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Equitable Relief from a Spouse's Tax Liability
When a taxpayer signs a joint return with his or her spouse, he or she will be jointly and severally liable to pay the tax shown on the return and any deficiency that may later be assessed on that return. I.R.C. ' 6013(d). Husband and wife typically sign joint returns as their aggregate income tax liability will, in most cases, be less on a joint return than it would be if each filed separately. Once a joint return has been signed by the taxpayer, however, he or she cannot avoid the liability for tax with respect to that return. This can lead to serious financial problems long after the year for which the return was signed. Errors with respect to the return will result in tax liability that may be directly asserted against the taxpayer who is not responsible for, and may not be aware of, those errors. A similar situation may occur when tax is shown to be due on the return (the tax is 'self-assessed') but is not paid. So-called 'innocent spouse' relief under ' 6015 may be available, but no one should assume that relief can be readily obtained. Recent developments make this very clear.
The current statute was enacted in 1998 to update and liberalize relief from joint several liability for a taxpayer whose spouse is responsible for omissions or erroneous deductions on the joint return. The effect of ' 6015 and its subsequent interpretation and amendment in 2000 (making clear that 'no refunds' are permitted) has previously been discussed in The Matrimonial Strategist. See Thomas R. White, 'Seeking Relief from the Improvidently Filed Joint Return: Recent Developments,' The Matrimonial Strategist, May 2001, and 'How Much Does a Spouse Have to Know to Be Liable for Her Husband's Tax?' The Matrimonial Strategist March 2002. Statutory relief from joint liability has been difficult to obtain, as much from the limited premise of the relief provisions as from the restrictive interpretation of these provisions by IRS regulations. Taxpayers who are sufficiently aware of potential tax problems arising from their spouses' activities have always been at a disadvantage in seeking relief from their inability to anticipate tax problems resulting from behavior of their spouses. This concern has been highlighted by recent judicial and legislative activity focused specifically on requests for equitable relief.
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