So yeah my soon to be ex- wife makes 3 times the amount i do, we filed taxes jointly at first, with out my knowledge she claimed outreagous deductions and now we have to pay for it. The debt is 30,000, i dont have that kind of money, hence why im filing bankruptcy because off all the stupid mistakes i did when i was married to her. So if i do file bankruptcy i know i can't get out of the IRS debt like that, so will the debt be split down the middle? Or will one of us be held more responsible then the other?
I constantly argue with her that she is responsible (although i know we both are) for that IRS debt, she so called says that shes making 2,000 payments a month. When not to long ago i got a letter in the mail saying about a recent audit and again i spoke to her and claims that she's making payments.
2007-05-26 12:49:47 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
im filing bankruptcy for other reasons...
2007-05-26 13:02:51 · update #1
she's a real estate agent and these deductions are for dry cleaning, car expenses, cell phone expenses...
2007-05-26 13:15:43 · update #2
In the eyes of the IRS, you are both equally liable for the entire amount on a joint return, so they'll keep pushing both of you until they get it from somebody.
You can try filing for innocent spouse relief, but your chances aren't great. You'd have to prove not only that you didn't know about it and had no way of knowing, but also that you didn't benefit from it.
Sorry, not the answer you were hoping for, I know. And you're right that filing bankrupcy doesn't cancel tax debt.
2007-05-26 13:07:56 · answer #1 · answered by Judy 7 · 3⤊ 0⤋
Your filing bankruptcy isn't going to change your tax responsibilities in the eyes of the IRS. You are both fully responsible for the debt. The IRS will come after both of you for all of the tax. Innocent spouse relief does not seem an option for you given your description of the problem.
As I mentioned in another answer to a related question from you, consult with your attorney regarding a property settlement and negotiate that she will pay off this debt as part of the property settlement. If there are assets from the marriage, negotiate that those be sold to satisfy the debt.
You can find out if payments on the debt have been made from the IRS, call them.
2007-05-26 15:18:25 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
You might want to consider filing under the "innocent spouse" law - see if the IRS will exempt YOU from this. However, that usually only applies when the tax debt is from a business run by the other party - sounds like these are just audited tax returns - non- business - that you're going to have to pay for.
You two can agree to split the debt, but it doesn't matter. The IRS is going to come after both of you equally, for the full amount, until it gets paid off. They can put a lein on any of YOUR posessions, sweep YOUR bank account, and attach YOUR wages, until it's paid in full - they don't care if it's you or her paying it.
Legally you're both "jointly and severally" liable for it.
2007-05-26 13:08:05 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
Just to clarify what bostonianinmo said about the divorce settlement, won't help at all with the IRS. What is will do is support a civil suit against her to recover anything you have to pay the IRS as a result of this tax debt. Legally you are "Jointly and Severally liable". That is the legal term for, they will get the money from whoever has it.
2007-05-27 07:10:03 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
pass to IRS web site and assessment ebook 908, for suggestions on financial ruin and cancellation of debt. many times, whilst a debt owed to a distinctive is canceled the quantity canceled or forgiven is seen earnings it fairly is taxed to the guy owing the debt. If a debt is canceled under a financial ruin proceeding, the quantity canceled isn't earnings. even however, the canceled debt reduces the quantity of different tax reward the debtor might ideally be entitled to. See Debt Cancellation, later.
2016-10-08 21:56:11 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Go to a attorney that specializes in tax laws. They know what would be your fair share since your spiliting up. You might be able to get off with less since she did the taxes without your knowledge but then again ignorance of the laws don't make you right.
2007-05-26 14:48:34 · answer #6 · answered by Tapestry6 7 · 0⤊ 0⤋
I would strongly suggest that you get the settlement of the tax debt addressed in the divorce settlement. At least with that in hand you have something to go after her with if the IRS gets their hands on any of your money or property. If your divorce lawyer hasn't already brought this up, get a new lawyer!
Since you signed the joint returns and since it wasn't a business return that you were entirely innocent on, you certified that the return was complete, correct and accurate just as she did. As such, an innocent spouse claim will be difficult to get through. Go after it by all means; you might get lucky and the reviewing agent will see it your way. Just don't depend upon it.
2007-05-26 21:48:06 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 2⤋
Talk to the IRS about filing for relief as an innocent spouse or relief of separation of liability. It would be a better alternative to bankruptcy. That way, the IRS would only go after her, and your credit would be clean.
2007-05-26 12:59:05 · answer #8 · answered by gauchogirl 5 · 0⤊ 1⤋