Innocent and Injured Spouses

Overview

According to the long-standing provisions of the tax code, taxpayers who file joint returns are jointly and severally liable for the tax and any interest or penalty due on the return. But this liability remains even if the taxpayers later separate or divorce, thus causing the potential for one taxpayer to be held liable for debts or understatements of income of which he or she had been unaware. Depending on the circumstances, the IRS may refer to a spouse in this type of situation as either “innocent” or “injured”.

In this video-based course, Kathy Morgan EA describes and defines the IRS criteria for both Innocent and Injured Spouses. With reference to the governing rules and regulations, she gives details of the available types of relief from joint and several liability and outlines the conditions that must be met in each case. The impact of the application of the above in community property states is discussed, as well as the rights of non-requesting spouses (or ex-spouses).

Learning Objectives

After completing this course students will be able to:

  • Identify the three types of relief that apply to Innocent Spouses and recognize the conditions that apply to each
  • Recognize cases when the provisions of IRC Section 66 may apply in community property situations
  • Identify the general rights of reply for a non-requesting spouse in an Innocent Spouse case
  • Identify the conditions that must be met for a taxpayer to apply for relief as an Injured Spouse

Designed For

CPAs, EAs, and other tax professionals
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