The innocent spouse determination by the IRS is not binding on the Family court
Apr 18, 2018OUTCOME: The decision of the lower court was affirmed, the wife was found liable for taxes
The parties in this case had a capital gain tax liability, the wife claimed she had no idea about this tax liability and obtained a letter from the Internal Revenue service to the effect that she is an ... innocent spouse and not liable for the capital gain. The family court ruled that the both Husband and wife are liable for this debt in division of their assets and liabilities. The wife appealed the diction of the lower court, but the court appeal affirmed the decision of the lower court and stated: “The family court was not bound by the IRS's innocent spouse determination in characterizing the tax liability, and its decision to treat the liability as a community debt, notwithstanding that determination, was supported by substantial evidence”.
