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Amendment Form 1040x

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Amendment Form 1040x

Amendment form 1040x 7. Amendment form 1040x   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Amendment form 1040x Free help with your tax return. Amendment form 1040x   You can get free help preparing your return nationwide from IRS-certified volunteers. Amendment form 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Amendment form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amendment form 1040x Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Amendment form 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Amendment form 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Amendment form 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Amendment form 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Amendment form 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Amendment form 1040x aarp. Amendment form 1040x org/money/taxaide or call 1-888-227-7669. Amendment form 1040x For more information on these programs, go to IRS. Amendment form 1040x gov and enter “VITA” in the search box. Amendment form 1040x Internet. Amendment form 1040x    IRS. Amendment form 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Amendment form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Amendment form 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Amendment form 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Amendment form 1040x gov or download the IRS2Go app and select the Refund Status option. Amendment form 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Amendment form 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Amendment form 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amendment form 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amendment form 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Amendment form 1040x No need to wait on the phone or stand in line. Amendment form 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Amendment form 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Amendment form 1040x New subject areas are added on a regular basis. Amendment form 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Amendment form 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Amendment form 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Amendment form 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Amendment form 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Amendment form 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Amendment form 1040x You can also ask the IRS to mail a return or an account transcript to you. Amendment form 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Amendment form 1040x gov or by calling 1-800-908-9946. Amendment form 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Amendment form 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Amendment form 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Amendment form 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Amendment form 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Amendment form 1040x gov and enter Where's My Amended Return? in the search box. Amendment form 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amendment form 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Amendment form 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Amendment form 1040x gov. Amendment form 1040x Select the Payment tab on the front page of IRS. Amendment form 1040x gov for more information. Amendment form 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Amendment form 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Amendment form 1040x gov. Amendment form 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Amendment form 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Amendment form 1040x gov. Amendment form 1040x Request an Electronic Filing PIN by going to IRS. Amendment form 1040x gov and entering Electronic Filing PIN in the search box. Amendment form 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Amendment form 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Amendment form 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Amendment form 1040x An employee can answer questions about your tax account or help you set up a payment plan. Amendment form 1040x Before you visit, check the Office Locator on IRS. Amendment form 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Amendment form 1040x If you have a special need, such as a disability, you can request an appointment. Amendment form 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Amendment form 1040x Apply for an Employer Identification Number (EIN). Amendment form 1040x Go to IRS. Amendment form 1040x gov and enter Apply for an EIN in the search box. Amendment form 1040x Read the Internal Revenue Code, regulations, or other official guidance. Amendment form 1040x Read Internal Revenue Bulletins. Amendment form 1040x Sign up to receive local and national tax news and more by email. Amendment form 1040x Just click on “subscriptions” above the search box on IRS. Amendment form 1040x gov and choose from a variety of options. Amendment form 1040x Phone. Amendment form 1040x    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Amendment form 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Amendment form 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Amendment form 1040x gov, or download the IRS2Go app. Amendment form 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Amendment form 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Amendment form 1040x Most VITA and TCE sites offer free electronic filing. Amendment form 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Amendment form 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Amendment form 1040x Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Amendment form 1040x If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Amendment form 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Amendment form 1040x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Amendment form 1040x Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Amendment form 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Amendment form 1040x Note, the above information is for our automated hotline. Amendment form 1040x Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Amendment form 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Amendment form 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Amendment form 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Amendment form 1040x Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Amendment form 1040x You should receive your order within 10 business days. Amendment form 1040x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Amendment form 1040x If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Amendment form 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Amendment form 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Amendment form 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Amendment form 1040x Walk-in. Amendment form 1040x   You can find a selection of forms, publications and services — in-person. Amendment form 1040x Products. Amendment form 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Amendment form 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Amendment form 1040x Services. Amendment form 1040x You can walk in to your local TAC for face-to-face tax help. Amendment form 1040x An employee can answer questions about your tax account or help you set up a payment plan. Amendment form 1040x Before visiting, use the Office Locator tool on IRS. Amendment form 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Amendment form 1040x Mail. Amendment form 1040x   You can send your order for forms, instructions, and publications to the address below. Amendment form 1040x You should receive a response within 10 business days after your request is received. Amendment form 1040x Internal Revenue Service 1201 N. Amendment form 1040x Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Amendment form 1040x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Amendment form 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Amendment form 1040x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Amendment form 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Amendment form 1040x You face (or your business is facing) an immediate threat of adverse action. Amendment form 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Amendment form 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Amendment form 1040x Here's why we can help: TAS is an independent organization within the IRS. Amendment form 1040x Our advocates know how to work with the IRS. Amendment form 1040x Our services are free and tailored to meet your needs. Amendment form 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Amendment form 1040x   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Amendment form 1040x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Amendment form 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Amendment form 1040x Low Income Taxpayer Clinics. Amendment form 1040x   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Amendment form 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Amendment form 1040x Visit www. Amendment form 1040x TaxpayerAdvocate. Amendment form 1040x irs. Amendment form 1040x gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Amendment form 1040x Prev  Up  Next   Home   More Online Publications
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Understanding Your CP518 Individuals Notice

This is a final reminder notice that we still have no record that you filed your prior tax return(s).


What you need to do

  • File your tax return immediately or explain to us why you don't need to file.
  • Use the response form on your notice to explain:
    • why you're filing late
    • why you don't have to file
    • that you’ve already filed

If we don't hear from you

  • We may determine your tax for you, and penalty and interest may continue to accrue.
  • If you are owed a refund for the current tax year, or any prior year, it may be delayed because of this unfiled return.

