Innocent Spouse Relief

The "Innocent Spouse" relief is a provision in U.S. tax law that allows a spouse to be

relieved of responsibility for paying tax, interest, and penalties if their spouse

(or formerspouse) improperly reported or omitted items on their joint tax return without their

knowledge. This provision is particularly relevant when these errors result in a tax liability for which the other spouse would not otherwise be responsible.

There are three types of relief available under the Innocent Spouse rules:

Innocent Spouse Relief: This provides relief from the additional tax owed if a spouse

can prove that when they signed the joint return, they didn't know, and had no reason

to know, that the reported income was incorrect.

Separation of Liability Relief: This allows a spouse to be relieved of liability for tax owed

if, at the time of the election for relief, they are no longer married, or are legally

separated, or have not been a member of the same household as the other spouse for

at least 12 months.

Equitable Relief: If a spouse doesn't qualify for innocent spouse relief or separation of

liability relief, they may still be eligible for equitable relief. This type applies when

holding the spouse liable for the tax deficiency or underpayment would be unfair.

To qualify for these reliefs, the spouse must meet various requirements. The IRS

considers all facts and circumstances in each case, including the nature of the

erroneous item and the amount of the incorrect item relative to other items, the

couple's financial situation, the spouse's educational background and business

experience, and whether the spouse failed to ask, at or before the time, the return was

signed, about items on the return or omitted from the return that a reasonable person

would question.

Additionally, the taxpayer must request for Innocent Spouse relief within a specific time

frame, generally within two years after the IRS starts collection activities against the

the spouse requesting relief.