Angela and her ex-husband Marcus filed joint returns during their marriage from 2018 through 2022. Marcus operated a cash-intensive landscaping business and handled all finances and tax preparation. After their divorce in 2023, Angela received an IRS CP14 notice showing a balance of $68,000 for tax years 2019–2021 — the result of Marcus underreporting over $180,000 in business income across three years.
Angela contacted Global Gate Tax Relief, frightened and confused. She had been a full-time mother during the marriage with no involvement in Marcus’s business and had signed the joint returns without understanding the details. Our team filed Form 8857 requesting both innocent spouse relief under IRC §6015(b) and equitable relief under IRC §6015(f).
We documented that Angela: (1) had no knowledge or reason to know about the underreported income, (2) received no significant benefit beyond normal household support, (3) was now divorced and living separately, (4) would suffer severe economic hardship if held liable, and (5) had filed compliant returns on her own since the divorce. After a 7-month review, the IRS granted Angela full relief under IRC §6015(b) — removing her responsibility for the entire $68,000 balance, including all penalties and interest. The IRS also released a federal tax lien that had been filed against her property.