Innocent Spouse Relief and other Equitable Joint Tax Relief

In situations when a married couple file a joint return, both spouses are liable for the entire tax liability “jointly and severally.” This means each spouse is liable for the full amount, assuming the IRS cannot collect from the other. 

Innocent Spouse Relief (sometimes referred to as Original Innocent Spouse) is a provision in the Internal Revenue Manual that protects one spouse from the other’s filing of a return with an understatement of tax or other inaccurate claim on the return. These cases, however, are generally reserved for situations where one spouse had no way of knowing, as signing a joint return is considered a statement that a taxpayer agrees with the tax return being signed.

Relief by Separation of liability also covers underpayment of tax. The provision is for formerly married joint taxpayers who are currently separated and in which one taxpayer accrues tax during a period for which they were not members of the same household with their previous spouse.

Equitable Tax Relief is a more difficult hurdle wherein the tax reported was corrected but simply not paid. This is a more difficult provision and should be addressed with a tax attorney or professional.