How Innocent Spouse Relief affects IRS collection actions — overview

When a joint tax return carries an understatement or omission caused by one spouse, the IRS generally treats both spouses as jointly and severally liable for the tax. Innocent Spouse Relief is a statutory protection that lets an affected spouse request the IRS to remove or reallocate that liability. If the IRS grants relief, collection actions (levies, garnishments, liens, and refund offsets) will be adjusted to reflect the relief decision and the requesting spouse may avoid collection for the portion of tax they are no longer responsible for.

This article explains how collection activity changes during and after an Innocent Spouse Relief request, the key deadlines and forms, what documentation helps, realistic outcomes, and when to get a tax attorney or enrolled agent involved.

The legal framework and what the IRS says

Innocent Spouse Relief is governed by Internal Revenue Code section 6015 and IRS guidance (see IRS: Innocent Spouse Relief and Form 8857) (https://www.irs.gov/individuals/innocent-spouse-relief; https://www.irs.gov/forms-pubs/about-form-8857). The IRS offers three main paths:

  • Relief under 6015(b) (often called “innocent spouse”).
  • Relief under 6015(c) (separation of liability, available if the spouses are no longer married or are widowed/divorced in many cases).
  • Relief under 6015(f) (equitable relief when other statutory routes don’t apply).

Each path has different eligibility rules but all use Form 8857 to start the process.

What happens to collection actions while your request is pending?

Timing matters. If you file Form 8857 within two years of the IRS’s first attempt to collect the tax from you, the IRS generally suspends collection activity against the requesting spouse while it considers the claim. This suspension is an important protection because it prevents immediate garnishments or levies from continuing to drain your wages or bank accounts while the IRS reviews your case (see IRS Form 8857 guidance).

If you file after that two-year window, the IRS may not be required to suspend collection actions while your request is pending. The relief process can still result in removal of collection actions if relief is granted, but you’ll be at greater immediate risk of having collection actions continue while the claim proceeds.

Note: suspension isn’t automatic protection from all administrative steps. The practical effect depends on whether your filing is timely and on the IRS office handling the case. For exact case law and statutory detail see IRS guidance and consult a tax practitioner.

What collection actions can be stopped or removed?

If the IRS grants relief (full or partial), the agency will adjust its collection activity accordingly, which may include:

  • Releasing or lifting levies on bank accounts and wages for the portion of the debt relieved.
  • Reducing or withdrawing lien filings to the extent the requesting spouse’s liability is removed.
  • Stopping future refund offsets for the relieved portion.
  • Reopening collection calculations so interest and penalties attributable to the relieved portion are eliminated for the requesting spouse.

However, if relief is denied, collection actions continue and the IRS can seek full recovery from the non-requesting spouse or both spouses, depending on the circumstances.

Step-by-step: filing and what to expect

  1. File Form 8857 promptly (Request for Innocent Spouse Relief).
  1. Check timeliness: if IRS first attempted collection within two years before you file, the IRS will typically consider your request “timely” and collection is generally suspended while it’s pending.
  2. Expect a letter asking for documents (commonly Letter 3179) requesting proofs; respond quickly (see FinHelp article: Letter 3179: Request for Documentation for Innocent Spouse Relief).
  3. The IRS makes an initial determination; you may request administrative appeal or pursue court review if denied.

Practical timing: expect several months for an initial determination; more complex cases can take longer. Keep copies of everything and track correspondence.

Key documentation that strengthens your case

  • Copies of joint and individual tax returns for the years in question.
  • Bank statements, canceled checks, or account ledgers showing who received or controlled funds.
  • Written evidence of your financial role (e.g., powers of attorney, financial affidavits, or statements that show lack of involvement).
  • Divorce decrees, separation agreements, or police/protection orders if relevant.
  • Correspondence and affidavits showing your lack of knowledge about the omitted income or erroneous items.

If you need examples of documents and how to organize them, see FinHelp: Proving Innocent Spouse Relief: Documentation That Matters.

Common outcomes and real-world examples

  • Full relief: The IRS removes the requesting spouse’s liability for the tax, penalties, and interest attributable to the other spouse’s omission, and collection actions are released for the relieved amount.
  • Partial relief: The IRS allocates part of the liability to the requesting spouse and adjusts collection actions proportionally.
  • Denial: The requesting spouse remains liable; collection actions continue, and the taxpayer should consider appeals or other tax-debt options.

Example snapshot: A taxpayer files Form 8857 within weeks of a bank levy. Because the filing was within two years of the IRS’s first collection attempt, collection activity was paused. The IRS later granted partial relief; the bank levy was released to the extent of the relief and recalculated taxes were issued for the remaining balance.

How Innocent Spouse Relief differs from other protections

  • Injured Spouse Allocation (Form 8379) protects a spouse’s portion of a tax refund from offsets for the other spouse’s past-due obligations, but it does not change joint tax liabilities like Innocent Spouse Relief does. See FinHelp: Form 8379 vs. Innocent Spouse Relief.
  • Separation of liability (6015(c)) can split the tax for years covered by joint returns if you are no longer married, widowed, or legally separated.
  • Equitable relief (6015(f)) may be available even if you don’t meet the strict tests of (b) or (c), but outcomes are more fact-specific.

Common pitfalls that lead to denials

  • Waiting too long to file Form 8857 (missing the two-year filing window for suspension of collection).
  • Lack of documentary evidence showing lack of knowledge or involvement.
  • Benefiting from the unpaid tax — if you received economic benefit from the understatement, relief may be denied.
  • Confusing injured spouse relief with innocent spouse relief — each serves different purposes.

When to get professional help

  • If the IRS has already issued levies, wage garnishments, or liens and you can’t assemble the documentation, hire a tax attorney or an enrolled agent experienced in innocent spouse claims.
  • If you receive Letter 3179 or any audit-related notices tied to the joint return, a practitioner can prepare the Form 8857 package and represent you during appeals.

In my 15 years advising taxpayers I’ve seen quick, well-documented Form 8857 filings both stop collection actions and win full relief; conversely, delayed filings without supporting records often fail and leave clients exposed to ongoing levies.

Practical tips to protect yourself now

  • File Form 8857 as soon as you learn of the tax issue and before serious collection actions escalate.
  • Organize bank and financial records going back the relevant years.
  • If you receive a refund that might be taken for your spouse’s debt, consider filing Form 8379 (injured spouse) while you pursue innocent spouse relief if appropriate.
  • Keep copies of all IRS letters and maintain a timeline of events (dates of first collection attempts, levies, garnishments, and communications).

Appeals and further options if relief is denied

If the IRS denies your Form 8857 request, you can request an administrative appeal within the IRS Office of Appeals. If appeals fail, judicial review in Tax Court, U.S. District Court, or the U.S. Court of Federal Claims may be available. Work with counsel to evaluate timelines and strategic options.

Quick FAQ

  • Does filing Form 8857 stop a levy immediately? If you filed within two years of the IRS’s first attempt to collect, the IRS generally suspends collection while reviewing your request. After two years, suspension is not guaranteed.
  • Will relief erase penalty and interest? If relief is granted, the portion of tax, penalties, and interest attributable to the other spouse’s error is removed for the requesting spouse.
  • Can I file after a divorce? Yes. You can file for relief after divorce; in many cases separation of liability or equitable relief remains available.

Sources and further reading

Internal FinHelp resources:

Professional disclaimer: This article is educational and does not constitute legal or tax advice. For a decision affecting your tax liability or if collection actions are active against you, consult a tax attorney or an enrolled agent immediately to discuss the facts of your case.