TAP 04-026

Innocent Spouse Outreach

Statement of Issue:

Taxpayers and their legal advisers often are unaware that the terms of a divorce decree do not override the federal statutory liability created by the execution of a federal joint income tax return.

Proposal:

As an IRS outreach educational program, the Service should seek to work with the Family Law Sections of the American Bar Association, State Bar Associations, and local bars, as well as the Judicial Family Law organizations.

In addition, the IRS should propose model language for inclusion in divorce decrees as follows:

Joint and Several Liability
This divorce decree does not override federal tax law. Generally, joint and several liability applies to all joint returns. This means that both you and your spouse or former spouse are jointly and individually responsible for any underpayment of tax plus interest and penalties. This is true even though this divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns.

In addition, the IRS should propose model language for inclusion in divorce decrees as follows:

Joint and Several Liability
This divorce decree does not override federal tax law. Generally, joint and several liability applies to all joint returns. This means that both you and your spouse or former spouse are jointly and individually responsible for any underpayment of tax plus interest and penalties. This is true even though this divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns.