Free IRS 8857 Form in PDF

Free IRS 8857 Form in PDF

The IRS 8857 form is a request for relief from joint tax liabilities under the innocent spouse relief provisions. It allows individuals to seek exemption from the tax problems of their spouse or former spouse when filing a joint return. If you believe you qualify for this exemption, don't hesitate to take action and click the button below to fill out your form today.

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Many taxpayers find themselves in challenging positions when they discover tax liabilities that were unknown to them, often due to the actions or inactions of their spouse. In situations where fairness dictates that one should not bear the full burden of a joint tax liability, the Internal Revenue Service (IRS) provides a potential solution through Form 8857, Request for Innocent Spouse Relief. This form is a lifeline for those seeking relief from taxes, interest, and penalties stemming from a joint tax return. The intricacies of Form 8857 are vast, requiring applicants to navigate through eligibility criteria, the process of submitting a request, and understanding the types of relief available. Moreover, the impact of submitting this form can extend far beyond the immediate financial reprieve, potentially affecting one's future tax obligations and personal relationships. The form is not just a paperwork exercise; it is a critical tool for asserting rights and seeking justice within the framework of the U.S. tax system. As such, understanding the major aspects of Form 8857 is crucial for those who believe they should not be held responsible for their spouse's tax liabilities.

Preview - IRS 8857 Form

Form 8857

(Rev. June 2021)

Department of the Treasury

Internal Revenue Service (99)

Request for Innocent Spouse Relief

Go to www.irs.gov/Form8857 for instructions and the latest information.

OMB No. 1545-1596

IMPORTANT THINGS YOU SHOULD KNOW

Do not file this form with your tax return. See Where To File in the instructions.

See the instructions for this form and Pub. 971, Innocent Spouse Relief, for help in completing this form and for a description of the factors the IRS takes into account in deciding whether to grant innocent spouse relief. The Form 8857 instructions and Pub. 971 are available at www.irs.gov.

Attach the complete copy of any document requested or that you otherwise believe will support your request for relief.

The IRS is required by law to notify the person listed on line 6 that you have requested this relief. That person will have the opportunity to participate in the process by completing a questionnaire about the tax years you enter on line 3 (the years for which you want innocent spouse relief).

The IRS will not disclose the following information: your current name, address, phone numbers, or employer(s).

Note: If you petition the Tax Court to review your request for relief, the Tax Court may only be allowed to consider information you or the person on line 6 provided us before we made our final determination, additional information we included in our administrative file about your request for relief, and any information that is newly discovered or previously unavailable. Therefore, it is important that you provide us with all information you want us or the Tax Court to consider.

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

Part I Should you file this form?

Generally, both taxpayers who file a joint return are responsible, jointly and individually, for paying any tax, interest, or penalties from your joint return. If you believe the person with whom you filed a joint return should be solely responsible for an erroneous item or an underpayment of tax from your joint tax return, you may be eligible for innocent spouse relief.

Innocent spouse relief may also be available if you were a resident of a community property state (see list of community property states in the instructions) and did not file a joint federal income tax return and you believe you should not be held responsible for the tax attributable to an item of community income.

1 Do either of the paragraphs above describe your situation?

Yes. You can file this Form 8857. Go to line 2.

No. Do not file this Form 8857, but go to line 2 to see if you can file a different form.

2Did the IRS take your share of a joint refund from any tax year to pay any of the following past-due debt(s) owed ONLY by the person listed on line 6?

• Child support

• Spousal support

• Student loan (or other federal nontax debt)

• Federal or state taxes

Yes. You may be able to get back your share of the refund. See Form 8379, Injured Spouse Allocation, and its instructions. Go to line 3 if you answered “Yes” to line 1.

No. Go to line 3 if you answered “Yes” to line 1. If you answered “No” to line 1, do not file this form.

3If you determine you should file this form, enter each tax year you want innocent spouse relief. It is important to enter the correct year. For example, if the IRS used your 2020 income tax refund to pay a 2018 joint tax liability, enter tax year 2018, not tax year 2020.

