There are five requirements the IRS assesses as part of granting innocent spouse relief:
1. Education Level – Does the innocent spouse possess the skill set, background, and/or experience to understand the jointly filed tax return?
2. Involvement in Financial Affairs – To what extent did the innocent spouse participate in financial decisions?
3. Large and LAvish Expenses – Did the innocent spouse make any extraordinaryily lavish purchases during the time frame in question?
4. Nonrequesting Spouse’s Evasion or Deceit – To what extent was deceit involved in preparing, signing and filing the joint tax returns in question?
5. Duty of Inquiry – Taking all factors into consideration, would the innocent spouse would have reason to know or a duty to inquire whether income was omitted or expenses overstated on a jointly filed return?
John R. Dundon, EA – 720-234-1177 – www.1040.com/jd – firstname.lastname@example.org – Enrolled with the United States Department of Treasury to Practice before the IRS – Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent – I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.