Most folks who are married file their taxes jointly. Usually, this simplifies the filing process and maximizes your deductions as a couple. However, the waters can get a little muddy if one party accidentally or intentionally makes a mistake. Since both members of the couple file the tax return together, both are legally responsible for the accuracy of all information reported.
This collective responsibility remains true even in the event of a divorce. If you were married at the time of filing, both of you are still on the hook for any and all information reported.
What Is “Innocent Spouse” Tax Relief?
The good news is that the IRS offers innocent spouse tax relief in qualifying situations. The IRS knows there are legitimate instances in which one married partner did not know about inaccurate tax information the other spouse may have supplied. If you are able to establish that you didn’t have knowledge of any misinformation or wrongdoing, you can avoid facing the associated penalties.
Who Can Claim Innocent Spouse Relief?
Claiming innocent spouse tax relief involves two aspects. You must establish both of the following:
- You did not know, and had no reason to know, that your joint tax return contained errors or false information.
- It would be unfair to hold you liable for unpaid taxes, interest, or penalties because you were unaware of any errors on your return.
If the IRS agrees and finds that you were unaware of any false information reported on your tax return, you are in the clear!
How Do You Establish Innocence?
The IRS does require ample proof to support your claim of being an innocent spouse. It helps to have a tax professional assist you throughout the process so you can gather the necessary documents that support your case in a timely and orderly manner.
The tax experts at Taxation Solutions, Inc. are on call in Arlington to assist with all of your tax needs. We will be more than happy to help you navigate the waters of the IRS regarding innocent spouse tax relief and all your other tax needs. Give us a call today to see how we can help you!