Jack just found out that for the last three years when his wife Jill was filing a joint tax return, not only she completely omitted his income, but changed his occupation to maximize deductions. This year she listed Jack as a Construction worker who had $19K of losses. Jill ended up with an $11000 tax return which, although they have joint checking and savings accounts, were deposited in her own checking account.

Jack doesn't want to have anything to do with it and thinks that as long as he has proof that she did it all on her own and he did not benefit from her fraud that he'll be fine. Jack wants to avoid arguing with his wife, let alone cause her any trouble with the law. However, I think he's being too naïve and I have been trying to convince him to clear things out with the IRS before they approach him.

Any suggestions?

If he SIGNED the return, then he is responsible for its contents, regardless of who got the refund.

He would have to argue that he had NO KNOWLEDGE AT ALL about what his wife did to qualify for an "innocent spouse" exemption.

Your advice is solid: he needs to get professional help and come forward to the IRS WITH his wife to get this straightened out.