Innocent Spouse Relief Attorney in New Jersey & New York
A married couple filing a joint tax return can receive certain tax benefits, but joint filing also creates serious risk. When spouses file jointly, both spouses may be held responsible for the tax, penalties, and interest tied to that return.
Innocent spouse relief may help when one spouse or former spouse should not be held responsible for tax problems caused by the other spouse. Todd S. Unger helps taxpayers evaluate innocent spouse relief, separation of liability relief, equitable relief, and related IRS collection concerns.
Why Joint Tax Liability Can Become Unfair
When spouses file a joint income tax return, they are generally jointly and severally liable for the tax due for that year. That means the IRS may attempt to collect the full tax debt from either spouse, even if only one spouse caused the tax issue.
That rule can lead to unfair results. For example, one spouse may fail to report income, claim improper deductions, conceal financial information, or create a tax problem the other spouse did not understand when signing the return. After divorce, separation, or collection activity, the spouse who did not cause the issue may still face back taxes, penalties, interest, liens, wage garnishment, or bank levies.
Innocent spouse relief exists because the tax law recognizes that it may be unfair to hold one spouse responsible for a joint tax debt when the facts show the responsibility should fall elsewhere.
Types of Innocent Spouse Relief
There are different forms of innocent spouse relief, and the right option depends on your filing history, relationship status, knowledge of the tax issue, and whether it would be unfair for the IRS to hold you responsible.
Innocent Spouse Relief
This may apply when a joint return understated tax because of income, deductions, credits, or other items connected to your spouse or former spouse, and you did not know or have reason to know about the problem when the return was filed.
Separation of Liability Relief
This may apply when you are divorced, legally separated, widowed, or no longer living with the spouse connected to the tax issue. It can allow the IRS to allocate responsibility between spouses instead of holding one spouse responsible for the entire liability.
Equitable Relief
Equitable relief may be considered when the other forms of relief do not apply, but the facts still show it would be unfair to hold you responsible for the tax debt. These cases are highly fact-specific and often depend on financial hardship, abuse, control of finances, knowledge, and the overall fairness of the situation.
What Must Be Proven for Innocent Spouse Relief?
To qualify for innocent spouse relief, the taxpayer generally needs to show that the joint return had an understatement of tax tied to the other spouse, and that the requesting spouse did not know or have reason to know about the issue when the return was signed.
You filed a joint tax return with an understatement of tax.
The understatement was caused by erroneous items of your spouse or former spouse.
You did not know, and had no reason to know, about the understatement when signing.
If innocent spouse relief is not available, separation of liability relief or equitable relief may still need to be evaluated. The IRS uses Form 8857 to review the information and determine which type of relief may apply.
Separation of Liability Relief After Divorce or Separation
Separation of liability relief may be available when spouses are divorced, legally separated, widowed, or no longer living together. Instead of treating both spouses as responsible for the entire understatement, this relief can allocate the tax between spouses based on responsibility for the items that caused the tax problem.
Divorce alone does not automatically erase joint tax liability. The IRS will still review the return, the source of the tax issue, what each spouse knew, and whether the legal requirements for relief are met.
This type of relief can be especially important when one spouse created or controlled the income, deductions, credits, or records that caused the tax liability.
What to Gather Before Requesting Innocent Spouse Relief
Innocent spouse cases are fact-specific. The way the request is explained and documented can make a major difference.
Copies of the IRS notices you received
The joint tax return involved
Divorce, separation, or court documents if applicable
Financial records showing income, expenses, and hardship
Records showing what you knew or did not know when the return was filed
The more clearly your position is documented, the stronger the request can be. Attorney guidance can help organize the facts, identify weaknesses, and present the request in a way that addresses the IRS’s concerns.
How a Tax Attorney Can Help
Innocent spouse relief is factually driven, especially when applying for equitable relief. IRS guidance and court decisions can affect how facts are evaluated, which makes preparation important.
A tax attorney can help develop the facts surrounding the claim, evaluate whether innocent spouse relief, separation of liability relief, or equitable relief may apply, and organize the request with the most relevant records and explanation.
Todd Unger helps taxpayers understand the available options, respond to IRS collection pressure, and pursue the relief strategy that best fits the facts of the case.
Innocent Spouse Relief FAQs
Request a Confidential Innocent Spouse Relief Consultation
If the IRS is trying to collect a joint tax debt from you, Todd S. Unger can help evaluate whether innocent spouse relief, separation of liability relief, equitable relief, or another tax resolution strategy may apply.