When couples file a joint tax return, they’re both responsible for the entire tax bill—even if only one spouse earned the income or made an error. This is called joint and several liability, and it can create serious problems for someone who didn’t know their spouse was hiding income or making false claims. That’s where Innocent Spouse Relief comes in. This IRS program is designed to protect people from unfair tax debt caused by their spouse’s actions.
What Is Innocent Spouse Relief?
Innocent Spouse Relief is a provision under the tax law (Internal Revenue Code § 6015) that lets a person ask the IRS to remove their responsibility for a tax debt if it wasn’t their fault. It’s meant to help people who were unaware of errors or wrongdoing on a joint tax return—or who were pressured into signing one under unfair circumstances.
Why Is This Important?
Imagine finding out you owe thousands of dollars in back taxes, penalties, and interest because your spouse left out income or claimed false deductions. Even if you didn’t know anything about it, the IRS can still come after you for the full amount—unless you qualify for relief. This program gives you a chance to explain your situation and request protection.
Three Types of Relief
There are three types of Innocent Spouse Relief, each with different rules:
- Traditional Relief (§ 6015(b)) – You may qualify if you filed a joint return, the error was your spouse’s, and you didn’t know (or couldn’t reasonably have known) about it. This is for cases where there’s an understatement of tax. For example, your spouse had gambling winnings that they did not report on the return and the IRS sent a letter notifying you of the omission. If the winnings belonged to them, you may have cause for relief.
- Separation of Liability (§ 6015(c)) – This option splits the tax debt between you and your ex-spouse (or soon-to-be ex). To qualify, you must be divorced, legally separated, widowed, or living apart for at least 12 months. For example: Maria and David were married and filed a joint tax return in 2021. In 2023, they got divorced. A few months later, Maria received a notice from the IRS saying they owed $15,000 in taxes due to unreported income—income that David had earned from a side business but didn’t report.
- Equitable Relief (§ 6015(f)) – If you don’t qualify for the first two, you might still get relief if it would be unfair to hold you responsible. For Example: Tina and Robert filed a joint tax return for 2019. Robert told Tina everything was fine and insisted she sign the return quickly. She later found out that he hadn’t paid the full amount owed—they underpaid by $6,000. After they separated in 2021, Tina started getting letters from the IRS trying to collect the debt. Robert refused to cooperate or help pay. Tina was working a low-income job and struggling to pay her rent and support her two kids.
Important Things to Know
- Time Limits Matter: You generally have two years from when the IRS tries to collect the debt to apply for traditional or separation relief. For equitable relief, the time limit depends on whether you’re seeking a refund or just relief from collection.
- Duress or Forgery: If you were forced to sign the return, or if your signature was forged, you might not even be considered to have filed jointly—meaning you could be off the hook entirely. But in these cases, Innocent Spouse Relief doesn’t apply because the return itself may not be valid.
- Refund Rules: You might be eligible for a refund of payments you made separately. However, if your spouse made the payments or they were joint, refunds usually aren’t allowed.
- Processing Times are Long: It has taken a couple of my clients years to sort through this with the IRS. Setting expectations is required. During the processing time, you will likely still receive notices from the IRS for any balances due and any refund you are entitled to may be used to satisfy the outstanding balance.
- Agreeing to pay the debt as part of your settlement will impact your ability to claim relief: If you agree to split the debt as part of your settlement agreement, the IRS will consider that when processing your application. It is unlikely that you will receive relief as you agreed to pay the debt.
How to Apply
To request relief, file IRS Form 8857 as soon as you find out about the problem. The IRS will contact your spouse or ex-spouse and let them respond—but they won’t be given your private information.
Be honest and thorough when you fill out the form. If abuse or financial control played a role in your situation, include any supporting documents that show how it affected you.
If You’re Denied Relief
If the IRS turns down your request, don’t panic. You have 90 days to file a petition with the U.S. Tax Court and ask a judge to review your case.
Wait—What’s Injured Spouse Relief?
Don’t confuse Innocent Spouse Relief with Injured Spouse Relief. Injured Spouse Relief is for situations where your tax refund was taken to pay a debt that only your spouse owed (like child support or student loans). If that’s your case, you’ll need to file Form 8379, not Form 8857.
Final Thoughts
Innocent Spouse Relief can be a lifesaver for people who are unfairly held responsible for tax debts they didn’t cause. Whether you’re divorced, dealing with an abusive relationship, or simply unaware of what was filed, the IRS provides a way to get help. We can help you navigate these waters at Divorce Strategies Group.