Encyclopedia Encyclopedia: ABCDEFGHIJKLMNOPQRSTUVWY
Term Definition Innocent Spouse; Innocent Spouse Rule - section 434(c)(1) of the Internal Revenue Code protects an innocent spouse from tax fraud prosecution under certain conditions.
Application in Divorce This rule, which was revised under the 1998 I.R.S. Restructuring and Revision Act, protects women who innocently sign returns while married to men who controlled the finances of the marriage.

An spouse establishes "lack of knowledge," and 4) it is "inequitable" to impose the tax on him or her.

The spouse from any legitimate tax obligations for which she (or he) is responsible under the doctrine of joint and several liability.

Resources: Taxpayers requesting protection under the Innocent Spouse Rule must file Tax Form 8857.

TIP: DON’T UNDERSTAND IT? DON’T SIGN IT

In a divorce actions, no one should ever sign anything he or she does not understand.