Innocent Spouse Relief: How To Protect Yourself From A Spouse’s IRS Tax Debts

Financial difficulties often strain relationships, and when one spouse crosses the line by lying, cheating, or concealing details on their taxes, the fallout can affect both parties. Fortunately, the IRS provides an option for those unfairly caught in such situations: Innocent Spouse Relief. This article outlines:

• What innocent spouse relief is and who qualifies for it.
• The differences between innocent spouse relief and separation of liability relief.
• Steps to take if your innocent spouse relief request is denied.

What Is IRS Innocent Spouse Relief?

Innocent Spouse Relief applies when one spouse misrepresents income or claims excessive deductions on a joint tax return, reducing their tax obligation. If the IRS discovers this error, both spouses can be held liable for the resulting tax debt, penalties, and interest—even if only one was responsible for the mistake.

However, the IRS recognizes that some spouses may be unaware of these misrepresentations. If you didn’t know about your spouse’s inaccurate reporting—or if your access to the tax forms was intentionally blocked—you may qualify for innocent spouse relief.

This relief essentially means the IRS absolves you of responsibility for the tax debt created by your spouse’s actions. It’s important to note, though, that eligibility is not automatic, and not every spousal tax issue qualifies for this protection.

Who Qualifies For Innocent Spouse Relief In South Carolina?

In South Carolina, you can seek innocent spouse relief for both federal and state tax obligations, with similar rules applying to each. This relief is designed to protect a spouse who was unaware of tax misreporting by their partner.

To qualify, the following must be true:

• The offending spouse failed to report income or claimed excessive, disallowed deductions.
• The innocent spouse was unaware of these inaccuracies or was prevented from reviewing the tax forms before signing.
• In some cases, circumstances such as domestic abuse may have restricted the innocent spouse’s ability to access or verify the tax return.

For example, if a spouse was coerced or denied access to financial documents, this could support a claim for relief.

What Are The Main Differences Between Innocent Spouse Relief And Separation Of Liability Relief?

Separation of liability relief, sometimes referred to as injured spouse relief, is distinct from innocent spouse relief and applies to a different type of situation.

• Injured Spouse Relief:
  This occurs when a couple files a joint tax return, but the IRS withholds the entire refund to cover one spouse’s outstanding debt, such as unpaid taxes, student loans, or child support. The non-indebted spouse can apply to reclaim their rightful portion of the refund.
• Innocent Spouse Relief:
  This involves unreported income or excessive deductions by one spouse that the other did not know about or was unable to access. The innocent spouse seeks protection from being held liable for the resulting tax debt.

If you’re unsure whether you qualify for either type of relief, consulting a knowledgeable South Carolina attorney can help clarify your options. They can guide you through the process of applying for the appropriate relief and ensure your rights are protected.

What Can I Do If The IRS Denies My Request For Innocent Spouse Relief?

If the IRS denies your request for innocent spouse relief, you still have options to pursue your case:

1. File an Appeal with IRS Appeals
   You can challenge the decision through the IRS Appeals Office. This process allows you to present additional evidence or clarify details that may strengthen your case.
2. Take Your Case to Tax Court
   If the appeal is unsuccessful, you can escalate the matter to the U.S. Tax Court. A judge will review your case and make a determination.

Navigating these processes can be complex, and having the guidance of an experienced IRS tax attorney can significantly improve your chances of success. They can help ensure your evidence is compelling and that all deadlines are met.

Facing Tax Issues Due To Your Spouse’s Actions? We’re Here To Help.

For more information on IRS Innocent Spouse Relief In South Carolina, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 335-5005 today.