What is innocent spouse relief? According to federal law, when joint income tax return is filed by both the husband and wife, both spouses are responsible for the taxes stated. But what if there has been an error in the filing? Will both parties be charged with penalties?
Under the current tax code, a spouse can be released from direct financial liability, as approved by the IRS. This freedom from responsibility from having to pay tax debts of the other (or estranged) spouse is the innocent spouse relief. However, filing for innocent spouse relief can be tedious and time-consuming. Filing for it is not an assurance that the spouse can be relieved from the responsibility.
How does a spouse file for the relief of tax responsibility of the other spouse? The IRS will evaluate the applying spouse’s work experience, relationship status, disabilities, the level of involvement in the house, and finances. This evaluation will determine if the spouse can qualify for the relief.
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A taxpayer seeking innocent spouse relief must meet all of these conditions:
The understatement of tax is the error of the other spouse.
The filing party has no idea when the return was signed.
It is unfair for the filing party to be held liable for the tax debt.
The income tax return is a federal, legal document. This is still important, especially with divorcing parties. When the IRS discovers errors in income tax returns, both spouses will be responsible for paying unpaid taxes and penalties regardless of who made the error. This is the reason, if a party is wrongly charged, it is important to file for innocent spouse relief.
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Tax Tiger offers high-quality tax resolution services to protect its hardworking clients. Visit its official website to learn more about its solutions.
