IRS eases up on ‘innocent spouses’

WASHINGTON – The Internal Revenue Service is making it easier for some “innocent spouses” to escape responsibility for the tax debt of their husband or wife.

Under the law, taxpayers who file joint returns are generally liable for the tax debts of their partners. However, spouses may qualify for relief if they didn’t know their partner was cheating on their taxes, or didn’t participate in the scam. In some cases, spouses can escape responsibility if they can prove they were in abusive relationships and didn’t believe they had an option not to sign a return.

The IRS has required innocent spouses to apply for relief within two years of the agency starting a collection action. On Monday, the IRS eliminated the two-year time limit for some applications after lawmakers and advocates complained that many abused or divorced spouses may not become aware of IRS collection efforts for years.

“These are taxpayers, most often women who are in abusive situations, who find themselves in tax debt to the IRS through no fault of their own,” said IRS Commissioner Doug Shulman. “They still need to prove that they didn’t know about this situation, they weren’t complicit in the situation, that they really were an innocent victim.”

Among those who may be eligible for additional time are spouses in abusive relationships or those who had no reason to believe their spouses didn’t pay the tax bill.