When spouses file a joint tax return, each spouse is responsible for the entire tax liability. This is referred to as joint and several liability. Joint and several liability survives the divorce of the spouses even if the corresponding Divorce Decree states that one (1) of the spouses is solely responsible for any particular tax liability.
Equitable Relief is applicable to issues of understated tax or issues of unpaid tax in regard to joint and several liability or items of community income.
Equitable Relief is available, to the requesting spouse, if he or she does not qualify for Innocent Spouse Relief or Separation of Liability Relief.
To qualify for Equitable Relief from joint and several liability, you must meet all of the following conditions: (i) you do not qualify for Innocent Spouse Relief or Separation of Liability Relief; (ii) you filed a joint tax return for the tax year(s) at issue; (iii) you timely filed your claim for relief; (iv) you and your spouse or former spouse did not transfer assets to each other as a part of a fraudulent scheme; (v) your spouse or former spouse did not transfer property to you for the main purpose of avoiding tax or the payment of tax; (vi) you did not knowingly participate in the filing of a fraudulent joint tax return; and (vii) the income tax liability, from which you seek relief, is attributable to an item of your spouse or former spouse or an unpaid tax resulting from your spouse’s or former spouse’s income.
To qualify for Equitable Relief from liability for tax attributable to an item of community income, you must meet all of the above conditions except for (i) and (ii) above.