Innocent Spouse Relief

INNOCENT SPOUSE RELIEF REQUEST

Comprehensive Cover Letter, Personal Statement, and Supporting Documentation Package
Under IRC § 6015 and IRS Form 8857

PART I — OVERVIEW OF INNOCENT SPOUSE RELIEF

A. Joint and Several Liability

When married taxpayers file a joint return, each spouse is jointly and severally liable for the full amount of tax, penalties, and interest shown on or arising from the return. IRC § 6013(d)(3). This means that each spouse is individually responsible for the entire tax liability, regardless of which spouse earned the income or claimed the deduction that gave rise to the deficiency. The IRS may collect the full amount from either spouse.

B. Types of Relief Under IRC § 6015

Congress enacted IRC § 6015 in the IRS Restructuring and Reform Act of 1998 (RRA 98) to provide relief from joint and several liability in certain circumstances. Three types of relief are available:

B.1. Traditional Innocent Spouse Relief — IRC § 6015(b)

Relief from an understatement of tax attributable to erroneous items of the other spouse. This relief applies to deficiencies only (not underpayments).

Requirements (ALL must be met):

1. A joint return was filed for the tax year
2. There is an understatement of tax attributable to erroneous items of the other spouse (or former spouse)
3. In signing the return, the requesting spouse did not know and had no reason to know of the understatement
4. Taking into account all facts and circumstances, it would be inequitable to hold the requesting spouse liable for the deficiency attributable to the understatement
5. The requesting spouse elected relief within 2 years after the date the IRS began collection activities against the requesting spouse (Treas. Reg. § 1.6015-5(b)(1))

Key Terms:

• Erroneous Item: An item of gross income that is omitted, or a deduction, credit, or basis that is incorrectly claimed on the joint return. Treas. Reg. § 1.6015-1(h)(4).
• Understatement: The excess of the correct tax over the tax shown on the return. IRC § 6662(d)(2).
• Knowledge Standard: Actual knowledge OR reason to know. The IRS considers the requesting spouse's education, business experience, involvement in financial matters, and whether the requesting spouse benefited from the erroneous items.

B.2. Separation of Liability — IRC § 6015(c)

Allows an eligible spouse to elect to limit liability to the portion of the deficiency allocable to that spouse.

Eligibility Requirements (must meet ONE):

1. The requesting spouse is no longer married to the other spouse (including widowed), OR
2. The requesting spouse is legally separated from the other spouse, OR
3. The requesting spouse was not a member of the same household as the other spouse during the 12 months preceding the date of the election

Disqualification (IRC § 6015(c)(3)(C)):

• Relief is not available if the IRS demonstrates that the requesting spouse had actual knowledge of any item giving rise to the deficiency at the time the return was signed
• Note: This is an "actual knowledge" standard, which is higher than the "knew or had reason to know" standard under § 6015(b)

Allocation: The deficiency is allocated between the spouses based on which spouse's items gave rise to the deficiency, as if separate returns had been filed. IRC § 6015(d).

Filing Deadline: Must be elected within 2 years after the date the IRS began collection activities. Treas. Reg. § 1.6015-5(b)(1).

B.3. Equitable Relief — IRC § 6015(f)

A catch-all provision that grants the IRS discretion to provide relief when relief under § 6015(b) or (c) is not available.

Key Features:

• Available for both understatements (deficiencies) and underpayments (tax properly shown on the return but not paid)
• No time limit for filing (Rev. Proc. 2013-34 eliminated the 2-year deadline for equitable relief claims)
• Analyzed under the factors set forth in Rev. Proc. 2013-34

Rev. Proc. 2013-34 — Streamlined Determination:

A requesting spouse is eligible for a streamlined determination (automatic relief) if ALL of the following conditions are met:

