Innocent Spouse Relief

Innocent Spouse Relief refers to a provision in U.S. tax law that allows a spouse to be relieved of responsibility for paying tax, interest, and penalties if their partner improperly reported items or omitted income on a joint tax return.

To qualify for Innocent Spouse Relief, the requesting spouse must demonstrate that they did not know, and had no reason to know, about the understatement of tax. Additionally, it must be unfair to hold them liable for the tax due to the circumstances. For example, if one spouse failed to report income while the other spouse was unaware of this omission, the innocent spouse may request relief to avoid responsibility for the tax liability resulting from the partner’s actions.