Get Relief from Joint Tax Debt With Your Spouse

Did you get a bill from the Internal Revenue Service (IRS) for taxes on your spouse’s income? Do you think it is unfair for you to pay these taxes? Depending on whether you knew about the taxes, whether you are married now, and some other factors, you may be an innocent spouse.

The Texas Taxpayer Assistance Project can help you apply for innocent spouse relief. We also may represent you if the IRS denies your request for relief.

What Is Innocent Spouse Relief?

Innocent spouse relief is relief from a joint tax debt. A joint tax debt is a debt that both you and your spouse owe. When you sign an income tax return with your spouse, you and your spouse agree to be responsible for any taxes listed on the tax return. This means that you may have to pay the whole tax debt, even if you did not earn any money that year, or the debt belongs to your spouse.

Even if you are divorced now, and the court said your ex-spouse has to pay the taxes, the IRS may expect you to pay those taxes.

If you qualify for innocent spouse relief, you may not have to pay all or part of any income tax that may be owed from filing a joint tax return.

Do I Qualify for Innocent Spouse Relief?

There are three ways to qualify for innocent spouse relief: (1) separation of liability; (2) pure innocent spouse relief; or (3) equitable relief.

1. Separation of Liability. You qualify for separation of liability if:

• You are divorced; or

• You lived apart from your spouse for at least 12 months before you file for innocent spouse relief; and

• The tax debt is from an understatement. An understatement of tax means you listed less tax on your tax return than you should have listed. For example, if your spouse was self-employed and did not report income or claimed untrue expenses, then there is an understatement of tax on the tax return.

You may ask the IRS to separate your tax debt from your spouse's tax debt, even if you filed a joint income tax return. If you had very little or no income, then you may not have a tax debt.

You do not qualify for separation of liability if:

• You paid the taxes; or

• You knew about the mistake when you signed the tax return ; or

• The tax debt was listed on the return.

2. Pure Innocent Spouse Relief. You qualify for pure innocent spouse relief if:

• You filed a joint income tax return on time; and

• There was less tax listed on the tax return than what should have been listed; and

• You did not know the tax was wrong when you signed the joint tax return; and

• It is unfair to make you pay the tax.

If you qualify, you may ask for a refund of taxes you already paid, and you may not have to pay the debt.

If you knew about the wrong amount of tax, but not everything about it, you may qualify for partial innocent spouse relief.

3. Equitable Relief

You qualify for equitable relief if it is unfair to make you pay the tax. You can request equitable relief if the tax debt is from an understatement or underpayment. This means you can request equitable relief when there was less tax listed on your return than what was actually owed, or when the tax was listed correctly but was not paid.

The IRS may decide that it is unfair to make you pay the tax if:

• You were abused by your spouse; or

• You are unable to pay your bills; or

• English is your second language; or

• You are divorced or lived apart from your spouse for 12 months; or

• Your spouse has more education than you; or

• Your divorce decree says your spouse must pay the tax debt; or

• The tax debt is owed only because of your spouse's income.

How Do I Request Innocent Spouse Relief?

Fill out Form 8857 and attach a statement explaining why you qualify. Put your name and Social Security number on the statement. If you request innocent spouse relief for more than one year, file one Form 8857, but for each year do a separate statement that explains why you qualify.

Do not file Form 8857 with your income tax return.

When Do I Request Innocent Spouse Relief?

You can file Form 8857 as soon as you know about the tax debt. You must file Form 8857 no later than two years from the first time the IRS tries to collect the tax debt.

You will know about the tax debt when:

• The IRS examines or audits your income tax return; or

• The IRS sends you a letter; or

• The IRS keeps your tax refund to pay the debt.

How Can I Get Help?

To find out if we can help, call toll-free 1-888-988-9996.

NOTE: This information cannot take the place of advice from an attorney. Each case is different and requires individual advice. You should contact an attorney if you need representation on a tax matter or if you have questions. Pursuant to Internal Revenue Service Circular 230, we are required to advise you that if there is any tax advice contained herein, it is not intended to be used, and cannot be used by the addressee or any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The Texas Taxpayer Assistance Project is funded in part by a grant from the Internal Revenue Service.

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