1. The requesting spouse is no longer married to, is legally separated from, or has not been a member of the same household as the nonrequesting spouse during the 12-month period ending on the date relief is requested
2. The requesting spouse would suffer economic hardship if relief is not granted
3. No assets were transferred between the spouses as part of a fraudulent scheme
4. The nonrequesting spouse did not transfer disqualified assets to the requesting spouse
5. The requesting spouse did not knowingly participate in the filing of a fraudulent return
6. The tax liability is attributable to an item of the nonrequesting spouse (or an underpayment is attributable to the nonrequesting spouse), unless there is an item attributable to the requesting spouse that was caused by abuse or duress
7. The requesting spouse did not have actual knowledge of the item giving rise to the understatement or the nonrequesting spouse's intent not to pay

Rev. Proc. 2013-34 — Nonexclusive Factors for Equitable Relief:

If the streamlined criteria are not met, the IRS considers the following nonexclusive factors:

C. Innocent Spouse vs. Injured Spouse

These are fundamentally different claims:

D. Community Property Considerations

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), the treatment of income may differ from common law states. IRC § 66 provides special rules for the treatment of community income where spouses live apart. Under IRC § 66(c), a spouse may be relieved of tax attributable to community income if:

1. The spouses did not file a joint return
2. The spouse did not include the community income on a separate return
3. The spouse did not know of and had no reason to know of the community income
4. It would be inequitable to include the community income in the spouse's gross income

PART II — REQUESTING SPOUSE INFORMATION

A. Personal Information

B. Nonrequesting Spouse Information

C. Tax Years at Issue

Total Relief Sought: $[________________________________]

D. Type of Relief Requested

☐ IRC § 6015(b) — Traditional Innocent Spouse Relief

• Basis: Understatement attributable to erroneous items of the nonrequesting spouse

☐ IRC § 6015(c) — Separation of Liability

• Basis: Eligible spouse elects to allocate deficiency

☐ IRC § 6015(f) — Equitable Relief

• Basis: Relief is equitable under all facts and circumstances
• ☐ Understatement (deficiency)
• ☐ Underpayment (tax shown on return but not paid)

☐ IRC § 66(c) — Community Income Relief

• Basis: Relief from tax on community income the spouse did not know about

☐ Request the IRS determine the most appropriate relief type

PART III — PERSONAL STATEMENT

The personal statement is the most critical component of an innocent spouse relief request. It provides the requesting spouse's narrative of the facts and circumstances supporting relief. Draft this statement carefully with input from the requesting spouse.

A. Marital History and Background

I, [________________________________], provide the following statement in support of my request for innocent spouse relief:

Marriage and Household:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Date of Marriage: [__/__/____]
Date of Separation (if applicable): [__/__/____]
Date of Divorce (if applicable): [__/__/____]
Children of the Marriage: [________________________________]

Living Situation During Tax Years at Issue:

[________________________________]
[________________________________]

B. Financial Control and Decision-Making

Who controlled the household finances during the tax years at issue?

☐ Nonrequesting spouse controlled all finances
☐ Both spouses shared financial decisions equally
☐ Requesting spouse handled day-to-day bills; nonrequesting spouse handled taxes and investments
☐ Other arrangement: [________________________________]

Describe the financial arrangement in detail:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Did the requesting spouse have access to:

C. Tax Return Preparation and Filing

Who prepared the tax return(s) for the year(s) at issue?

☐ Nonrequesting spouse
☐ Tax professional retained by nonrequesting spouse
☐ Tax professional retained by both spouses
☐ Requesting spouse
☐ Other: [________________________________]

Describe the tax preparation and signing process:

[________________________________]
[________________________________]
[________________________________]

Did the requesting spouse review the return before signing?

☐ Yes — Describe level of review: [________________________________]
☐ No — Explain why: [________________________________]

Was the requesting spouse pressured or coerced into signing the return?

☐ Yes — Describe: [________________________________]
☐ No

D. Knowledge of Erroneous Items or Underpayment

Did the requesting spouse know about the erroneous items on the return (if understatement)?

☐ No — The requesting spouse had no knowledge of: [________________________________]
☐ Partial knowledge — The requesting spouse knew about some items but not: [________________________________]

Did the requesting spouse know the tax would not be paid (if underpayment)?

☐ No — The requesting spouse believed the tax would be paid because: [________________________________]
☐ The requesting spouse was not aware of the financial situation because: [________________________________]

What was the requesting spouse's education and business experience?

Education: [________________________________]
Business/Financial Experience: [________________________________]
Tax Knowledge: [________________________________]

E. Abuse or Coercion (if applicable)

☐ The requesting spouse was subject to abuse or coercion by the nonrequesting spouse.

IMPORTANT: Under Rev. Proc. 2013-34, abuse is a significant factor weighing in favor of equitable relief. The IRS will give considerable weight to evidence of abuse, even if the requesting spouse had some knowledge of the erroneous items or underpayment.

Type of Abuse:

☐ Physical abuse
☐ Emotional or psychological abuse
☐ Financial abuse or control
☐ Threats or intimidation
☐ Isolation from family, friends, or financial information
☐ Other: [________________________________]

Description of Abuse:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Evidence of Abuse:

☐ Police reports
☐ Protective/restraining orders
☐ Medical records
☐ Photographs of injuries
☐ Witness statements / declarations
☐ Counseling or therapy records
☐ Shelter records
☐ Court documents from divorce/custody proceedings
☐ Communications (texts, emails, voicemails) showing threats or control
☐ Other: [________________________________]

F. Benefit from the Erroneous Items or Underpayment

Did the requesting spouse receive a significant benefit from the erroneous items or unpaid tax?

☐ No — The requesting spouse did not receive any significant benefit beyond normal support
☐ Limited — The requesting spouse received only normal marital support
☐ Some benefit — Describe: [________________________________]

Note: Under Rev. Proc. 2013-34, "significant benefit" means a benefit beyond normal support. Normal support is determined by the standard of living of the requesting spouse during the period of the marriage. Items that provide for the family's support (food, housing, clothing) do not constitute significant benefit.

G. Current Financial Situation

Would payment of the tax liability cause economic hardship?

☐ Yes — Explain: [________________________________]
☐ No

Total Assets: $[________________________________]
Total Liabilities (excluding IRS debt): $[________________________________]
Net Worth: $[________________________________]

H. Compliance History

PART IV — LEGAL ANALYSIS FRAMEWORK

A. Section 6015(b) Analysis Checklist

If requesting relief under IRC § 6015(b), confirm each element:

☐ Element 1: A joint return was filed for the tax year at issue

• Return date: [__/__/____]

☐ Element 2: There is an understatement of tax on the return

• Tax shown on return: $[________________________________]
• Correct tax: $[________________________________]
• Understatement: $[________________________________]

☐ Element 3: The understatement is attributable to erroneous items of the nonrequesting spouse

• Identify erroneous items:
• Item 1: [________________________________] — Amount: $[________]
• Item 2: [________________________________] — Amount: $[________]
• Item 3: [________________________________] — Amount: $[________]

☐ Element 4: The requesting spouse did not know and had no reason to know of the understatement

• Basis: [________________________________]

☐ Element 5: It is inequitable to hold the requesting spouse liable

• Factors: [________________________________]

☐ Element 6: The election was made within 2 years of the first collection activity

• Date of first collection activity: [__/__/____]
• Date of this request: [__/__/____]
• Timely: ☐ Yes ☐ No

B. Section 6015(c) Analysis Checklist

If electing separation of liability under IRC § 6015(c):

☐ Eligibility: The requesting spouse meets at least one condition:
☐ No longer married to the nonrequesting spouse
☐ Legally separated from the nonrequesting spouse
☐ Not a member of the same household for 12 months prior to election

☐ No Actual Knowledge: The requesting spouse did not have actual knowledge of any item giving rise to the deficiency

• Basis: [________________________________]

☐ Allocation: Deficiency is allocated as follows:

☐ Timely Filed: Election made within 2 years of first collection activity

• Date of first collection activity: [__/__/____]

C. Section 6015(f) Equitable Relief Analysis

If requesting equitable relief under IRC § 6015(f):

☐ Threshold Conditions (Rev. Proc. 2013-34, § 4.01):
☐ The requesting spouse filed a joint return for the tax year
☐ Relief is not available under § 6015(b) or (c)
☐ The claim is timely filed (no time limit under Rev. Proc. 2013-34)
☐ No assets were transferred as part of a fraudulent scheme
☐ The nonrequesting spouse did not transfer disqualified assets to the requesting spouse
☐ The requesting spouse did not knowingly participate in filing a fraudulent return
☐ The tax liability is not attributable to an item of the requesting spouse (unless abuse/duress)
☐ The liability was not paid (or a refund is being sought for overpayment made from the requesting spouse's income)

☐ Streamlined Determination Eligible (Rev. Proc. 2013-34, § 4.02):
☐ No longer married / legally separated / not in same household
☐ Would suffer economic hardship if relief denied
☐ No fraudulent asset transfers
☐ No disqualified asset transfers
☐ Did not knowingly participate in fraud
☐ Liability attributable to nonrequesting spouse (or requesting spouse's item due to abuse)
☐ No actual knowledge of understatement or intent not to pay

☐ Nonexclusive Factors Analysis (Rev. Proc. 2013-34, § 4.03):

PART V — SUPPORTING DOCUMENTATION CHECKLIST

Required Documents

☐ Form 8857 — Request for Innocent Spouse Relief (completed and signed)
☐ This Cover Letter and Personal Statement
☐ Copies of joint tax returns for all years at issue
☐ Form 2848 — Power of Attorney (if represented)
☐ Copy of IRS notice(s) of deficiency or assessment for the tax years at issue

Marital Status Documentation

☐ Divorce decree or judgment (certified copy)
☐ Legal separation agreement (certified copy)
☐ Death certificate (if widowed)
☐ Evidence of living apart for 12+ months (utility bills, separate lease, etc.)
☐ Marriage certificate (if applicable)

Knowledge/Lack of Knowledge Documentation

☐ Declaration or affidavit of requesting spouse regarding lack of knowledge
☐ Evidence of education level and business/financial experience
☐ Evidence that nonrequesting spouse controlled financial matters
☐ Evidence that nonrequesting spouse prepared or controlled tax return preparation
☐ Evidence of limitations on access to financial records
☐ Evidence of concealment by nonrequesting spouse

Abuse Documentation (if applicable)

☐ Police reports documenting abuse
☐ Protective orders or restraining orders
☐ Medical records documenting injuries
☐ Counseling or therapy records
☐ Shelter intake records
☐ Witness declarations or affidavits
☐ Photographs
☐ Communications (texts, emails, voicemails)
☐ Court documents from divorce/custody proceedings
☐ Social worker or advocate declarations

Financial Documentation (for equitable relief / economic hardship)

☐ Current pay stubs or income verification (last 3 months)
☐ Bank statements for all accounts (last 3 months)
☐ Monthly expense documentation
☐ Mortgage/rent documentation
☐ Medical bills and insurance documentation
☐ Child care expense documentation
☐ Current asset and liability information
☐ Divorce decree provisions regarding financial obligations

Allocation Documentation (for separation of liability)

☐ Evidence of which spouse earned income at issue
☐ Evidence of which spouse claimed deductions at issue
☐ W-2s, 1099s, and K-1s for both spouses
☐ Business records showing ownership/income (if applicable)
☐ Allocation worksheet with supporting calculations

Other Supporting Documents

☐ Declarations from family members, friends, or other witnesses
☐ Prior correspondence with the IRS
☐ Tax transcripts for years at issue
☐ Divorce attorney declaration regarding asset division
☐ [________________________________]
☐ [________________________________]

PART VI — COVER LETTER

[________________________________]
Law Firm / Requesting Spouse Letterhead

[__/__/____]

Internal Revenue Service
Cincinnati Innocent Spouse Unit
P.O. Box 120053
Covington, KY 41012

Via Certified Mail, Return Receipt Requested
Certified Mail No.: [________________________________]

Re: Request for Innocent Spouse Relief Under IRC § 6015
Requesting Spouse: [________________________________]
SSN: [________________________________]
Nonrequesting Spouse: [________________________________]
SSN: [________________________________] (if known)
Tax Year(s): [________________________________]
Total Relief Sought: $[________________________________]

Dear Innocent Spouse Unit:

On behalf of [________________________________] ("Requesting Spouse"), I submit the enclosed Form 8857 and supporting documentation requesting relief from joint and several liability under IRC § 6015 for the tax year(s) identified above.

Type of Relief Requested

☐ Traditional innocent spouse relief under IRC § 6015(b)
☐ Separation of liability under IRC § 6015(c)
☐ Equitable relief under IRC § 6015(f)
☐ Community income relief under IRC § 66(c)
☐ The IRS is requested to determine the most favorable relief type

Summary of Request

The Requesting Spouse filed joint tax returns with [________________________________] ("Nonrequesting Spouse") for the tax year(s) [________________________________]. The total deficiency [and/or underpayment] at issue is $[________________________________]. The Requesting Spouse seeks relief from $[________________________________] of this liability based on the following circumstances:

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Key Facts Supporting Relief

1. [________________________________]
2. [________________________________]
3. [________________________________]
4. [________________________________]
5. [________________________________]

Collection Activity

☐ The IRS has [filed a lien / issued a levy / offset a refund / sent collection notices] against the Requesting Spouse
☐ The Requesting Spouse requests that collection activity be suspended during the pendency of this request under IRM 25.15.1.5
☐ The Requesting Spouse has not previously filed a claim for innocent spouse relief for these tax years

Nonrequesting Spouse Notification

The Requesting Spouse understands that the IRS will notify the Nonrequesting Spouse of this request under IRC § 6015(h)(2) and provide the Nonrequesting Spouse an opportunity to participate.

☐ The Nonrequesting Spouse's current address is: [________________________________]
☐ The Nonrequesting Spouse's current address is unknown

Enclosed Documents

1. Form 8857 — Request for Innocent Spouse Relief (completed and signed)
2. Personal Statement with supporting narrative
3. Supporting documentation (see attached index)
4. Form 2848 — Power of Attorney (if applicable)
5. [Other: ________________________________]

Please contact the undersigned if additional information is needed.

Respectfully submitted,

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]
Attorney / Requesting Spouse Name
Firm Name (if applicable)
Address
Telephone / Email
CAF Number (if representative)

PART VII — TAX COURT REVIEW RIGHTS

A. Right to Petition Tax Court — IRC § 6015(e)

If the IRS denies the innocent spouse relief request, the requesting spouse may petition the United States Tax Court for review.

Filing Deadline: The petition must be filed within 90 days of the date of the IRS's final determination (denial letter). IRC § 6015(e)(1)(A).

Timing Option: Alternatively, if the IRS has not made a determination within 6 months of filing Form 8857, the requesting spouse may petition the Tax Court at any time after the 6-month period. IRC § 6015(e)(1)(A)(i)(II).

Scope of Review: The Tax Court reviews the IRS's determination de novo (reviewing the facts and law anew). Porter v. Commissioner, 132 T.C. 203 (2009).

B. Stand-Alone Petition

A petition for review of an innocent spouse determination is a "stand-alone" proceeding. The requesting spouse does not need a separate notice of deficiency to petition the Tax Court for review of an innocent spouse determination.

C. Tax Court Petition Requirements

D. Interlocutory Relief

☐ The requesting spouse may file a motion with the Tax Court to suspend collection activities during the pendency of the Tax Court case under IRC § 6015(e)(1)(B).

