- 8 - OPINION Married couples who file joint returns ordinarily incur joint and several liability for the full amount of tax due on their combined incomes. Sec. 6013(d)(3); Hayman v. Commissioner, 992 F.2d 1256, 1258 (2d Cir. 1993), affg. T.C. Memo. 1992-228; Sonnenborn v. Commissioner, 57 T.C. 373, 381 (1971). The "innocent spouse" defense provided in section 6013(e) partially alleviates the harshness of this rule. Section 6013(e) provides: (e) Spouse Relieved of Liability in Certain Cases.-- (1) In General.--Under regulations prescribed by the Secretary, if-- (A) a joint return has been made under this section for a taxable year, (B) on such return there is a substantial understatement of tax attributable to grossly erroneous items of one spouse, (C) the other spouse establishes that in signing the return he or she did not know, and had no reason to know, that there was such substantial understatement, and (D) taking into account all the facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in tax for such taxable year attributable to such substantial understatement, then the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) for such taxable year to the extent such liability is attributable to such substantial understatement. Whether an individual qualifies for innocent spouse status in order to avoid liability primarily involves a factual inquiry.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011