Wife Liable for Tax on Husband’s IRA Pull, but Not IRS Penalty

A New Jersey woman can’t claim innocent spouse relief over a $15,000 federal tax bill , the US Tax Court ruled, but the IRS didn’t meet the burden to sustain a $3,000 penalty over withdrawals from an IRA held by her husband, according to a Monday opinion.

The IRS said that the couple had failed to report $122,500 of taxable distributions from their individual retirement account, $6,900 from Social Security income and $144 of partnership income, assessing the taxes and penalties.

In a Monday opinion, Tax Court Judge Joseph H. Gale held that the Patricia Cotroneo couldn’t claim various forms ...