Tax Tips

Innocent Spouse Tax Relief

The innocent spouse provisions of the Internal Revenue Code afford significant tax relief to spouses who sign a joint tax return.

Ordinarily, if a joint return is filed, both spouses are individually liable for the full amount of the tax, penalties and interest due on the return plus any tax deficiencies arising from an IRS audit.

However, the innocent spouse provisions allow a spouse, under certain circumstances, to avoid taxes, penalties and interest attributable to income and /or deductions of the other spouse.

Until recently, spouses were subject to rigorous rules in order to qualify for this type of relief. Now, the rules have been liberalized, especially in situations where the spouses are divorced, legally separated or living apart for at least one year.

If you think you might qualify, please contact us.

Resources

Internal Revenue Service
www.irs.gov

New York State Department of Taxation
www.tax.state.ny.us

New Jersey Division of Taxation
www.state.nj.us/treasury/taxation