When we speak of the concept of Innocent Spouse, we begin by referring to one or more tax returns of a married couple who have filed Married Filing Jointly (MFJ) and who, thereby, have created a joint liability for a federal tax debt. But what if one of the two spouses, an “innocent” spouse, believes that they should be relieved of the debt if it can be shown that the non-innocent, or “liable”, spouse created the debt due to understated tax from failing to report income or by taking an incorrect credit, deduction or cost basis? And, furthermore, that the innocent spouse can show that they had no knowledge of, and did not significantly benefit by, said erroneous items reported by the liable spouse. The non-liable spouse may file Form 8857 to request relief.
There are three types of relief:
- Innocent Spouse
- Separation of Liability
- Equitable Relief
IRS may grant relief to the innocent spouse based on a number of complex provisions contained in these three types of relief after a thorough review of the facts and circumstances.
Jeffrey Mitchell, Enrolled Agent, reviewed many of these cases as a case advocate with the Taxpayer Advocate Service for over 10 years. He will readily ascertain whether you are a candidate for innocent spouse, and, if so, present your case to IRS in a professional and thoroughly effective manner to assure and maximize your relief from a joint tax debt.