Page 42 - Escape Your IRS Nightmare Flip Book

under duress. Once that determination has been made by the IRS, then can consider the joint status

invalid.

Finally, I want to point out that the innocent spouse claim is different from an injured spouse claim
because an innocent spouse claim is requesting forgiveness of responsibility for the money owed,
whereas an injured spouse is requesting a refund of funds withheld by the IRS or applied to a spouse’s

tax liability.

Equitable Relief
Equitable Relief will be granted where the requesting spouse meets the general requirements for
Innocent Spouse Relief but does not fulfill all the required conditions for relief. If you fall into this

category and you have a unique situation to explain to the IRS that explains why it would be wrong to
hold you responsible for the taxes due, you should look into filing for Equitable Relief. Under Equitable
Relief the IRS can forgive taxes by considering all of the facts and circumstances surrounding the

creation, reporting, or failure to pay taxes due.

Some items the IRS considers in equitable relief include:

1. Marital Status
2. Economic Hardship

3. Knowledge or Reason to Know
4. Legal Obligation
5. Significant Benefit

6. Good Faith Effort to Comply with Tax Law
7. Mental or Physical Health

8. Spousal Abuse

Or any other relevant factor in making a decision.

Be advised that if the IRS determines you received a significant financial benefit from the failure to pay
the taxes, they may deny your request. For example, if they find evidence that you enjoyed a lavish

lifestyle because the taxes were not paid, they may not grant equitable relief.

The IRS will consider all of the facts and circumstances surrounding the period of time when the taxes

were to be filed and paid, but were not. Their evaluation will allow the IRS to determine whether it
would be unfair to hold you responsible for the taxes due.

Some factors that are typically considered in this evaluation include:

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