The 1998 tax law broadened the definition of "Innocent Spouse
Relief" so that relief from federal tax liability is now more available
for those spouses who filed jointly, yet the circumstances demonstrate
that it would be unfair to hold both spouses equally responsible for the
joint liability. In many of these cases, a spouse is relieved of responsibility
for tax, interest, and penalties on a joint tax return. This is called
innocent spouse relief.
Form 8857, Request
for Innocent Spouse Relief, must be filed in order to request relief.
Many married taxpayers choose to file a joint tax return because
of certain benefits this filing status allows. Both taxpayers are jointly
and individually responsible for the tax and any interest or penalty due
on the joint return even if they later divorce. This is true even if a
divorce decree states that a former spouse will be responsible for any
amounts due on previously filed joint returns. One spouse may be held responsible
for all the tax due even if all the income was earned by the other spouse.
You must meet all of the following conditions to qualify for innocent
spouse relief.
- You filed a joint return which has a substantial understatement
of tax directly related to grossly erroneous items of your spouse. Grossly
erroneous items are both of the following:
- Unreported income. This is any gross income item received by your
spouse that is not reported.
- Incorrect deduction, credit or basis. These are any deductions,
credits or property bases claimed by your spouse for which there is no
basis in fact or
- You establish that at the time you signed the joint return you did
not know, and had no reason to know, that there was a substantial understatement.
- Taking into account all the facts and circumstances, it would be
unfair to hold you liable for understatement of tax.
The law does not provide relief for an unpaid balance due shown on
a return.
Publication 971, Innocent
Spouse Relief, provides additional information which may be helpful.
Publications and forms may be downloaded
from this site or ordered by calling 1-800-829-3676.
Tax Topics & FAQs | 1998 Tax Year Archives | Tax Help Archives | Home