Tax Year

 

Tax Year

 

Tax Year

Tax Year

 

Tax Year

 

Tax Year

Part II Tell us about yourself and the person listed on line 6 for the tax years you want relief.

4Is English your primary or preferred language? Yes.

No. If “No,” what is your primary or preferred language?

5 Your current name (see instructions)

Your social security number

Address where you wish to be contacted. Check here if you want the IRS to send all mail for you, including legal notices, to this address (see instructions): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

Number and street or P.O. box

 

Apt. no.

County

 

 

 

 

 

 

City, town or post office, state, and ZIP code. If a foreign address, see instructions.

Best or safest daytime phone

 

 

 

number (between 6 a.m. and

 

 

 

5 p.m. Eastern time)

 

 

 

 

 

 

 

 

Check here if you consent to

 

 

 

the IRS leaving a voicemail

 

 

 

message at this number

 

 

 

 

 

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Cat. No. 24647V

 

Form 8857 (Rev. 6-

2021)

Form 8857 (Rev. 6-2021)

Page 2

Your current name

Your social security number

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

6Who was your spouse for the tax years you want relief? File a separate Form 8857 for tax years involving different spouses or former spouses.

That person’s current name

Social security number (if known)

Current home address (number and street) (if known). If a P.O. box, see instructions.

Apt. no.

City, town or post office, state, and ZIP code. If a foreign address, see instructions.

Daytime phone number (between 6 a.m. and 5 p.m. Eastern time)

7 What is the current marital status between you and the person on line 6?

Married and still living together

Married and living apart since

 

MM/DD/YYYY

 

Widowed since

 

Attach a photocopy of the death certificate and will (if one exists).

 

MM/DD/YYYY

Legally separated since

 

Attach a photocopy of your entire separation agreement.

 

MM/DD/YYYY

Divorced since

 

Attach a photocopy of your entire divorce decree.

 

MM/DD/YYYY

Note: A divorce decree stating that your former spouse must pay all taxes does not necessarily mean you qualify for relief.

8What was the highest level of education you had completed when the return or returns were filed? If the answers are not the same for all tax years, explain below.

Did not complete high school

High school diploma or equivalent

Some college

College degree or higher. List any degrees you have

List any college-level business or tax-related courses you completed Explain

9When any of the returns listed on line 3 were filed, did you have a mental or physical health problem or do you have a mental or physical health problem now? If the answers are not the same for all tax years, explain below.

Yes. Attach a statement to explain the problem and when it started. Provide photocopies of any documentation, such as medical bills or a doctor’s report or letter.

No. Explain

10 Is there any information you are afraid to provide on this form, but are willing to discuss?

Yes

No

Part III Tell us if and how you were involved with finances and preparing returns for the tax years you want relief.

11Did you intend to file a joint return for the tax year(s) listed on line 3? See instructions. Explain why or why not

Yes

No

Form 8857 (Rev. 6-2021)

Form 8857 (Rev. 6-2021)

Page 3

Your current name

Your social security number

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

12Describe your involvement in preparing the returns. Include details such as whether you prepared or assisted in the preparation of joint returns (for example, by providing Forms W-2 or 1099, gathering receipts, canceled checks, or other documentation), and whether you reviewed the returns before they were filed (and, if you did not review them, why not). If you were not involved in preparing the returns, did you agree to file the joint returns or did you know that the joint returns were filed? Explain below.

13Explain what you knew about the income of the person on line 6 when the returns were filed. For example, describe each type of income that person had (such as wages, social security, gambling winnings, or self-employment business income), the amount of each type of income, and the year it was received. If that person had income you didn’t know about when the returns were filed, explain why you did not know. If the person on line 6 was self-employed, explain whether and how you helped that person with the books and records.

14Explain what you knew about any missing information on the returns when they were filed, and whether you asked about anything on the returns that you knew was missing. Also, explain what you knew about any incorrect information on the returns, even if you did not know the information was incorrect when the returns were filed, and whether you asked about anything on the returns that was incorrect. For example, if there was a deduction or credit on the returns, were you aware of any facts that made the item not allowable as a deduction or credit? If the answer is not the same for all tax years, explain below.

