Due to certain benefits that come with filing jointly, most married taxpayers go for joint tax filing. If at all divorce happens in the future, both taxpayers are still accountable for the tax, as well as any interest or penalties, that are owed on the joint return. In the case of a joint tax return, a spouse may occasionally be exempt from tax, penalties, and interest. There are three different sorts of relief. Look below to know about them.
- Equitable Relief
- Innocent Spouse Relief
- Liability Separation
Innocent spouse relief procedure allows the taxpayers to avoid paying penalties, additional tax, and interest, in case an ex-spouse or spouse failed to report income or claimed tax credits or deductions improperly or reported income wrongly. Relief for the innocent spouse differs from relief for the damaged spouse. For defining injured spouse relief, contact a tax relief professional.
The main goal of innocent spouse relief is to divide up the cost of a tax obligation. An injured spouse may recover their share of a joint tax return’s tax refund thanks to the injured spouse’s relief. IRS Form 8379 is used to request relief for an injured spouse. It may take several months for the IRS to process your request. Taxpayers who have lost an entire or portion of their tax refunds because of their spouse’s wholly unpaid debt are eligible for injured spouse compensation. It just talks about refunds.
Relief for the innocent spouse is not always possible. Your request may be rejected by the IRS, and the procedure may take up to six months. To qualify for this, you must meet the below rules.
- You must have filed jointly for taxes.
- You must demonstrate your innocence.
The IRS considers a variety of variables, including the type of error, your financial status, your educational details, how much you have contributed to the problem-causing activity if the problem is recurring, and other issues. Fairness is a factor that the IRS takes into account while deciding whether to offer innocent spouse relief or not.
Hire a tax relief professional to clarify all your questions related to injured spouse relief!
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