IRS Reform: Innocent Spouse Rule (CRS Report for Congress)
| Release Date |
July 2, 1998 |
| Report Number |
97-1020 |
| Authors |
Thomas B. Ripy, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
Married couples filing joint tax returns are liable individually and as a couple for all taxes due
on
the return with a limited exemption for innocent spouses. Joint and several liability has been the
subject of much criticism and calls for reform or elimination. The House-passed version of IRS
Restructuring and Reform legislation ( H.R. 2676 , 105th Congress) would amend
existing law to make qualifying for the exemption much easier. The Senate adopted an amendment
replacing the innocent spouse rule with a provision permitting either spouse to request apportionment
of liability once a deficiency has been assessed. A hybrid version, permitting an election to
apportion where spouses are divorced, legally separated or have lived separate and apart for twelve
months, and retaining but liberalizing the innocent spouse exemption for all other joint filers
emerged from conference and will soon be voted on.
