What is innocent spouse relief and who qualifies?

Innocent Spouse Relief (IRC Section 6015) is a provision that can relieve you of joint tax liability when your spouse or former spouse improperly reported items on your joint return. There are three types: (1) Innocent Spouse Relief (Section 6015(b)): available when your spouse understated tax due to erroneous items (unreported income, false deductions) and you didn't know and had no reason to know about the understatement. (2) Separation of Liability (Section 6015(c)): available to divorced, separated, or widowed taxpayers. The tax liability is divided between you and your former spouse based on who was responsible for the items. (3) Equitable Relief (Section 6015(f)): a catch-all for situations that don't qualify under the other two provisions. The IRS considers factors like whether you'd suffer economic hardship, whether your spouse had a legal obligation to pay, and whether you benefited from the understatement. To apply, file Form 8857 (Request for Innocent Spouse Relief). There's generally a 2-year deadline from the date the IRS begins collection activity, but equitable relief requests can be filed at any time. The IRS will contact your spouse/ex-spouse for their input, which you should be aware of if there are domestic issues.