Many married taxpayers choose to file a joint tax return because of the benefits it offers. - Filing jointly means that both taxpayers are jointly and severally liable for the tax, as well as any penalties or interest that may arise. - Even if the taxpayers later divorce, they are still responsible for the entire liability on the joint return. - This responsibility applies to both spouses, regardless of who earned the income or claimed deductions or credits. - Even if a divorce decree states that one spouse will be responsible for past amounts due on joint returns, both spouses are still held liable. - However, there are three types of relief available for spouses who want to be relieved of joint and several liability. - Innocent spouse relief provides relief from additional tax if your spouse failed to report income or claimed improper deductions. - Separation of liability relief allows for the separate allocation of additional tax between you and your former or current spouse. - Equitable relief may be granted if you don't qualify for the other two types of relief and the tax issue is attributable to your spouse. - The request for relief must be made within specific timeframes, with innocent spouse and separation of liability relief needing to be requested within two years after the IRS first attempts to collect the tax. - For equitable relief, it must be requested during the time period when the IRS can collect the tax. - If you're seeking a refund, you must request it within the statute of limitations, which is generally three years after the date the return is filed or two years after the tax is paid. - To qualify for innocent spouse relief, you must have filed a joint return with an understatement of tax solely attributable to your spouse's errors. - At the time of signing...
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Video instructions and help with filling out and completing Form 843 Liability
