New tax law made it easier to qualify for innocent spouse relief. You can now request innocent spouse relief for an understatement of tax (defined on page 3) no matter how small the amount. (Previously the understatement of tax had to be more than $500.) See Questions & Answers, near the end of this publication for a list of questions and answers about innocent spouse relief.

The new law also added two other ways for you to get relief. If you are divorced, separated, or no longer living with your spouse, you can request relief by separating the liability for an understatement of tax between you and your spouse. If you do not qualify for innocent spouse relief or relief by separation of liability, the IRS may grant you equitable relief. Equitable relief may be granted if it would be unfair to hold you liable for the tax that should be paid only by your spouse.

The changes apply to tax liabilities arising after July 22, 1998, and tax liabilities arising on or before that date that remained unpaid on that date.

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