Form 8857: Innocent Spouse Relief – Definition, Filing Process, and Qualifications
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Summary:
Form 8857, known as the “Request for Innocent Spouse Relief,” is an IRS tax form designed for individuals seeking relief from a tax liability associated with a spouse or former spouse. This article explores the purpose and application of Form 8857, explaining who can file it and how to navigate the process. If you’ve ever faced an unexpected tax obligation due to your spouse’s actions, understanding innocent spouse relief can be crucial. We’ll cover the essentials, the steps to file, and key takeaways to help you make informed financial decisions.
What is form 8857: request for innocent spouse relief?
Form 8857: Request for Innocent Spouse Relief is a crucial Internal Revenue Service (IRS) document that individuals can utilize to request relief from a tax liability involving a spouse or former spouse. In typical joint tax return situations, both spouses share joint and several liability for any tax obligations. This means that even if you have divorced, you may still be held responsible for additional taxes stemming from unreported income or erroneous deductions or credits.
Divorce does not absolve you of this liability. Even if your divorce decree specifies that only one party is responsible for a particular tax, the IRS may still consider both parties liable. When there’s a balance due, a spouse or ex-spouse usually needs to file Form 8857 within a specific time frame set by the IRS, generally 10 years from the date when the tax liability was assessed. In the case of a credit or refund request, the taxpayer typically has to file within three years after the original return was filed or within two years after the tax was paid, depending on which date is later.
Who can file form 8857: request for innocent spouse relief?
Anyone who becomes aware of a tax liability for which their spouse or former spouse should be solely responsible can file Form 8857. However, it’s important to note that filing this form does not guarantee that the requesting taxpayer will qualify for relief. Some of the qualifying conditions include:
- Filing a joint return with an understatement of tax.
- Tax due to a spouse’s erroneously listed income or deductions.
- The determination that it is unfair to hold the requesting taxpayer liable for the understatement.
If a taxpayer’s request is denied, there is an option to appeal the decision.
How to file form 8857: request for innocent spouse relief
If you need to request innocent spouse relief, there are several steps you should follow:
First, file Form 8857 as soon as you become aware of the tax liability that your spouse or former spouse should be solely responsible for. In many cases, the IRS will send a notification regarding this tax obligation.
Since July 25, 2011, the IRS has extended the period for requesting equitable relief. Nevertheless, it’s advisable to submit Form 8857 promptly when you become aware of the issue, even if you don’t have all the required documentation immediately available. Once you’ve requested relief using Form 8857, the IRS will notify your spouse or ex-spouse about the pending request. Be prepared for a processing time of up to six months before receiving a determination from the IRS.
You have the option to mail or fax your completed Form 8857 to the IRS.
Frequently asked questions
What is the purpose of Form 8857: Request for Innocent Spouse Relief?
Form 8857 serves as a means for individuals to request relief from tax liability associated with a spouse or former spouse. It is used when the requesting taxpayer believes that they should not be held responsible for a particular tax obligation.
How long do I have to file Form 8857?
If you have a balance due, you generally have ten years from the date when the tax liability was assessed to file Form 8857. In the case of a credit or refund request, you typically have to file within three years after the original return was filed or within two years after the tax was paid, depending on which date is later.
What are the qualifications for innocent spouse relief?
To qualify for innocent spouse relief, you must meet certain criteria, including:
- Filing a joint return with an understatement of tax.
- The tax is due to a spouse’s erroneously listed income or deductions.
- A determination that it is unfair to hold the requesting taxpayer liable for the understatement.
What happens if my request for innocent spouse relief is denied?
If the IRS denies your request for innocent spouse relief, you have the option to appeal the decision. The appeals process allows you to present your case and provide additional information to support your request.
Can I download Form 8857 online?
Yes, you can download Form 8857: Request for Innocent Spouse Relief from the official IRS website. It is available in a printable format for your convenience.
Key takeaways
- Form 8857, or the “Request for Innocent Spouse Relief,” allows individuals to seek relief from tax liability tied to a spouse or former spouse.
- To file Form 8857, do so as soon as you’re aware of a tax liability that your spouse or former spouse should be solely responsible for.
- Qualifications for innocent spouse relief include situations involving an understatement of tax on a joint return or when it’s considered unfair to hold the requesting taxpayer liable.
- If your request is denied, you have the option to appeal the decision.
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