You may want to

 

Page Last Reviewed or Updated: 16-Jan-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Amendment Form 1040x

Amendment form 1040x Publication 971 - Main Content Table of Contents How To Request ReliefException for agreements relating to TEFRA partnership proceedings. Amendment form 1040x The IRS Must Contact Your Spouse or Former Spouse Tax Court Review of Request Community Property LawsRelief for Married Persons Who Did Not File Joint Returns Innocent Spouse ReliefUnderstated Tax Erroneous Items Actual Knowledge or Reason To Know Indications of Unfairness for Innocent Spouse Relief Separation of Liability ReliefLimitations on Relief Equitable ReliefConditions for Getting Equitable Relief Factors for Determining Whether To Grant Equitable Relief RefundsProof Required Refunds Under Equitable Relief Limit on Amount of Refund Filled-in Form 8857 Flowcharts How To Request Relief File Form 8857 to ask the IRS for the types of relief discussed in this publication. Amendment form 1040x If you are requesting relief for more than three tax years, you must file an additional Form 8857. Amendment form 1040x The IRS will review your Form 8857 and let you know if you qualify. Amendment form 1040x A completed Form 8857 is shown later. Amendment form 1040x When to file Form 8857. Amendment form 1040x   You should file Form 8857 as soon as you become aware of a tax liability for which you believe only your spouse or former spouse should be held responsible. Amendment form 1040x The following are some of the ways you may become aware of such a liability. Amendment form 1040x The IRS is examining your tax return and proposing to increase your tax liability. Amendment form 1040x The IRS sends you a notice. Amendment form 1040x   You must file Form 8857 no later than two years after the date on which the IRS first attempted to collect the tax from you that occurs after July 22, 1998. Amendment form 1040x (But see the exceptions below for different filing deadlines that apply. Amendment form 1040x ) For this reason, do not delay filing because you do not have all the documentation. Amendment form 1040x   Collection activities that may start the 2-year period are: The IRS offset your income tax refund against an amount you owed on a joint return for another year and the IRS informed you about your right to file Form 8857. Amendment form 1040x The filing of a claim by the IRS in a court proceeding in which you were a party or the filing of a claim in a proceeding that involves your property. Amendment form 1040x This includes the filing of a proof of claim in a bankruptcy proceeding. Amendment form 1040x The filing of a suit by the United States against you to collect the joint liability. Amendment form 1040x The issuance of a section 6330 notice, which notifies you of the IRS' intent to levy and your right to a collection due process (CDP) hearing. Amendment form 1040x The collection-related notices include, but are not limited to, Letter 11 and Letter 1058. Amendment form 1040x Exception for equitable relief. Amendment form 1040x   On July 25, 2011, the IRS issued Notice 2011-70 (available at www. Amendment form 1040x irs. Amendment form 1040x gov/irb/2011-32_IRB/ar11. Amendment form 1040x html) expanding the amount of time to request equitable relief. Amendment form 1040x The amount of time to request equitable relief depends on whether you are seeking relief from a balance due, seeking a credit or refund, or both: Balance Due – Generally, you must file your request within the time period the IRS has to collect the tax. Amendment form 1040x Generally, the IRS has 10 years from the date the tax liability was assessed to collect the tax. Amendment form 1040x In certain cases, the 10-year period is suspended. Amendment form 1040x The amount of time the suspension is in effect will extend the time the IRS has to collect the tax. Amendment form 1040x See Pub. Amendment form 1040x 594, The IRS Collection Process, for details. Amendment form 1040x Credit or Refund – Generally, you must file your request within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. Amendment form 1040x But you may have more time to file if you live in a federally declared disaster area or you are physically or mentally unable to manage your financial affairs. Amendment form 1040x See Pub. Amendment form 1040x 556, Examination of Returns, Appeal Rights, and Claims for Refund, for details. Amendment form 1040x Both a Balance Due and a Credit or Refund – If you are seeking a refund of amounts you paid and relief from a balance due over and above what you have paid, the time period for credit or refund will apply to any payments you have made, and the time period for collection of a balance due amount will apply to any unpaid liability. Amendment form 1040x Exception for relief based on community property laws. Amendment form 1040x   If you are requesting relief based on community property laws, a different filing deadline applies. Amendment form 1040x See Relief from liability arising from community property law discussed later under Community Property Laws . Amendment form 1040x Form 8857 filed by or on behalf of a decedent. Amendment form 1040x   An executor (including any other duly appointed representative) may pursue a Form 8857 filed during the decedent's lifetime. Amendment form 1040x An executor (including any other duly appointed representative) may also file Form 8857 as long as the decedent satisfied the eligibility requirements while alive. Amendment form 1040x For purposes of separation of liability relief (discussed later), the decedent's marital status is determined on the earlier of the date relief was requested or the date of death. Amendment form 1040x Situations in which you are not entitled to relief. Amendment form 1040x   You are not entitled to innocent spouse relief for any tax year to which the following situations apply. Amendment form 1040x In a final decision dated after July 22, 1998, a court considered whether to grant you relief from joint liability and decided not to do so. Amendment form 1040x In a final decision dated after July 22, 1998, a court did not consider whether to grant you relief from joint liability, but you meaningfully participated in the proceeding and could have asked for relief. Amendment form 1040x You entered into an offer in compromise with the IRS. Amendment form 1040x You entered into a closing agreement with the IRS that disposed of the same liability for which you want to seek relief. Amendment form 1040x Exception for agreements relating to TEFRA partnership proceedings. Amendment form 1040x   You may be entitled to relief, discussed in (4) earlier, if you entered into a closing agreement for both partnership items and nonpartnership items, while you were a party to a pending TEFRA partnership proceeding. Amendment form 1040x (TEFRA is an acronym that refers to the “Tax Equity and Fiscal Responsibility Act of 1982” that prescribed the tax treatment of partnership items. Amendment form 1040x ) You are not entitled to relief for the nonpartnership items, but you will be entitled to relief for the partnership items (if you otherwise qualify). Amendment form 1040x Transferee liability not affected by innocent spouse relief provisions. Amendment form 1040x   The innocent spouse relief provisions do not affect tax liabilities that arise under federal or state transferee liability or property laws. Amendment form 1040x Therefore, even if you are relieved of the tax liability under the innocent spouse relief provisions, you may remain liable for the unpaid tax, interest, and penalties to the extent provided