Innocent Spouse Relief

In this blog, let’s dive into Innocent Spouse Relief. 

What is Innocent Spouse Relief? It’s for situations where your spouse made errors on a joint tax return, you were unaware, and now you’re facing extra taxes as a result. This relief could exempt you from paying that debt. 

When you file a Married Filing Joint return, the IRS holds both spouses jointly and severally liable for any taxes due. This means that the IRS can require either spouse to pay the full amount, even if only one was responsible for the mistake. But what happens if your spouse fails to report income or inflates deductions without your knowledge? 

Enter Innocent Spouse Relief. This provision helps shield you if your spouse’s actions—like unreported income from their business—cause a tax liability. For instance, if they managed the finances and kept you in the dark, you might qualify for relief. 

To apply, file Form 8857, Request for Innocent Spouse Relief. You’ll need to provide details about your situation, including your marital status, education, and any health or financial difficulties. Attach this form to the IRS notice and keep copies for your records. 

If the IRS grants your request, you’re off the hook for the taxes. If not, you can appeal, and if necessary, take your case to the United States Tax Court. Though it’s possible to navigate this process alone, working with a tax professional is highly recommended. 

If you are still unsure about your situation, and want expert advice, you can click this link to set an appointment to speak with a Tax Expert from Lisa Brugman, EA & Associates.