If you’re facing tax issues stemming from a joint return, understanding Innocent Spouse Relief under I.R.C. §6015(c) might be crucial for your financial future. This provision allows you to limit your liability to only your income and deductions, but there are specific eligibility criteria you’ll need to meet. You’ll have to prove that you weren’t aware of any errors on the return and act quickly—within two years of IRS collection efforts. The process can seem daunting, but knowing what steps to take can make all the difference in securing a favorable outcome. So, what should you consider next?
Key Takeaways
- Separation of liability under I.R.C. §6015(c) limits tax responsibility to each spouse’s individual income and deductions.
- To qualify, spouses must have filed a joint return and request relief within two years of IRS collection actions.
- Claimants must prove lack of knowledge regarding the erroneous items on the joint return at the time of signing.
- Completing Form 8857 is essential to initiate the request for innocent spouse relief and gather necessary supporting documents.
- IRS evaluates claims based on the claimant’s knowledge of discrepancies and may require additional documentation to support the request.
Overview of Separation of Liability

When you find yourself in the challenging situation of joint tax liability, understanding the separation of liability, this process allows you to allocate tax responsibilities fairly between you and your spouse, especially if one partner caused a tax deficiency through erroneous items.
By invoking separation of liability under I.R.C. §6015(c), you can limit your tax liability to only your own income and deductions, as if you’d filed separately.
To qualify for this relief, both spouses must have filed a joint return. You’ll need to demonstrate that you were unaware of the items that led to the deficiency. This can help you avoid paying for your spouse’s mistakes.
It’s essential to maintain proper documentation and be prepared to prove your lack of knowledge about the discrepancies.You typically must request this relief within two years of the IRS initiating collection actions.
Understanding these rules can help you navigate this complex landscape and protect your financial future effectively.
Eligibility Criteria for Relief
To qualify for innocent spouse relief, you must meet specific eligibility criteria outlined in I.R.C. §6015. First, you need to have filed a joint return with your spouse.
If your return shows an understatement of tax due to your spouse’s erroneous items, you may be eligible that you didn’t know, and had no reason to know, about the understatement when you signed the return.
You also need to request relief within two years of the IRS starting any collection activities against you. If you’re no longer married or legally separated from your spouse, you can limit your liability for any deficiencies to the portion of the deficiency that’s attributable to your spouse. In addition, you should be able to prove that granting relief wouldn’t be unfair to the IRS.
Filing the Request
Filing your request for innocent spouse relief is a step in protecting yourself from unfair tax liabilities. To initiate the process, you’ll need to complete Form 8857, the Request for Innocent Spouse Relief. Make sure you provide all necessary details about your joint tax return and the specific tax liabilities you’re contesting.
Submit your request within two years of the IRS starting collection activities against you. Gather documentation that supports your claim, such as financial records, tax returns, and any correspondence with the IRS. Clearly explain why you believe you qualify for relief, focusing on your lack of knowledge about the tax understatement.
Once you file, the IRS will notify your ex-spouse, allowing them the opportunity to respond as it ensures both parties have a chance to present their sides. Keep copies of everything you submit and maintain thorough records of any communications with the IRS.Being proactive and organized can significantly enhance your chances of a favorable outcome
Evaluation Process
As you navigate the evaluation process for your innocent spouse relief request, understand how the IRS assesses your claim. The IRS looks at multiple factors, focusing primarily on your knowledge about any tax discrepancies on your joint return. If you can prove you didn’t know about the erroneous items, you’re in a better position for relief.
You’ll need to provide detailed information and any supporting documents that demonstrate your lack of knowledge. This might include financial records, correspondence with your spouse, or anything that shows you weren’t involved in the decisions leading to the tax issue.
The IRS will also consider the circumstances surrounding your marriage, such as any abuse or financial control that may have affected your awareness.
Be prepared for the possibility that the IRS may reach out for additional information or clarification, so keep your records organized and easily accessible. Remember, the burden of proof lies with you, so the more thorough your documentation, the stronger your case will be.
Stay proactive in your communication with the IRS to ensure timely processing of your request and to address any concerns they might raise.
Implications of Relief Decision

The outcome can significantly impact your tax liability, credit score, and overall financial health. Here are three key implications to consider:
- Reduced Tax Liability: If you qualify for innocent spouse relief, you may eliminate or reduce your tax debts tied to your spouse’s actions, giving you a fresh start financially.
- Protection from IRS Actions: Relief can shield you from aggressive IRS collection efforts, such as wage garnishments or bank levies, providing you peace of mind as you manage your finances.
- Impact on Credit: A successful relief claim can help maintain or improve your credit score since unpaid tax liabilities can negatively affect your credit history.
Conclusion
The key difference between Innocent Spouse Relief Part 1 – Innocent Spouse (6015(b)) and Innocent Spouse Relief Part 2 – Separation of Liability (6015(c)) lies in the circumstances and requirements for eligibility, as well as how relief is applied to the tax liability.
Separation of Liability Relief (6015(c))
This relief is available for divorced, legally separated, or living apart individuals and allows for the allocation of tax liability between spouses.
Innocent Spouse Relief under I.R.C. §6015(c) can be a lifeline if you find yourself unfairly liable for tax issues caused by your spouse. Remember, you need to prove you had no knowledge of the errors and act quickly within the two-year deadline. Gather your documentation, submit your request, and stay engaged during the evaluation process. If successful, this relief can significantly reduce your tax burden and protect your financial future.
I’m Peter Kici EA and when we speak to taxpayers who have unfortunately fallen into the IRS Collection Division and believe their hardship can be settled with a hardship letter and the IRS just goes away unfortunately that’s not how it works. These individuals are confronted with the prospect of dealing with federal tax issues imposed by the (IRS) and not having a clear understanding of what the rules are and what’s available to the taxpayer.
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