Innocent Spouse Provisions
The IRS Restructuring and Reform Act of 1998 made the benefits of Innocent Spouse status easier to obtain. The Act expands the benefits to all understatements of tax attributable to erroneous items of the other spouse, regardless of the dollar amount.
The Act offers three types of potential relief based on factors such as how much the innocent spouse is aware of the understatement, for taxpayers no longer married to or legally separated from the person with whom they originally filed a joint return, and for taxpayers for whom the IRS may grant equitable relief. Consult with your tax professional for details.