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Equitable Relief

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					Equitable Relief
Equitable relief is normally the final method of relief that is
considered under innocent spouse relief. This type of relief is available
if you do not qualify for "classic" innocent spouse relief or relief by
separation of liability. Under this type of relief, you may be relieved
of your responsibility to pay taxes owed, interest, and penalties. This
was the last method of innocent spouse created because the IRS realized
that there are some instances where a spouse still should not be held
liable for the tax amounts owed even if they don't qualify for "classic"
innocent spouse relief or relief by separation of liability.
This is the only form of innocent spouse relief where you can receive
relief from an understatement of tax or an underpayment of tax. It is
considered an understatement of tax if you reported less taxable income
than you should have reported. It is considered an underpayment of tax if
you filled out your return properly but have not paid the entire amount
owed. There are 7 conditions you must meet in order to qualify for
equitable relief.

You do not qualify for innocent spouse relief or relief by separation of
liability
You did not transfer property or assets with your spouse for the purpose
of committing a fraudulent scheme.
You did not transfer property or assets for the purpose of avoiding
paying tax.
You did not fail to file your return for the purpose of committing fraud.
You did not pay the tax owed
You must be able to prove that it would be unfair to hold you responsible
for the understatement or the underpayment of tax. This is where the IRS
uses it's own interpretation. They consider many things such as if you
are divorced, if you would suffer economic hardship, if you had a legal
obligation to pay the tax under the divorce agreement, if you received
significant benefit from the unpaid item, if you made an effort to follow
federal tax laws, if you had any reason to know that the tax amount would
not be paid, and they can consider other factors they may see that are
relevant.
The tax liability that you are seeking relief for, is the fault of your
spouse or former spouse.
Equitable relief is the more open ended type of relief offered and the
IRS considers the relief based on individual circumstances. There isn't
necessarily a set formula to determine if you will qualify, a lot of the
qualifications are up to the interpretation of the IRS, especially
qualification number 6. Before filing for this type of relief it is
important that you understand the qualifications and you must be able to
prove each one.
To apply for this type of relief, you must file form 8857 (request for
innocent spouse relief), form 12510 (questionnaire for requesting
spouse), and you should also send a letter with it to stress and clarify
why you qualify.
Visit InnocentSpouseRelief.com for more detailed information: Equitable
Relief Information.
If you need help applying for Innocent Spouse Relief (Equitable Relief or
Separation of Liability) you can connect with a specialist to help you
here: Spouse Relief Consultation
InnocentSpouseRelief.com is a website that specializes in providing all
information on Innocent Spouse Relief, Equitable Relief and Separation of
Liability, as well as providing connections with tax specialists. Find
all necessary forms and answers to common FAQ.

				
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