I had this as an essay question and I am curious as to the answer. The situation sites: A woman and man have been married for over 25 years, unhappily. They no longer reside in the same residence, she works part time and has filed her taxes separately. The man works full time and has not filed his for the past 5 years. However, he came home one day and coerced his wife to sign a paper stating she would pay all the taxes he owed or he would personnally harm her. Five years go by, and the man goes to a lawyer to settle his taxes for the past ten years since he recieved a notice from the IRS. What will happen? The essay also poises the question, "If the wife signed the paper and it is in his posession, will she be responsible for everything? Can the IRS take her home and land? Could she file for innocent spouse protection? I know this is a huge scenario, but totally one I got from the Prof...any ideas ladies and gents???
2007-03-14 11:49:53 · 6 answers · asked by AnswerGirl 3 in Business & Finance ➔ Taxes ➔ United States
There's nothing "huge" about the situation. There is a lot of extraneous information though, probably to try and confuse you.
The letter was signed under duress. It is null and void. Even if she can't prove duress, a "contract" with out valuable consideration (other than avoiding a beating) isn't worth the paper it's written on.
Since the wife filed separate returns from her husband, she has NO liability for his tax debt. Her separate property cannot be attached for his debts. Jointly owned property COULD be taken but generally only his share of it can be used fror his tax debt.
Even in a community property state, the facts at hand -- living separate from her husband for many years and filing separate returns -- would isolate her from any claim by the government for his debts.
2007-03-14 11:59:37 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Fortunately, we don't have debtors prisons in this country so no, they don't go to jail for not paying. The only time you go to jail for not paying the IRS is if there is a criminal act involved, like tax fraud. (although there's a case for criminal activity on the part of the husband when he threatened the wife, although the IRS probably wouldn't be the one to press charges there. The local district attorney would.)
I don't think the wife would be responsible as she signed the paper under duress. (Threat of personal harm).
That leaves the husband and the IRS will make his life miserable for the rest of his life until he pays them. Taxes are one of the few things you can't get rid of in bankruptcy.
2007-03-14 11:58:00 · answer #2 · answered by Faye H 6 · 1⤊ 0⤋
no one ever is going to reformatory for an lack of ability to pay, even for taxes. you will properly be jailed for tax evasion, tax fraud, or failing to document a return whilst ordered to accomplish that. you have filed the lacking returns and assuming that that become the two of your individual volition or consistent with an order to accomplish that, reformatory isn't something so you might rigidity approximately. touch your state DoR and set up a charge plan to sparkling the debt. All that the lien does is guard their spectacular to deliver at the same time in case you sell something of important fee alongside with a automobile or abode. if so that they are able to step in and take any broking's money from the transaction and word that against your debt. in case you do no longer set up a charge plan and shop on with it they are able to levy wages and economic employer and investment bills, confiscate unencumbered belongings, and different distasteful issues, yet they can't deliver you to reformatory. (once you're in reformatory you're no longer earning any money and would't pay something. that's counter-effective so this is reserved purely for criminal acts.)
2016-11-25 20:32:44 · answer #3 · answered by ? 4 · 0⤊ 0⤋
The easy part of your question is the part about the paper she signed. The law will not enforce any contract that was not signed willingly, therefore that paper means nothing.
Although they are still married, since they are living in separate homes and she files her returns separately, she will probably be able to claim innocent spouse.
2007-03-14 12:02:36 · answer #4 · answered by Brian G 6 · 1⤊ 1⤋
In answer to your original question: Yes, and yes.
But the contract you have there is what is known as an unenforcable contract. You can't be coerced or threatened into signing a contract.
2007-03-14 11:52:54 · answer #5 · answered by Lisa A 7 · 0⤊ 3⤋
2 things you have GOT to do in life:
!) die
2)pay taxes
2007-03-14 11:53:32 · answer #6 · answered by Anonymous · 0⤊ 3⤋