Innocent Spouse RElief

Understanding Innocent Spouse Relief

“Innocent spouse” relief is often confused with “injured spouse” relief, but they are very different remedies.

When a married couple files a joint tax return, both spouses are jointly and severally liable—meaning each spouse is legally responsible for the full amount of tax due, along with any interest and penalties, regardless of who earned the income or caused the error. This liability remains in place even if the couple later divorces, separates, or if one spouse passes away.

Innocent spouse relief is intended to protect a spouse who was unaware of and did not benefit from errors on a joint return—typically when one spouse underreports income or claims improper deductions or credits. A common example involves one spouse who is self-employed and fails to report all their income, while the other spouse, who had no knowledge of the underreporting, is later pursued by the IRS for the resulting tax debt.

Even in cases where the noncompliant spouse has passed away or the couple is no longer together, the IRS may still attempt to collect the full tax from the innocent spouse—unless relief is granted.

When a person requests innocent spouse relief, they may be relieved of responsibility for additional tax, penalties, and interest if their spouse or former spouse is solely responsible for underreported income or omitted items on a jointly filed tax return.

Conditions to Qualify for Innocent Spouse Relief

To qualify for innocent spouse relief, all of the following conditions must be met:

  1. The tax understatement is from a joint tax return filed with a spouse or former spouse;

  2. The understatement resulted from unreported income, or improperly claimed deductions, credits, or cost basis, attributable solely to the other spouse;

  3. At the time the return was signed, the requesting spouse did not know—and had no reason to know—about the understatement;

  4. No property was transferred between the spouses as part of a fraudulent scheme;

  5. Based on all the facts and circumstances, it would be unfair to hold the requesting spouse responsible for the tax liability.

Key points to remember:

Innocent spouse relief applies only to individual income taxes, including self-employment tax. It does not extend to business taxes or the Trust Fund Recovery Penalty related to unpaid employment taxes.

When you request innocent spouse relief, the IRS is required to notify your spouse or former spouse with whom you filed a joint return. That individual will have the opportunity to provide information relevant to your claim before a decision is made.

Take the First Step Toward Relief

We have a proven track record of successfully negotiating innocent spouse relief with the IRS—and we’re ready to help you too. Contact us today to find out if you qualify and learn what steps to take next.