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Subcommittee hears bill to create state "innocent spouse" tax relief program

House Finance Subcommittee No. 1 · January 27, 2026
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Summary

Delegate Carnegie presented HB 716 to create a state-level innocent spouse program that would allow spouses to seek relief from state tax liabilities arising from a partner’s misrepresentations; a motion to report the bill was moved and seconded, and the clerk opened the roll (vote not recorded in the transcript).

Delegate Carnegie presented House Bill 716 to the House Finance Subcommittee No. 1, saying the bill "creates a state version of the federal innocent spouse program to protect innocent spouses from being held liable for tax debts resulting from misrepresentations of their spouse or former spouse on their joint tax return." The bill would permit the Virginia tax commissioner to investigate an innocent-spouse claim even if the person has not filed such a claim with the IRS and would allow a federal grant of innocent-spouse relief to qualify a person for an equivalent state relief.

Carnegie and supporters argued a state avenue is needed because federal relief can lapse or be resolved in ways that leave a joint state tax debt outstanding. "This bill would simply create a state analog to the federal innocent spouse provision," Carnegie said, noting scenarios where the federal claim does not remove state liability. Committee members asked procedural questions and the committee received no public opposition during the hearing.

A motion to report HB 716 was moved and seconded and the clerk opened the roll. The transcript does not record a final roll tally or formal recorded outcome for the report motion.