IRS Form 8857 (2021): Request for Innocent Spouse Relief

What IRS Form 8857 (2021) Is For

IRS Form 8857 (2021) is used to request relief when a spouse or former spouse caused errors on a joint tax return that resulted in additional taxes, penalties, or interest. The form allows taxpayers to request that the IRS remove liability for income tax arising from unreported income or incorrect items from past tax years. It is designed for situations where a taxpayer followed tax law in good faith, yet signed an individual income tax return that contained mistakes created by their spouse.

Learn more about your innocent spouse relief options and the protections available for joint filers.

When You’d Use IRS Form 8857 (2021)

You would use IRS Form 8857 (2021) when the IRS begins to collect taxes that are tied to your spouse’s actions on a joint tax return.

• When the IRS sends a notice about additional taxes: This applies when you receive an IRS notice claiming that your joint return understated income tax, and the liability came from your spouse’s actions.
  
  
• When your spouse caused errors on a joint tax return: This applies when inaccurate information, omitted income, or improper deductions created a tax issue that resulted in unpaid tax or assessed penalties.
  
  
• When you receive assessed penalties or interest from IRS actions: This applies when penalties such as a failure to file penalty, failure to pay penalty, or other penalties arise from information you did not control on the tax return.
  
  
• When you face collection for unpaid tax tied to your spouse’s conduct: This applies when the IRS attempts to collect past due amounts from you, even though your spouse caused the tax periods involved.
  
  
• When inaccurate information was supplied by your spouse or a tax return preparer: This applies when errors from a preparer or spouse result in liabilities that you were not aware of and could not have reasonably prevented.

If your spouse's actions caused penalties, consider exploring penalty abatement for IRS penalties.

Key Rules or Details for Tax Year 2021

Several vital rules apply when filing IRS Form 8857 (2021) for the tax year in question.

• Requirement that a joint return was filed: This rule applies because the IRS must confirm that you and your spouse filed a joint tax return that created the liability associated with the error.
  
  
• IRS review of whether you knew about the tax error: This review considers your education, financial role, and the questions you asked to determine whether you knew or should have known about the incorrect items or itemized deductions claimed.
  
  
• IRS consideration of abuse or coercion: This factor is reviewed when circumstances such as financial control or intimidation affected your ability to challenge errors, even though tax law generally requires taxpayers to exercise ordinary care and good faith.
  
  
• Rules for community property states: These rules may apply when income is shared under state law, and the IRS must determine whether relief applies, considering community income and other conditions that could affect the tax years involved.
  
  
• Limits on refunds and relief for specific tax years: These limits apply because the IRS may only issue refunds within particular dates and interest rate periods, and only when the taxpayer qualifies under the authority provided, such as for innocent spouse relief.

Learn what to expect from the IRS collection process, explained, including how collection activity is affected when you file for innocent spouse relief.

Step-by-Step (High Level) for IRS Form 8857 (2021)

The filing process for IRS Form 8857 (2021) follows a structured path that enables the IRS to review all the facts related to the tax issue.

1. Determine eligibility for relief: This step ensures that the taxpayer understands whether the liability stems from their spouse’s actions and whether the circumstances qualify for relief under tax law.
   
   
2. Gather all tax documents and IRS notices: This step involves collecting tax forms, letters, and payment records to provide accurate information that supports the request for penalty relief or abatement.
   
   
3. Complete IRS Form 8857 accurately: This step requires the taxpayer to supply complete explanations so that the IRS can evaluate the request for relief without assuming willful neglect or error.
   
   
4. Mail or fax the form: This step ensures the form is submitted to the correct location, as the IRS cannot process the request if it is sent to the wrong address.
   
   
5. Continue filing and paying current taxes: This step helps taxpayers avoid late filing issues, failure-to-file penalties, or failure-to-pay penalties while the IRS reviews their request.

Common Mistakes and How to Avoid Them

Several recurring mistakes can delay or weaken a request for relief, but understanding them helps taxpayers file IRS Form 8857 (2021) correctly.

• Waiting too long to request relief: This mistake can be avoided by responding promptly to IRS notices and filing the form as soon as you become aware of the assessed penalties or unpaid tax connected to your spouse’s actions.
  
  
• Using the wrong tax forms: This mistake can be avoided by confirming that IRS Form 8857 is used for innocent spouse relief and Form 843 is used for penalty abatement so the IRS processes the request accurately.
  
  
• Providing vague explanations without accurate information: This mistake can be avoided by offering detailed statements supported by documents, allowing the IRS to review all the facts and determine whether relief should be granted.
  
  
• Not documenting abuse or coercion when it applies: This mistake can be avoided by submitting records or statements that support your circumstances because the IRS reviews these details when determining whether relief is appropriate.
  
  
• Ignoring IRS letters or failing to update your address: This mistake can be avoided by monitoring all IRS correspondence and submitting updated contact information so the taxpayer files all required responses without missing important deadlines.

Stay current by resolving unfiled tax returns to avoid additional penalties or compliance issues.

What Happens After You File IRS Form 8857 (2021)

After you file IRS Form 8857 (2021), the IRS reviews your request, notifies your spouse or former spouse, and evaluates whether you qualify for relief based on the information supplied. During this period, the IRS generally pauses collection on the disputed tax, although interest and penalties may continue to accrue until a final decision is made. You will receive letters that explain each stage of the review, and you may appeal the determination if you disagree with the outcome.

Use our IRS Account Transcript Service to obtain records and IRS notices that may support your innocent spouse claim.

FAQs

Can I request penalty relief when filing IRS Form 8857 (2021)?

You may request penalty relief if the penalties were caused by your spouse’s actions and not your own, and the IRS determines that you qualify for relief under the rules for innocent spouse or equitable relief.

What should I do if I receive an IRS notice during the review process?

You should respond promptly to any IRS notice and keep copies of all correspondence, allowing the IRS to continue the review without delays or missing information.

Can IRS penalties be removed if the tax issue resulted from my spouse’s conduct?

IRS penalties may be removed if the IRS determines that your spouse caused the incorrect items or unpaid tax and that you meet the conditions for relief under the program.

Does innocent spouse relief apply to an estimated tax penalty?

An estimated tax penalty may qualify for relief if the underlying unpaid amounts were caused by your spouse’s actions rather than your own decisions or payment history.