Filled-in Form 8857

This part explains how Janie Boulder fills out Form 8857 to request innocent spouse relief.

Janie and Joe Boulder filed a joint tax return for 1998. Joe did not report a $5,000 award he won that year. They received an IRS Notice of Deficiency for additional tax of $650 and penalties and interest of $165.

Janie applies the conditions listed under Innocent Spouse Relief on page 3 to see if she qualifies for relief.

1. Janie meets the first condition because the joint tax return they filed has an understatement of tax.
2. Janie believes she meets the second condition. She did not know about the award and had no reason to know about it because of the secretive way Joe conducted his financial affairs.
3. Janie believes she meets the third condition. She believes it would be unfair to be held liable for the tax because she did not benefit from the award. Joe spent it on personal items for his use only.

Because Janie believes she qualifies for innocent spouse relief, she files Form 8857 with the IRS. She fills in her name, address, social security number, and daytime phone number. She fills out the rest of the form as follows:

Line 1. Janie enters "1998" because this is the tax year for which she is requesting relief.

Line 2. She enters the name, address, social security number, and daytime phone number of her spouse.

Line 3. She checks the Yes box because she received an IRS Notice of Deficiency for additional tax.

Lines 4-6. Janie checks the No box on each of these lines because she and Joe were not divorced, separated, or living apart during the last 12 months.

Line 7. Janie does not check the box on this line because she checked the No boxes on lines 4, 5, and 6.

Line 8. Janie checks theYes box on this line because the income items all belonged to her husband. She writes a statement (not illustrated) explaining why she feels she qualifies for innocent spouse relief.

Line 9. Janie checks the No box on this line because she does not have an underpayment of tax.

Signing and mailing Form 8857. Janie signs and dates the form. She attaches the explanatory statement (not illustrated) required by the Form 8857 instructions. Finally, she mails the form to the IRS employee named in the Notice of Deficiency before the end of the 90-day period specified in the Notice.

Boulder's filled-in Form 8857

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