15If the returns showed a balance due to the IRS, explain when and how you thought the balance due would be paid. If you didn’t know the returns showed a balance due, explain why not.

16Describe any financial problems you were having when the returns were filed, such as bankruptcy or bills you could not pay. If the financial problems were not the same for all tax years, explain below.

17Describe how you were involved in the household finances and your role in deciding how money was spent. For example, explain whether you and the person on line 6 had joint accounts and how you or the person on line 6 used them (such as by making deposits, paying bills from those accounts, or reviewing the monthly bank statements). Explain what you knew about any separate accounts the person on line 6 had. If your involvement was not the same for all tax years, explain below.

18 For the years you want relief, did you or the person on line 6 incur any large purchases and/or expenses?

Yes

No

If “Yes,” describe any large expenses you or the person on line 6 incurred (such as trips, home improvements, or private schooling), or any large purchases you or the person on line 6 made (such as automobiles, appliances, jewelry, etc.). Include the types and amounts of the expenses and purchases and the years they were incurred or made.

Form 8857 (Rev. 6-2021)

Form 8857 (Rev. 6-2021)

Page 4

Your current name

Your social security number

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

19 Did the person on line 6 transfer any assets to you?

Yes

No

If “Yes,” list the assets (money or property, such as real estate, stocks, bonds, or other property) the person on line 6 transferred to you. Include the dates they were transferred and their fair market value on the dates of transfer. If the property was secured by any debt (such as a mortgage on real estate), explain who was responsible for making payments on the debt, how much was owed on the debt at the time of transfer, and whether the debt has been satisfied. Explain why the assets were transferred to you. If you no longer possess or own the assets, explain what happened to the assets.

Part IV Tell us about your current financial situation.

20Tell us about your assets. Your assets are your money and property. Property includes real estate, motor vehicles, stocks, bonds, and other property that you own. In the table below, list the amount of cash you have on hand and in your bank accounts. Also, list each item of property, the fair market value (as defined in the instructions) of each item, and the balance of any outstanding loans you used to acquire each item.

Description of Asset

Fair Market Value

Balance of Any Outstanding Loans You Used To Acquire the Asset

21 How many people are you currently supporting, including yourself?

22 Tell us your current average monthly income and expenses for your entire household.

 

Monthly Income—If family or friends are helping to support you, include the amount of support as gifts below.

Amount

 

Gifts

 

 

Wages (gross pay)

 

 

Pensions

 

 

Unemployment

 

 

Social security

 

 

Government assistance, such as housing, food stamps, grants, etc

 

 

Alimony

 

 

Child support

 

 

Self-employment business income

 

 

Rental income

 

 

Interest and dividends

 

 

Other income, such as disability payments, gambling winnings, etc. List each type below:

 

 

Type

 

 

Type

 

 

Type

 

 

Total Monthly Income

 

 

 

Form 8857 (Rev. 6-2021)

Form 8857 (Rev. 6-2021)

Page 5

Your current name

Your social security number

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

 

Monthly Expenses—Enter all expenses, including expenses paid with income from gifts.

Amount

 

Food and Personal Care:

 

 

Food

 

 

 

Housekeeping supplies

 

 

 

Clothing and clothing services

 

 

 

Personal care products and services

 

 

 

Transportation:

 

 

Auto loan/lease payment, gas, insurance, licenses, parking, maintenance, etc

 

 

 

Public transportation

 

 

 

Housing and Utilities:

 

 

Rent or mortgage

 

 

 

Real estate taxes and insurance

 

 

 

Electric, oil, gas, water, trash, etc

 

 

 

Telephone and cell phone

 

 

 

Cable and Internet

 

 

 

Medical:

 

 

Health insurance premiums

 

 

 

Out-of-pocket expenses

 

 

 

Other:

 

 

Child and dependent care

 

 

 

Caregiver expenses

 

 

 

Income tax withholding (federal, state, and local)

 

 

 

Estimated tax payments

 

 

 

Term life insurance premiums

 

 

 

Retirement contributions (employer required)

 

 

 

Retirement contributions (voluntary)

 

 

 

Union dues

 

 

 

Unpaid state and local taxes (minimum payment)

 

 

 

Student loans (minimum payment)

 

 

Court-ordered debt payments (for example, court- or agency-ordered child support, alimony, and

 

 

 

garnishments). List each type below:

 

 

Type

 

 

Type

 

 

Type

 

 

Miscellaneous

 

 

Total Monthly Expenses

 

 

Part V Complete this part if you were (or are now) a victim of domestic violence or abuse.

