Family Law Newsletter

• Grandparent Visitation Rights
  All 50 states have laws authorizing certain nonparent parties, typically grandparents, to seek child visitation rights. These statutes are controversial, and parents often argue that the laws interfere with their fundamental... Read more.
• Parental Liability for Acts of Minor Children
  In most states, the age of majority (when a person is recognized by law as an adult), is 18 years of age or older. A “minor” is a person who is under the age of 18. When a minor breaks the law or causes damage or injury to... Read more.
• Separate Return vs. Joint Return for Federal Taxes
  For federal income tax purposes, there are five tax “statuses:” single; head of household; married filing jointly; married filing separately; and qualifying widow(er) with dependent child. Status affects tax credits and... Read more.
• Mischaracterization of Child Support as Alimony
  Three major issues commonly resolved in a divorce decree or agreement are: alimony, or spousal support; division of property; and child support. Each has its own tax treatment and implications. In general, for federal income tax... Read more.

• Alimony deduction loss in Trump tax reform creates rush on divorce deals by New Year’s Eve
• Your Marriage Is Over—Who Gets Custody of the Pets?
• Lee’s new sheriff hit with paternity suit over baby due in ’19
• Divorce and child custody: Men cry foul
• FAMILY LAW: WHO HAS THE RIGHT TO KEEP FLUFFY AFTER THE DIVORCE?

Innocent Spouse Relief For Tax Liability

Many married couples file joint tax returns to take advantage of certain benefits offered by this filing status. This may result in the unfortunate and unintended consequence of one spouse being held responsible for the underreporting of income by the other spouse. Even when there is a divorce decree stating that one spouse will be solely responsible for any amounts due on prior tax returns, the IRS may withhold a tax refund of the other spouse to satisfy the former spouse’s tax obligation.

When a married couple files a joint tax return and penalties arise as a result of an underreporting of taxable income, the IRS will relieve one spouse from liability if that spouse can prove that he or she is “innocent” of any wrongdoing. In order for the an individual to obtain relief as an “innocent spouse,” the following criteria must be met:

• The return filed must be a joint return, or, if the return was filed while living in a community property state, the return filed may be a “married filing separately” return
• At the time the return was filed, the individual believed the correct amount of tax was, or would be, paid
• The individual’s spouse failed to report or underreported his or her income
• The individual did not have knowledge of the unreported income or erroneous items at the time the return was filed
• It would be unfair to hold the individual liable for the tax deficiency
• The individual applies for relief no later than two years after the IRS’s first attempt to collect the deficiency

If an individual meets the criteria for innocent spouse relief, the individual will be relieved of responsibility for the tax due on the return or any penalties or interest. Depending on the facts and circumstances, the innocent spouse may be eligible for relief of all taxes due on the return, including penalties and interest, or only partial relief.

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