Collection Process-Innocent Spouse Relief
Normally, both you and your spouse are responsible, jointly and individually for any liability you incur from a tax return filed Married Filing Jointly. In some instances one spouse may be relieved of that liability by filing an Innocent Spouse Claim on Form 8857. You must file this form within 2 years after the first date the IRS attempted to collect the tax. (after 7/22/98)
You must meet the following conditions to qualify for innocent spouse relief.
- You filed a joint return which has an understatement of tax due to erroneous items of your former spouse
- You can establish that at the time you signed the return you did not know, and had no reason to know, that there was an understatement of tax. Meaning it was something “a reasonable person in similar circumstances would not have known.”
- Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.
- A request will not be granted if it can be proven that you or your spouse transferred property to one another as a part of a scheme to defraud the IRS.
- You must not have benefited in any way beyond normal support from this underreported tax.
They will look at a variety of items and if the situation meets their criteria relief from the taxes may be given. This process can be lengthy and confusing. If you need IRS help, a tax consultant would be able to help you through the process.