Innocent Spouse Relief

When married couples file a joint return, both spouses are generally jointly and severally liable for any tax, interest and penalties—even if they later divorce or one spouse earned all the income. Innocent spouse relief permits a spouse to be relieved of liability for tax that was understated because of errors made by the other spouse, provided several conditions are met. Relief applies only to taxes owed on the other spouse’s employment or self‑employment income, not to the requesting spouse’s own income, household employment taxes, individual shared responsibility payments, business taxes or trust fund recovery penalties.

A spouse may request relief if they filed a joint return, the tax was understated due to errors such as unreported income or incorrect deductions, they had no knowledge of the errors, and they live in a community‑property state. Even after divorce, a spouse remains jointly liable unless relief is granted. You cannot obtain relief if you previously signed an offer in compromise or closing agreement covering the same tax, if a court denied relief or if you did not request relief during a related court proceeding.

The IRS automatically considers two additional forms of relief when you apply: separation of liability relief, which allows divorced or separated spouses to pay only their share of an understated tax, and equitable relief, which may apply when it would be unfair to hold you responsible based on all facts and circumstances. You are not eligible if you had actual knowledge or a reasonable person would have known about the understatement. However, an exception applies to victims of domestic abuse; if you signed the return under duress or feared your spouse, you may still qualify.

Requests for innocent spouse relief must be filed within two years of receiving an IRS notice of an audit or tax due. File Form 8857 to request relief; the same form covers all three types of spouse relief. After receiving a request, the IRS will contact the other spouse and review the facts. Both parties have the right to appeal the determination within 30 days. While the request is pending, taxpayers should continue to file returns and pay their own taxes. Consult Publication 971 for detailed guidance and seek professional assistance if needed.