Nov 20, 2025
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It's one thing for a spouse to keep a minor secret from their partner — it's another thing to hide an $82,000 tax bill.
That's the situation Alice in Montana found herself in when she wrote to The Ramsey Show. Her husband of 21 years failed to pay an $82,000 tax bill from 2021. Now, the IRS is coming after their home, and she wants to know if she should take out a second mortgage to cover the bill or sell it.
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"I feel blindsided and betrayed," she wrote in. Ramsey's response? "What a mess!"
Financial infidelity
Alice and her husband's finances weren't always smooth, as evidenced by her alluding to a past bankruptcy. However, thanks to a strong 2021 for her husband's real estate business, they wound up owing the IRS $82,000.
The money was in the husband's business account, so Alice trusted him to pay them. Instead, he used it to cover other business expenses and a failed side venture without telling her. He also blew off their accountant.
Their CPA eventually filed their taxes for them in 2023, sans signatures — an act Ramsey called illegal.
“That’s a good way for the CPA to end up in jail,” he quipped.
Alice's husband then proceeded to hide IRS notices from her regarding the tax debt. She only found out when she signed for a certificate letter from the IRS saying the agency intends to levy their home for $150,000.
Alice turned to Ramsey for guidance: should she buy her husband’s share of the house or use a second mortgage to cover the IRS bill? Ramsey assumed that by "buy him out," Alice intended to divorce her husband. After bantering with co-host Rachel Cruze over whether she meant “bail him” out, Ramsey added that as a nurse, Alice probably had taxes withheld from her paychecks.
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Now, if Alice and her husband intend to go to marriage counseling, then, between his real estate income and her nursing income, they can pay off the tax debt themselves. But Ramsey added that Alice should sell the house if she's getting a divorce. There was some good news for Alice: she may not be responsible for the taxes in the event of a divorce.
"You would file under what's called the innocent spouse provision," he explained. "You were not aware of these taxes; you were not aware of the business activities that created these taxes."
Because of this, Ramsey said the IRS shouldn't hold her liable even if her filing status at the time of the debt was married filing jointly. However, he suggested that Alice hire a skilled tax attorney or a knowledgeable CPA to argue her case.
Ramsey added that if the house has a lien and is sold, the IRS can only take the money out of the husband's portion if Alice gets approved for innocent spouse relief. But this only works if they get a divorce. Otherwise, Alice and her husband need to work on reestablishing trust.
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How innocent spouse relief works
The IRS's innocent spouse relief program is designed to protect people like Alice from liability when their spouses underpay taxes on a joint tax return and they're unaware of it.
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If you're in a situation like hers, you may be eligible for innocent spouse relief. However, that relief only pertains to taxes on your spouse's income. You cannot claim innocent spouse relief for your income, household employment taxes, business taxes or certain other taxes.
You can request innocent spouse relief if:
- You and your spouse filed a joint tax return
- Your taxes were underreported in error
- You did not know about errors on your tax return
- You reside in a community property state
The IRS instructs people to request innocent spouse relief as soon as they become aware that they’re on the hook for a tax bill. You must also request innocent spouse relief within two years of receiving a notice from the IRS about a tax bill.
The IRS also says that if you didn't sign or consent to file a joint tax return with your spouse, you may be able to limit your responsibility for your spouse's taxes. You can call the number on your tax debt notice to learn more.
This situation may apply to Alice, as she stated that their accountant filed their tax return without their signatures or consent. Of course, applying for innocent spouse relief does not guarantee approval. According to Jackson Hewitt Tax Services, in 2021, the IRS received over 26,000 innocent spouse relief requests but only approved about 4,800.
Because approval is not guaranteed and there are many nuances involved, it may be best to consult a tax professional with expertise in the area rather than attempt to get relief on your own.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
