Can I be held liable for my spouse's tax debt?

In general, a spouse is not liable for the other spouse's tax debt. However, there are certain circumstances in which a spouse can be held liable for their partner's tax debt.

If the couple filed a joint tax return, each spouse is jointly and severally liable for the taxes owed. This means that each spouse is individually responsible for the full amount of the tax debt, regardless of who earned the income or signed the return. In this situation, the IRS can collect the entire tax debt from either spouse, regardless of which spouse incurred the debt.

However, if the innocent spouse can prove they did not know, and had no reason to know, of the understatement or understated tax, they may qualify for innocent spouse relief. This relief provides the innocent spouse with relief from paying taxes, interest, and penalties, even if liability for the debt would otherwise be joint and several.

If the couple files separate tax returns, each spouse is only responsible for their own tax debt. However, some states have community property laws that require both spouses to report and pay tax on their combined income. In those states, both spouses may be liable for the tax debt, even if only one spouse earned the income.

If you are concerned about your liability for your spouse's tax debt, it is recommended that you speak with a tax attorney or accountant to discuss your situation and explore your options for relief.