Spouses who file a joint federal tax return are both generally liable for the tax owed. But joint filers may be eligible for “innocent spouse” relief that shields them from liability. One taxpayer argued that if she paid the taxes owed, she’d suffer economic hardship. Her annual income, she said, was far below the poverty line and her assets were insufficient to pay the taxes. However, she failed to provide evidence to support her income or the value of her two homes. Records showed that while her income taxes remained unpaid, she enjoyed significant benefits, including several vacations and the purchase of a luxury vehicle. The U.S. Tax Court denied her request for relief. (162 TC No. 2)
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