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- Innocent spouse relief is an IRS procedure that allows people to avoid paying additional tax, interest and penalties if a spouse or ex-spouse didn’t report income, incorrectly reported income or improperly claimed tax deductions or credits.
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By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse).
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Mar 20, 2024 · Innocent spouse relief is an IRS procedure that allows people to avoid paying additional tax, interest and penalties if a spouse or ex-spouse didn’t report income, incorrectly reported...
- What Is The Innocent-Spouse Rule?
- Understanding The Innocent-Spouse Rule
- The Lack of Knowledge Clause For Innocent Spouse Relief
The innocent spouse rule is a provision of U.S. tax law, revised most recently in 1998, which allows a spouse to seek relief from penalties resulting from underpayment of tax by a spouse. The rule was created partly due to spouses not telling their partners the entire truth about their financial situation.
The innocent spouse rule allows a taxpayer to avoid a tax obligation arising from errors made by a spouse on a joint return. Most commonly, the error involves unreported income or an inflated deduction. To be eligible for this relief, the taxpayers must meet the following criteria: 1. They must have filed a joint return with an erroneous understate...
The most problematic of the innocent spouse requirements listed above is that the taxpayer not know of the error in question. Some court rulings have held the complaining spouse to what might seem like a higher standard than is explicitly stated in the rule: that they should have known about the error, even if there is no dispute that they did not ...
Mar 26, 2024 · Publication 971 explains when a spouse may be relieved of tax, interest, and penalties on a joint tax return. Three types of relief are available to married persons who filed joint returns: Innocent spouse relief. Separation of liability relief. Equitable relief.
Innocent Spouse Relief relieves a person of any tax, interest, and penalties associated with the account based on the preceding errors. However, the taxpayers are still held jointly and severally liable for any amounts that are not granted innocent spouse relief.
Apr 24, 2024 · What is Innocent Spouse Relief? Innocent Spouse Relief is a provision in the U.S. tax law that allows a spouse to seek relief from joint tax liability when their partner has misrepresented or erroneously reported income on their joint tax return.
An innocent spouse is someone who applies for relief from being responsible for their spouse’s tax debts. This could apply if they weren’t aware their spouse underreported their income or made an error on their tax return, or their spouse left the country or died without paying off their tax debt.
