A tax liability connected to a spouse or former spouse can be particularly difficult when you believe the underlying problem was not yours.

When married taxpayers file a joint federal income tax return, both spouses generally become responsible for the tax, interest, and penalties associated with that return. Divorce alone does not automatically eliminate that responsibility, even when a divorce agreement states that one spouse should pay the debt.

In certain circumstances, however, the IRS provides relief for qualifying spouses.

Prendamano Tax Resolution & State Tax Advisory helps individuals evaluate innocent spouse relief and related options from our Melville office. We serve clients throughout Long Island, including Huntington, Garden City, Mineola, Hicksville, Nassau County and Suffolk County, as well as Queens, Brooklyn, and New York City.

Innocent spouse cases are highly dependent on the facts.

The IRS may consider whether a joint return contained understated tax related to a spouse’s income or erroneous items, what the requesting spouse knew or had reason to know when the return was signed, and other circumstances surrounding the liability. IRS procedures also provide additional forms of spouse relief, including separation of liability and equitable relief, when the applicable requirements are satisfied.

These cases can become emotionally complicated as well as financially significant, particularly following separation or divorce. The goal is to separate the personal history from the legal and financial issues that determine whether relief may be available.

Timing should also be considered carefully. Different forms of spouse relief can involve different rules and filing considerations, so a taxpayer should not assume that eligibility has been lost—or that relief is automatically available—without reviewing the specific circumstances.

If the IRS initially denies an innocent spouse request, administrative appeal rights may also be available. The IRS currently provides both spouses an opportunity to participate in the review process and generally permits an appeal of a preliminary determination within the period stated in the determination letter.

You should not automatically assume that tax debt associated with a joint return must remain your responsibility forever.

Contact Prendamano Tax Resolution & State Tax Advisory to discuss the history of the liability and whether innocent spouse relief or another form of relief may be available.