Taxpayers who come into our Richardson, TX tax office are sometimes confused by the difference between Innocent Spouse vs. Injured Spouse tax relief. Today, we’ll outline the differences between the two.
Injured Spouse
Injured Spouse Relief occurs when a couple file a joint return and the refund for the return is offset against a debt that relates to only one of the spouses. In these cases, the spouse who does not owe that financial obligation is the “Injured Spouse”. Financial Obligations that the IRS offsets refunds for include prior IRS debt, State Income Tax Debt, unpaid child and spousal support, and defaulted educational loans.
In order to protect their share of the refund, the injured spouse will seek relief by filing Form 8379. Page 2 of the form includes an allocation of the income and deductions for each spouse and based on the allocation of the refund, the amount of the refund offset and held by the IRS vs. the amount released to the “Injured Spouse” is determined.
Innocent Spouse
Innocent Spouse Relief occurs when a current or former spouse failed to report all of their income or reported it improperly, or claimed incorrect deductions, credits, or payments.
The IRC 6015 Creates 3 types of innocent spouse relief. Each type of Relief has different rules for qualifying and the implementation of relief. The three types are:
- 6015(B) – Innocent Spouse Relief
- 6015(C) – Separation of Liability
- 6015(F) – Equitable Relief
Although the qualifications for relief vary under each of the three types, in general, you must establish that you met the following requirements:
- The error or misstatement was related to the spouse and not attributed to the spouse requesting relief.
- The spouse requesting relief was not aware nor should they have been aware of the misstatements.
- Based on all of the facts and circumstances, it would be inequitable and unfair to hold the spouse liable for the tax.
Innocent Spouse Relief is filed using Form 8857. Requesting Relief can be complicated so seek help if needed.
If you want to learn more about Innocent Spouse Relief and/or Injured Spouse Relief, please read the previous blog articles that I've posted that go more in-depth on each.
Do You Need Help?
Do you believe that you may qualify for Innocent Spouse or Injured Spouse Relief or have an IRS Collection issue that you need help with? If so, we’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates.
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