Applying for innocent spouse relief is often deeply personal. The tax problem may be connected to a former spouse, hidden income, financial control, abuse, or financial decisions made without your knowledge. After sharing that history with the IRS, receiving a denial can feel as though the agency did not fully understand what happened.
A denial does not always end the case. Depending on the letter you received and when it was issued, you may still have an opportunity to appeal the decision or ask the United States Tax Court to review your request.
What Type of Innocent Spouse Letter Did You Receive?
The available options depend largely on the type of letter the IRS sent. After reviewing Form 8857, Request for Innocent Spouse Relief, the IRS generally issues a preliminary determination. This letter explains if relief is being granted in full, granted in part, or denied.
The requesting spouse generally has 30 days from the date of the preliminary determination letter to appeal a denial or partial denial. The nonrequesting spouse may also have the right to appeal when relief is granted in full or in part.
If no administrative appeal is requested, or after the IRS Independent Office of Appeals reviews the case, the IRS may issue a final determination. A final determination letter may give the requesting spouse the right to petition the United States Tax Court. Because these letters serve different purposes, the date and instructions in the specific letter matter.
How Can You Appeal a Preliminary Determination?
Form 12509, Innocent Spouse Statement of Disagreement, is generally used to appeal a preliminary determination. The form provides space to explain why you disagree with the IRS’s decision. It can also be used to point out facts that may have been misunderstood, overlooked, or given too little weight.
A clear timeline may help the IRS understand how events unfolded. This could include when the tax return was prepared, what information was available to you, when you learned about the tax problem, and how the household finances were handled at the time.
The appeal is generally returned to the address shown in the determination letter. Sending it directly to the IRS Independent Office of Appeals may delay its processing.
What Information May Help Support an Appeal?
The most useful information will usually depend on why the IRS denied the request. For example, the IRS may believe you knew or had reason to know about an error on a joint tax return. In that situation, the appeal might explain who prepared the return, which financial records you were allowed to see, and how involved you were in the household or business finances.
In another case, the dispute may involve financial hardship or the fairness of holding one spouse responsible for the tax. The supporting records would likely look different.
Depending on the circumstances, helpful evidence may include:
- Divorce or separation records
- Bank statements
- Tax preparation communications
- Emails or text messages
- Evidence that a spouse controlled the household finances
- Medical or counseling records
- Police reports or protective orders
- Statements from people familiar with the circumstances
- Information about education and work history
- Records showing limited involvement in financial matters
- Documents showing the financial hardship collection could cause
Not every innocent spouse case involves abuse, hidden income, or financial control. The records included with an appeal should relate to the type of relief requested and the reason the IRS gave for denying it.
In addition, personal statements may also be important. Documents do not always capture the full story, especially when financial control or abuse made it difficult to ask questions, access records, or challenge a spouse’s decisions.
What If the IRS Believes You Knew About the Tax Problem?
Knowledge is a common issue in innocent spouse cases, but the analysis may involve more than asking if you signed the return. The IRS may consider what you actually knew and what a reasonable person in similar circumstances might have known. It may look at your education, work experience, involvement in the finances, changes in the family’s standard of living, and any unusual items shown on the return.
Abuse or financial control can also affect this analysis. A person may have noticed something unusual but felt unable to question a spouse because of fear, intimidation, or control over money.
An appeal can provide more context about these circumstances. The goal is not simply to repeat that you did not know about the problem, but to help the IRS understand why you did not know or why you could not reasonably challenge what was happening.
Will Your Spouse Be Told About the Appeal?
The IRS is generally required to notify a spouse or former spouse that innocent spouse relief has been requested. There is no exception to this notification requirement, even in cases involving domestic abuse. The nonrequesting spouse may be allowed to provide information and participate in parts of the process. That person may also have appeal rights if the IRS grants relief in full or in part.
However, the IRS should not disclose personal information such as your current address, telephone number, employer, income, or assets. Other information used to decide the claim may be shared with the nonrequesting spouse. This can be an important concern when safety or privacy is involved. Sensitive personal information that is not needed to support the request may be redacted from documents before they are submitted.
If the case reaches the Tax Court, different disclosure rules may apply. The former spouse may be able to see information included in the court case unless the court agrees to protect it.
Can the United States Tax Court Review the Denial?
A requesting spouse may generally petition the United States Tax Court after the IRS issues a final determination denying relief. The petition normally must be filed no later than the 90th day after the IRS mails the final determination letter. The date shown in the letter is therefore important.
Tax Court review may also be available if the IRS has not issued a final determination within six months after Form 8857 was filed. This does not mean a petition must be filed as soon as six months pass. It means the requesting spouse may have the option to seek court review at that point.
The Tax Court is independent from the IRS. It can consider the facts and decide if the requesting spouse qualifies for relief.
The filing deadline following a final determination is strict. Continuing to communicate with the IRS or asking it to reconsider the decision generally does not extend the 90-day Tax Court period.
Does IRS Collection Stop While the Case Is Pending?
The IRS is generally restricted from collecting the liabilities included in an innocent spouse request while the claim is pending. The restriction may also continue during the period for filing a timely Tax Court petition and while a properly filed Tax Court case remains unresolved. There can be exceptions, including cases in which the IRS believes collection is in jeopardy. Interest and penalties may also continue to increase while the request is pending.
Tax liabilities from other years that were not included in the innocent spouse request may still be subject to collection.
Requesting innocent spouse relief can also extend the amount of time the IRS has to collect the tax. If relief is ultimately denied, collection may resume for the amount the requesting spouse remains responsible for paying.
Final Thoughts
A denial of innocent spouse relief can be discouraging, but it may not be the final answer. Sometimes the IRS reached its decision without important records or did not have enough context to understand the requesting spouse’s knowledge, financial involvement, or personal circumstances.
An appeal provides another opportunity to explain what happened and address the specific reasons given for the denial. If the IRS later issues a final determination, Tax Court review may also be available.
At the Law Office of Steven N. Klitzner, we help taxpayers apply for innocent spouse tax relief and respond when relief is denied. Contact us to discuss the determination letter, the applicable deadline, and the options that may still be available.
This article is provided for informational purposes only and does not constitute legal or tax advice. Reading this article does not create an attorney-client relationship. Every tax matter is different, and you should speak with a qualified tax professional about your specific circumstances.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
