Back Tax Resolution for Your Specific Circumstances: What Is Innocent Spouse Relief?

The IRS and several states have an option known as Innocent Spouse Relief to help individuals who have found themselves saddled with back tax debts associated with a husband or wife's filing error. Those who qualify for this plan can avoid paying potentially steep interest and fines.

Owing back taxes is stressful enough when they are legitimately your responsibility--but what if you've found yourself pursued by tax officials for liabilities, interest, and penalties that aren't even your fault? This unfortunate scenario sometimes occurs when an inaccuracy is detected in a tax return that was filed jointly by a married couple, or if that tax return was filed correctly but the taxes were never fully paid. If your spouse made an error while performing tax duties or filed dishonestly, you may have a chance at being absolved from accountability via Innocent Spouse Relief.

When a husband and wife file their taxes together, the IRS views both parties as equally responsible, regardless of who earned what amount of the joined taxable income. If a problem is detected in a joint tax return, both parties will be pursued individually for the penalties. Many times, one spouse feels that they should bear no personal responsibility for the back taxes owed by their current or former significant other. In these cases, a spouse who feels that they are not responsible for the error may choose to file for Innocent Spouse back tax relief. If they quality for this option, the innocent spouse could either be absolved of the total amount owed or have each spouse named legally responsible for their own share of the taxes and associated fees.

Each Innocent Spouse Relief case is different, and not every situation qualifies for this plan. A tax attorney or other tax professional may be able to guide you through the particulars of your specific circumstances and determine the best course of action. There are three types of Innocent Spouse Relief:

• Classic Innocent Spouse Relief--This typically applies to couples who have, intentionally or unintentionally, misrepresented their taxes by reporting less than they should have by way of omission, understatement, or error. The IRS uses a variety of factors to determine whether or not the party claiming no responsibility can legitimately not be held liable for paying back taxes, penalties, and interest.


• Relief by Separation of Liability--If the spouses are legally separated or divorced, they may be able to be absolved of one another's tax liabilities and held responsible for only their own if they qualify for this back tax help plan.


• Equitable Relief--Sometimes back taxes are owed not because of an error in the initial filing, but simply because the full amount was never paid. The IRS will examine your situation and decide whether or not your case justifies equitable relief.

Having to pay exorbitant back taxes and penalties could result in long-term financial stress. Don't let a spouse's error or deception harm your financial future. If you've found yourself caught in this difficult situation, be sure to research your options. Choosing to learn more about innocent spouse relief and other back tax relief programs from your local tax lawyers or other resources could be the best thing you've ever done for your wallet. If you have found yourself under scrutiny by the tax officials, but do not qualify for Innocent Spouse Relief, you may want to consider some of the following options:

• Offers in compromise


• Penalty abatement


• Property lien releases


• Wage garnishment relief


• And more

Remember: when you need back tax relief, there is no substitute for professional guidance from a licensed CPA or tax attorney.

Rebecca Paul is an Internet marketer for Prospect Genius, specializing in affordable online advertising for local companies.