Protect Yourself from Joint Tax Liability: What Spouses Should Know

ARTICLE | January 06, 2025

Authored by Vasquez + Company

Tax laws can hold spouses accountable for tax issues, even if they are unaware of their partner’s actions. This article explains the legal distinctions between "innocent" and "injured" spouse relief, offering insight into how married couples can protect themselves from joint tax liabilities. It also provides advice on how to handle tax disputes, particularly in cases of fraud or past due debts.

Key Points:

• Innocent vs. Injured Spouse: The legal terms distinguish between being affected by a spouse’s debt and being unaware of tax misreporting.
• Joint Tax Responsibility: Both spouses are responsible for tax obligations, even after divorce, and may be liable for penalties and interest.
• Innocent Spouse Relief: Relief may be available if you can prove you were unaware of tax issues or that holding you liable is inequitable.
• Precautions: Filing separately can help prevent future tax complications, especially in the case of divorce or spouse fraud.

For more information, read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.