Innocent Spouse Relief

Most married couples file joint tax returns and there is “joint and severable” liability for each others’ income taxes. Both spouses are responsible for the total tax no matter who earned the income or took the tax benefits. If one failed to report income, then taxes, penalties and interest will be the responsibility of both spouses. If one spouse later learns of unreported income the IRS offers he or she the opportunity to show she or he is an “innocent spouse” who did not know or have reason to know that the other spouse understated income.