Innocent Spouse Relief Attorneys
When a joint tax return creates a liability you did not know about and did not benefit from, Innocent Spouse Relief can remove your responsibility for the debt. The IRS recognizes three forms of relief under IRC Section 6015, each with different qualification rules.
Filing jointly creates joint and several liability: the IRS can collect the entire balance from either spouse, regardless of who earned the income or who signed the return. Innocent spouse relief is the statutory exception, and it is one of the most fact-intensive areas of tax representation.
The Three Types of Innocent Spouse Relief
Section 6015(b) Traditional Innocent Spouse Relief: applies when there is an understatement of tax due to your spouse's erroneous items, you did not know and had no reason to know about the understatement, and it would be inequitable to hold you liable. Must be requested within two years of the IRS beginning collection.
Section 6015(c) Separation of Liability: available to taxpayers who are divorced, legally separated, widowed, or have not lived together for the prior 12 months. Allocates the deficiency between spouses based on who is actually responsible for the items.
Section 6015(f) Equitable Relief: the broadest category, available when relief under (b) or (c) does not apply but it would be inequitable to hold the requesting spouse liable. Considers economic hardship, abuse, lack of significant benefit, and many other factors.
The Form 8857 Request Process
All three types of relief are requested on Form 8857, Request for Innocent Spouse Relief. The IRS will notify the non-requesting spouse and give them an opportunity to participate, which is one reason the process can be uncomfortable in contested divorces.
The IRS evaluates the request, often through the Cincinnati Centralized Innocent Spouse Operation, and issues a preliminary determination. Either spouse can appeal an unfavorable determination to the IRS Office of Appeals, and ultimately to U.S. Tax Court.
Factors That Strengthen a Relief Request
Lack of involvement in family finances, evidence of spousal abuse or financial control, no significant benefit from the unpaid tax, economic hardship if held liable, and divorce decrees assigning the liability to the other spouse all weigh in favor of relief.
Conversely, signing returns without review, benefiting from the income that created the liability, failing to question obvious red flags, and continuing to live with the responsible spouse can all weigh against relief. The case is built on contemporaneous facts, not on what you wish had happened.
Serving California Communities
Valley Tax Law represents clients throughout the Central Valley and Central Coast. Schedule a consultation at any of our offices, or by phone.
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