Filing taxes jointly with one’s spouse is common. However, sometimes, one spouse can make mistakes or provide erroneous information when filing. This may result in both spouses potentially being liable for additional IRS taxes.
It’s often possible for the spouse who didn’t make the relevant errors to request “innocent spouse relief” in these circumstances. If the IRS approves the request, the “innocent spouse” won’t be on the hook for additional taxes resulting from the other spouse’s mistake.
But what happens if the IRS rejects such a request? At Highland Tax Group, our tax professionals can review your case and help you understand how to proceed in these circumstances.
The IRS Rejected an Innocent Spouse Relief Request: Your Rights Under IRC § 6015
Someone can request innocent spouse relief from the IRS within two years of receiving a relevant notice indicating the IRS is auditing them or they owe additional taxes because of an error on a return. Signs you may be eligible for innocent spouse relief include:
- You filed jointly with a spouse
- Errors on your tax return resulted in your taxes being understated
- You were unaware of the errors (typically because your spouse is the one who made them)
- You live in a community property state, where you and your spouse are on the hook for the same tax liability
The statute providing for innocent spouse relief also states a taxpayer can file a request for equitable relief if they don’t qualify for traditional innocent spouse relief.
Other potential options if you’ve requested innocent spouse relief but the IRS has rejected your request include:
- Filing an appeal with the IRS Independent Office of Appeals
- Filing a petition in U.S. Tax Court
In some cases, applicants may also have the option of reapplying for innocent spouse relief. This may be an option when the initial refusal was due to insufficient information on an application or other such minor clerical issues.
Highland Tax Group Helps When the IRS Rejects an Innocent Spouse Relief Request
Tax laws are very complex. You may not understand your rights if you’ve requested innocent spouse relief, only for the IRS to determine you don’t qualify.
You don’t have to face these circumstances alone. Our tax professionals at Highland Tax Group will explain your options now, helping you overcome an error your spouse made.