What innocent spouse relief means
Spouses who file a joint federal tax return are generally responsible together and individually for the full liability. Innocent spouse relief is the common name for federal procedures that can relieve a requesting spouse from some or all of that responsibility when the statutory and administrative requirements are met.
The term is often used broadly. Form 8857 allows the IRS to consider innocent spouse relief for an understatement, separation of liability, equitable relief for an understated or unpaid tax, and certain relief involving community income.
How it is requested
The requesting spouse files Form 8857 or an equivalent signed statement containing the required information. The form identifies the tax years, spouse or former spouse, return facts, financial circumstances, knowledge, property transfers, and any abuse or financial control relevant to the request.
The IRS—not WhatDoIFile—decides eligibility after reviewing all facts and circumstances. A person does not need to determine the exact relief category before filing the form.
Innocent spouse versus injured spouse
Innocent spouse relief addresses responsibility for tax, interest, and penalties. Injured spouse relief uses Form 8379 to recover a requesting spouse’s share of a joint refund that was applied to a separate debt owed only by the other spouse. The two procedures can involve the same couple but solve different problems.
Deadlines vary
Innocent spouse relief and separation of liability generally have a two-year deadline tied to the first IRS collection activity. Equitable relief follows different collection and refund limitation periods. Relief for community income has another rule. A notice of deficiency, CDP notice, or Tax Court case can create a separate deadline that Form 8857 does not extend.
Spouse participation and privacy
The IRS must notify the nonrequesting spouse and allow participation. Form 8857 says the IRS will not disclose the requesting spouse’s current name, address, phone numbers, or employer, but other material information may be shared during the process. Tax Court proceedings have separate privacy rules.
Effect on collection
A processable request generally restricts collection from the requesting spouse for the covered tax years while the request and applicable court review are pending. Interest and penalties continue. The collection period is generally suspended and can be extended after the case ends. Collection can continue against the nonrequesting spouse.
Example
Two spouses file a joint return. The IRS later determines that one spouse omitted business income. The other spouse files Form 8857, explains their lack of access to the business records and finances, and provides supporting evidence. The IRS considers all available forms of spouse relief and contacts the other spouse before issuing a determination. The filing does not guarantee relief.