IRS Proposes to Expand Tax Relief for Innocent Spouses
If you’re married, you’re probably planning to file your taxes jointly; most couples do. You should know that spouses filing a joint return are generally each liable for all of the tax owed on that return—but the law provides equitable relief when one of the spouses has no control over, or perhaps no knowledge of, how the household’s financial situation is reported.
This “innocent spouse” relief is especially important for women: 90 percent of those who request relief from joint liability are women, 65 percent of those who request relief make less than $30,000 a year, and some are survivors of domestic violence.
Section 6015(f) of the Internal Revenue Code provides that equitable relief is available for innocent spouses, but the determination rests on a “facts and circumstances” test.