This information is not mandatory. See Pub. 971 for assistance. If you have concerns about your safety, please consider contacting the confidential 24-hour National Domestic Violence Hotline at 1-800-799-SAFE (7233), or 1-800-787-3224 (TTY), or 1-855-812-1001 (video phone, only for deaf callers).

23a Were you or a member of your family a victim of abuse or domestic violence by the person on line 6? (Abuse includes physical, psychological, sexual, emotional, or financial abuse, and can include the abuser making you afraid to disagree with him or her or causing you to fear for your safety.)

Yes. Complete the questions below. We will put a code on your separate account. This will enable us to respond appropriately and be sensitive to your situation.

Note: We will remove the code from your account if you request it. If you do not want us to put the code on your account check here.

No. If “No,” go to Part VI.

Form 8857 (Rev. 6-2021)

Form 8857 (Rev. 6-2021)

Page 6

Your current name

Your social security number

Note: If you need more room to write your answer for any question, attach more pages. Be sure to write your name and social security number on the top of all pages you attach.

bDescribe the abuse you experienced, including approximately when it began and how it may have affected you, your children, or other members of your family. Explain how this abuse affected your ability to question the reporting of items on your tax return or the payment of the tax due on your return. Please attach a written statement, if needed.

cAre you afraid of the person listed on line 6?

Yes

No

dDoes the person listed on line 6 pose a danger to you, your children, or other members of your family?

Yes

No

To properly evaluate your claim, please attach copies of documentation you may have, for example:

Protection and/or restraining order;

Police reports;

Medical records, including those of therapists or counselors;

Doctor’s report or letter;

Injury photographs;

A statement from someone who was a victim of or witnessed the abuse or the results of the abuse; and

Any other documentation you may have.

Part VI

Additional information

24Please provide any other information you want us to consider from the years that this form is about or any other years during which you filed a joint return with the person you listed on line 6 in determining whether it would be unfair to hold you liable for the tax.

Part VII Tell us if you would like a refund.

25 By checking this box and signing this form, you are indicating that you would like a refund if you qualify for relief and if you already paid the tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . .

Reminder: Please attach the complete copy of any document requested or that you otherwise believe will support your request for innocent spouse relief.

Caution:

By signing this form, you understand that, by law, we must contact the person on line 6. See instructions for details.

Sign Here

Under penalties of perjury, I declare that I have examined this form and any accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Keep a copy for your records.

Paid

Preparer

Use Only

Your signature

 

 

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

Print/Type preparer’s name

 

Preparer’s signature

 

Date

 

Check

if

 

PTIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

self-employed

 

 

 

 

 

 

 

 

 

 

 

 

Firm’s name

 

 

 

 

Firm’s EIN

 

 

 

Firm’s address

 

 

 

 

Phone no.

 

 

 

Form 8857 (Rev. 6-2021)

Document Specs

Fact Name Detail
Purpose of Form 8857 Form 8857 is used to request relief under the Innocent Spouse Relief program from the Internal Revenue Service (IRS).
Eligibility Criteria To be eligible for relief, individuals must meet specific requirements, including filing a joint tax return and proving that holding them responsible for the tax liability would be unfair.
Types of Relief Available There are three types of relief under this form: Innocent Spouse Relief, Separation of Liability Relief, and Equitable Relief.
Timeframe for Filing The form must be filed no later than two years after the date the IRS first attempted to collect the tax.
Documentation Required Applicants must provide detailed documentation to support their claim, including evidence of financial situation, and circumstances leading to the request for relief.
Impact of Filing Form 8857 Filing this form may provide relief from tax, interest, and penalties if approved. However, it does not guarantee the IRS will grant relief. Each case is reviewed individually.
Governing Law Relief requests through Form 8857 are governed by federal tax laws and regulations. State-specific forms or laws do not apply to this IRS form.

