When married couples file joint tax returns, both filers are typically responsible for the subsequent taxes owed. However, there are some exceptions surrounding liability if your spouse made significant errors on the return, such as inaccurate reported income, no reported income, or false claimed deductions or credits. 

What is Innocent Spouse Relief?

Innocent spouse relief is an IRS policy that relieves you of your legal responsibility to pay tax, interest, or penalties if your spouse or former spouse did not properly report or purposefully omitted items on your joint tax return. 

This relief program only applies to individual income or self-employment tax. Business taxes, Individual Shared Responsibility payments, Household Employment taxes, and trust fund recovery penalties for employment taxes are not considered eligible for innocent spouse relief.

How to Qualify for Innocent Spouse Relief 

IRS approval is not guaranteed and is even difficult to obtain. The organization will examine each case individually and at length. From start to finish, the process typically takes upward of six months. 

Below are some important requirements that are needed to qualify:

  • You and your spouse must file taxes jointly 
  • The error must be fully attributed to the other person
  • You must prove your innocence according to IRS standards
  • The circumstances holding you liable for the unpaid taxes must be compelling

All of the qualification details can be found in IRS Publication 971. 

While there are some exceptions, you generally have to request innocent spouse relief no later than two years after the IRS started inquiring about the outstanding tax debt. You will need to show that you did not know and had no reason to know that your spouse made an error or did not properly report income. 

Fairness will also be considered when determining whether to grant innocent spouse relief. The IRS will look at all aspects of the situation, including, but not limited to: 

  • The nature of the error
  • Your financial situation
  • Your educational background
  • Marital status
  • Whether the issue is part of a larger pattern

These cases can be very difficult to prove. It’s best to work with a professional tax professional who has the experience necessary to build your case and negotiate with the IRS.