Filing jointly? The IRS can come after your separate bank account
A woman called me because she suspected her husband wasn't reporting all his income on their tax returns. She wanted to know what that meant for her.
The answer surprised her. If you file a joint return, you're both responsible for the whole tax bill on it.
What "jointly and individually liable" means
When you sign a joint return, you and your spouse are jointly and individually liable for the tax, penalties and interest on that return. The IRS can collect the full amount from either of you.
That has real consequences:
If your spouse underreported income, the extra tax can be assessed against both of you.
If you have a separate bank account in your own name, the IRS can still levy it to collect a joint-return debt.
A later divorce, or a divorce decree that says your spouse will pay, doesn't change what you owe the IRS on that joint return.
A separate account protects you from your spouse's spending. It doesn't protect you from a joint tax return.
Why filing separately is sometimes the right call
Because of this, it's often worth asking whether a spouse in this position should file a separate return. If you file married filing separately, you're generally responsible only for the tax on your own return.
Here's an anonymous example from my practice. A client's husband owed the IRS a large amount. Her parent was seriously ill, and she expected to receive an inheritance. I advised her not to file jointly, so the IRS couldn't treat a new joint tax bill as hers and reach part of what she inherited.
But filing separately isn't free. It can mean a higher combined tax bill and losing some credits and deductions. It's a trade-off to work through with real numbers, not a reflex.
Don't count on "I'm the innocent one"
If you already filed jointly, you may be able to request innocent spouse relief. But be careful:
Relief generally isn't available for errors you knew about, or that a reasonable person in your position would have known about.
If you benefited from money your spouse was earning but not reporting or paying tax on, that counts against you.
So the best time to think about this is before you sign the return, not after the IRS sends a bill.
Joint refunds and your spouse's old debts
There's a related issue. If you file jointly and your spouse owes a past-due debt that you're not responsible for, like an old tax balance from before you married, the IRS can apply your joint refund to it. In that case, you may be able to get your share back by filing Form 8379, Injured Spouse Allocation.
That's different from innocent spouse relief. Injured spouse is about a refund taken for your spouse's separate debt. Innocent spouse is about tax on the joint return itself.
Timing matters
These decisions matter long before a legal separation or divorce, and long before a collection deadline. Once the IRS is levying accounts, your options are narrower.
Short FAQ
Can the IRS levy my separate bank account for a joint tax debt? Yes. On a joint return, both spouses are liable for the full amount, so the IRS can levy either spouse's accounts.
Does my divorce decree protect me from joint tax debt? No. The IRS isn't bound by the decree. You can still be held responsible for taxes on joint returns.
Should I file separately if my spouse owes the IRS? Sometimes. Filing separately generally limits you to your own return's tax, but it can cost more overall. Run the numbers first.
What's the difference between injured spouse and innocent spouse? Injured spouse (Form 8379) recovers your share of a joint refund taken for your spouse's separate debt. Innocent spouse (Form 8857) can relieve you of tax on the joint return itself.
Worried about your spouse's taxes?
Book a free 30-minute call to go over your case. For a quick question, you can call (718) 510-3166. I'll tell you honestly where you stand.
General info, not advice for your specific case. Every case is different.