Instructions on Writing IRS 8857

Filling out the IRS 8857 form is a crucial step for individuals seeking relief from joint tax liabilities. This process can seem daunting at first, but by breaking it down into manageable steps, it becomes much easier. After submitting the form, the IRS will review your application and determine if you qualify for relief. This could result in being relieved from having to pay taxes, interest, and penalties for which your spouse or former spouse should be solely responsible. Expect communication from the IRS concerning the status of your request and be prepared to provide additional information if asked.

  1. Start by gathering all necessary documents related to your tax situation, including any notices from the IRS, your tax returns, and any relevant financial records.
  2. Download the latest version of the IRS 8857 form from the official IRS website to ensure you have the most current form.
  3. Read through the form carefully to understand what information is required. The form comes with instructions that can help clarify what specific details you need to provide.
  4. Fill in your personal information in the designated sections, including your name, social security number, address, and the tax years for which you are requesting relief.
  5. Answer all questions on the form thoroughly. These questions cover aspects of your financial situation, your relationship with your spouse or former spouse, and the circumstances that led to your request for relief.
  6. If you need more space than what is provided on the form to explain your situation, attach a separate sheet. Be sure to include your name and social security number on any additional pages.
  7. Review your answers carefully to ensure they are accurate and complete. Errors or omissions can delay the processing of your form.
  8. Sign and date the form. Your signature is essential as it validates the request. If filing jointly, both spouses must sign.
  9. Mail the completed form to the address specified in the instructions. Make sure to use a method of mailing that allows you to track the delivery of your form.
  10. After mailing the form, wait for the IRS to process your request. This can take several months, so patience is key. You will receive a written notice of the IRS's decision.

Making a request for relief by correctly filling out and submitting the IRS 8857 form is the first step toward resolving your tax issues. Remember, the IRS assesses each case on its own merits, so providing detailed and accurate information can increase your chances of a favorable outcome. Keep a copy of all documents you send for your records and don’t hesitate to seek professional advice if the process seems overwhelming.

Understanding IRS 8857

What is IRS Form 8857 used for?

IRS Form 8857 is a request for relief from joint and several liability on a joint tax return. This form allows individuals who filed jointly to request relief if they believe they should not be held responsible for all or part of the tax debt resulting from errors or omissions on the joint tax return. By filing form 8857, you can request separation of the tax liability, which could potentially reduce your overall tax obligation.

How do I know if I'm eligible to file Form 8857?

Eligibility to file Form 8857 is based on meeting certain conditions. You may qualify if you filed a joint tax return and believe that holding you responsible for the tax debt is unfair due to certain circumstances such as divorce, separation, or not knowing and having no reason to know that the tax owed was not paid. There are three main types of relief available: Innocent Spouse Relief, Separation of Liability Relief, and Equitable Relief. Each type has its specific requirements which must be met to qualify.

What is the deadline for filing IRS Form 8857?

The timing for filing IRS Form 8857 is crucial. You must file the form no later than two years after the date the IRS first attempted to collect the tax debt from you. However, it is important to act quickly once you become aware of the tax issue. The IRS may extend the time limits in certain circumstances, so if you're unsure, it’s beneficial to consult with a tax professional or the IRS directly.

Can I file Form 8857 electronically or do I need to mail it?

Currently, IRS Form 8857 must be filed by mail. It cannot be submitted electronically. You should mail the completed form to the IRS at the address provided in the instructions for the form. Make sure to keep a copy of the form and any correspondence for your records. It is also recommended to send the form via certified mail to receive confirmation that the IRS has received it.

