Paying off the taxes is every citizen’s responsibility if they fall into that slab. But it is very important that we understand everything about the Internal Revenue Service (IRS) rules and regulations for tax as well as debt payments. Though it is a bit complex to understand, these details can help you handle any kind of tax issue. Especially if you are spoused of the deceased individual who owes a tax to be paid to the IRS.
Married couples usually have the option of filing the taxes separately or jointly. If you have filed for a tax separately then you are not liable for the payment of the other one’s tax. But if you have opted for a joint tax return then each partner is liable for the other one’s taxes. This means, if you or your spouse passes away, then automatically the other one will be responsible to back the deceased taxes.
Innocent Tax Relief
So, before or after the spouse has passed away, the IRS can give you a chance of exemption from spousal tax liability. This can be done if the spouse files innocent tax relief. This is helpful when the deceased one is liable for a large tax debt of which the other spouse was unaware or did not consent to it. In this way, the innocent spouse can be free from this debt incurred by the other spouse.
To opt for this service, the deceased spouse would have to fill up this relief form and submit it to the IRS at any time on the tax return. If you fail to do so for the two years after the payment day, then IRS will consider this as no one is eligible for the innocent spouse relief deceased spouse and they will have to pay the amount as quickly as possible to avoid penalties.
There is a form named IRS form 8857 which is a seven form where details need to be filled in. If you need any help then you can contact a professional for the same.
