Figure C. Do You Qualify for Equitable Relief?

Summary: This flowchart is used to determine if you qualify for equitable relief of the understated or unpaid tax.

Start

This is the beginning of the flowchart.

Decision (1)

Are you eligible for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law?

IF Yes Continue To Process (a)
IF No Continue To Decision (2)

Process (a)

You do not qualify for equitable relief.

Continue To End

Decision (2)

Does your return have an understated or unpaid tax?

IF No Continue To Process (a)
IF Yes Continue To Decision (3)

Decision (3)

Did you pay the tax?

Footnote: If Yes, you may qualify for equitable relief and receive a refund of certain installment payments made after you file Form 8857.

IF Yes Continue To Process (a)
IF No Continue To Decision (4)

Decision (4)

Are you able to show it would be unfair to hold you liable for the understated or unpaid tax?

IF No Continue To Process (a)
IF Yes Continue To Decision (5)

Decision (5)

Did you and your spouse (or former spouse) transfer property to one another as part of a fraudulent scheme?

IF Yes Continue To Process (a)
IF No Continue To Decision (6)

Decision (6)

Did your spouse (or former spouse) transfer property to you for the main purpose of avoiding tax or the payment of tax?

IF Yes Continue To Process (a)
IF No Continue To Decision (7)

Decision (7)

Did you file or fail to file your return with the intent to commit fraud?

IF Yes Continue To Process (a)
IF No Continue To Decision (8)

Decision (8)

Is the income tax liability from which you seek relief due to an item of the spouse (or former spouse) with whom you filed the joint return?

Footnote: If No, you may qualify for equitable relief if you meet any of the exceptions to condition (8) discussed earlier under Conditions for Getting Equitable Relief.

IF Yes Continue To Process (a)
IF No Continue To Process (b)

Process (b)

You may qualify for equitable relief.

Footnote: You must file Form 8857 by the filing deadlines explained earlier in Exception for equitable relief under How To Request Relief.

Continue To End

End

This is the end of the flowchart.