by these laws. Amendment form 1040x Example. Amendment form 1040x Herb and Wanda timely filed their 2008 joint income tax return on April 15, 2009. Amendment form 1040x Herb died in March 2010, and the executor of Herb's will transferred all of the estate's assets to Wanda. Amendment form 1040x In August 2010, the IRS assessed a deficiency for the 2008 return. Amendment form 1040x The items causing the deficiency belong to Herb. Amendment form 1040x Wanda is relieved of the deficiency under the innocent spouse relief provisions, and Herb's estate remains solely liable for it. Amendment form 1040x However, the IRS may collect the deficiency from Wanda to the extent permitted under federal or state transferee liability or property laws. Amendment form 1040x The IRS Must Contact Your Spouse or Former Spouse By law, the IRS must contact your spouse or former spouse. Amendment form 1040x There are no exceptions, even for victims of spousal abuse or domestic violence. Amendment form 1040x We will inform your spouse or former spouse that you filed Form 8857 and will allow him or her to participate in the process. Amendment form 1040x If you are requesting relief from joint and several liability on a joint return, the IRS must also inform him or her of its preliminary and final determinations regarding your request for relief. Amendment form 1040x However, to protect your privacy, the IRS will not disclose your personal information (for example, your current name, address, phone number(s), information about your employer, your income or assets) or any other information that does not relate to making a determination about your request for relief from liability. Amendment form 1040x If you petition the Tax Court (explained below), your spouse or former spouse may see your personal information. Amendment form 1040x Tax Court Review of Request After you file Form 8857, you may be able to petition (ask) the United States Tax Court to review your request for relief in the following two situations. Amendment form 1040x The IRS sends you a final determination letter regarding your request for relief. Amendment form 1040x You do not receive a final determination letter from the IRS within six months from the date you filed Form 8857. Amendment form 1040x If you seek equitable relief for an underpaid tax, you will be able to get a Tax Court review of your request only if the tax arose or remained unpaid on or after December 20, 2006. Amendment form 1040x The United States Tax Court is an independent judicial body and is not part of the IRS. Amendment form 1040x You must file a petition with the United States Tax Court in order for it to review your request for relief. Amendment form 1040x You must file the petition no later than the 90th day after the date the IRS mails its final determination notice to you. Amendment form 1040x If you do not file a petition, or you file it late, the Tax Court cannot review your request for relief. Amendment form 1040x You can get a copy of the rules for filing a petition by writing to the Tax Court at the following address:    United States Tax Court 400 Second Street, NW Washington, DC 20217 Or you can visit the Tax Court's website at www. Amendment form 1040x ustaxcourt. Amendment form 1040x gov Community Property Laws You must generally follow community property laws when filing a tax return if you are married and live in a community property state. Amendment form 1040x Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Amendment form 1040x Generally, community property laws require you to allocate community income and expenses equally between both spouses. Amendment form 1040x However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Amendment form 1040x Relief for Married Persons Who Did Not File Joint Returns Married persons who live in community property states, but who did not file joint returns, have two ways to get relief. Amendment form 1040x Relief From Liability Arising From Community Property Law You are not responsible for the tax relating to an item of community income if all the following conditions exist. Amendment form 1040x You did not file a joint return for the tax year. Amendment form 1040x You did not include the item of community income in gross income. Amendment form 1040x The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. Amendment form 1040x Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. Amendment form 1040x Your spouse's (or former spouse's) distributive share of partnership income. Amendment form 1040x Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). Amendment form 1040x Use the appropriate community property law to determine what is separate property. Amendment form 1040x Any other income that belongs to your spouse (or former spouse) under community property law. Amendment form 1040x You establish that you did not know of, and had no reason to know of, that community income. Amendment form 1040x See  Actual Knowledge or Reason To Know , below. Amendment form 1040x Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. Amendment form 1040x See Indications of unfairness for liability arising from community property law, later. Amendment form 1040x Actual knowledge or reason to know. Amendment form 1040x   You knew or had reason to know of an item of community income if: You actually knew of the item of community income, or A reasonable person in similar circumstances would have known of the item of community income. Amendment form 1040x Amount of community income unknown. Amendment form 1040x   If you are aware of the source of the item of community income or the income-producing activity, but are unaware of the specific amount, you are considered to know or have reason to know of the item of community income. Amendment form 1040x Not knowing the specific amount is not a basis for relief. Amendment form 1040x Reason to know. Amendment form 1040x   The IRS will consider all facts and circumstances in determining whether you had reason to know of an item of community income. Amendment form 1040x The facts and circumstances include: The nature of the item of community income and the amount of the item relative to other income items. Amendment form 1040x The financial situation of you and your spouse (or former spouse). Amendment form 1040x Your educational background and business experience. Amendment form 1040x Whether the item of community income represented a departure from a recurring pattern reflected in prior years' returns (for example, omitted income from an investment regularly reported on prior years' returns). Amendment form 1040x Indications of unfairness for liability arising from community property law. Amendment form 1040x   The IRS will consider all of the facts and circumstances of the case in order to determine whether it is unfair to hold you responsible for the understated tax due to the item of community income. Amendment form 1040x   The following are examples of factors the IRS will consider. Amendment form 1040x Whether you received a benefit, either directly or indirectly, from the omitted item of community income (defined below). Amendment form 1040x Whether your spouse (or former spouse) deserted you. Amendment form 1040x Whether you and your spouse have been divorced or separated. Amendment form 1040x  For other factors see Factors for Determining Whether To Grant Equitable Relief later. Amendment form 1040x Benefit from omitted item of community income. Amendment form 1040x   A benefit includes normal support, but does not include de minimis (small) amounts. Amendment form 1040x Evidence of a direct or indirect benefit may consist of transfers