A married couple filing a joint tax return makes the spouses “jointly and severally” liable for the entire tax due. A joint filer may seek “innocent spouse” relief to avoid liability. In one case, an ex-wife was denied relief. She and her ex-husband managed rental properties. The tax deficiency arose from sources including unreported cancellation of debt income and capital gains, disallowed expense deductions, and the ex-husband’s unreported retirement income. The U.S. Tax Court found she wouldn’t suffer economic hardship if relief was denied because she had “considerable income and assets.” She also knew about and participated in the items that led to the tax deficiency. (TC Memo 2024-56)