Common mistakes

Filing for relief through the IRS 8857 form can be a critical step for individuals seeking separation from their spouse or partner's tax liabilities. However, navigating this process can often be complex and prone to errors. One common mistake is not providing sufficient detail about the financial situation. Applicants sometimes fail to give in-depth explanations or adequate documentation to support their case, such as income statements or evidence of financial abuse. This lack of detail can result in the IRS not having enough information to make a favorable decision.

Another pitfall is misunderstanding the eligibility criteria. People often assume that they qualify for relief without thoroughly reviewing the specific conditions set by the IRS. The 8857 form is intended for those who are facing tax issues due to the actions of their spouse or former spouse. It's crucial for applicants to assess their situation against the IRS guidelines before proceeding, to avoid wasting time and effort on a claim likely to be denied.

Timeliness is also key in submitting the IRS 8857 form. Some individuals delay their application or miss critical deadlines, not realizing the impact this can have on their request for relief. The IRS operates under strict timelines, and failing to submit the form within the required period can significantly diminish the chances of success. It's essential for individuals to act promptly and ensure their application is filed within the designated timeframe.

Misinterpretation of the form's questions is yet another common obstacle. The 8857 contains complex language and concepts that can be confusing. Applicants sometimes provide incorrect or irrelevant information because they misinterpret what's being asked of them. It's imperative for individuals to carefully read each question and seek clarification if something is not clear, to avoid miscommunication and potential delays in the decision-making process.

Lastly, there's the issue of failing to pursue all available relief options. The IRS 8857 form is just one avenue for seeking relief from joint tax liabilities. Applicants might overlook or be unaware of other programs or alternatives available to them. Researching all possible avenues for relief and understanding the full scope of options can ensure that individuals take the most appropriate and advantageous path for their situation.

Documents used along the form

When dealing with financial matters, especially those tied to taxes, navigating the paperwork can feel overwhelming. One important form for some married taxpayers is the IRS Form 8857, used for requesting relief from joint tax liabilities. In addition to this form, there are often a few other documents that might be necessary to complete the process comprehensively. Understanding these can make dealing with tax matters less daunting.

  • Form 1040: U.S. Individual Income Tax Return - This is the standard federal income tax form used by individuals. It's essential because it details the income, deductions, and credits for the taxpayers, which are pivotal in determining the correct tax liability from which one might seek relief.
  • Form 4506: Request for Copy of Tax Return - Sometimes, individuals may not have copies of their past tax returns. This form allows taxpayers to obtain previous tax documents, which can be necessary when proving the extent of one's tax liability or when providing context for the relief sought through Form 8857.
  • Form 2848: Power of Attorney and Declaration of Representative - If a taxpayer wants someone else, like a tax professional, to handle their IRS matters, this form is critical. It grants permission for representation in matters concerning the IRS, allowing the designated person to communicate with the IRS on behalf of the taxpayer.
  • Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals - This form may be required if the IRS needs more information about the taxpayer's financial situation. It helps determine how much a taxpayer can pay if they owe back taxes, which is sometimes an aspect of seeking relief via Form 8857.

Each document serves its unique purpose in the broader context of managing tax liabilities and seeking relief. By understanding these forms and when they are necessary, taxpayers can navigate their financial responsibilities more confidently and effectively, potentially making a complex process much simpler.

Similar forms

The IRS 8857 form is closely related to the 1040 form, the primary income tax return form for individuals in the United States. Both forms are integral to the tax filing process, with the 1040 form used to report an individual's annual income and the 8857 form specifically for requesting relief under the Innocent Spouse Relief provisions. They share the purpose of affecting a taxpayer's obligations, but address different aspects of tax liability.

Similar to the IRS 8857 form, the Form 8379, Injured Spouse Allocation, is used by married taxpayers. However, Form 8379 specifically helps injured spouses claim their share of a joint refund that was or is expected to be applied against the past-due obligations of the other spouse. Both forms deal with complex issues of tax relief but apply to distinct circumstances of marital tax burdens.

The Form 8822, Change of Address, serves a different primary function from the IRS 8857 form but is similar in the aspect that it directly affects an individual's interaction with the IRS. While the 8857 form requests relief from joint tax liability, the 8822 form is used to ensure that the IRS has the current address on file for correspondence, including notifications related to the processing of forms like 8857.