of property or rights to property, including transfers received several years after the filing of the return. Amendment form 1040x   For example, if you receive property, including life insurance proceeds, from your spouse (or former spouse) and the property is traceable to omitted items of community income attributable to your spouse (or former spouse), you are considered to have benefitted from those omitted items of community income. Amendment form 1040x Equitable Relief If you do not qualify for the relief described above and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief (discussed later). Amendment form 1040x How and When To Request Relief You request relief by filing Form 8857, as discussed earlier. Amendment form 1040x Fill in Form 8857 according to the instructions. Amendment form 1040x For relief from liability arising from community property law, you must file Form 8857 no later than 6 months before the expiration of the period of limitations on assessment (including extensions) against your spouse for the tax year for which you are requesting relief. Amendment form 1040x However, if the IRS begins an examination of your return during that 6-month period, the latest time for requesting relief is 30 days after the date the IRS' initial contact letter to you. Amendment form 1040x The period of limitation on assessment is the amount of time, generally three years, that the IRS has from the date you filed the return to assess taxes that you owe. Amendment form 1040x Innocent Spouse Relief By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Amendment form 1040x Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). Amendment form 1040x However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. Amendment form 1040x The IRS can collect these amounts from either you or your spouse (or former spouse). Amendment form 1040x You must meet all of the following conditions to qualify for innocent spouse relief. Amendment form 1040x You filed a joint return. Amendment form 1040x There is an understated tax on the return that is due to erroneous items (defined later) of your spouse (or former spouse). Amendment form 1040x You can show that when you signed the joint return you did not know, and had no reason to know, that the understated tax existed (or the extent to which the understated tax existed). Amendment form 1040x See Actual Knowledge or Reason To Know, later. Amendment form 1040x Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated tax. Amendment form 1040x See Indications of Unfairness for Innocent Spouse Relief , later. Amendment form 1040x Innocent spouse relief will not be granted if the IRS proves that you and your spouse (or former spouse) transferred property to one another as part of a fraudulent scheme. Amendment form 1040x A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, former spouse, or business partner. Amendment form 1040x Understated Tax You have an understated tax if the IRS determined that your total tax should be more than the amount that was actually shown on your return. Amendment form 1040x Erroneous Items Erroneous items are either of the following. Amendment form 1040x Unreported income. Amendment form 1040x This is any gross income item received by your spouse (or former spouse) that is not reported. Amendment form 1040x Incorrect deduction, credit, or basis. Amendment form 1040x This is any improper deduction, credit, or property basis claimed by your spouse (or former spouse). Amendment form 1040x The following are examples of erroneous items. Amendment form 1040x The expense for which the deduction is taken was never paid or incurred. Amendment form 1040x For example, your spouse, a cash-basis taxpayer, deducted $10,000 of advertising expenses on Schedule C of your joint Form 1040, but never paid for any advertising. Amendment form 1040x The expense does not qualify as a deductible expense. Amendment form 1040x For example, your spouse claimed a business fee deduction of $10,000 that was for the payment of state fines. Amendment form 1040x Fines are not deductible. Amendment form 1040x No factual argument can be made to support the deductibility of the expense. Amendment form 1040x For example, your spouse claimed $4,000 for security costs related to a home office, which were actually veterinary and food costs for your family's two dogs. Amendment form 1040x Actual Knowledge or Reason To Know You knew or had reason to know of an understated tax if: You actually knew of the understated tax, or A reasonable person in similar circumstances would have known of the understated tax. Amendment form 1040x Actual knowledge. Amendment form 1040x   If you actually knew about an erroneous item that belongs to your spouse (or former spouse), the relief discussed here does not apply to any part of the understated tax due to that item. Amendment form 1040x You and your spouse (or former spouse) remain jointly liable for that part of the understated tax. Amendment form 1040x For information about the criteria for determining whether you actually knew about an erroneous item, see Actual Knowledge later under Separation of Liability Relief. Amendment form 1040x Reason to know. Amendment form 1040x   If you had reason to know about an erroneous item that belongs to your spouse (or former spouse), the relief discussed here does not apply to any part of the understated tax due to that item. Amendment form 1040x You and your spouse (or former spouse) remain jointly liable for that part of the understated tax. Amendment form 1040x   The IRS will consider all facts and circumstances in determining whether you had reason to know of an understated tax due to an erroneous item. Amendment form 1040x The facts and circumstances include: The nature of the erroneous item and the amount of the erroneous item relative to other items. Amendment form 1040x The financial situation of you and your spouse (or former spouse). Amendment form 1040x Your educational background and business experience. Amendment form 1040x The extent of your participation in the activity that resulted in the erroneous item. Amendment form 1040x Whether you failed to ask, at or before the time the return was signed, about items on the return or omitted from the return that a reasonable person would question. Amendment form 1040x Whether the erroneous item represented a departure from a recurring pattern reflected in prior years' returns (for example, omitted income from an investment regularly reported on prior years' returns). Amendment form 1040x Partial relief when a portion of erroneous item is unknown. Amendment form 1040x   You may qualify for partial relief if, at the time you filed your return, you had no knowledge or reason to know of only a portion of an erroneous item. Amendment form 1040x You will be relieved of the understated tax due to that portion of the item if all other requirements are met for that portion. Amendment form 1040x Example. Amendment form 1040x At the time you signed your joint return, you knew that your spouse did not report $5,000 of gambling winnings. Amendment form 1040x The IRS examined your tax return several months after you filed it and determined that your spouse's unreported gambling winnings were actually $25,000. Amendment form 1040x You established that you did not know about, and had no reason to know about, the additional $20,000 because of the way your spouse handled gambling winnings. Amendment form 1040x The understated tax due to the $20,000 will qualify for innocent spouse relief if you meet the other requirements. Amendment form 1040x The understated tax due to the $5,000 of gambling