Tax Relief From Actions Of Your Current Or Former Spouse

Many married taxpayers choose to file a joint tax return because of certain benefits that this filing status allows. Both taxpayers are jointly and individually responsible for the tax and any interest or penalties due on the joint return even if they later divorce. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held responsible for all taxes due even if all of the income was earned by the other spouse. In some cases, however, a spouse will be relieved of the tax, interest, and penalties from a joint tax return. Three types of relief are available to affected persons who qualify: 1) Innocent spouse relief, 2) Separation of liability, and 3) Equitable relief. Each type of relief has different requirements.

You must meet all of the following conditions to qualify for innocent spouse relief:

1. You filed a joint return.
2. There is an understated tax on the return that is due to erroneous items (defined below) of your spouse or former spouse.
3. You can show that when you signed the joint return you did not know or have reason to know that the understated tax existed (or the extent to which the understated tax existed).
4. Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated tax.

Erroneous items are either one of the following:

1. Unreported income. This is any gross income item received by your spouse or former spouse that is not reported.
2. Incorrect deduction, credit, or basis. This is any improper deduction, credit, or property basis claimed by your spouse or former spouse.

Bear in mind that innocent spouse relief is only available to persons who meet each of the conditions listed above. You are still jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief.