2 Essential Things You Need to Know About Form 8857
Form 8857 is an IRS tax form that a taxpayer can use to request relief from tax liabilities involving his current or former spouse. It is also known as Request for Innocent Spouse Relief. In many cases, couples file joint tax returns. And so, they are responsible for their tax obligations. What if the couple wants to split? The IRS will not spare the parties from their tax obligations. If any additional taxes from erroneous credits or unreported income come to light, both the parties are answerable, even if they have completed their divorce.
According to the IRS, a divorce won't stop couples from fulfilling tax obligations. If there is some balance due, then one of the spouses or former spouses may file for Request for Innocent Spouse Relief. However, the individual must file this form before the tax collection period. Usually, the period is ten years from the tax liability date.
Things to remember
If you are expecting a refund from the IRS, make sure you file your request within three years from the date you had originally filed your return. Apart from that, here are a couple more things you should keep in mind:
1. Who can file this form?
It is the taxpayer seeking relief who should Request for Innocent Spouse Relief. If you become aware that your spouse or ex-spouse should be exclusively responsible for the tax obligation, you should seek relief as soon as possible. Having said that, the filing of this form doesn't guarantee your qualification for the relief. You must meet the following conditions first:
• If there is a tax due on your spouse's erroneously listed deductions or income.
• Filing a joint tax return with an understatement of tax.
• If it's unfair to hold you responsible for the understatement.
You may appeal the decision if you receive a notification of denial for your request.
2. How to file the form?
First of all, you need to file your Form 8857 as soon as the IRS sends you a notification of tax obligation. Download the form from the IRS website, fill it out, and wait for them to reply. Sometimes, it may take as much as six months to get a decision from the IRS. Therefore, the sooner you file your request, the better it is for you.
Make sure you answer the questions in the form without hiding anything. That should help you get some peace of mind until the IRS makes its decision.
2 Essential Things You Need to Know About Form 8857
Form 8857 is an IRS tax form that a taxpayer can use to request relief from tax liabilities involving his current or former spouse. It is also known as Request for Innocent Spouse Relief. In many cases, couples file joint tax returns. And so, they are responsible for their tax obligations. What if the couple wants to split? The IRS will not spare the parties from their tax obligations. If any additional taxes from erroneous credits or unreported income come to light, both the parties are answerable, even if they have completed their divorce.
According to the IRS, a divorce won't stop couples from fulfilling tax obligations. If there is some balance due, then one of the spouses or former spouses may file for Request for Innocent Spouse Relief. However, the individual must file this form before the tax collection period. Usually, the period is ten years from the tax liability date.
Things to remember
If you are expecting a refund from the IRS, make sure you file your request within three years from the date you had originally filed your return. Apart from that, here are a couple more things you should keep in mind:
1. Who can file this form?
It is the taxpayer seeking relief who should Request for Innocent Spouse Relief. If you become aware that your spouse or ex-spouse should be exclusively responsible for the tax obligation, you should seek relief as soon as possible. Having said that, the filing of this form doesn't guarantee your qualification for the relief. You must meet the following conditions first:
• If there is a tax due on your spouse's erroneously listed deductions or income.
• Filing a joint tax return with an understatement of tax.
• If it's unfair to hold you responsible for the understatement.
You may appeal the decision if you receive a notification of denial for your request.
2. How to file the form?
First of all, you need to file your Form 8857 as soon as the IRS sends you a notification of tax obligation. Download the form from the IRS website, fill it out, and wait for them to reply. Sometimes, it may take as much as six months to get a decision from the IRS. Therefore, the sooner you file your request, the better it is for you.
Make sure you answer the questions in the form without hiding anything. That should help you get some peace of mind until the IRS makes its decision.