debt to the IRS...??

Question

My wife and i filed jointly in 2004 and 2005,now we owe 30,000 in taxes. I know we are both liable for it but the debt is mainly hers, she is a real estate agent and had some outrageous deductions,so that is the reason why we are now in debt with the IRS. I confided in her to do the taxes accurately, i was so trusting and stupid to sign too...
In the other hand, we are seperated and in the process of a divorce and not in speaking terms at all. I decided to go to the IRS offices myself and got informed that my wife has been lying to me that she has been making payments, and on top of that i was also informed that i don't qualify for Spousal Relief.
I finally got in contact with my wife today and asked her to make arrangements to pay because its HER debt and she told me that she arranged for that debt to be trasferred to her and she would be solely responsible for that debt.
My ? is....
Is that possible,for a debt to be transfered just to her without me signing anything??

Answer 1

I've never heard of any procedure to "transfer" a debt in the way you described. If she does not pays it, I think that the IRS could still come after you. If you talk to them, I suspect that you'll find out that she has untruthful again.

I sympathize with your problems. I hope your wife comes through with payments.

Answer 2

You ARE confused! And too trusting. But you are not stupid.

First, the tax obligation is between you & IRS. IRS is not bound to any agreement between you and her.

Next, you trusted a player on the other side to tell you the rules of the game. Tax law is like this: a general rule, one or more exceptions, exceptions to the exceptions and so forth. The people at IRS offices that speak to the public know the general rule correctly about half the time. Few know the exceptions. It is not their job. What you did is like asking the prosecutor what you should do. He'll always say "plead guilty".

Internal Revenue Code (IRC) sec 6015 gives several approaches to relief in your kind of situation. You may qualify for more than one of them, especially if she is willing to take on the full tax liability.

This is more complicated than you can do on your own. Professional help is strongly indicated. Engage an EA, CPA or tax attorney who is familiar with the Innocent Spouse Laws.

I have included a link below which gives you a little more info about Innocent Spouse relief. However, it is by no means the entire story.

Don't try this at home!!

Answer 3

Yes..if you trust someone.
No if you don't trust them

A nice legal document would be very powerful/useful...signed by both of you..since the amount is over $500,check with the IRS again to confirm if just the doc will do. You may also need the doc to state how much, when, and that she accepts full sole responsibility for the debt.

Its always better in writting. Good luck..play your cards well and it might just work.

Answer 4

You should have that included in your divorce decree. The IRS won't honor it, but it will give you legal basis for recovery from her if they do come after you for any of the debt.

If your attorney has a brain they've already told you that. If they haven't, get a new one. And if you don't have one, you NEED one NOW!

Answer 5

No, she's lying to you again - does that surprise you?

The IRS will continue to hold both of you responsible for the debt on the joint returns.

Answer 6

IRS says her tax debt your tax debt and they can collect against the debt by taking your refunds.