What Is the 8857 Form and How to Request Innocent Spouse Relief?

Tax issues can become especially complicated when one spouse is unaware of errors or omissions on a jointly filed return. If the IRS holds both spouses liable for unpaid taxes, penalties, or interest, even if only one was responsible, relief may be available through Form 8857.

This form allows taxpayers to request Innocent Spouse Relief, which could remove their responsibility for tax debts resulting from a spouse’s actions. Understanding how to properly file this request and what information is required can improve the chances of approval.

Criteria for Innocent Spouse Relief

To qualify, a taxpayer must show they had no knowledge of the tax understatement and that holding them liable would be unfair. The IRS examines factors such as the nature of the erroneous items, the financial and personal circumstances of the requesting spouse, and whether a reasonable person in their position would have noticed the issue.

A key factor is whether the understatement resulted from unreported income or improper deductions, credits, or basis claims made by the other spouse. If the error stems from fraudulent activity—such as falsified business expenses or concealed earnings—the IRS is more likely to grant relief. The requesting spouse must also show they did not significantly benefit from the understatement, meaning they did not receive luxury purchases, large cash transfers, or other financial advantages that suggest awareness of the tax discrepancy.

The IRS also considers whether the requesting spouse had control over household finances. If they had limited access to financial records or were misled about tax matters, this strengthens their case. Domestic abuse or financial manipulation can also support a claim, as they may have prevented the spouse from questioning or understanding tax return details.

Submission Process

Form 8857 must be submitted within two years of the IRS’s first attempt to collect the tax, which may include notices, levies, or offsets. If filed late, eligibility may be denied unless an exception applies, such as cases involving domestic abuse that prevented timely filing.

The form must be mailed or faxed to the IRS, as electronic submissions are not accepted. Sending it via certified mail with a return receipt provides proof of submission.

After submission, the IRS may take several months to review the request and may contact the taxpayer for additional information. If the requesting spouse is still married to or living with the other spouse, the IRS must notify them of the request. While this does not give the non-requesting spouse control over the outcome, they have the right to provide their own statement or evidence.

Details Needed on Form 8857

The IRS requires detailed information to assess whether the applicant qualifies for Innocent Spouse Relief. Providing accurate and thorough responses can strengthen the request and reduce the likelihood of delays or additional inquiries.

Personal Information

The form requests the taxpayer’s full name, Social Security number, current address, and contact information. If the applicant has changed their name due to marriage or divorce, they must include any previous names used on tax returns. The form also asks for the name and Social Security number of the spouse or former spouse responsible for the tax understatement.

The IRS requires details about marital status at the time of filing and the current relationship with the other spouse. If divorced or legally separated, the applicant must provide the date of legal action. This helps determine whether they qualify for other forms of relief, such as Separation of Liability Relief, which applies to divorced or legally separated individuals. If still married and living with their spouse, the IRS may scrutinize the request more closely to assess whether they had knowledge of the tax issue.

Financial Data

The IRS evaluates the requesting spouse’s financial situation to determine whether holding them liable would create an undue hardship. Form 8857 requires details about income sources, including wages, self-employment earnings, rental income, dividends, and government benefits. The applicant must also disclose total assets, such as bank accounts, retirement funds, real estate, and vehicles, as well as outstanding debts like mortgages, credit card balances, and student loans.

A key factor is whether the requesting spouse significantly benefited from the understated tax. If they received financial advantages—such as luxury purchases, vacations, or large cash transfers—the IRS may argue they were aware of or complicit in the understatement. The form asks whether the applicant’s standard of living changed significantly during the years in question, which can indicate whether they unknowingly benefited from unreported income. Supporting documents, such as bank statements, pay stubs, and expense records, can help substantiate claims of financial hardship or lack of benefit.

Explanation of Circumstances

The most important section of Form 8857 requires the applicant to explain why they should not be held responsible for the tax debt. The IRS looks for details about the couple’s financial arrangement, the applicant’s involvement in tax preparation, and any factors that prevented them from knowing about the understatement. The explanation should address whether the applicant reviewed the tax return before signing it and, if not, why they relied on their spouse’s representations.

If the requesting spouse had limited access to financial records or was misled about tax matters, they should describe how their spouse controlled financial decisions. In cases involving domestic abuse or financial manipulation, the applicant should explain how these circumstances prevented them from questioning or understanding the tax return. The IRS considers abuse a valid reason for granting relief, particularly if the applicant feared retaliation for inquiring about financial matters.

Providing a clear and detailed narrative, supported by documentation such as emails, text messages, or affidavits from third parties, can strengthen the request. The IRS may also consider whether the applicant took steps to correct the issue once they became aware of it, such as filing an amended return or seeking professional tax advice.

Supporting Records

A well-documented request strengthens the case for Innocent Spouse Relief. One of the most useful types of documentation is proof of financial independence or lack of involvement in tax-related matters. Bank statements, canceled checks, and payroll records can demonstrate whether the requesting spouse had access to joint accounts or was financially dependent on the other spouse. If the household finances were managed exclusively by the other spouse, statements from financial institutions showing limited or no account access can be persuasive.

Legal documents, such as prenuptial agreements, divorce decrees, or separation agreements, are also valuable. These can establish financial arrangements between spouses, particularly if they clarify who was responsible for tax matters. If a divorce settlement explicitly assigns tax liabilities to one party, this can support the case that the requesting spouse should not be held responsible. Additionally, court records related to financial disputes, restraining orders, or cases involving coercion may be relevant if the applicant argues that they were pressured or misled about tax filings.

In cases where the requesting spouse had limited financial literacy or was misled about tax obligations, correspondence with tax preparers or financial advisors can serve as evidence. Emails, signed engagement letters, or tax organizer forms showing that only one spouse communicated with the tax professional may support the argument that the applicant had no role in preparing or reviewing the return. If a third party prepared the return and the requesting spouse was not consulted, a statement from the tax preparer explaining the extent of their interaction with each spouse may be useful.

Possible Decisions by the IRS

Once the IRS reviews Form 8857 and the supporting documentation, they will issue a decision. The agency may grant full relief, meaning the requesting spouse is completely removed from responsibility for the tax liability, including penalties and interest. This is more likely when the evidence clearly demonstrates that the applicant had no knowledge of the understatement and did not benefit from it. If approved, the IRS will adjust the taxpayer’s account, and any liens or collection actions related to the liability will be lifted.

In some cases, the IRS may grant partial relief. This occurs when the agency determines that the requesting spouse was unaware of only a portion of the understatement or that they received some benefit from the unreported income. For example, if the understatement resulted from both concealed earnings and improper deductions, but the applicant only had knowledge of the deductions, they may still be held liable for that portion of the tax debt. The IRS will calculate the adjusted amount and notify the taxpayer of their remaining obligation.

If the request is denied entirely, the applicant has the right to appeal through the IRS Independent Office of Appeals or, in some cases, petition the U.S. Tax Court.