Easy-Efile, LLC
Innocent Spouses - Relief
from Taxes
by: Richard Chapo
Historically, tax issues arising from bad
marriages fell into the category of “better
or worse” for marriages. The IRS granted no
innocent spouse tax relief, but has changed
its views.
Tax Relief
When a marriage has problems, finances are
almost always one of the elements that
contribute to the strife. This can be
particularly true where spouses file a joint
tax return, which the both sign as tax payers.
If the information provided on the tax return
is false or inaccurate, the IRS has
historically viewed both spouses as liable for
the resulting assessments. If the relevant
taxes were not paid, the IRS would also look
to both spouses to pay the delinquent amount.
In worse case scenarios, this can include
criminal charges for tax evasion.
Fortunately, the IRS has modified its view
of the liability of joint filers. The IRS now
recognizes that innocent spouses can’t
control their deadbeat former spouses. It
allows such innocent spouses to claim three
types of tax relief:
1. Innocent Spouse Relief
2. Relief by Separation of Liability
3. Equitable Relief
If the IRS comes after you for the tax
liability of a former spouse, you can seek tax
relief under these three theories if you meet
all the following requirements. First, you
filed a joint return with inaccurate
information. Second, you didn’t know of the
inaccuracies and didn’t have any reason to.
Finally, taking into consideration the
situation, holding you liable for the tax
would be unfair.
The IRS will evaluate your application and
render a ruling on your application. The IRS
may agree to simply waive any tax claim
against you and go after the deadbeat spouse
as the sole debtor. Alternatively, the IRS may
split the tax into a his and her account, only
requiring you to pay one half of the amount
due. While this may not sound great, it will
immediately cut your tax bill in half.
In rare cases, you can seek equitable
relief from the IRS. Equitable relief simply
is another way of saying making you pay the
tax would be manifestly unfair. You must show
you and the spouse did not transfer assets as
part of an fraudulent scheme, didn’t
transfer assets with the intention of evading
taxes, didn’t intend to commit fraud,
didn’t pay the taxes due and you didn’t
know what your spouse was up to. Equitable
relief claims need to be handled very
carefully as the IRS views them with a very
cynical eye. Nonetheless, they are a last step
that can be taken when all else has failed.
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