Tax liabilities can be daunting, especially when you’re unfairly implicated. The IRS provides a potential solution known as Innocent Spouse Relief in cases where a spouse or former spouse is responsible for tax inaccuracies or fraud.
Understanding Innocent Spouse Relief
Innocent Spouse Relief is an IRS provision aiding taxpayers who filed joint tax returns but shouldn’t be held liable for errors or issues on those returns. It aims to relieve innocent spouses of taxes, interest, and penalties resulting from their spouse or ex-spouse’s mistakes.
Eligibility Criteria
To qualify for Innocent Spouse Relief, you must meet specific criteria:
Filing Status: You must have filed a joint tax return with your spouse or ex-spouse. The reported amount on that joint return should have been lower than it should have actually been.
Lack of Knowledge: You should have been unaware of the tax understatement when signing the joint return.
Unfair Burden: It would be unjust to hold you responsible for the tax understatement, considering the circumstances of asset and liability division.
Types of Innocent Spouse Relief
The IRS offers three types of Innocent Spouse Relief:
- Traditional Innocent Spouse Relief: Applicable when you had no knowledge or reason to know about the tax understatement on the joint return.
- Separation of Liability Relief: Allocates the tax understatement between you and your spouse based on individual contributions to income, deductions, and credits on the joint return.
- Equitable Relief: Available if you don’t meet requirements for other relief options. The IRS considers various factors to determine eligibility.
How to Apply for Innocent Spouse Relief
To apply, submit IRS Form 8857, the Request for Innocent Spouse Relief, with supporting documentation. Provide a detailed explanation of why you qualify for relief.
Seek Professional Assistance
Navigating Innocent Spouse Relief can be very complex, and you will get a better result when you work with tax professionals like William Sharpe and Jeff Lichtenberger at Total IRS Relief.
With their expertise in tax resolution services, they can guide you through the process, assist with documentation, and protect your rights.
William Sharpe and Jeff Lichtenberger, founders of Total IRS Relief, have extensive experience in accounting and finance. They specialize in resolving IRS issues, including Innocent Spouse Relief.
Don’t let tax burdens damage your financial well-being. Contact Total IRS Relief at (877) 924-1040 for a risk-free consultation today!
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