limitations?
What if I didn't receive a W-2?
What are the penalties for not filing my return?
What is a special situation regarding back taxes?
What is the IRS statute of limitations for back taxes?
What about the IRS & Substitute Tax Forms?
What is a penalty abatement?
What is an example of a penalty abatement?
What is a reasonable cause for penalty abatement?
How do I request a penalty abatement?
How do I request an interest abatement?
What is a penalty abatement request letter?
What about penalty abatements?
What if I rely on IRS incorrect advice?