PART VIII — PRACTITIONER REFERENCE GUIDE

A. Key Statutory Provisions

B. Key Treasury Regulations

C. Key IRM Sections

D. Key Revenue Procedures and Rulings

E. Key Case Law

F. IRS Forms

G. Practice Tips

1. Choose the Right Relief Type: Analyze all three types of relief (b), (c), and (f) before filing. Request that the IRS consider all applicable types if there is uncertainty.

2. No Time Limit for Equitable Relief: Under Rev. Proc. 2013-34, there is no deadline for requesting equitable relief under § 6015(f). This is particularly important for taxpayers who missed the 2-year deadline for (b) or (c) relief.

3. Abuse Is a Powerful Factor: Rev. Proc. 2013-34 gives significant weight to evidence of abuse. Document abuse thoroughly, including obtaining police reports, protective orders, medical records, and witness declarations.

4. Prepare for Nonrequesting Spouse Contact: The IRS will notify the nonrequesting spouse under IRC § 6015(h)(2). Prepare the requesting spouse for this possibility and consider safety concerns.

5. Collect Evidence Early: Gather all evidence before filing. After divorce, it may become increasingly difficult to obtain financial records, tax documents, and other evidence in the nonrequesting spouse's possession.

6. Economic Hardship Standard: For streamlined equitable relief, economic hardship means the requesting spouse would be unable to pay reasonable basic living expenses. Consider current income, expenses, assets, and the impact of paying the tax liability.

7. Injured Spouse Claims: If the requesting spouse is owed a refund that was (or will be) offset against the nonrequesting spouse's debts, file Form 8379 (Injured Spouse Allocation) in addition to Form 8857.

8. Collection Suspension: Under IRM 25.15.1.5, the IRS generally suspends collection activity during the pendency of an innocent spouse claim. If collection continues, contact the Innocent Spouse Unit or the Taxpayer Advocate Service.

9. Community Property States: In community property states, analyze whether IRC § 66(c) provides relief in addition to or instead of § 6015. The rules for community income allocation differ from the general innocent spouse provisions.

10. Tax Court Is the Forum: If the IRS denies relief, the Tax Court provides de novo review. The requesting spouse can present new evidence and arguments not raised at the administrative level.

PART IX — REQUESTING SPOUSE DECLARATION AND SIGNATURE

I, [________________________________], declare under penalties of perjury that the information contained in this Innocent Spouse Relief Request and all attached documentation is true, correct, and complete to the best of my knowledge and belief.

I understand that:

1. The IRS will notify the nonrequesting spouse of this request and provide an opportunity to participate.
2. If the IRS denies this request, I may petition the United States Tax Court for review within 90 days of the denial or after 6 months if no determination has been made.
3. Filing this request does not automatically suspend collection activity, although the IRS generally does suspend collection during the pendency of the claim.
4. I must continue to comply with all tax filing and payment obligations.
5. I may be contacted by the IRS for additional information, including a personal interview.
6. Providing false or fraudulent information may result in penalties.

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

SOURCES AND REFERENCES

1. Internal Revenue Code §§ 6013(d)(3), 6015, 66(c), 6402
2. Treasury Regulations §§ 1.6015-1 through 1.6015-9
3. Rev. Proc. 2013-34, 2013-43 I.R.B. 397 (Equitable Relief Guidelines)
4. IRM 25.15 (Relief from Joint and Several Liability)
5. IRS Form 8857 Instructions (Rev. June 2021)
6. IRS Form 8379, Injured Spouse Allocation
7. Porter v. Commissioner, 132 T.C. 203 (2009) (de novo review)
8. Cheshire v. Commissioner, 115 T.C. 183 (2000) (erroneous items)
9. Alt v. Commissioner, 119 T.C. 306 (2002) (actual knowledge under § 6015(c))
10. IRS Publication 971, Innocent Spouse Relief

This template is provided for informational purposes only and does not constitute legal advice. You must have this template reviewed and customized by a qualified attorney licensed in your jurisdiction before use. Do not use this template without professional legal review. Tax laws and IRS procedures are subject to change; verify all citations and procedures before filing.