Does the joint return have an understatement of tax or an underpayment of tax?

Understatement or Underpayment

An understatement of tax is reporting that you owe less tax than actually should have been reported. There has to be some bona fide understatement of tax on the joint return that was filed. This amount must be real and determinable in amount. This amount must be attributable to some erroneous item or items on the return by the other spouse. Innocent oversights and harmless errors do not count.

Underpayment of tax - When you have an amount that is still owed for back taxes

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Innocent Spouse Relief Detailed Requirements

1. "Classic" Innocent Spouse Relief Requirements
   • -Classic type of relief available for an understatement of tax while filing a joint return. Click link for the detailed qualifications for "Classic" Innocent Spouse Relief.
2. Relief by Separation of Liability Requirements
   • -Under this form of relief the understatement of tax is allocated between you and your spouse or former spouse. Click link for detailed qualifications for Relief by Separation of Liability
3. Equitable Relief Requirements
   • -Relief is available for an understatement of tax as well as an underpayment of tax. This type of relief is used if someone does not qualify for the first two types of relief but it would be unfair to hold them liable for the tax amount owed. Click link for detailed qualifications for Equitable Relief Requirements.