Filing Form 9061 for Innocent Spouse Relief

Filing a joint tax return creates a shared legal obligation for the entire tax liability, known as joint and several liability. This means the Internal Revenue Service (IRS) can collect the full amount from either spouse, regardless of who earned the income. When one spouse incorrectly reports income or claims improper deductions, creating a tax debt the other spouse was unaware of, the IRS provides relief. Form 8857, Request for Innocent Spouse Relief, is the application used to absolve an individual from tax liabilities, interest, and penalties from their spouse’s or former spouse’s errors.

Determining Eligibility for Relief

To qualify for relief, a taxpayer must meet several baseline conditions. The primary requirement is having filed a joint return with an understatement of tax due to erroneous items of the other spouse. These items include unreported income and incorrectly claimed deductions or credits. A request for relief must generally be filed within two years from the date the IRS first attempts to collect the tax from you, such as through a notice of intent to levy.

A filer must qualify for one of three specific types of relief. The first, Innocent Spouse Relief, requires demonstrating that at the time of signing the joint return, you did not know, and had no reason to know, that there was an understatement of tax. You must also establish that it would be unfair to hold you liable for the tax debt. The IRS evaluates your level of education, financial involvement, and any unusual or lavish expenditures to assess your knowledge.

A second option is Separation of Liability Relief, which allocates the understated tax between you and your spouse or former spouse. This relief is available only to individuals who are divorced, legally separated, or have lived apart from the other spouse for at least 12 months before filing the form. Under this provision, you are only responsible for the portion of the tax liability attributable to your own income and deductions. You cannot have had actual knowledge of the erroneous items when you signed the return.

The third path is Equitable Relief. It may be granted when a taxpayer does not qualify for the other two types of relief but it would still be inequitable to hold them responsible for the tax liability. The IRS considers many factors, including economic hardship, whether you received a significant benefit from the unpaid tax, and if you were a victim of spousal abuse or financial control. Unlike the other forms of relief, equitable relief can apply to an underpayment of tax, which is tax that was correctly reported but not paid.

Information and Documentation for Form 8857

The most current version of Form 8857 is available for download from the IRS website. Before filling out the form, you must gather personal and financial details for both yourself and your spouse or former spouse, including names, Social Security numbers, and current contact information. You will need to identify the specific tax years for which you are requesting relief.

You must be prepared to explain your financial situation and your level of involvement in the household finances when the return was filed. This includes describing who handled the bookkeeping, prepared the tax returns, and paid the bills. The form asks about your educational background and whether you suffered from any physical or mental health problems at the time of signing the return.

Compiling supporting documentation can substantially influence the outcome. If you are divorced or separated, a copy of the divorce decree or separation agreement is necessary. To support a claim of lacking knowledge, you might provide documents showing your spouse had exclusive control over the finances. Evidence of abuse or coercion, such as court records or statements from third parties, can support an equitable relief claim.

Filing Form 8857 and Next Steps

Once you have completed Form 8857 and attached all necessary supporting documents, it must be signed and dated. You should mail the completed package to the IRS address specified in the official Instructions for Form 8857. Some filers may also have the option to fax the form to the number provided in the instructions.

After submission, the IRS will begin its review process, which can take several months. The agency will contact your spouse or former spouse to inform them of your request and invite them to participate. The IRS may contact you for additional information, and will ultimately issue a preliminary determination letter to both spouses. If no one appeals, the decision becomes final.