How long does the innocent spouse have to apply for relief under the innocent spouse rule?

The correct timeframe for an innocent spouse to apply for relief under the innocent spouse rule is two years after collection activities have begun. This provision is designed to protect an individual who was unaware of errors or fraudulent activity in a jointly filed tax return that might result in additional tax liabilities. The two-year period starts when the IRS initiates collection activities against the innocent spouse.

This timeframe is established under U.S. tax law, where the IRS allows the innocent spouse to claim relief from liability if they meet certain conditions, such as not knowing about the understatement of tax when they signed the return. The emphasis of the two-year limit is to ensure that claims for relief are managed in a timely manner, allowing the IRS to maintain efficient tax administration and collection processes.

The other options do not align with the established regulations regarding the innocent spouse rule or their timeframes for relief. References to one year after tax filing, three years from the date of marriage, or five years after divorce finalization do not accurately reflect the terms under which the innocent spouse can seek relief.