Innocent Spouse

Understanding Joint and Several Liability

When married taxpayers file a joint return, both spouses become jointly and severally liable for the entire tax due on that return — including any additional tax the IRS subsequently determines is owed. Joint and several liability means the IRS can pursue either spouse for the full amount — regardless of who earned the income, who prepared the return, who signed it with full knowledge, and who caused the deficiency.

The practical consequences of this rule can be severe and long-lasting. A spouse who had no involvement in their partner's financial affairs — who signed a return they trusted was accurate, who had no knowledge of unreported business income or inflated deductions — can find themselves years or even decades later facing IRS collection action for a liability they had no part in creating.

Divorce does not end joint liability. A divorce decree may assign responsibility for a tax debt to one spouse — but it does not bind the IRS. The IRS is not a party to divorce proceedings, and it is not obligated to honor private agreements between former spouses about who owes what. Until Innocent Spouse Relief is granted, both parties remain fully liable.

The Three Forms of Innocent Spouse Relief

The Internal Revenue Code provides three distinct forms of relief for spouses seeking protection from joint liability — each addressing a different set of circumstances and requiring a different legal and factual showing. At Blackridge Tax, we evaluate every client's situation carefully to determine which form of relief — or which combination — provides the strongest basis for the most complete protection available.

Traditional Innocent Spouse Relief — IRC Section 6015(b)

Traditional innocent spouse relief is available when a joint return contains an understatement of tax attributable to erroneous items of the other spouse — unreported income, inflated deductions, improper credits, or other items that caused the tax shown on the return to be less than what was actually owed.

To qualify, the requesting spouse must demonstrate that at the time of signing the return, they did not know and had no reason to know that there was an understatement of tax. The IRS must also determine that holding the requesting spouse liable would be inequitable given all the facts and circumstances.

The IRS evaluates a range of factors in assessing these claims — the requesting spouse's level of education and financial sophistication, their involvement in the household's financial and business decisions, whether they benefited from the understatement, and the nature of the erroneous items. When the evidence supports it, traditional innocent spouse relief can eliminate the requesting spouse's liability entirely for the portion of the deficiency attributable to the other spouse's errors.

At Blackridge Tax, we present every relevant factor comprehensively and document every element of the requesting spouse's lack of knowledge — building a factual record that establishes entitlement to relief under the statute's requirements.

Separation of Liability Relief — IRC Section 6015(c)

Separation of liability relief takes a different approach — rather than eliminating liability entirely, it allocates the deficiency between the spouses as though they had filed separate returns. Each spouse is then responsible only for the portion of the deficiency allocable to their own income, deductions, and credits.

This form of relief is available to taxpayers who are no longer married, are legally separated, or have not lived together at any time during the 12-month period preceding the filing of the relief request. It is particularly valuable in cases where the deficiency is primarily attributable to the other spouse's income or financial activity — unreported business income, inflated business expenses, improper deductions — and the requesting spouse's own allocable share of the deficiency is substantially lower than the total amount the IRS is seeking.

Relief under Section 6015(c) may be limited if the IRS can demonstrate that the requesting spouse had actual knowledge of the erroneous items at the time the return was signed. At Blackridge Tax, we address the knowledge issue directly — presenting the evidence that establishes the boundaries of what the requesting spouse knew and did not know, and challenging the IRS's determination of actual knowledge where the record supports it.

Equitable Relief — IRC Section 6015(f)

Equitable relief is the broadest and most flexible form of innocent spouse protection — available when the requesting spouse does not qualify for traditional innocent spouse relief or separation of liability, but when holding them liable would nonetheless be fundamentally inequitable given all the facts and circumstances.

Unlike the other two forms of relief, equitable relief can apply to both understatements — amounts reported incorrectly on the return — and underpayments — amounts properly reported but not paid. This distinction is critical, because it means equitable relief can protect a spouse who knew the return was accurate but is now being pursued for a liability they had no ability to pay and no reasonable means of preventing.

