Taxpayers who report “married filing jointly” are jointly and collectively responsible for both the initial tax payable and any ensuing tax increases (Sec. 6013(d)(3)). One taxpayer is frequently shocked to learn that the tax shown on the report was not paid (or that the return was submitted late) or that an inspection resulted in a significant tax increase.

The unaware spouse has three options for requesting forgiveness of the underpaid tax. The “conventional” innocent spouse claim, the division or distribution of the shortfall, and a demand for fair remedies are these three.

Ways to request remedy; rights of appeal

Use Form 8857, Application for Innocent Spouse Relief, to submit a request for any of the aforementioned categories of relief. Under the Taxpayer First Act, P.L. 116-25, a request may also be submitted as a component of a complaint to the U.S. Tax Court.

An institutional appeal may be made by the asking spouse if their request for innocent spouse relief denied. Within 90 days following the date on which the Service sent notice of its final finding refusing relief, the seeking spouse may file a stand-alone application with the Higher Courts. The asking spouse may submit a petition with the court six months from the date the application for relief was submitted, but no later than 90 days, if the IRS does not act on the request.

Depending on your specific situation, you might be able to challenge the ruling. If the IRS made a preliminary finding refusing or only partly approving your application and you are the seeking spouse, you may contest the IRS’s decision by submitting Form 12509, Statement of Disagreement, within thirty days of getting the IRS’ preliminary judgment letter. If the IRS rejects the asking spouse’s request for innocent spouse relief in full or in part after an appeal, they could submit a petition with both the Tax Court. A Tax Court petition must typically be filed before 90 days of the day the IRS sends the final judgment notice.

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