You knew what made a deduction or credit incorrect.You knew of income your spouse had received but not reported.You had actual knowledge of your current or former spouse’s improper reporting if: In fact, you may actually be considered a conspirator. You will not be considered an innocent spouse in the eyes of the IRS if you are assumed to have actual knowledge of the offense. While “reason to know” is how the IRS can prove or disprove actual knowledge. What is Actual Knowledge and Reason to Know?Īctual knowledge is determined when the requesting spouse did know about improper deductions, credits, items, or income reports on a tax return. You requested relief no later than two years after the IRS’s attempted collection.You and your current or former spouse are not part of a fraudulent scheme.The IRS will decide if this is true when you apply by filing Form 8857, Request for Innocent Spouse Relief. It is unfair to hold you responsible for these additional tax fees.When you signed and submitted your tax return, you had no actual knowledge or reason to know that the report was incorrect.The taxes you owed or paid were lower than they should have been because your spouse incorrectly reported items, deductions, credits, or income. Your filing status was “married filing jointly.”. You must meet these requirements to qualify for innocent spouse relief: If an innocent spouse files, qualifies, and receives innocent spouse relief from the IRS, they are no longer responsible for paying their current or former spouse’s fees. If a divorce or legal separation has occurred, the IRS can still pursue both parties to cover tax fees incurred while they were married. This is even the case if they are refusing to pay or cannot be contacted. For example, if your current or former spouse failed to report their income, you can still be held responsible for paying the IRS their fees. This means both parties can be held accountable for all the tax fees on a tax return. Spouses who choose to file jointly once married are both jointly and severally liable. Innocent spouse relief excuses individuals from paying interest, taxes, and additional penalties on deductions, items, credits, or income that was wrongly reported or missing from the tax forms of their current or former spouse. Keep reading to learn more about what innocent spouse relief is, who qualifies, and how it works. While taxes can be a big headache on their own, owing the IRS money can be even more frustrating - especially if it’s a surprise! IRS innocent spouse relief can help eliminate some or all of your financial responsibility in situations like these. To qualify for innocent spouse relief, you must have filed taxes as “married filing jointly,” been unaware of your partner’s improper reporting, be approved by the IRS, and requested relief within two years of the IRS’s attempted collection of taxes.Įver found yourself in a situation where your current or former spouse improperly reported items on their tax return, and you had to pay the price? That’s where innocent spouse relief comes in. TL DR: Innocent spouse relief can excuse a current or former spouse from the responsibility of paying additional taxes due to separation, divorce, or improper reporting by the other partner.
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