Innocent Spouse Tax Relief

The Family Law Taxation Blog has a recent posting about innocent spouse tax relief: However, even if the IRS absolves a sopuse from tax liability, in a KY divorce, the trial court can assess some of the burden of the tax to the innocent spouse.
Dobson v. Dobson, 159 SW3d 335 (Ky.App., 2004)
Spouse granted innocent spouse relief by the IRS is
not entitled to res judicata and trial court assignment
of tax deficiency 40% to innocent spouse was upheld.
Tax audit had uncovered a tax deficiency, but trial court
reasoned that the parties benefited from the lower tax burden
and innocent spouse was later required to pay the share of
taxes for which she would have been responsible had the
deductions not been disallowed.