Innocent Spouse

A marriage may not be everlasting; however, the tax problems created by your spouse will remain. These problems can be destructive to a spouse who is trying to rebuild his/her life after separation and divorce. 

Divorce does not relieve a spouse from liability on a joint return filed prior to divorce.  You may no longer have any involvement with the ex-spouse; however, you could end up paying his/her tax liability.

Husbands and wives who file a joint return are each individually responsible for the accuracy of the return and for the full tax liability.  If you sign a joint return, the IRS may be able to collect any tax relating to that return from you, even if your spouse was the one who reported incorrectly.  This is true even when only one spouse earned the wages or income which is shown on the return.  The IRS can collect any taxes they claim are due from one spouse, even if all of the income was earned by the other spouse.  This is “joint and several liability.”

The innocent spouse rules are complicated in which a spouse can be relieved of liability for taxes assessed by the IRS.  Innocent spouse relief may be available even if you’re still married, and living with the spouse responsible for payment of the taxes.

Qualifying for the innocent spouse relief can cause difficulty as the rules are very complex.  The facts of each individual situation must be determined and only a person who is knowledgeable about the rules can determine if you qualify.  The main question is how much you knew about your spouse’s non-payment of taxes or omission of income.  If the IRS is attempting to collect taxes from you because of your spouse’s tax debt, you should have your situation reviewed by a person with knowledge of the innocent spouse rules.

We can help you determine if you qualify for innocent spouse relief.  The final determination of whether you qualify for innocent spouse relief is the Tax Court in most situations.  The IRS is not the final entity that determines if you qualify.

The various sections under which you may qualify are:

•  Innocent spouse relief if still married
•  Separate liability if divorced, separated for more than twelve months, or filing for divorce
•  Equitable relief.
•  Relief for taxes due on partnership items.

 

We can lead you through these knotty rules and qualifications. Don’t be a victim of your spouse or ex-spouse’s tax debts.