Innocent Spouse Relief

What Is Innocent Spouse Relief?

The Innocent Spouse Relief rule enables someone to seek relief from the penalties associated with an underpayment of taxes by their spouse. This helps protect those people who have a spouse or former spouse who was not truthful about their financial situation. It protects the “innocent spouse” from being punished for the errors made by their spouse on a joint tax return. The errors made commonly involve inflated deductions or unreported income.

Who Is Eligible For Innocent Spouse Relief?

Applying for Innocent Spouse Relief requires filling out the IRS form 8857. There are a few criteria that will either qualify or disqualify you from being eligible for this type of relief.

  • You must apply within two years of the IRS initiating collection
  • You may not have had any knowledge of the error
  • You must have filed the joint return with an inaccurate understatement of tax responsibility directly related to your spouse

If you are no longer married to your spouse, you can apply for separate election liability, which provides similar relief.

Need Assistance Filing For Innocent Spouse Relief?

As the “innocent spouse,” you should begin the filing process as soon as you are aware of the tax liability belonging to your spouse or former spouse. There are a few steps that must be taken in order to file for Innocent Spouse Relief, and you have two years from the date the IRS notified you. It could take up to six months after filing before you receive the determination from the IRS. This process can feel uncomfortable, confusing, and create stress between you and your spouse.

Call 4Corner for Help Today

If you have found yourself in need of Innocent Spouse Relief and don’t know where to start, contact 4Corner today for a free consultation. We know how the IRS operates. When you work with us, we will help you understand the process and ensure that you have the correct information, so there are no further errors.