An Act to amend the Code of Virginia by adding in Article 2 of Chapter 18 of Title 58.1 a section numbered 58.1-1836, relating to income tax; innocent spouse tax relief.
HB716 adds a new section to Virginia’s income tax code authorizing the Department of Taxation to grant “innocent spouse” relief to a spouse who qualifies under section 6015 of the federal Internal Revenue Code. The bill allows the Department to provide this relief even if the taxpayer did not first file a federal innocent spouse claim. In practical terms, it creates a state-level path for relief from certain joint tax liabilities when one spouse should not be held responsible for the other spouse’s tax underpayment or understatement.
The measure is narrow and administrative in scope. It does not change the federal innocent spouse standard itself; instead, it incorporates that federal qualification test into Virginia law and gives the Department discretion to apply it for state income tax purposes. The bill was enacted as Chapter 210 of the 2026 Acts of Assembly.
The bill amends Title 58.1 of the Code of Virginia by adding § 58.1-1836, expanding the Department of Taxation’s authority to grant state income tax innocent spouse relief. It affects married taxpayers who filed joint returns and may be seeking relief from joint and several liability for Virginia income tax, penalties, or related obligations tied to a spouse’s actions. By allowing relief without a prior federal claim, the bill may make state relief more accessible and reduce procedural barriers for affected taxpayers.
The available record shows no committee transcripts or recorded votes indicating opposition, debate, or amendment activity. Based on the bill’s enactment and its limited, taxpayer-relief focus, the overall sentiment appears neutral to favorable. The measure seems to have been treated as a technical or fairness-oriented tax administration change rather than a controversial policy proposal.
No specific points of contention are reflected in the provided materials. The main policy issue implicit in the bill is whether Virginia should allow innocent spouse relief independently of a federal filing, which could raise administrative concerns about consistency with IRS determinations or the Department’s workload. However, no legislators, committees, or stakeholders are shown taking opposing positions in the record provided.