The death of a spouse can be one of the most difficult times in a person’s life. Dealing with tax debt may cause extra pressure in this hard period. In this situation, you may wonder if you are liable for the IRS debt of your deceased spouse.
What to consider about a deceased spouse’s IRS debt
California is a community property state, so the law may treat some debts and tax responsibilities acquired during marriages as joint responsibilities. In other words, your responsibility for your deceased spouse’s tax debt depends on how the tax liability occurred and whether you filed a joint tax return. If you may be responsible, you may also have tax relief options, such as:
- Innocent spouse relief: This may protect you from tax liabilities that result from your spouse’s incorrect or incomplete tax reporting. In order to qualify for innocent spousal relief, you must satisfy certain IRS requirements. You can generally request relief by filing Form 8857, Request for Innocent Spouse Relief.
- Equitable relief: This could be an option if you do not qualify for any other form of spousal relief, but the law may not hold you responsible for the tax liabilities if doing so would be unfair.
Community income relief: This may relieve a spouse of responsibility for debts from community income taxes. - Court-ordered relief: A court order may allocate responsibility for some tax debts between spouses during a divorce or separation. Nevertheless, this is not always binding on the IRS.
IRS payment and settlement options: The IRS has different programs through which an eligible taxpayer can settle their tax problems in a way that suits them best based on their financial situation.
You should determine whether the deceased spouse, the estate or both owe the tax liability based on how you filed the tax returns and what state law requires.
Check your options before paying IRS debt
IRS debt after a spouse’s death can involve both federal tax rules and California estate matters. Before paying the debt with your own money, you can get a legal consultation to evaluate your tax obligation and potential estate and tax relief options. This may help you avoid making payments you are not legally required to make.