Funny case came out today. Victoria K.M. Freulich v. Commissioner.
In this case, the wife won $5,000 at a casino. For some reason or another she didn't repor the income on her tax return (she had a memory lapse on income interest of $ 27 and dividends of $ 17 as well).
Fast forward a few years, and the death of her husband, what does she try to do? She tried to claim innocent spouse status. Basically this is where one spouse didn't know about the other spouse's tax sheningans and thus it would be unjust to make the "innocent spouse" liable for the actions of the offending spouse.
Slight problem with her defense, she was the offending spouse.
Truth is stranger than fiction.
