What is the Innocent Spouse Program?
Innocent Spouse Relief is sometimes difficult to prove however can be of fantastic use to you if you owe the Internal Revenue Service cash since of your ex spouse.
Do you have any liability as the spouse of somebody who has a tax debt? Exactly what if you are going through a divorce and technically the financial obligation is your spouse’s.
Here they are:
You have filed a joint return.
-The Tax Debt has to be DIRECTLY linked to just your spouse.
-You have to show you had no concept what your spouse was doing with the return once you signed it
-This has actually to be claimed within two years of the IRS doing something about it against you.
-Your best chance is to be legitimately separated or divorced for at least a year prior to making your Innocent Spouse Claim.
How Do I Qualify for Innocent Spouse Relief
And again there are 3 kinds of Innocent Spouse Claims. You will need to choose which one is best for your claim.
Traditional Innocent Spouse:You are saying that you did not know your partner was not paying your taxes. Ignorance!
Different Liability Election: During your marital relationship you had the appropriate deductions taken out of your paychecks. Even though you may have submitted collectively with your partner, you will need to re-file independently and show the following:
-That you did file a joint return
-The return in question did include an undervalued tax
-You have been separated from your partner for a minimum of 12 months and has been under 2 years because the IRS took action versus you.
Equitable Relief: This is where you absolutely had no idea exactly what was going on. You didn’t help with finances at all. You didn’t have a hand in running the household company. You just signed a return and presumed everything was being taken care of. The qualifications are:
You must have filed a joint return
You are not able to get relief under Classic Spouse Relief or Separate Liability
No greater than 2 years have passed since the IRS acted versus you
You have to show that no deceptive asset transfer has actually taken location between you and your partner
You need to prove that you or your spouse hasn’t moved building to avoid paying the taxes due
You need to prove that it is unjust to hold you responsible for your partner’s tax costs