| |
Many married taxpayers choose to file a joint tax return because
of certain benefits this filing status allows. Both taxpayers are
jointly and individually responsible for the tax and any interest
or penalty due on the joint return even if they later divorce. This
is true even if a divorce decree states that a former spouse will
be responsible for any amounts due on previously filed joint returns.
One spouse may be held responsible for all the tax due even if all
the income was earned by the other spouse.
In some cases, a spouse will be relieved of the tax, interest,
and penalties on a joint tax return. Three types of relief are available.
- Innocent spouse relief.
- Separation of liability.
- Equitable relief.
To qualify for innocent spouse relief, you must meet
all of the following conditions.
- You must have filed a joint return which has an understatement
of tax.
- The understatement of tax must be due to erroneous items of
your spouse (or former spouse).
- You must establish that at the time you signed the joint return,
you did not know, and had no reason to know, that there was an
understatement of tax.
- Taking into account all of the facts and circumstances, it would
be unfair to hold you liable for the understatement of tax.
- You must request relief within 2 years after the date on which
the IRS first began collection activity against you after July
22, 1998.
To qualify for separation of liability, you must
have filed a joint return and meet
either
of the following requirements at the time you file Form 8857.
- You are no longer married to, or are legally separated from,
the spouse with whom you filed the joint return for which you
are requesting relief. (Under this rule, you are no longer married
if you are widowed.)
- You were not a member of the same household as the spouse with
whom you filed the joint return at any time during the 12-month
period ending on the date you file Form 8857.
Equitable relief is only available if you meet all
of the following conditions.
- You do not qualify for innocent spouse relief or separation
of liability.
- The IRS determines that it is unfair to hold you liable for
the understatement of tax taking into account all the facts and
circumstances.
- You and your spouse did not transfer assets to one another as
a part of a fraudulent scheme.
- Your spouse did not transfer assets to you for the main purpose
of avoiding tax or the payment of tax.
- You did not file your return with the intent to commit fraud.
- You did not pay the tax.
Note. Unlike innocent spouse relief or separation of liability,
if you qualify for equitable relief, you can get relief from an
understatement of tax or an underpayment of tax. (An underpayment
of tax is an amount properly shown on the return, but not paid.)
Additional Resources on Innocent Spouse Relief:
IRS
Information on Innocent Spouse Relief
IRS Form 8857, Request
for Innocent Spouse Relief
IRS
Publication 971
|
|
