How Do You Qualify for Innocent Spouse Relief from IRS Tax Problems? cover

How Do You Qualify for Innocent Spouse Relief from IRS Tax Problems?

  • Learn about innocent spouse relief.
  • Find the 3 conditions you must meet to qualify for this relief.

Few financial events are worse than a big tax bill with penalties from the IRS. Are you a spouse and were unaware of potential errors or underreporting on your tax return? Then you may be eligible for innocent spouse relief and may need to file IRS Form 8857.

To qualify for innocent spouse relief, you must meet all three of the following conditions:

  1. You and your spouse filed jointly, and your tax bill was understated solely because of one or more errors that your spouse made. These errors, or willfully improper entries, only apply to income and deductions that belong to your spouse. They include improper deductions and credits, incorrectly reporting basis in property such as securities and business inventory, under-reporting income, or omitting items.
  2. You must establish that you didn't know your spouse did this and had no reason to know when you signed your tax return.
  3. Prove that, considering the facts and circumstances surrounding your case, it wouldn't be fair to hold you responsible for the resulting underpayment.
Innocent spouse relief

Was your spouse not transparent about finances with you? Did you not find out about what they did until long after the tax return was filed? Then you're more likely to qualify for innocent spouse relief.

If the above scenario matches your personal circumstances, it might be time to get professional help. Please be aware that there are special situations in which you should not file Form 8857. But regardless, it is important that you put together a well-documented response when applying for innocent spouse relief.

Contact your Fiducial representative to learn how we might be able to help resolve your tax issue. Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations to discuss your situation.

Ready to book an appointment now? Click here. Know someone who might need our services? We love referrals!