When it comes to joint tax returns, the Internal Revenue Code has a bit of a "two for one" deal: both spouses are jointly and severally liable for the taxes owed on their combined income (Int. Rev. Code, § 6013(d)(3)). Simply put, even if only one spouse earned all the income, both are on the hook for the full tax bill. But don't worry—there’s a safety net! The tax code allows for 'innocent spouse' relief under Internal Revenue Code section 6015, which can help when this rule seems a bit unfair.

Here’s how section 6015 offers a lifeline:

1. Relief from Understatement: If the requesting spouse didn’t know about the tax understatement (Int. Rev. Code, § 6015(b)).
2. Relief for the Separated or Divorced: For those who are no longer together (Int. Rev. Code, § 6015(c)).
3. Equitable Relief: When it wouldn’t be fair to hold the requesting spouse responsible (Int. Rev. Code, § 6015(f)).

To snag relief under section 6015(f), a few boxes need to be checked:

• You must have filed a joint return for the tax year(s) in question.
• Options under sections 6015(b) or (c) can’t be used.
• The request must be timely.
• No fraudulent asset transfers between you and your spouse.
• No 'disqualified assets' were transferred to you from your spouse.
• You didn’t knowingly take part in a fraudulent return.
• The tax liability should be partially or fully linked to your spouse’s income (with some exceptions).

If you meet these basic criteria, you might be eligible for streamlined relief if:

• You’re no longer married to the non-requesting spouse.
• Not getting relief would cause economic hardship.
• You didn’t know or have reason to know that your spouse wouldn’t or couldn’t pay the taxes owed, with exceptions for abuse cases.

Even if streamlined relief doesn’t fit your situation, you might still get relief based on equitable factors like:

• Changes in marital status.
• Economic hardship.
• Knowledge about your spouse’s ability to pay.
• Legal obligations to cover the taxes.
• Benefits you received from the unpaid taxes.
• Your compliance with tax laws in the years following the issue.
• Your physical or mental health.

A recent case, Thomas v. Commissioner (Jan. 30, 2024, No. 12982–20) brings this to life. Sydney Thomas sought relief after filing jointly with her husband, Tracy, during years with unpaid taxes. Although she met some of the criteria, her request was denied due to factors like her awareness of the unpaid taxes and the significant benefits she enjoyed from them.

The Thomas case shows that while section 6015(f) relief is available, it’s not a catch-all. If you’ve got personal resources and have used them for luxury instead of paying off taxes, the IRS and the Tax Court might not be so lenient.

At M.C. Law, we understand that navigating tax relief options can be complex and stressful. If you have any questions or need assistance with your tax matters, our team is here to help. Feel free to reach out to us for expert guidance tailored to your specific situation