Dealing with IRS tax debt from a previously filed joint return after a divorce can quickly become a sticky situation. If your former spouse underreported or underpaid their taxes, the IRS will hold you both equally responsible for the tax deficiency. However, if you can show that you were subject to abuse in the relationship, either during the marriage or during the tax filing process, this may help you qualify for relief from the joint tax debt.
When seeking relief from an IRS tax deficiency stemming from your former spouse’s income or improper deductions, you have several options. Among these options is equitable relief. When you apply for equitable relief, the IRS will consider multiple factors to determine whether to absolve you of the debt. These include things like whether paying the debt will cause you economic hardship, whether you made a good-faith effort to comply with tax laws, and the state of your physical and mental health. And yes, the IRS will weigh the effect any spousal abuse may have on your responsibility for the tax liability.
Can Showing Abuse Work in Your Favor?
When evaluating your application for equitable relief, the IRS will consider how physical or emotional abuse may have affected your situation. Abuse can influence the IRS’s decision about relief in several ways:
- Abuse helps show why you may have been too afraid to question a return or unpaid tax amounts.
- Abuse can override who incurred the tax. Relief may apply to a tax you incurred based on community property laws.
- Abuse can negate the financial benefit you gained from the underpayment or understatement, since it indicates that your ex had a certain amount of control over you.
- Abuse can serve as a formal exception so the IRS can relieve you of taxes on your own income if you failed to comply out of fear or duress.
Additionally, if you can show that you signed the joint return under physical force or duress, the IRS may invalidate the joint return entirely, which would free you of joint liability.
How Do You Prove Abuse When Applying for Equitable Relief?
When applying for equitable relief on Form 8857, Request for Innocent Spouse Relief, you have to provide evidence to show that your former spouse used fear, threats, or financial control to prevent you from questioning your joint return. Examples of types of evidence include:
- A detailed written account of how the abuse kept you from challenging the return
- Official records such as police reports, restraining orders, or court documents
- Medical or counseling records of physical or psychological treatment
- Supporting statements from friends, family, neighbors, or social workers who witnessed the abuse
- Proof that your ex hid financial information or restricted your access to bank accounts
Highland Tax Group Can Help You Qualify for Equitable Relief
The experts at Highland Tax Group can help you file your equitable relief request and gather evidence of abuse. We can help you obtain the IRS tax relief you deserve.