The IRS considers a comprehensive range of factors in equitable relief cases:

• Whether the requesting spouse is divorced, separated, or no longer living with the other spouse

• Whether the requesting spouse would suffer significant economic hardship if relief is denied

• Whether the requesting spouse had knowledge or reason to know of the understatement or underpayment

• Whether the other spouse had a legal obligation under a divorce decree or separation agreement to pay the outstanding tax

• Whether the requesting spouse received a meaningful economic benefit from the unpaid tax

• Whether the requesting spouse was a victim of domestic abuse, financial control, or coercion that prevented them from questioning the return or the other spouse's financial activity

This last factor — domestic abuse and financial control — is one the IRS takes seriously and one that Blackridge Tax presents with the sensitivity, documentation, and legal precision it requires. For clients whose marriages involved financial abuse or coercion, equitable relief can be both a legal remedy and a meaningful step toward financial independence.

The Application Process — Form 8857

Innocent spouse claims are filed using IRS Form 8857 — a detailed application that requires a comprehensive narrative explaining the circumstances of the marriage, the requesting spouse's knowledge and involvement regarding the tax issues at the time of filing, and the financial, personal, and equitable factors that support relief.

The quality of the Form 8857 application — the completeness of the narrative, the strength of the factual record, and the persuasiveness of the legal argument — has a direct impact on the outcome. A poorly prepared application invites denial. A well-prepared one establishes a record that is difficult for the IRS to overcome.

At Blackridge Tax, we approach every Form 8857 application as a legal filing — not an administrative form. We work closely with each client to develop a complete and accurate account of the relevant facts, compile all supporting documentation, and present the narrative in a manner that meets the IRS's evidentiary requirements and anticipates the specific factors the examiner will evaluate.

Supporting documentation typically includes divorce decrees and separation agreements, financial records demonstrating the requesting spouse's lack of involvement in the erroneous items, evidence of the other spouse's control over financial decisions, correspondence, tax professional records, and — where relevant — documentation of domestic abuse or financial coercion.

The IRS Review Process

Once the Form 8857 is filed, the IRS notifies the non-requesting spouse — the person whose erroneous items gave rise to the deficiency — and provides them an opportunity to participate in the review process. This notification is required by law and cannot be avoided. At Blackridge Tax, we prepare our clients for this aspect of the process and manage the IRS's interaction with both parties in a manner that protects the requesting spouse's interests throughout.

The IRS then conducts its own review of the application — evaluating the factual record, applying the relevant legal standards, and issuing a determination. This process can take several months. During the pendency of the claim, the IRS is generally prohibited from collecting the disputed liability from the requesting spouse.

Appeal & Tax Court Review

If the IRS denies the innocent spouse claim — or grants only partial relief — the requesting spouse has the right to petition the United States Tax Court for an independent review of the determination. Tax Court review of innocent spouse cases is de novo — meaning the court conducts its own independent evaluation of the facts and the law, without deference to the IRS's prior determination.

At Blackridge Tax, we evaluate every denied or partially granted innocent spouse claim to determine whether Tax Court review is warranted — and when it is, we pursue it with the same preparation and strategic discipline we bring to every litigation matter.

The Blackridge Standard

Blackridge Tax represents individuals seeking Innocent Spouse Relief in cases involving significant federal tax liability. Our team includes a Board Certified Tax Specialist, attorneys licensed in six states and before the U.S. Tax Court, a CPA, and an Enrolled Agent — professionals who understand both the technical requirements of the innocent spouse statutes and the deeply personal circumstances that bring clients to us seeking this relief.

These are not routine cases. They involve real people navigating the financial consequences of marriages — and in some cases marriages that caused genuine harm. At Blackridge Tax, we handle every innocent spouse matter with the technical rigor it demands and the personal sensitivity it deserves.

You should not be paying for what you never knew about. The law agrees — and we will prove it.

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