If your situation doesn’t meet all the necessary guidelines for “classic” innocent spouse relief, you may qualify for another type of tax relief from the IRS called Separation of Liability. Under this form of tax relief, the underpayment of tax is separated between you and your former spouse. Separation of liability relief is available when spouses have divorced or separated after filing a joint return.
While relief under Innocent Spouse could be for the entire tax understatement and penalties and interest, separation of liability relief determines the liability of each spouse separately by allocating the income and deductions from the joint return to each spouse. In essence, amending a joint return into separate ones.
To qualify for separation of liability relief requires the following:
Even if you meet one of the requirements, the IRS still may not grant relief by separation of liability under certain circumstances. Dale O'Neal can help you determine if you qualify for this form of tax relief. Call him at 817-877-5995 now or request a consultation online to get started today.