winnings you knew about will not qualify for relief. Amendment form 1040x Indications of Unfairness for Innocent Spouse Relief The IRS will consider all of the facts and circumstances of the case in order to determine whether it is unfair to hold you responsible for the understated tax. Amendment form 1040x The following are examples of factors the IRS will consider. Amendment form 1040x Whether you received a significant benefit (defined below), either directly or indirectly, from the understated tax. Amendment form 1040x Whether your spouse (or former spouse) deserted you. Amendment form 1040x Whether you and your spouse have been divorced or separated. Amendment form 1040x Whether you received a benefit on the return from the understated tax. Amendment form 1040x For other factors, see Factors for Determining Whether To Grant Equitable Relief later under Equitable Relief. Amendment form 1040x Significant benefit. Amendment form 1040x   A significant benefit is any benefit in excess of normal support. Amendment form 1040x Normal support depends on your particular circumstances. Amendment form 1040x Evidence of a direct or indirect benefit may consist of transfers of property or rights to property, including transfers that may be received several years after the year of the understated tax. Amendment form 1040x Example. Amendment form 1040x You receive money from your spouse that is beyond normal support. Amendment form 1040x The money can be traced to your spouse's lottery winnings that were not reported on your joint return. Amendment form 1040x You will be considered to have received a significant benefit from that income. Amendment form 1040x This is true even if your spouse gives you the money several years after he or she received it. Amendment form 1040x Separation of Liability Relief Under this type of relief, the understated tax (plus interest and penalties) on your joint return is allocated between you and your spouse (or former spouse). Amendment form 1040x The understated tax allocated to you is generally the amount you are responsible for. Amendment form 1040x This type of relief is available only for unpaid liabilities resulting from the understated tax. Amendment form 1040x Refunds are not allowed. Amendment form 1040x To request separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Amendment form 1040x You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Amendment form 1040x (Under this rule, you are no longer married if you are widowed. Amendment form 1040x ) You were not a member of the same household (explained below) as the spouse with whom you filed the joint return at any time during the 12-month per- iod ending on the date you file Form 8857. Amendment form 1040x Members of the same household. Amendment form 1040x   You and your spouse are not members of the same household if you are living apart and are estranged. Amendment form 1040x However, you and your spouse are considered members of the same household if any of the following conditions are met. Amendment form 1040x You and your spouse reside in the same dwelling. Amendment form 1040x You and your spouse reside in separate dwellings but are not estranged, and one of you is temporarily absent from the other's household as explained in (3) below. Amendment form 1040x Either spouse is temporarily absent from the household and it is reasonable to assume that the absent spouse will return to the household, and the household or a substantially equivalent household is maintained in anticipation of the absent spouse's return. Amendment form 1040x Examples of temporary absences include absence due to imprisonment, illness, business, vacation, military service, or education. Amendment form 1040x Burden of proof. Amendment form 1040x   You must be able to prove that you meet all of the requirements for separation of liability relief (except actual knowledge) and that you did not transfer property to avoid tax (discussed later). Amendment form 1040x You must also establish the basis for allocating the erroneous items. Amendment form 1040x Limitations on Relief Even if you meet the requirements discussed previously, separation of liability relief will not be granted in the following situations. Amendment form 1040x The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Amendment form 1040x A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, former spouse, or business partner. Amendment form 1040x The IRS proves that at the time you signed your joint return, you had actual knowledge (explained below) of any erroneous items giving rise to the deficiency that were allocable to your spouse (or former spouse). Amendment form 1040x For the definition of erroneous items, see Erroneous Items earlier under Innocent Spouse Relief. Amendment form 1040x Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Amendment form 1040x See Transfers of Property To Avoid Tax , later. Amendment form 1040x Actual Knowledge The relief discussed here does not apply to any part of the understated tax due to your spouse's (or former spouse's) erroneous items of which you had actual knowledge. Amendment form 1040x You and your spouse (or former spouse) remain jointly and severally liable for this part of the understated tax. Amendment form 1040x If you had actual knowledge of only a portion of an erroneous item, the IRS will not grant relief for that portion of the item. Amendment form 1040x You had actual knowledge of an erroneous item if: You knew that an item of unreported income was received. Amendment form 1040x (This rule applies whether or not there was a receipt of cash. Amendment form 1040x ) You knew of the facts that made an incorrect deduction or credit unallowable. Amendment form 1040x For a false or inflated deduction, you knew that the expense was not incurred, or not incurred to the extent shown on the tax return. Amendment form 1040x Knowledge of the source of an erroneous item is not sufficient to establish actual knowledge. Amendment form 1040x Also, your actual knowledge may not be inferred when you merely had a reason to know of the erroneous item. Amendment form 1040x Similarly, the IRS does not have to establish that you knew of the source of an erroneous item in order to establish that you had actual knowledge of the item itself. Amendment form 1040x Your actual knowledge of the proper tax treatment of an erroneous item is not relevant for purposes of demonstrating that you had actual knowledge of that item. Amendment form 1040x Neither is your actual knowledge of how the erroneous item was treated on the tax return. Amendment form 1040x For example, if you knew that your spouse received dividend income, relief is not available for that income even if you did not know it was taxable. Amendment form 1040x Example. Amendment form 1040x Bill and Karen Green filed a joint return showing Karen's wages of $50,000 and Bill's self-employment income of $10,000. Amendment form 1040x The IRS audited their return and found that Bill did not report $20,000 of self-employment income. Amendment form 1040x The additional income resulted in a $6,000 understated tax, plus interest and penalties. Amendment form 1040x After obtaining a legal separation from Bill, Karen filed Form 8857 to request separation of liability relief. Amendment form 1040x The IRS proved that Karen actually knew about the $20,000 of additional income at the time she signed the joint return. Amendment form 1040x Bill is liable for all of the understated tax, interest, and penalties because all of it was due to his unreported income. Amendment form 1040x Karen is also liable for the understated tax, interest, and