When spouses file joint federal income tax returns, they’re generally both liable for the tax owed. But under certain conditions, a filer may qualify for “innocent spouse relief” and avoid liability. In one case, a tile company worker had unreported income from foreign business dealings. His wife sought innocent spouse relief, stating she didn’t understand financial documents. But the U.S. Tax Court found that that wasn’t an excuse. It also found, among other things, that she’d turned a blind eye to the discrepancy between her husband’s tile worker income and their spending (such as paying off their mortgage in five years). Her relief claim was denied. (TC Memo 2019-143). Visit our website for more information! www.mjscpa.com/news/