Form 656, Offer in Compromise, shares a goal similar to that of Form 8857, which is to alleviate a taxpayer's burden. Form 656 allows taxpayers to settle their tax debt for less than the full amount owed. Although targeting different outcomes—8857 seeks relief based on marital status while 656 proposes a financial compromise—both provide pathways to reduce or restructure tax obligations.

Form 4506, Request for Copy of Tax Return, is utilized by taxpayers who need official copies of previously filed tax returns from the IRS. Though its primary purpose differs from the 8857 form's request for relief, it complements the process by providing documentary evidence that may be necessary to support the claims made on the 8857 or to determine eligibility for such relief.

The IRS Form 2848, Power of Attorney and Declaration of Representative, is another document that, while serving a different primary purpose from the 8857 form, often operates in tandem with it. Form 2848 allows taxpayers to authorize an individual, typically a tax professional, to represent them before the IRS, including matters related to filing Form 8857. This delegation can be crucial in navigating the complexities of tax relief requests.

The IRS Schedule C, Profit or Loss from Business, is a form used by sole proprietors to report profits and losses of their business. While it focuses on business income and expenses, a direct association with Form 8857 can emerge when one spouse's business dealings impact the couple's joint tax liability and subsequently, the need for one spouse to seek innocent spouse relief.

Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, is employed to report gifts that exceed annual exclusions and may thus incur gift tax. While primarily concerned with gifts rather than income, issues around shared financial responsibilities and potential implications for marital assets could necessitate the use of Form 8857 to seek relief from joint tax liabilities that involve gift tax issues.

Lastly, the Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, is a detailed report on an individual's financial status needed when setting up a payment plan or compromise with the IRS. While Form 433-A addresses the taxpayer's current financial situation for debt resolution, Form 8857 could be a critical step for a spouse unaware or not responsible for the debt leading to the need for such arrangements.

Dos and Don'ts

Filling out the IRS 8857 form, a Request for Innocent Spouse Relief, can be a critical step for individuals seeking relief from tax liabilities reported incorrectly by their spouse or former spouse. Navigating this process with attention to detail can significantly impact the outcome. Here's a list of do's and don'ts that can guide you through filling out the form effectively.

Do's:

  1. Read all instructions carefully before beginning to fill out the form. Understanding each section can help avoid mistakes.
  2. Provide complete and accurate information about yourself, your spouse (or ex-spouse), and the tax years for which you are requesting relief.
  3. Gather and attach supporting documents such as tax returns, statements showing tax payments, or any correspondence with the IRS that pertains to the tax issues in question.
  4. Explain your situation clearly and concisely in the part of the form that asks for a narrative. If more space is needed, attach additional sheets.
  5. Use specific details and dates to support your claim. For instance, if claiming duress at the time of signing the tax return, describe the circumstances.
  6. If you seek professional help, choose someone knowledgeable about IRS processes and innocent spouse relief. A tax professional can provide valuable guidance.
  7. Sign and date the form. An unsigned form will not be processed.
  8. Keep a copy of the form and all documents you send to the IRS for your records.
  9. File the form within the appropriate time frame. Generally, you have 2 years from the first IRS collection attempt to file for innocent spouse relief.
  10. After submitting, if your situation changes or you remember additional information, contact the IRS as soon as possible to update your case.

Don'ts:

  • Don't rush through filling out the form. Taking your time can help ensure accuracy and completeness.
  • Don't leave any fields blank unless instructed. If a section does not apply to you, write "N/A" (not applicable).
  • Don't underestimate the importance of the narrative section. This is your opportunity to tell your story and explain why you believe you qualify for relief.
  • Don't forget to review your form for errors or omissions before sending it to the IRS.
  • Don't send original documents to the IRS unless specifically requested. Always send copies.
  • Don't hesitate to seek help if you're confused or overwhelmed. Tax laws can be complex, and professional advice may be crucial.
  • Don't ignore IRS communications after you submit your form. Keep all correspondence for your records and respond to requests in a timely manner.
  • Don't submit the form without checking if there have been recent changes to the process or requirements. The IRS periodically updates its procedures.
  • Don't attempt to contact the IRS to inquire about the status of your application too soon. It can take some time for them to review your request.
  • Don't give up if your request is initially denied. You may appeal the decision or seek alternative forms of relief.

