Lecture Notes: Instructions for IRS Form 8857

General Information

• Purpose of Form 8857: Used to request relief from tax liability, joint and several liability on joint tax returns.
• Joint and Several Liability: Both spouses are responsible for the full tax liability, even if the liability is due to the spouse's income or errors.

When to File

• File as soon as you're aware of the tax liability.
• Generally, file within 2 years of the first IRS collection attempt.
• Exceptions for equitable relief and relief from community income tax liability.

Types of Relief

• Innocent Spouse Relief: For understated tax due to erroneous items by the spouse.
• Separation of Liability Relief: For divorced, separated, or widowed individuals.
• Equitable Relief: For unpaid taxes or if it would be unfair to hold you liable.
• Community Property Laws Relief: Applies in certain states for community income items.

Filing Instructions

• Where to File: Mail to IRS P.O. Box or use fax.
• Contact with Spouse: IRS must contact your spouse/former spouse to participate in the process.
• Privacy: IRS protects personal information but may share relevant data with the spouse.

Specific Instructions and Details

• Lines and Information Required: Details on each line of the form, e.g., Line 5 (address), Line 11 (signature validity), and Line 19 (property transfers).
• Proof Required: Proof of payment with your own money is needed for refunds.

After Filing

• IRS will review and may issue a preliminary and final determination letter.
• Tax Court Review: Possible if IRS fails to decide within 6 months.

Additional Resources

• Taxpayer Advocate Service (TAS): Assistance for unresolved issues and taxpayer rights.
• Low Income Taxpayer Clinics (LITCs): Assistance for low-income individuals with IRS issues.

Notices & Privacy

• Privacy Act and Paperwork Reduction Notice: Information on the form is needed to assess liability relief eligibility.
• Time Estimates for Completion: Estimated completion time for learning, preparing, and submitting the form.

Important Considerations

• Legal and Tax Rights: Awareness of taxpayer rights and IRS procedures.
• Representation: Option to have a representative if properly authorized.

These notes provide a summary of the key points from the IRS Instructions for Form 8857, detailing who should file, types of relief available, where and when to file, and the post-filing process. The information aims to clarify responsibilities and options for taxpayers seeking relief from joint tax liabilities.