Finis Cowan, Attorney - Retired CPA

Spouses that file joint tax returns are each responsible for the tax even if they later divorce and a divorce decree states that one of the spouses will pay the tax. The IRS can hold either spouse responsible even if all the income was earned by the other spouse and not shared.

If your spouse or ex-spouse understated the tax on a jointly filed return, you may be eligible to be released from the obligation for the tax liability and the related interest and penalties. You must show the IRS that the understatement of tax is attributable to your spouse and that you had no reason to know of the understatement.

Three types of relief are available.

1. Innocent spouse relief.
2. Separation of liability.
3. Equitable relief.

These defenses must be asserted within 2 years after the IRS has begun to try to collect the tax from you. You have the burden of proof so it is important to gather and organize the evidence while it is still available.

Imagine receiving your divorce decree and shortly thereafter receiving a K-1 tax form from your ex showing that you owe half the taxes on his business!

Sadly, many divorce lawyers neglect to obtain sufficient information to protect their innocent spouse clients. Do not agree to the terms of your divorce if it fails to deal with all property and debts.

I can help:

• ex-wives whose former husbands left them the "parting gift" of a tax obligation even though the bums never shared the taxable income with their wives.
• abandoned spouses against whom the IRS is trying to collect taxes on income earned by their spouses
• spouses whose tax refunds are being withheld to satisfy their spouses' taxes