Your marriage is a combination of two lives into one. This commitment means everything comes together for both of you, including the mistakes. But do you have to risk your entire financial future if your spouse makes significant tax mistakes that you didn’t know about?
When you file a joint tax return, you are both agreeing to be responsible for the taxes owed for that year. If one spouse fails to report income or pay taxes, the IRS holds both parties equally liable. But for individuals blindsided by a spouse’s tax missteps, Innocent Spouse Relief offers a pathway to avoid this unjust liability.
What Happens If My Spouse Doesn’t Pay Their Taxes?
When you file a joint tax return, you agree to joint and several liability. This means the IRS can pursue either spouse for the entire tax debt, regardless of who incurred it. Even if your spouse’s actions led to the debt—such as underreporting income, overstating deductions, or failing to pay the taxes due—you could be on the hook.
Consider a scenario where one spouse manages the couple’s finances. If that spouse fails to disclose income or incorrectly reports tax information, the other may sign the return unaware of these errors. Later, the IRS could demand repayment from both spouses. Innocent Spouse Relief provides a critical safeguard, allowing individuals to prove they should not be held liable for their partner’s tax mistakes.
What Is Innocent Spouse Relief?
Innocent Spouse Relief is a federal tax law provision allowing a qualifying spouse to avoid joint liability for tax debts caused by their partner’s errors. Typically it is sought after a couple has been separated for at least a year or is divorced. To be eligible, you must demonstrate the following:
- A joint tax return was filed.
- The tax understatement or underpayment resulted from your spouse’s actions, such as unreported income or erroneous deductions.
- You were unaware of the inaccuracies when you signed the return, or you thought your spouse would pay the taxes, and it would be unfair to hold you responsible.
To request relief, you need to file Form 8857 with the IRS. Supporting evidence, such as financial records, correspondence with your spouse about the tax issues, or even evidence submitted in a divorce proceeding, can strengthen your case. The IRS also considers factors like your education, involvement in financial decision-making, and whether you benefited from the unpaid taxes.
If you live in a community property state like Washington State, you are deemed to own one-half of your spouse’s income, so this adds an extra layer of complexity to this. If you did not file jointly, you might still qualify for relief from tax on community property income if you can show you were unaware of income attributable to your spouse. A knowledgeable Washington tax attorney can help you understand and handle these nuances and advocate for your rights.
Get Out of Trouble With the IRS
Dealing with tax issues caused by your former spouse can be overwhelming, but you don’t have to face the IRS alone. Innocent Spouse Relief exists to protect individuals who are unfairly burdened by their partner’s tax irresponsibility. If you believe you qualify, taking prompt action is essential, as you generally have two years from the IRS’s first collection attempt to file.
Robert V. Boeshaar, Attorney at Law, specializes in helping individuals resolve disputes with the IRS. If you need assistance escaping the burden of your spouse’s tax mistakes, contact us for a free consultation to find personalized solutions for your situation.
The post How Innocent Spouse Relief Can Shield You From Your Former Spouse’s Tax Irresponsibility appeared first on IRS Tax Attorney | Seattle Tax Lawyer for IRS Help.