Publication 971 (Rev. April 2008) - Innocent Spouse Relief (Page 3 of 23) in pdf

Situations in which you are not entitled to relief. You

him or her of its preliminary and final determinations re-

are not entitled to innocent spouse relief for any tax year to

garding your request for relief.

which the following situations apply.

However, to protect your privacy, the IRS will not dis-

close your personal information (for example, your current

1. In a final decision dated after July 22, 1998, a court

name, address, phone number(s), information about your

considered whether to grant you relief from joint lia-

employer, your income or assets) or any other information

bility and decided not to do so.

that does not relate to making a determination about your

request for relief from liability.

2. In a final decision dated after July 22, 1998, a court

did not consider whether to grant you relief from joint

If you petition the Tax Court (explained below),

liability, but you meaningfully participated in the pro-

your spouse or former spouse may see your

ceeding and could have asked for relief.

personal information.

CAUTION

3. You entered into an offer in compromise with the

IRS.

Tax Court Review of Request

4. You entered into a closing agreement with the IRS

After you file Form 8857, you may be able to petition (ask)

that disposed of the same liability for which you want

the United States Tax Court to review your request for

to seek relief.

relief in the following two situations.

Exception for agreements relating to TEFRA part-

1. The IRS sends you a final determination letter re-

nership proceedings. You may be entitled to relief, dis-

garding your request for relief.

cussed in (4) earlier, if you entered into a closing

agreement for both partnership items and nonpartnership

2. You do not receive a final determination letter from

items, while you were a party to a pending TEFRA partner-

the IRS within six months from the date you filed

ship proceeding. (TEFRA is an acronym that refers to the

Form 8857.

“Tax Equity and Fiscal Responsibility Act of 1982” that

prescribed the tax treatment of partnership items.) You are

If you seek equitable relief for an underpaid tax,

not entitled to relief for the nonpartnership items, but you

you will be able to get a Tax Court review of your

will be entitled to relief for the partnership items (if you

request only if the tax arose or remained unpaid

CAUTION

otherwise qualify).

on or after December 20, 2006.

The United States Tax Court is an independent judicial

Transferee liability not affected by innocent spouse

body and is not part of the IRS.

relief provisions. The innocent spouse relief provisions

You must file a petition with the United States Tax Court

do not affect tax liabilities that arise under federal or state

in order for it to review your request for relief. You must file

transferee liability or property laws. Therefore, even if you

the petition no later than the 90th day after the date the

are relieved of the tax liability under the innocent spouse

IRS mails its final determination notice to you. If you do not

relief provisions, you may remain liable for the unpaid tax,

file a petition, or you file it late, the Tax Court cannot review

interest, and penalties to the extent provided by these

your request for relief.

laws.

You can get a copy of the rules for filing a petition

Example. Herb and Wanda timely filed their 2004 joint

by writing to the Tax Court at the following ad-

income tax return on April 15, 2005. Herb died in March

dress.

2006, and the executor of Herb’s will transferred all of the

United States Tax Court

estate’s assets to Wanda. In February 2007, the IRS as-

400 Second Street, NW

sessed a deficiency for the 2004 return. The items causing

Washington, DC 20217

the deficiency belong to Herb. Wanda is relieved of the

deficiency under the innocent spouse relief provisions, and

Or you can visit the Tax Court’s website at www.

Herb’s estate remains solely liable for it. However, the IRS

ustaxcourt.gov.

may collect the deficiency from Wanda to the extent per-

mitted under federal or state transferee liability or property

laws.

Community Property Laws

The IRS Must Contact Your Spouse or

Former Spouse

You must generally follow community property laws when

filing a tax return if you are married and live in a community

By law, the IRS must contact your spouse or former

property state. Community property states are Arizona,

spouse. There are no exceptions, even for victims of

California, Idaho, Louisiana, Nevada, New Mexico, Texas,

spousal abuse or domestic violence.

Washington, and Wisconsin. Generally, community prop-

We will inform your spouse or former spouse that you

erty laws require you to allocate community income and

filed Form 8857 and will allow him or her to participate in

expenses equally between both spouses. However, com-

the process. If you are requesting relief from joint and

munity property laws are not taken into account in deter-

several liability on a joint return, the IRS must also inform

mining whether an item belongs to you or to your spouse

Publication 971 (April 2008)

Page 3

Publication 971 (Rev. April 2008) - Innocent Spouse Relief Page 3

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