File Form 8857
You can only claim innocent spouse relief if your spouse understated taxes due on a joint tax return in which you didn’t know about the errors. What kind of errors cause understated taxes?
Unreported income
Incorrect deductions or credits
Incorrect values given for assets
You could be eligible for this relief if:
You filed a joint return with your spouse
Your taxes were understated due to errors on your return
You didn’t know about the errors
You live in a community property state.
When you file a joint tax return with your spouse, you are both responsible for the tax that is due including any interest and penalties. Even if you divorce, the divorce decree states the other spouse is responsible or the other spouse earned all the income. However, you could qualify for separation of liability relief.
What is separation of liability relief? If you are divorced, separated or no longer living with your spouse, you could be eligible to pay for only your part of the understated taxes.
To learn more about the different types of relief please give us a call so we can go into more detail about how the IRS reviews theses type of requests.
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