Misconceptions

Discussing the IRS Form 8857 requires stepping into the world of taxes—a subject that can be as confusing as it is unavoidable. The Form 8857, or Request for Innocent Spouse Relief, is a document that allows individuals to seek relief from joint tax liabilities under certain circumstances. Unfortunately, misunderstandings abound, leading to confusion and sometimes even unnecessary fear. Let's clarify some of the most common misconceptions:

  • Filing Form 8857 is an admission of guilt. Quite the opposite, this form is a request for relief, not an admission of wrongdoing. It's designed for those who believe they should not be held responsible for tax errors made by their spouse or former spouse.
  • Only women can apply for innocent spouse relief. This belief is not only inaccurate but discriminatory. Anyone, regardless of gender, who meets the criteria can apply for relief using Form 8857.
  • You can apply for innocent spouse relief at any time. While it might seem reasonable to assume that you can seek relief whenever you uncover a tax mistake, the IRS actually imposes a strict two-year deadline from the date of the first collection activity to file Form 8857.
  • Form 8857 will automatically absolve you of all tax liabilities. Filing this form is the beginning of a process, not an immediate fix. The IRS reviews each case individually to determine if relief is warranted based on the facts and circumstances presented.
  • You need to be divorced or separated to qualify. While many who seek innocent spouse relief are separated or divorced, it is not a prerequisite. You can still be married and living with your spouse and apply for this relief if you meet other criteria.
  • If you sign a joint return, you're equally responsible for all inaccuracies, with no exceptions. This is the general rule, but Form 8857 exists precisely because there are exceptions. The IRS recognizes situations where holding both spouses equally responsible is not fair or justified.
  • Only income taxes are eligible for innocent spouse relief. Although income tax issues are the most common, innocent spouse relief can also apply to other types of taxes and penalties, as long as they stem from a joint return.
  • Using a tax preparer means you can't claim innocent spouse relief. The responsibility for the accuracy of a tax return ultimately lies with the taxpayer, not the preparer. If you were unaware of an error resulting from your spouse's information, you could still potentially qualify for relief.
  • Form 8857 is excessively complex and not worth the effort. While dealing with tax issues can be daunting, the potential to relieve yourself of unfair tax burdens makes it worth exploring. The IRS provides resources and guidelines to help individuals through the process.

Understanding these misconceptions can empower people to take informed actions when navigating the complexities of tax law and marital finances. Remember, the key is not to go through it alone—seek advice and support from professionals who can guide you based on your specific situation.

Key takeaways

  • The IRS 8857 form is used to request Innocent Spouse Relief. This relief is designed for individuals who believe they should not be held responsible for their spouse's (or ex-spouse's) tax debt, interest, and penalties.

  • When filling out the form, it's crucial to provide detailed information about your financial situation, the year the debt occurred, and any relevant circumstances that support why you believe you're entitled to relief. Accurate and comprehensive details can significantly impact the outcome of your request.

  • The request for innocent spouse relief should be filed within two years after the date the IRS first attempted to collect the tax debt from you. However, there are exceptions to this rule, so it's important to review your specific situation or consult with a tax professional.

  • It's also important to gather and attach supporting documentation to your form 8857. Relevant documents can include bank statements, tax returns, legal documents, or any other evidence that demonstrates why you should not be held liable for the tax debt.

  • After submitting the form 8857, be prepared for a potentially lengthy review process. The IRS may request additional information. During this time, maintaining open and timely communication with the IRS can help ensure the process moves as smoothly as possible.

  • If the IRS grants your request for Innocent Spouse Relief, you may be relieved of either all or part of the tax liability. However, if your request is denied, you have the right to appeal the decision. An appeal provides a second opportunity to present your case, possibly with additional evidence or clarification of your circumstances.

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