Innocent Spouse Relief

If you have filed a joint tax return in Montana and are liable for income taxes, penalties, or interest that you believe should not be yours to pay, you may be eligible for innocent spouse relief.

When you file a joint tax return with your spouse, you are each individually liable for the full amount of tax, penalties, and interest for that tax year. This is called joint and several liability.

This is true even if:

  • You are no longer married to the same person
  • Your former spouse earned all the relevant income
  • A divorce decree states that your former spouse is responsible for the taxes

If you have requested innocent spouse relief from the Internal Revenue Service (IRS), you may also apply for innocent spouse relief in Montana for the same year(s).  For information on innocent spouse relief from the IRS, please review the IRS Innocent Spouse Relief guidelines.

Qualifying for Innocent Spouse Relief

You may be eligible if your tax liability was understated due to errors on your return, such as unreported or underreported income. This can also include incorrect information on your return, such as incorrect deductions, credits, asset values, etc.

If you receive a notice from Montana DOR indicating you have a balance due and you would like to apply for innocent spouse relief, please respond to the notice you received and provide a written explanation including:

  • The tax years you're requesting relief for,
  • The reasons you're requesting relief,
  • Complete copies of all correspondence with the IRS for the relevant tax years, including any documents granting you relief, and
  • Any other information showing why relief should be granted as required in 15-30-2646, MCA.

How We Determine Eligibility for Relief

The standards we use to determine eligibility are based on the same eligibility standards used by the IRS. We will consider the facts and circumstances to determine if it is unfair to hold you responsible for some or all of the tax, penalty, and interest.

If You Disagree With Our Decision

If you disagree with our decision, you may file a tax appeal.