innocent spouse rule

Definition of "innocent spouse rule"
  1. A regulation by the Internal Revenue Service exempting a spouse who unintentionally signs a deceptive shared tax return from paying penalties on it
How to use "innocent spouse rule" in a sentence
  1. Under the innocent spouse rule, Jane was not penalized for the fraudulent tax return prepared by her ex-husband.
  2. Applying the innocent spouse rule can sometimes relieve a person from tax penalties due to their partner's deception.
  3. Despite his pleas, the court found that the innocent spouse rule did not apply as David was aware of the fraudulent activities.

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