Do Not Pay For Another's Mistakes: File For Innocent Spouse Relief

Having the IRS hound you is a nauseatingly scary experience. What is even more stressful and sickening is when the IRS expects you to literally pay for your spouse's tax debt. Luckily, you may file for innocent spouse relief to absolve yourself of crimes you did not commit.

To determine whether you are eligible for innocent spouse relief, visit the IRS' website. There you will find a list of guidelines entitled "Innocent Spouse Tax Relief Eligibility Explorer". The criteria are as follows:

The taxes owed are your spouse's or ex-spouse's.

You are no longer married to that person.

You believed your spouse would pay the taxes on the original return.

You were unaware of the items charged in the audit.

You would endure great financial hardship if you were required to pay the tax; you would be unable to afford basic living expenses such as food, shelter, and clothing.

You did not noticeably benefit (notwithstanding normal support) from the unpaid taxes.

You suffered abuse during your marriage.

If one or more of these circumstances apply to you, you have ground to file for innocent spouse relief. To do so, you must file Form 8857. Additional information can be found in Publication 971. Both of these documents are also available on the IRS website. The latter form further elaborates on standards that make you eligible for relief. The process of filing your claim, however, may be a laborious undertaking and it could definitely behoove you to seek the counsel of a tax attorney.

Levies may be placed on your bank account; the bank is permitted to hold only the funds you have on deposit the day the levy is issued. The bank must remove any amount available in your account (up to the amount owed) and send it to the IRS in 21 days. The waiting period is designed to give you time to resolve ownership of the account, seek tax debt relief, or apply for innocent spouse relief. You must petition for relief within two years of the IRS' initial attempt to collect the fees. A lawyer who specializes in these matters, will help you navigate the bureaucratic red tape you encounter during these processes.

Even if you do not qualify for complete innocent spouse relief, you may be entitled to partial spouse relief, which may awarded if you can prove that you had no knowledge or reason to know about a portion of an erroneous item either falsely represented or not mentioned in a tax return filed during your marriage. To learn more about all your options, visit the IRS website or contact a tax attorney; you do not need to suffer for a former or current spouse's irresponsibility.

CIRCULAR 230 DISCLOSURE: Per regulations governing practice before the Internal Revenue Service, any tax advice contained herein is not intended or written for use, and cannot be used, to avoid tax penalties that may be imposed on the taxpayer.