Tax Administration: Innocent Spouse Relief

Pursuant to a congressional request, GAO reviewed innocent spouse tax administration issues, focusing on ways: (1) divorce decrees can be made a consideration in determining the tax liability in innocent spouse cases; (2) legislation for using a proportionate liability option for innocent spouse claims can be implemented; (3) legislation can help to ensure that the Internal Revenue Service (IRS) effectively administers the innocent spouse provisions; (4) IRS could centralize the processing of a new innocent spouse form to help ensure that relief determinations are fair, equitable, and timely; and (5) IRS' current innocent spouse regulations need to be updated to reflect legislative changes.