Under the Separate Liability Election Rules— IRC Section 6015(c), an innocent spouse’s liability for understated taxes is limited to the tax he or she would have paid had the spouse filed a separate return. Each spouse claims the income and deductions that would have been taken if separate returns had actually been filed. If the [...] Read more »
Innocent Spouse: Traditional Relief
Innocent spouse relief comes in three forms. Relief is available in all instances only when you and your spouse originally filed your tax return as “Married Filing Jointly.” Three Categories of Innocent Spouse Relief are: Traditional relief under Internal Revenue code section (IRC) 6015(b); Separate Liability Election under IRC 6015(c); Equitable relief under IRC 6015(f). [...] Read more »
IRS makes it easier to apply for “innocent spouse relief”
If you have no reason to know that your spouse is cheating on their taxes, it makes sense that you shouldn’t be responsible for the consequences of your spouse’s actions. The IRS agrees, but until recently it rigidly enforced a two-year limit on when a claim for innocent spouse relief could be filed. Because an [...] Read more »
