Hope for Innocent Spouses Being Held Liable for Joint Tax Returns
When married taxpayers file a joint tax return, both taxpayers are jointly and severally liable for the tax and any interests and penalties due on that tax, even if they get divorced later. Innocent Spouse Relief provides relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
Though filing joint tax returns has its benefits, it also results in making both husband and wife jointly and individually responsible for the tax and any interest or penalty due on the joint return even if they later divorce. A divorce decree proclaiming that one spouse is responsible for any amounts due on previously filed joint returns doesn’t hold any weight with the IRS. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse.
But there is hope for being relieved of this tax if you have a good tax attorney. The three types of relief available are:
- Innocent spouse relief
- Separation of liability
- Equitable relief
Call Ayar Law for a free consultation if you find yourself being unfairly held responsible for taxes on your joint return.