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Publication Date: July 1998
Publisher: Library of Congress. Congressional Research Service
Author(s):
Research Area: Banking and finance
Type:
Abstract:
Married couples filing joint tax returns are liable individually and as a couple for all taxes due on the return with a limited exemption for innocent spouses. Joint and several liability has been the subject of much criticism and calls for reform or elimination. The House-passed version of IRS Restructuring and Reform legislation (H.R.2676, 105th Congress) would amend existing law to make qualifying for the exemption much easier. The Senate adopted an amendment replacing the innocent spouse rule with a provision permitting either spouse to request apportionment of liability once a deficiency has been assessed. A hybrid version, permitting an election t o apportion where spouses are divorced, legally separated or have lived separate and apart for twelve months, and retaining but liberalizing the innocent spouse exemption for all other joint filers emerged from conference and will soon be voted on.