When couples file a joint tax return, both spouses become jointly and severally liable for any tax owed. This means the IRS can pursue either or both spouses for the full balance, even if only one spouse caused the problem. Fortunately, the Internal Revenue Code provides a valuable solution through Innocent Spouse Relief under §6015.

There are three types of Innocent Spouse Tax Relief available:

1. Traditional Innocent Spouse Relief (§6015(b))
2. Separation of Liability Relief (§6015(c))
3. Equitable Relief (§6015(f))

Each has unique rules and qualifying factors. The blogs listed above will go more in depth about each one, but here are some general characteristics to help you decide which option might be best for you.

Traditional Innocent Spouse Relief – §6015(b)

This relief applies when one spouse claims they should not be held responsible for an understatement of tax caused by the other spouse. To qualify, all of the following must be true:

• You filed a joint tax return.
• There is an understatement of tax due to erroneous items of your spouse (such as unreported income or overstated deductions).
• You did not know, and had no reason to know, about the error when you signed the return.
• Considering all the facts, it would be unfair to hold you liable.
• You request relief within two years of the IRS beginning collection activity.

If granted, this type of relief can eliminate your responsibility for the portion of the liability attributable to your spouse’s actions.

Separation of Liability Relief – §6015(c)

This provision allows divorced, widowed, legally separated, or estranged spouses to separate their liability. The tax debt is allocated between you and your ex-spouse based on what each should reasonably owe.

Key requirements:

• You filed a joint return.
• At the time of requesting relief, you are no longer married, are legally separated, or have not lived with your spouse during the prior 12 months.
• You had no actual knowledge of the understatement when signing the return.

This relief option doesn’t erase liability altogether, but it prevents you from being held responsible for your spouse’s portion of the debt.

8 Ways To Beat the IRS

Equitable Relief – §6015(f)

What if you don’t qualify for relief under §6015(b) or (c)? The Equitable Relief option is still available. It is a catch-all provision that gives the IRS flexibility to grant relief if, under the circumstances, it would be unfair to hold you responsible.

Situations where equitable relief may apply include:

• Balance due cases where tax was correctly reported but not paid.
• You were unaware your spouse would not pay the tax owed.
• Economic hardship would result if you were held liable.
• Abuse or financial control prevented you from questioning the return.

The IRS considers factors such as marital status, economic hardship, knowledge or reason to know, and whether you received a significant benefit from the understatement.

How to Apply for Innocent Spouse Relief

You must file IRS Form 8857, Request for Innocent Spouse Relief to apply for relief. This form can be submitted by mail or fax to the IRS. It should be completed as soon as you realize you may qualify, since strict time limits apply depending on the type of relief you’re seeking.

The IRS will notify your spouse or former spouse to give them an opportunity to respond. The offending spouse cannot stop your request from being considered.

The Innocent Spouse Relief process can be complex. Taxpayers will benefit from working with a tax professional who can help present the strongest possible case for relief.

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LuSundra Everett, EA is The Home Biz Tax Lady. She is a tax expert located in Chester, VA who will find the right solution for you! As an Enrolled Agent licensed through the Internal Revenue Service, LuSundra is authorized to represent taxpayers in all 50 states against the IRS and your state!

Through her work with ETS Tax Relief, she helps high income non-filers and small-business owners face the IRS with confidence, clarity, and a plan.

When you’re dealing with IRS letters, tax debt, or business tax issues, the right representation makes all the difference. At ETS Tax Relief, we work with individuals and business owners across Virginia to resolve tax problems, prevent future issues, and restore peace of mind.

If you’re ready to put your tax troubles behind you, visit http://www.etstaxrelief.com to learn more about how we can help.