penalties due to the $20,000 of unreported income because she actually knew of the item. Amendment form 1040x The IRS can collect the entire $6,000 plus interest and penalties from either Karen or Bill because they are jointly and individually liable for it. Amendment form 1040x Factors supporting actual knowledge. Amendment form 1040x   The IRS may rely on all facts and circumstances in determining whether you actually knew of an erroneous item at the time you signed the return. Amendment form 1040x The following are examples of factors the IRS may use. Amendment form 1040x Whether you made a deliberate effort to avoid learning about the item in order to be shielded from liability. Amendment form 1040x Whether you and your spouse (or former spouse) jointly owned the property that resulted in the erroneous item. Amendment form 1040x Exception for spousal abuse or domestic violence. Amendment form 1040x   Even if you had actual knowledge, you may still qualify for relief if you establish that: You were the victim of spousal abuse or domestic violence before signing the return, and Because of that abuse, you did not challenge the treatment of any items on the return because you were afraid your spouse (or former spouse) would retaliate against you. Amendment form 1040x   If you establish that you signed your joint return under duress (threat of harm or other form of coercion), then it is not a joint return, and you are not liable for any tax shown on that return or any tax deficiency for that return. Amendment form 1040x However, you may be required to file a separate return for that tax year. Amendment form 1040x For more information about duress, see the instructions for Form 8857. Amendment form 1040x Transfers of Property To Avoid Tax If your spouse (or former spouse) transfers property (or the right to property) to you for the main purpose of avoiding tax or payment of tax, the tax liability allocated to you will be increased by the fair market value of the property on the date of the transfer. Amendment form 1040x The increase may not be more than the entire amount of the liability. Amendment form 1040x A transfer will be presumed to have as its main purpose the avoidance of tax or payment of tax if the transfer is made after the date that is 1 year before the date on which the IRS sent its first letter of proposed deficiency. Amendment form 1040x This presumption will not apply if: The transfer was made under a divorce decree, separate maintenance agreement, or a written instrument incident to such an agreement, or You establish that the transfer did not have as its main purpose the avoidance of tax or payment of tax. Amendment form 1040x If the presumption does not apply, but the IRS can establish that the purpose of the transfer was the avoidance of tax or payment of tax, the tax liability allocated to you will be increased as explained above. Amendment form 1040x Equitable Relief If you do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law, you may still be relieved of responsibility for tax, interest, and penalties through equitable relief. Amendment form 1040x Unlike innocent spouse relief or separation of liability relief, you can get equitable relief from an understated tax (defined earlier under Innocent Spouse Relief ) or an underpaid tax. Amendment form 1040x An underpaid tax is an amount of tax you properly reported on your return but you have not paid. Amendment form 1040x For example, your joint 2009 return shows that you and your spouse owed $5,000. Amendment form 1040x You paid $2,000 with the return. Amendment form 1040x You have an underpaid tax of $3,000. Amendment form 1040x Conditions for Getting Equitable Relief You may qualify for equitable relief if you meet all of the following conditions. Amendment form 1040x You are not eligible for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Amendment form 1040x You have an understated tax or an underpaid tax. Amendment form 1040x You did not pay the tax. Amendment form 1040x However, see Refunds , later, for situations in which you are entitled to a refund of payments you made. Amendment form 1040x You establish that, taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated or underpaid tax. Amendment form 1040x See Factors for Determining Whether To Grant Equitable Relief, later. Amendment form 1040x You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Amendment form 1040x A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, former spouse, or business partner. Amendment form 1040x Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Amendment form 1040x See Transfers of Property To Avoid Tax, earlier, under Separation of Liability Relief. Amendment form 1040x You did not file or fail to file your return with the intent to commit fraud. Amendment form 1040x The income tax liability from which you seek relief must be attributable to an item of the spouse (or former spouse) with whom you filed the joint return, unless one of the following exceptions applies: The item is attributable or partially attributable to you solely due to the operation of community property law. Amendment form 1040x If you meet this exception, that item will be considered attributable to your spouse (or former spouse) for purposes of equitable relief. Amendment form 1040x If the item is titled in your name, the item is presumed to be attributable to you. Amendment form 1040x However, you can rebut this presumption based on the facts and circumstances. Amendment form 1040x You did not know, and had no reason to know, that funds intended for the payment of tax were misappropriated by your spouse (or former spouse) for his or her benefit. Amendment form 1040x If you meet this exception, the IRS will consider granting equitable relief although the underpaid tax may be attributable in part or in full to your item, and only to the extent the funds intended for payment were taken by your spouse (or former spouse). Amendment form 1040x You establish that you were the victim of spousal abuse or domestic violence before signing the return, and that, as a result of the prior abuse, you did not challenge the treatment of any items on the return for fear of your spouse's (or former spouse's) retaliation. Amendment form 1040x If you meet this exception, relief will be considered although the understated tax or underpaid tax may be attributable in part or in full to your item. Amendment form 1040x Factors for Determining Whether To Grant Equitable Relief The IRS will consider all of the facts and circumstances in order to determine whether it is unfair to hold you responsible for the understated or underpaid tax. Amendment form 1040x The following are examples of factors that the IRS will consider to determine whether to grant equitable relief. Amendment form 1040x The IRS will consider all factors and weigh them appropriately. Amendment form 1040x Relevant Factors The following are examples of factors that may be relevant to whether the IRS will grant equitable relief. Amendment form 1040x Whether you are separated (whether legally or not) or divorced from your spouse. Amendment form 1040x A temporary absence, such as an absence due to imprisonment, illness, business, vacation, military service, or education, is not considered separation for this purpose. Amendment form 1040x A temporary absence is one where it is reasonable to assume that the absent spouse will return to the household, and the household or a substantially equivalent household is maintained in anticipation of the absent spouse's return. Amendment form 1040x Whether you would suffer a significant economic hardship if