Form 8857: Request For Innocent Spouse Relief

AAA

DEFINITION of 'Form 8857: Request For Innocent Spouse Relief'

An IRS tax form used by taxpayers to request relief from a tax liability involving a spouse or former spouse. Couples filing a joint tax return both become responsible for the tax obligation, called joint and several liability. If additional tax has to be paid because of income, deductions or credits from one spouse (or former spouse), the other partner will still be liable. The taxpayer seeking relief should file Form 8857 as soon as he or she becomes aware of a tax obligation that the other spouse (or former spouse) should be solely responsible for.

INVESTOPEDIA EXPLAINS 'Form 8857: Request For Innocent Spouse Relief'

Getting a divorce doesn't stop the IRS from considering both parties still joint and severally liable for a tax obligation, even if a divorce decree states that only one party is responsible for the tax. A spouse or former spouse has two years to file Form 8857 from when the IRS first starts trying to collect for the obligation.

RELATED TERMS
  1. Joint And Several Liability

    When multiple parties can be held liable for the same event or ...
  2. Innocent-Spouse Rule

    A measure of relief built into the tax code that allows a person, ...
  3. Married Filing Separately

    A filing status for married couples who choose to record their ...
  4. Married Filing Jointly

    A filing status for married couples that have wed before the ...
  5. Community Property

    A U.S. state-level legal distinction of a married individual's ...
  6. Form 8949

    An Internal Revenue Service form implemented in tax year 2011 ...
Related Articles
  1. Relationship Money Matters
    Retirement

    Relationship Money Matters

  2. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  3. Happily Married? File Taxes Separately!
    Taxes

    Happily Married? File Taxes Separately!

  4. The Tax Benefits Of Having A Spouse
    Taxes

    The Tax Benefits Of Having A Spouse

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center