Is there such thing as transfering an IRS debt to the other spouse?

Question

Im asking this question for someone else....
The situation is... the married couple is in the process of a divorce, they file jointly they owe a large sum of money to the IRS now.
Soon to be x-wife is to blame for debt (although she went to HR and Block, they still let her deduct things that are not permissable), the husband recieved a letter saying that x-wife has not been making payments and they have ten days to make arrangements. The husband went to the IRS office and said he doesnt qualify for Spousal Relief. Few days back the x-wife said that she filled out a form that will let her transfer the debt solely to her...
I have never heard such a thing and I would assume the closest to what she is talking about is the "Spousal Relief" form, but neither of us qualify...
So what the hell is the x-wife talking about??

Answer 1

The IRS won't let him off the hook no matter what the wife admits to. Since he signed the joint return, he's equally liable unless he qualifies for innocent spouse relief, and you said that he doesn't. So as far as the IRS is concerned, he's responsible for paying the debt if she doesn't.

She might have signed some legal paper taking responsibility - if so, he might be able to sue her for anything he has to pay to the IRS for the debt. That would become strictly a civil matter, and the IRS wouldn't have anything to do with it. That really doesn't sound real likely though. He should ask her for a copy of the paper she signed though, if he wants to either call her bluff or have evidence for a lawsuit.

Sometimes life isn't fair. Sorry.

Answer 2

There is no such thing that will allow the wife to solely taking on the tax debt unless she pays it 100% off. Unfortantly once the husband signed the tax return with his wife that makes him "jointly and severally" liabile for the return. In short that means the IRS will go after the person that is the easist to get.

There is an aplication for "Inocent Spouse Relief". That means that the husband claims that he had no way of knowing (or should have known) that the tax return had incorect information on it and that he did not receive any benefit (direct or indirect) from the additional windfall of the refund that was not supposed to.

Needless to say the burdon of proof is on the husband and it is not easy to say that you did not receive any benifit. If he feels he does qualify for inocent spouse releif than he should fill out form 8857.

There is also an on-line tool on the irs web site that explains inocent spouse relief I would suggest looking it up.

Good luck.

Answer 3

The answer is the same as the one I posted when the other person posted the same question.

They should have the treatment of the tax debt included in the divorce decree. This IRS is NOT bound by this, but it will give the other spouse legal standing for a lawsuit if the other spouse doesn't clear the debt as stated in the decree.

The injured party needs to discuss this with their divorce attorney. If they don't have one, they need to get one PRONTO!

Answer 4

Mark S's answer is ideal. I basically had to operate slightly of thoughts. Your fiance might want to report the antisocial tax returns & request an installment settlement with the intention to pay the stability owed. If the settlement is wide-spread by the IRS & paid as agreed (you could deliver fee in or set it as a lot as be immediately withdrawn out of your account each and each month), the IRS gained't levy your position. they'll take your tax refund each and every twelve months so in case you want to carry your component of the refund, do report the Injured better 1/2 kind. yet in all honesty, once you attempt to get the tax legal duty paid off as immediately as conceivable, i might want to enable them have the completed refund to minimize the debt. you could save all of your funds separate, yet except you're making a competent income, you may want to wish his income/credit to make major purchases contained in the destiny. So once you're going to marry him, inspire him to get this IRS issue in the back of him & then make confident that he does.