Hassan says Senate unanimously passed her bipartisan bill on innocent spouse tax relief
The New Hampshire Democrat and Republican Sen. Tim Scott of South Carolina said their measure would let courts weigh all evidence when a spouse seeks relief from tax debts caused by the other spouse.
U.S. Sen. Maggie Hassan, D-N.H., said Tuesday that the Senate unanimously passed bipartisan legislation she led with Sen. Tim Scott, R-S.C., aimed at keeping taxpayers from being held responsible for tax debts caused by a spouse's hidden income, mistakes or misconduct.
According to Hassan's office, the Tax Relief for Innocent Spouses Act was included in a broader measure, the Taxpayer Assistance and Service Act, which goes next to the House.
Hassan's office said that when married couples file jointly, both spouses are liable for any misstatement of income or underpayment, even if one spouse did not know about it. The office said the problem can be especially common in abusive relationships, when one spouse controls the finances or hides income.
Under current law, according to the office, courts reviewing so-called innocent spouse claims can consider only newly discovered evidence, not evidence previously submitted during the IRS administrative review. Hassan's office said that can make relief harder to obtain for people who experienced abuse, lacked access to financial information or did not understand the process. The bill would allow courts to consider all relevant evidence, the office said.
"This bipartisan bill helps ensure that innocent spouses, including those who may have experienced abuse or lacked access to their finances, will have a fair opportunity to present their case and receive the relief that they deserve," Hassan said.
Scott said the bill "gives the Tax Court greater authority to review the full scope of evidence in appeal cases."
Hassan said she would keep working with members of both parties to get the bill signed into law.
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