Legal Question in Tax Law in Wisconsin

Re: Innoscent Spouse Law

If you are referring to the �innocent spouse� rules in the Internal Revenue Code as they relate to federal income taxes, they apply to your situation only if you have already filed one or more joint returns with your husband and income taxes are now owed for those years. The purpose of the innocent spouse rule (IRC sec. 6015) is to allow one spouse to escape the joint liability which arises when a joint return is filed. However, you seem to be describing a situation in which the income tax returns have not been filed. If that is the case, you can avoid the entire problem by refusing to join your husband in filing a joint return unless all of the tax, penalty and interest is paid with the return. And even then, you face the exposure of an adjustment to the return by the IRS after it is filed. The safest way for you to avoid liability for your husband�s income is to simply refuse to file a joint return. Even a provision in a separation agreement saying that your husband assumes liability for such taxes will not protect you, as it is not binding on the IRS. Here�s the analogy � the best way to avoid drowning is to stay out of the pool. So do NOT file joint returns with your husband. If you have not filed yourself for these years and you had income, you should file �married filing separately.�

If you are talking about unpaid withholding taxes, you should not be liable if you were not an owner of the business and did not have decision making authority as to how it was run.

If you want to know more about the innocent spouse rules, or the problems facing nonfilers, you can read the articles on these subjects on my website, bjhaynes.com.