IRS 8857 Explained

What is IRS 8857?

IRS 8857 is a tax form that allows individuals to request relief from joint and several liabilities owed due to the actions of a spouse or former spouse. It is mainly used by married couples who filed jointly and wish to be relieved of the tax liability resulting from a bad situation such as incorrect reporting by the other spouse. This form provides a legal pathway to seek relief from tax obligations that one partner may not have been responsible for at the time of filing.

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Purpose of IRS 8857

The primary purpose of IRS 8857, also known as the "Request for Innocent Spouse Relief," is to protect individuals from the financial strain caused by another spouse's discrepancies in their joint tax return. This can include under-reporting of income, failure to report income, or claiming inappropriate deductions. Essentially, the form acts as a safeguard for compliant spouses who may find themselves unwittingly liable for taxes not properly reported by their partners.

Where is IRS 8857 used and by whom?

IRS 8857 is primarily used in two scenarios: individuals who are seeking relief from tax liability due to a spouse's actions, and tax professionals or accountants who assist clients in navigating tax issues. Typical user groups include:

1.

Individuals who filed joint tax returns and are now facing unexpected tax liabilities.
2.

Divorced individuals who feel unfairly burdened by a former spouse’s tax liabilities.
3.

Tax professionals assisting clients to seek relief from joint liabilities under this provision.

For example, if one spouse wrongly deducts business expenses that lead to an audit, the other spouse can file IRS 8857 to potentially avoid payment of any ensuing taxes or penalties.

Step-by-step: how to fill out IRS 8857

Completing IRS 8857 can be straightforward if you follow the steps below:

1.

Section I: Start by providing your personal information, including your name, Social Security number, and the tax year for which you are seeking relief.
2.

Section II: Indicate your filing status and provide information about your spouse or former spouse, including their Social Security number.
3.

Section III: Explain why you deserve innocent spouse relief, detailing any facts that support your claim, such as lack of knowledge about unreported income.
4.

Section IV: Sign and date the form. Make sure all information is accurate to avoid delays.

Using pdfFiller can simplify this process. You can easily fill out the form, save it, and submit it through the platform without hassle.

Who is required to complete IRS 8857?

Not everyone must fill out IRS 8857. It is specifically designed for individuals who filed a joint tax return and believe they qualify for relief from taxes due to their spouse's errors or omissions. The following criteria generally apply:

1.

Married couples filing jointly who can demonstrate they did not have knowledge of the tax issues at hand.
2.

Individuals divorced or separated from their spouse and are struggling with tax bills incurred when they were married.
3.

Those who believe it would be unjust to hold them liable for the tax due.

In essence, it is crucial for taxpayers who find themselves in these situations to consider completing IRS 8857.

Information you need to complete IRS 8857

To accurately fill out IRS 8857, you will need the following information:

1.

Your name, address, and Social Security number.
2.

Your spouse's or former spouse's name, address, and Social Security number.
3.

The tax year you're requesting relief for.
4.

Details of the joint tax return that led to the liability.
5.

Any documentation proving your lack of knowledge regarding the tax issues.

Having these documents and information ready can make the process of completing IRS 8857 much more efficient.

How to submit IRS 8857

Submitting IRS 8857 can be done through multiple methods. Here are the common channels:

1.

Online: Some forms can be submitted electronically through the IRS website or third-party services.
2.

By Mail: You can send the completed form to the appropriate IRS address based on your location. Make sure to check the latest guidelines for the correct address.
3.

Special Submission: If you're under audit due to marital status, you might need to follow specific instructions from the IRS.

Before submitting, verify any deadlines that may apply to your situation to avoid penalties.

When to update or refile IRS 8857

After submitting IRS 8857, there are specific situations that might require you to update or refile the form:

1.

If your personal circumstances change, such as remarriage or a move to a different state, it might require a new filing.
2.

If new tax liabilities arise tied to the previous spouse, consider refiling to ensure all bases are covered.
3.

Changes in financial status or sudden discoveries of new information regarding the original tax issue may also necessitate an updated submission.

Stay attentive to any changes that could affect your relief application.

What happens if you don’t file IRS 8857?

