​Innocent Spouse Relief is a provision by the IRS that protects taxpayers from being held responsible for tax debts caused by their spouse or ex-spouse. If your spouse or former spouse’s actions, such as underreporting income or incorrect filings, created the tax liability and you had no knowledge or involvement, you can file IRS Form 8857 to request relief. This could result in the removal of the tax debt and penalties tied to your account.

 

Who Qualifies for Innocent Spouse Relief?

 

You may qualify for Innocent Spouse Relief if:

 

1. You filed a joint tax return with your current or former spouse.

2. Your spouse reported income incorrectly or omitted income entirely on the joint return.

3. You can prove that when you signed the joint return, you were unaware of the errors or misreporting.

 

If these conditions apply, the IRS may deem it unfair to hold you accountable for the unpaid taxes and grant you relief.

 

Types of Innocent Spouse Relief

 

There are three main types of relief under this program:

 

1. Innocent Spouse Relief: 

   • ​​This traditional form excuses you entirely from tax, interest, and penalties if your spouse made mistakes on the tax return without your knowledge or involvement.  

2. Relief by Separation of Liability:

   • ​In this scenario, you receive partial relief by dividing the tax liability, including interest and penalties, between you and your spouse based on who is responsible for the errors on the joint return.

3. Equitable Relief:  

   • If you don’t qualify for the first two types, you may still be eligible for equitable relief. The IRS may grant this if it determines that holding you solely responsible for the tax liability would be unfair. This type of relief often involves special circumstances, such as economic hardship or situations involving abuse.

 

Should You Include a Letter with Form 8857?

 

Yes, you can include a letter along with Form 8857 to provide additional details or context for your case. Supporting documents or explanations can help the IRS better understand why you should qualify for relief.

 

When Should You File Form 8857?

 

It’s best to file Form 8857 as soon as you discover a tax liability tied to your spouse’s actions. You might learn about this liability through an IRS notice or during an audit that proposes changes to your tax return. Filing promptly ensures the IRS can process your request without delay.