Innocent Spouse Relief or Injured Spouse Allocation
When a married couple files a joint tax return, both individuals are equally responsible for all taxes owed if there is a balance due. However, there are some cases where you may be innocent of your spouse's tax debts, and the IRS has tax relief available for you. The easiest way to file as Innocent or Injured Spouse is to start a start and e-file a Tax Return on eFile.com. The e-File app will prepare the forms you need to claim Innocent Spouse Relief or the Injured Spouse Allocation to be filed with your 2019 Tax Return. If you want to learn more about innocent spouse relief or injured spouse allocation, read on.
Innocent Spouse Relief
What if your spouse or ex-spouse, on a past joint tax return, lied about their income or underpaid taxes without your knowledge, and now you are being held responsible for someone else's tax debt? In that case, you can apply for Innocent Spouse Relief. If you qualify for Innocent Spouse Relief, you will not be responsible for your spouse or ex-spouse's unpaid taxes. You may qualify as an Innocent Spouse if all of the following are true:
- You filed a joint tax return.
- Your spouse or former spouse improperly reported income on the joint return.
- When you signed the joint return, you did not know (and had no reason to know) that the return was incorrect.
- Due to the circumstances, it would be unfair to hold you liable for the unpaid taxes.
If you do not meet all of the requirements listed above for classic Innocent Spouse Relief, you may still qualify for one of the other types of tax relief for innocent spouses listed below. When you prepare your tax return on eFile.com, we will determine which type of tax relief you qualify to claim on your tax return.
- Relief by Separation of Liability: You can qualify for Relief by Separation of Liability if you are divorced or separated, or even if you are widowed. You did not live with your ex-spouse for at least 12 months before filing your request. In this case, the IRS will assign a certain amount of the tax liability to you, and a certain amount to your ex-spouse. You will only be responsible for your portion of the tax debt, along with a portion of the interest and penalties.
- Equitable Relief: There are many circumstances which may disqualify you from classic Innocent Spouse Relief, but should not keep you from getting the tax relief you deserve. Examples include having had to file separately due to state community property laws, and having had knowledge of your spouse's tax fraud--even if you were afraid to question your spouse about it due to fear of physical abuse. The IRS may grant you Equitable Relief in some of these situations. There is a long list of rules that guide the IRS on whether to grant Equitable Relief. Generally, you may qualify for it if you did not sign the fraudulent joint return with the intention of committing fraud, or if you signed it under duress (for example, if you were an abused spouse). If the IRS grants you Equitable Relief, you may not be held responsible for the unpaid taxes, and you may even get a refund of some of what you have already paid. Under IRS guidelines, there is no time limit on claims of Innocent Spouse Equitable Relief. This means that if you did not request relief for an earlier year due to the old 2-year time limit on claims, you may now make a request. Also, if you did make a claim and it was rejected because of the time limit, you may now make a new request.
You must file Form 8857, Request for Innocent Spouse Relief, if you believe you qualify for the relief. Though you can prepare and efile Form 8857 with your 2019 Tax Return on eFile.com, you might need to file your return via mail if you are attaching additional documentation. Instructions on how to complete Form 8857.
Mail your completed Form 8857, Request for Innocent Spouse Relief, to one of the following addresses. If using the U.S. Postal Service: Internal Revenue Service, P.O. Box 120053, Covington, KY 41012. For FEDEX or UPS delivery service: Internal Revenue Service, 7940 Kentucky Drive, Stop 840F, Florence, KY 41042. Fax the form and attachments to the IRS at 855-233-8558. DO NOT mail your Form 8857 to any other IRS address.
Injured Spouse Allocation
What if you filed a joint return and, instead of getting a tax refund, your money is applied to the past tax debts (or other debts such as child support or student loans) of your spouse? You may be able to get your share of that money back by requesting an Injured Spouse Allocation. You can qualify as an Injured Spouse if both of the following are true:
- You are not personally required to pay the past-due debt.
- During the year in question, you had earned income that was reported on a Form 1040, or had income taxes withheld from your pay, or made estimated tax payments.
If you believe you qualify as an Injured Spouse, you must file Form 8379, Injured Spouse Allocation. You can prepare Form 8379 online and e-file it with your tax return using eFile.com, but you may need to paper file this form with your return if you attach any additional documentation. Instructions on how to complete the Form 8379.
Mail your form 8379 to one of the following US Postal Service addresses: Internal Revenue Service, P.O. Box 120053, Covington, KY 41012. By FEDEX or UPS send to: IRS , 201 W. Rivercenter Blvd., Stop 840F, Covington, KY 41011. Or, fax the form and attachments to 855-233-8558. DO NOT mail your Form 8379 to any other IRS address.
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