Failing to submit IRS 8857 on time or not filling it out correctly can lead to significant consequences:

1.

You might remain liable for taxes owed, which could lead to additional penalties or interest charges.
2.

Legal actions may be taken against you for unpaid taxes.
3.

Your financial situation may worsen due to garnished wages or liens placed on your property.

To prevent these problems, it is essential to understand the need for timely and accurate filings for IRS 8857.

Fill out IRS 8857 online

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Frequently Asked Questions About the IRS 8857

What is the IRS 8857 form and why is it important?

The IRS 8857 form, also known as the Request for Innocent Spouse Relief, is crucial for taxpayers seeking relief from tax liabilities incurred by a spouse or former spouse. It allows individuals who believe they should not be held responsible for tax debts incurred during a marriage to request relief. Understanding the IRS 8857 process can significantly impact your financial situation and ensure you are treated fairly.

Who can file the IRS 8857 form?

Any individual who is or was married and believes that they should not be liable for federal tax due to their spouse's tax actions can file the IRS 8857 form. This applies even if the couple is divorced or legally separated. It’s essential for anyone in these circumstances to consider filing the IRS 8857 to protect their financial interests.

What are the qualifications for submitting the IRS 8857?

To qualify for submitting the IRS 8857, you must show that you meet specific criteria such as being a spouse at the time of the tax debt and having no knowledge of the issues leading to the tax liability. Additionally, the IRS encourages filing the form within two years of the IRS beginning collection activities. Meeting these qualifications is critical to improve your chances of obtaining relief.

What information do I need to complete the IRS 8857 form?

When completing the IRS 8857, you'll need personal information such as your and your spouse's full names, Social Security numbers, and tax information for the years in question. Detailed financial data, including income and any unpaid taxes, will help provide a complete picture of your situation to the IRS. Gathering all necessary documents before starting the IRS 8857 form can streamline the process.

How does the IRS process the IRS 8857 applications?

Once submitted, the IRS processes IRS 8857 applications by reviewing the details and the provided documentation. They evaluate the request based on the specific qualifications for relief and the facts surrounding the tax liabilities. This process can take several months, so it’s important to be patient and stay in touch with the IRS for any requested additional information.

What should I do if my IRS 8857 request is denied?

If your IRS 8857 request is denied, you have the option to appeal the decision. You can provide additional information or clarify misunderstandings that may have led to the denial. Consulting with a tax professional familiar with the IRS 8857 process is advisable to ensure your appeal is well-prepared and increases the likelihood of a favorable outcome.

How can I check the status of my IRS 8857 application?

You can check the status of your IRS 8857 application by contacting the IRS directly through their phone numbers listed for taxpayer assistance. They may also provide options to verify your status online, depending on what's available. It’s important to have your identification details ready to expedite the inquiry regarding your IRS 8857 request.

What are the time limits for filing the IRS 8857?

The IRS requires you to file the IRS 8857 within two years from the first time the IRS attempts to collect from you regarding the tax liability. Timeliness is essential to the success of your request, and failing to meet this deadline can result in a forfeited opportunity for relief. Make it a priority to assess your situation and file the form as soon as possible if you believe you qualify.

Can I file the IRS 8857 form electronically?

Currently, the IRS does not allow electronic filing of the IRS 8857 form. You must print, fill it out, and mail it to the designated IRS address. Ensuring that you submit your IRS 8857 application correctly and through the right channels will help avoid unnecessary delays in getting a response.

Is it necessary to consult a tax professional before filing the IRS 8857?

While it’s not mandatory, consulting a tax professional before filing the IRS 8857 can be very beneficial. A knowledgeable professional can help you navigate the complexities of the tax system and ensure that you're taking the right steps for your unique situation. This guidance can greatly enhance your chances of filing a successful IRS 8857 request and obtaining the relief you need.

Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

Disclaimer: This content is for informational purposes only. It is not legal or other professional advice. airSlate provides this material on an "as-is" basis and disclaims all representations, guarantees, or warranties, whether express, implied, or statutory, including but not limited to warranties of merchantability, fitness for a particular purpose, or accuracy.