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Full-Text Articles in Accounting
Revised Innocent Spouse Rules Offer Greater Tax Relief, Linda M. Johnson, A. Bruce Clements
Revised Innocent Spouse Rules Offer Greater Tax Relief, Linda M. Johnson, A. Bruce Clements
Faculty Articles
When a married couple files a joint tax return, both spouses become jointly and severally liable for the income taxes due, including any additional taxes, interest, and penalties determined at a later date. In the event of an underpayment of income tax, the IRS can proceed against either spouse to collect the entire tax deficiency. This places a spouse in a precarious position in situations where the other spouse deliberately omits income or overstates deductions on a jointly filed income tax return, even if the spouse is totally unaware of the other's transgressions. Relief from joint and several liability is …