Innocent Spouse Relief: What Does It Mean? Eligibility Requirements and Criteria

It is customary for the couple to split the tax bill 50/50 when filing a joint tax return. On the other hand, if your spouse or ex-spouse made major mistakes on your joint tax return, you may qualify for innocent spouse relief and be exempt from paying any additional tax that would otherwise be due. Check this page for the Eligibility Requirements in details.

You can learn more about the Innocent Spouse Relief Program’s eligibility requirements and how it works below.

If you and your partner qualify for “innocent spouse relief,” what does that entail?

Innocent spouse relief happens to be a process provided by the Internal Revenue Service (IRS) that allows a person to avoid paying interest, additional tax, and penalties if their spouse or former spouse did not report income, erroneously reported income, or indecorously claimed credits or tax deductions. A spouse who is not at fault should not expect the same kind of compensation as a spouse who is.

Innocent spouse status: what are the prerequisites?

It’s not guaranteed that a spouse will be exempted if they’re innocent. The IRS might deny your request, and it might take up to six months to review your case. Read the IRS’s Publication 971 to learn more about innocent spouse relief and whether or not you qualify for this tax break (IRS).

The IRS takes into account a number of factors when deciding how to handle a tax problem, such as the seriousness of the error, the taxpayer’s financial situation, the taxpayer’s level of education, the taxpayer’s level of involvement in the activity giving rise to the problem, and whether or not the problem is part of a pattern.

When one spouse is at fault, the other can receive relief, while the injured spouse can seek restitution

To help clarify the difference between relief for an innocent spouse and relief for an injured spouse, consider the following: Innocent spouse relief centres on the issue of tax liability. The Internal Revenue Service (IRS) may provide injured spouse relief if all or part of a tax refund from a joint tax return was (or will be) applied towards taxes your spouse owes for separate, unpaid federal or state taxes, child or spousal support, or student loan debt.

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