innocent spouse rule
The innocent spouse rule is an exception to the general requirement that when married couples file a joint tax return, they are jointly and severally liable for the amount of tax due.
If a joint tax return is filed incorrectly, the Internal Revenue Service (IRS) will hold both individuals liable for correct payment. If the spouse responsible for the incorrect reporting cannot pay, the IRS may demand payment from the other spouse instead.
The innocent spouse rule, codified in § 6015 of the Internal Revenue Code, is an equitable doctrine that protects so-called “innocent” spouses who do not have any knowledge of an incorrectly-filed tax return.
An innocent spouse is not liable for payment on an incorrectly-filed tax return if the following conditions are met: 1) there is an understatement on the tax return that is attributable the filer’s errors, 2) the innocent spouse did not know, or have reason to know, of the understatement, 3) considering all facts, it is inequitable to hold the innocent spouse liable, and 4) the innocent spouse claims relief within two years of the IRS seeking collection.
To determine whether the innocent spouse had “reason to know” of the understatement, courts typically apply a four-factor test, considering: 1) the spouse’s education, 2) the spouse’s involvement in the family’s financial affairs, 3) the presence of unusual or lavish expenditures, and 4) the other spouse’s deceitful conduct. In some circumstances, the innocent spouse may have a duty to inquire about a possible understatement on a joint tax return.
The scope of the innocent spouse rule has expanded over time; early versions of the exception applied only to “grossly erroneous” issues, while the latest version of § 6015 now applies to merely erroneous items.
[Last reviewed in March of 2025 by the Wex Definitions Team]
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