relief is not granted. Amendment form 1040x (In other words, you would not be able to pay your reasonable basic living expenses. Amendment form 1040x ) Whether you have a legal obligation under a divorce decree or agreement to pay the tax. Amendment form 1040x This factor will not weigh in favor of relief if you knew or had reason to know, when entering into the divorce decree or agreement, that your former spouse would not pay the income tax liability. Amendment form 1040x Whether you received a significant benefit (beyond normal support) from the underpaid tax or item causing the understated tax. Amendment form 1040x (For a definition of significant benefit, see Indications of Unfairness for Innocent Spouse Relief earlier. Amendment form 1040x ) Whether you have made a good faith effort to comply with federal income tax laws for the tax year for which you are requesting relief or the following years. Amendment form 1040x Whether you knew or had reason to know about the items causing the understated tax or that the tax would not be paid, as explained next. Amendment form 1040x Knowledge or reason to know. Amendment form 1040x   In the case of an underpaid tax, the IRS will consider whether you did not know and had no reason to know that your spouse (or former spouse) would not pay the income tax liability. Amendment form 1040x   In the case of an income tax liability that arose from an understated tax, the IRS will consider whether you did not know and had no reason to know of the item causing the understated tax. Amendment form 1040x Reason to know of the item giving rise to the understated tax will not be weighed more heavily than other factors. Amendment form 1040x Actual knowledge of the item giving rise to the understated tax, however, is a strong factor weighing against relief. Amendment form 1040x This strong factor may be overcome if the factors in favor of equitable relief are particularly compelling. Amendment form 1040x Reason to know. Amendment form 1040x   In determining whether you had reason to know, the IRS will consider your level of education, any deceit or evasiveness of your spouse (or former spouse), your degree of involvement in the activity generating the income tax liability, your involvement in business and household financial matters, your business or financial expertise, and any lavish or unusual expenditures compared with past spending levels. Amendment form 1040x Example. Amendment form 1040x You and your spouse filed a joint 2009 return. Amendment form 1040x That return showed you owed $10,000. Amendment form 1040x You had $5,000 of your own money and you took out a loan to pay the other $5,000. Amendment form 1040x You gave 2 checks for $5,000 each to your spouse to pay the $10,000 liability. Amendment form 1040x Without telling you, your spouse took the $5,000 loan and spent it on himself. Amendment form 1040x You and your spouse were divorced in 2010. Amendment form 1040x In addition, you had no knowledge or reason to know at the time you signed the return that the tax would not be paid. Amendment form 1040x These facts indicate to the IRS that it may be unfair to hold you liable for the $5,000 underpaid tax. Amendment form 1040x The IRS will consider these facts, together with all of the other facts and circumstances, to determine whether to grant you equitable relief from the $5,000 underpaid tax. Amendment form 1040x Factors Weighing in Favor of Equitable Relief The following are examples of factors that will weigh in favor of equitable relief, but will not weigh against equitable relief. Amendment form 1040x Whether your spouse (or former spouse) abused you. Amendment form 1040x Whether you were in poor mental or physical health on the date you signed the return or at the time you requested relief. Amendment form 1040x Refunds If you are granted relief, refunds are: Permitted under innocent spouse relief as explained later under Limit on Amount of Refund . Amendment form 1040x Not permitted under separation of liability relief. Amendment form 1040x Permitted in limited circumstances under equitable relief, as explained under Refunds Under Equitable Relief. Amendment form 1040x Proof Required The IRS will only refund payments you made with your own money. Amendment form 1040x However, you must provide proof that you made the payments with your own money. Amendment form 1040x Examples of proof are a copy of your bank statement or a canceled check. Amendment form 1040x No proof is required if your individual refund was used by the IRS to pay a tax you owed on a joint tax return for another year. Amendment form 1040x Refunds Under Equitable Relief In the following situations, you are eligible to receive a refund of certain payments you made. Amendment form 1040x Underpaid tax. Amendment form 1040x   If you are granted relief for an underpaid tax, you are eligible for a refund of separate payments that you made after July 22, 1998. Amendment form 1040x However, you are not eligible for refunds of payments made with the joint return, joint payments, or payments that your spouse (or former spouse) made. Amendment form 1040x For example, withholding tax and estimated tax payments cannot be refunded because they are considered made with the joint return. Amendment form 1040x   The amount of the refund is subject to the limit discussed later under Limit on Amount of Refund. Amendment form 1040x Understated tax. Amendment form 1040x   If you are granted relief for an understated tax, you are eligible for a refund of certain payments made under an installment agreement that you entered into with the IRS, if you have not defaulted on the installment agreement. Amendment form 1040x You are not in default if the IRS did not issue you a notice of default or take any action to end the installment agreement. Amendment form 1040x Only installment payments made after the date you filed Form 8857 are eligible for a refund. Amendment form 1040x   The amount of the refund is subject to the limit discussed next. Amendment form 1040x Limit on Amount of Refund The amount of your refund is limited. Amendment form 1040x Read the following chart to find out the limit. Amendment form 1040x IF you file Form 8857. Amendment form 1040x . Amendment form 1040x . Amendment form 1040x THEN the refund cannot be more than. Amendment form 1040x . Amendment form 1040x . Amendment form 1040x Within 3 years after filing your return The part of the tax paid within 3 years (plus any extension of time for filing your return) before you filed Form 8857. Amendment form 1040x After the 3-year period, but within 2 years from the time you paid the tax The tax you paid within 2 years immediately before you filed Form 8857. Amendment form 1040x Filled-in Form 8857 This part explains how Janie Boulder fills out Form 8857 to request innocent spouse relief. Amendment form 1040x Janie and Joe Boulder filed a joint tax return for 2007. Amendment form 1040x They claimed one dependency exemption for their son Michael. Amendment form 1040x Their return was adjusted by the IRS because Joe did not report a $5,000 award he won that year. Amendment form 1040x Janie did not know about the award when the return was filed. Amendment form 1040x They agreed to the adjustment but could not pay the additional amount due of $815 ($650 tax + $165 penalty and interest). Amendment form 1040x Janie and Joe were divorced on May 13, 2009. Amendment form 1040x In February 2010, Janie filed her 2009 federal income tax return as head of household. Amendment form 1040x She expected a refund of $1,203. Amendment form 1040x In May 2010, she received a notice informing her that the