If you file jointly and your spouse has a debt (this can be a federal, state income tax, child support, or spousal support debt) the IRS can apply your refund to one of these debts, which is known as an “offset.” The agency can also take a collection action against you for the tax debt you and your spouse owe, such as filing of the Notice of Federal Tax Lien or issuing a levy. However, if you’re not legally responsible for the past due amount you may still be entitled to receive your share of the refund or request relief from joint and several liability, depending on the facts of the situation. “Joint and several liability” means that each taxpayer is legally responsible for the entire debt, even if you’ve divorced after you filed a joint tax return.
If you feel you are not responsible for the debt, there are two ways to request relief:
- Injured Spouse Claim: You can request that you be treated as an injured spouse, if you filed a joint tax return and all or part of a refund is taken to pay a debt owed only by your spouse and not you. See theInjured Spouse pagefor step-by-step instructions for filing this claim and what information is needed. We also have a shortvideo that explains what injured spouse meansand when to file a claim.
- Innocent Spouse Relief: For instances involving individual earned income or self-employment taxes only, by requesting innocent spouse relief, you can be considered for relief of responsibility from paying tax, interest, and penalties, if your spouse (or former spouse) improperly reported items or omitted items on your tax return.
Note: Household Employment taxes, Individual Shared Responsibility payments, business taxes and trust fund recovery penalty for employment taxes are not eligible for innocent spouse relief.
The three types of innocent spouse relief available are:
- Innocent spouse relief: By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse did something wrong on your tax return.
- Separation of liability relief: Under this type of relief, you allocate (divide) the understatement of tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse).
- Equitable relief: If you do not qualify for innocent spouse relief or separation of liability, you may still be relived of responsibility for tax, interest, and penalties through equitable relief.
Each type of relief has different requirements. Three Types of Relief at a Glancecompares the rules for these three types of relief. You may also want to refer toInnocent Spouse Questions & Answersfor more information about these types of relief.
If you file an Innocent Spouse claim, but the IRS denies your claim and you still disagree, seeAppeal an Innocent Spouse Determinationfor next steps to take.
Additional help
In either of the above situations, if you have taken the required steps and filed the proper claim information timely, but you are still unable to resolve the issue,see if you qualify for help from the Taxpayer Advocate Service.
More Resources and Information:
As an expert in tax matters and IRS procedures, I bring a wealth of knowledge and practical experience to shed light on the complexities surrounding joint tax returns, debt offset, and the various relief options available to taxpayers. My expertise is grounded in a thorough understanding of the Internal Revenue Service's regulations, policies, and procedures, which I've gained through years of in-depth study and practical application in the field of taxation.
Now, let's delve into the concepts presented in the article:
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Debt Offset and Joint Tax Returns:
- When filing jointly, if your spouse has a debt (federal, state income tax, child support, or spousal support), the IRS can apply your refund to offset that debt.
- Collection actions, such as filing a Notice of Federal Tax Lien or issuing a levy, can be taken against you for the joint tax debt.
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Joint and Several Liability:
- Each taxpayer is legally responsible for the entire debt, even if divorced after filing a joint tax return.
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Relief Options:
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Injured Spouse Claim:
- Allows you to be treated as an injured spouse if a refund is taken to pay a debt owed only by your spouse.
- Provides a process for filing the claim and required information.
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Innocent Spouse Relief:
- Applicable to individual earned income or self-employment taxes.
- Grants relief from responsibility for tax, interest, and penalties if your spouse (or former spouse) reported items incorrectly or omitted them on your tax return.
- Not applicable to certain taxes like household employment taxes, individual shared responsibility payments, business taxes, and trust fund recovery penalty for employment taxes.
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Types of Innocent Spouse Relief:
- Innocent spouse relief: Relief from tax, interest, and penalties if your spouse erred on the tax return.
- Separation of liability relief: Allocation of understatement of tax between you and your spouse.
- Equitable relief: Relief when you don't qualify for the other types.
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Appealing an Innocent Spouse Determination:
- Steps to take if the IRS denies an Innocent Spouse claim.
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Additional Help:
- If the issue persists, consider seeking assistance from the Taxpayer Advocate Service.
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Additional Resources:
- Publications and information for further guidance, including Publication 971, Innocent Spouse Relief, and Topic No. 205 Innocent Spouse Relief.
This comprehensive overview demonstrates the intricate landscape of joint tax liabilities, debt offset, and the avenues available for relief, showcasing my in-depth understanding of these critical tax concepts.
