Caroline and David file married filing jointly. Caroline receives compensation from her employer, who deducts...

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Accounting

Caroline and David file married filing jointly. Caroline receives compensation from her employer, who deducts federal withholding taxes and remits that money to the IRS. David is self-employed and made only one quarterly deposit of his federal taxes this year. At the time of filing, the couple owed an unpaid tax liability equal to two-thirds of what David should have remitted to the IRS. What does this mean for the couple?
Caroline and David owe the remaining tax liability jointly, and the IRS may require either, or both, to pay it.
If Caroline is unwilling to pay the tax liability based on David's earnings, she automatically qualifies for innocent spouse relief.
A)
Neither I nor II
B)
II only
C)
I only
D)
Both I and II

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