IRS had offset her refund against the $815 owed on her joint 2007 income tax return and that she had a right to file Form 8857. Amendment form 1040x Janie applies the conditions listed earlier under Innocent Spouse Relief to see if she qualifies for relief. Amendment form 1040x Janie meets the first and second conditions because the joint tax return they filed has an understated tax due to Joe's erroneous item. Amendment form 1040x Janie believes she meets the third condition. Amendment form 1040x 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. Amendment form 1040x Janie believes she meets the fourth condition. Amendment form 1040x She believes it would be unfair to be held liable for the tax because she did not benefit from the award. Amendment form 1040x Joe spent it on personal items for his use only. Amendment form 1040x Because Janie believes she qualifies for innocent spouse relief, she first completes Part I of Form 8857 to determine if she should file the form. Amendment form 1040x In Part I, she makes all entries under the Tax Year 1 column because she is requesting relief for only one year. Amendment form 1040x Part I Line 1. Amendment form 1040x   She enters “2007” on line 1 because this is the tax year for which she is requesting relief. Amendment form 1040x Line 2. Amendment form 1040x   She checks the box because she wants a refund. Amendment form 1040x Note. Amendment form 1040x Because the IRS used her individual refund to pay the tax owed on the joint tax return, she does not need to provide proof of payment. Amendment form 1040x Line 3. Amendment form 1040x   She checks the “No” box because the IRS did not use her share of a joint refund to pay Joe's past-due debts. Amendment form 1040x Line 4. Amendment form 1040x   She checks the “Yes” box because she filed a joint tax return for tax year 2007. Amendment form 1040x Line 5. Amendment form 1040x   She skips this line because she checked the “Yes” box on line 4. Amendment form 1040x Part II Line 6. Amendment form 1040x   She enters her name, address, social security number, county, and best daytime phone number. Amendment form 1040x Part III Line 7. Amendment form 1040x   She enters Joe's name, address, social security number, and best daytime phone number. Amendment form 1040x Line 8. Amendment form 1040x   She checks the “divorced since” box and enters the date she was divorced as “05/13/2009. Amendment form 1040x ” She attaches a copy of her entire divorce decree (not Illustrated) to the form. Amendment form 1040x Line 9. Amendment form 1040x   She checks the box for “High school diploma, equivalent, or less,” because she had completed high school when her 2007 joint tax return was filed. Amendment form 1040x Line 10. Amendment form 1040x   She checks the “No” box because she was not a victim of spousal abuse or domestic violence. Amendment form 1040x Line 11. Amendment form 1040x   She checks the “No” box because neither she nor Joe incurred any large expenses during the year for which she wants relief. Amendment form 1040x Line 12. Amendment form 1040x   She checks the “Yes” box because she signed the 2007 joint tax return. Amendment form 1040x Line 13. Amendment form 1040x   She checks the “No” box because she did not have a mental or physical condition when the return was filed and does not have one now. Amendment form 1040x Part IV Line 14. Amendment form 1040x   Because she was not involved in preparing the return, she checks the box, “You were not involved in preparing the returns. Amendment form 1040x ” Line 15. Amendment form 1040x   She checks the box, “You did not know anything was incorrect or missing” because she did not know that Joe had received a $5,000 award. Amendment form 1040x She explains this in the space provided. Amendment form 1040x Line 16. Amendment form 1040x   She checks the box, “You knew that person had income” because she knew Joe had income from wages. Amendment form 1040x She also lists Joe's income. Amendment form 1040x Under “Type of Income” she enters “wages. Amendment form 1040x ” Under “Who paid it to that person,” she enters the name of Joe's employer, “Allied. Amendment form 1040x ” Under “Tax Year 1” she enters the amount of Joe's wages, “$40,000. Amendment form 1040x ” Because she is only requesting relief for one tax year, she leaves the entry spaces for “Tax Year 2” and “Tax Year 3” blank. Amendment form 1040x Line 17. Amendment form 1040x   She checks the “No” box because she did not know any amount was owed to the IRS when the 2007 return was signed. Amendment form 1040x Line 18. Amendment form 1040x   She checks the “No” box because, when the return was signed, she was not having financial problems. Amendment form 1040x Line 19. Amendment form 1040x   She checks the box, “You were not involved in handling money for the household” because Joe handled all the money for the household. Amendment form 1040x She provides additional information in the space provided. Amendment form 1040x Line 20. Amendment form 1040x   She checks the “No” box because Joe has never transferred money or property to her. Amendment form 1040x Part V Line 21. Amendment form 1040x   She enters the number “1” on both the line for “Adults” and the line for “Children” because her current household consists of herself and her son. Amendment form 1040x Line 22. Amendment form 1040x   She enters her average monthly income for her entire household. Amendment form 1040x Line 23. Amendment form 1040x   She lists her assets, which are $500 for the fair market value of a car, $450 in her checking account, and $100 in her savings account. Amendment form 1040x Signing and mailing Form 8857. Amendment form 1040x    Janie signs and dates the form. Amendment form 1040x She attaches the copy of her divorce decree (not illustrated) required by line 8. Amendment form 1040x Finally, she sends the form to the IRS address or fax number shown in the instructions for Form 8857. Amendment form 1040x This image is too large to be displayed in the current screen. Amendment form 1040x Please click the link to view the image. Amendment form 1040x Boulder's filled-in Form 8857 page 1 This image is too large to be displayed in the current screen. Amendment form 1040x Please click the link to view the image. Amendment form 1040x Boulder's filled-in Form 8857 page 2 This image is too large to be displayed in the current screen. Amendment form 1040x Please click the link to view the image. Amendment form 1040x Boulder's filled-in Form 8857 page 3 This image is too large to be displayed in the current screen. Amendment form 1040x Please click the link to view the image. Amendment form 1040x Boulder's filled-in Form 8857 page 4 Flowcharts The following flowcharts provide a quick way for determining whether you may qualify for relief. Amendment form 1040x But do not rely on these flowcharts alone. Amendment form 1040x Also read the earlier discussions. Amendment form 1040x Figure A. Amendment form 1040x Do You Qualify for Innocent Spouse Relief? Please click here for the text description of the image. Amendment form 1040x "Do You Qualify for Innocent Spouse Relief?" Figure B. Amendment form 1040x Do You Qualify for Separation of Liability Relief? Please click here for the text description of the image. Amendment form 1040x "Do You Qualify for Separation of Liability Relief?" Figure C. Amendment form 1040x Do You Qualify for Equitable Relief? This image is too large to be displayed in the current screen. Amendment form 1040x Please click the link to view the image. Amendment form 1040x "Do You Qualify for Equitable Relief?" 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