Innocent or Injured Spouse Programs

Innocent Spouse

Generally, a husband and wife are liable jointly and individually for the entire income tax on a joint return. However, if one of the spouses—without knowledge of the other—intentionally excludes gross income or lists grossly erroneous deductions or credits on the return, the "innocent spouse" may be relieved of liability for a substantial understatement of tax on a joint return.

To qualify for innocent spouse relief, the understatement of tax on the return must be attributable to grossly erroneous items listed by the other spouse. Grossly erroneous items include any omission from gross income and any claim for a deduction, or credit or basis that is without factual or legal foundation.

The innocent spouse may request consideration by filing Utah form TC-8857, Request for Innocent Spouse Relief (IRS form 8857 will also be accepted) and must meet the qualifications below. Qualifications are determined by IRS Code Section 6013(e) as follows:

1. A joint return must have been filed;
2. On the return filed, there was a substantial understatement of tax attributable to grossly erroneous items of one spouse;
3. The innocent spouse must establish lack of knowledge (or lack of reason to have knowledge) of the other spouse's substantial understatement; and
4. It must be determined, when considering all the facts and circumstances, it would be inequitable to hold the innocent spouse liable for the tax.

If you believe you meet these conditions you may apply for relief by sending the form TC-8857 and your documentation to:

Innocent Spouse Program
210 North 1950 West
Salt Lake City, Utah 84134

If you have been granted innocent spouse relief by the IRS, send a copy of the IRS letter and documentation to this same address.

Email questions about the Innocent Spouse program to: taxmaster@utah.gov

Injured Spouse

Sometimes when people get married, one spouse has prior outstanding state income tax liabilities or other types of debt, such as child support, student loans, court fees, etc. When a couple in this situation files a joint state tax return, the state may seize part or all of any refund due to the taxpayers to satisfy these obligations. However, a new spouse may not be required to have tax overpayments withheld to pay these debts on behalf of a husband or wife.

A new spouse that has his or her refund taken for a debt their spouse owes to the Utah State Tax Commission may claim his or her part of a state tax refund if all three of the following apply:

1. The new spouse is not required to pay the past-due amount (you were not married to spouse at the time the tax or debt was incurred);
2. The new spouse received and reported income, such as wages, taxable interest, etc., on the joint return; and
3. The new spouse had state income tax withheld from his or her wages.

The Tax Commission uses federal Form 8379, Injured Spouse Claim and Allocation to apply for injured spouse relief. If all three of the above conditions apply and the injured spouse wants his or her share of the overpayment shown on the joint return refunded, the injured spouse should complete federal form 8379, attach copies of W-2, 1099 and other forms showing Utah withholding amounts, include a letter of explanation, and mail to:

Technical Research Group
Utah State Tax Commission
210 N 1950 West
Salt Lake City UT 84134
Phone: (801) 297-7705
Fax: (801) 297-6357

If injured spouse relief is granted, the refund will be allocated and the injured spouse's share will be refunded. Please allow 30 to 45 days for processing time.

Important Note: If tax refunds are seized by any other entity, including other state or federal agencies (Recovery Services, Courts, IRS, student loan companies, etc.), the injured spouse claim must be filed directly with the agency or entity that seized the refund.

To ask questions about the injured spouse program, email taxmaster@utah.gov