subject: Do Not Pay A Debt That Isn't Yours, Check Out Irs Equitable Relief Or Innocent Spouse Relief [print this page] Innocent Spouse Relief and Equitable Relief are 2 of the most explored procedures to eliminate Federal Tax Debt. If your spouse (or ex-spouse) dishonestly documented items or omitted items on the joint return, Innocent Spouse can alleviate you of the responsibility for paying tax, interest, and penalties. You can also eliminate Federal Tax Debt by way of IRS Equitable Relief. However, primarily hardship situations are going to be considered. For the most part, if you are jointly responsible for tax, penalties, and interest charges, you're not going to qualify for Innocent Spouse. One of the hardest ways to eliminate Tax Debt is by way of Innocent Spouse Relief. Read on for additional insights on IRS Innocent Spouse Relief and IRS Equitable Relief and how they could help Remove Federal Tax Debt.
How Do You Get Approved for Innocent Spouse Relief?
Not many people are going to meet the Innocent Spouse requirements. You're not going to be able to eliminate your Tax Debt if you aren't eligible for Innocent Spouse or IRS Equitable Relief. Instead, the Internal Revenue Service could come after you or your partner for payment of the Tax Debt.
To qualify for Innocent Spouse, all of the following conditions have to be met:
Your spouse (or former spouse) falsely claimed items on your joint tax return, causing a tax understatement. Exactly what the Internal Revenue Service considers "Erroneous Items" will be covered later in this article.
You were not aware of, and hadn't any reason to be aware of, an understatement of tax when you autographed the joint tax return. The IRS describes this as "Actual Knowledge or Reason to Know," and also will be discussed in depth later.
Taking into account all the specifics of the situation, it might be unfair for you to be held responsible for the understatement of tax, otherwise called "Indications of Unfairness for Innocent Spouse," discussed below.
The IRS will not allow your request for Innocent Spouse Relief if they have evidence that you and your partner (or former spouse) transferred funds amongst each other in order to commit fraud. Included are techniques meant to defraud the IRS or another group, such as a creditor, former spouse, or business partner.
Innocent Spouse Relief Erroneous Items: The Internal Revenue Service has specified these items to be comprised of unreported revenue and inaccurate write offs and credits.
Actual Knowledge or Reason to Know: According to the Internal Revenue Service, you had real understanding or had reason to know of a tax understatement if you actually knew of the understatement, or if someone else in your shoes would have knowledge of the understatement.
Signs of Unfairness: The Internal Revenue Service will certainly take into consideration all details when coming to their verdict for Innocent Spouse Relief. They'll determine if it is unjust to make you liable for the understatement, determined by numerous identifying aspects.
Federal Equitable Relief: It is possible that you will be eligible for IRS Equitable Relief should you not qualify for Innocent Spouse Relief. In order to get IRS Equitable Relief, you must provide the facts of your circumstances to the IRS, and they must concur it wouldn't be fair to hold you liable for the tax understatement. IRS Equitable Relief is typically only reserved for cases of extreme hardship.
A couple of the most common ways people try to Remove IRS Tax Debt are with IRS Equitable Relief and Innocent Spouse. Find out if you could be eligible for these plans by making contact with a tax debt specialist immediately.
by: S. Hanson
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