A tax rule that allows an eligible person to avoid paying their spouse's tax bill in the event of error or fraud. This rule is meant to protect people from evasive or dishonest financial behavior by their spouse, for example in divorce cases. The "innocent spouse" must prove through documentation that they did not themselves know about the tax issue, incur the tax bill, or otherwise benefit from the failure to pay. The application must be made using Form 8857 less than two years after the IRS begins its collection process.
Related information about innocent-spouse rule:
- Innocent-Spouse Rule Definition | Investopedia
The innocent-spouse rule applies to a spouse that can prove that he or she did not incur the tax bill and did not somehow benefit from the failure to pay.
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The one described on this page is the innocent spouse rule. Requirements for Relief You're eligible for relief if you meet the following conditions, which are ...
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Section 434(c)(1) of the Internal Revenue Code protects an “innocent spouse” from tax liability if certain conditions are met.
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