CALIFORNIA FAMILY LAW
...Income Tax Matters
......Tax Returns/Rates
.........Innocent Spouse Rule-Jt. Return
............Relief Denied
8 Cards On This Topic:

Tax Court had no jurisdiction over W's petition for review of innocent spouse determination because no deficiency was asserted.

W had reason to know of substantial understatement of tax from multiple sources; factors considered in determining reasonableness.

H's estate has no standing to challenge IRS decision that W is innocent spouse with no additional tax liability on joint returns.

Relief denied where W knew H had not paid past taxes and failed to follow up on his assurances that he would pay and despite his being ordered to pay them in disso.

W cannot claim innocent spouse relief for erroneous deduction for investment unless she can show that it was a sham transaction without a profit motive.

Although W qualifies as innocent spouse for income she did not know about, she does not for income that passed through her hands.

W who signed return knowing H embezzled money is not innocent spouse. Test is whether W knew of act, not its tax effect.

Failure to meet any of statutory requirements prevents treatment as innocent spouse. Large refund puts spouse on notice.