Can a spouse be held liable for all the taxes if the spouse signs a joint return even though the other spouse actually prepared the return and earned all the income?
It can be. Generally, both people who sign a joint return are jointly and individually liable for any tax, interest, or penalty that may be due. For example, one spouse may be held liable for all the tax due even if all the income was earned by the other spouse. The liability can even extend after parties are divorced as to returns that were filed before the divorce. Exceptions are made in what is referred to as the innocent spouse rule. Again, see a tax professional.
Related Questions
- How should the revenue agent handle a joint return where one spouse elects to participate but the other spouse does not and "innocent spouse" relief is not being claimed?
- I filed a valid joint return with my spouse and have an installment agreement to pay the taxes. Can I still apply for relief?
- My ex signed papers stating he would pay our back taxes (on a joint return). Why can’t the IRS go after him/her?