Tax Debt Advisors Inc Mesa

Here is a typical scenario. The husband is self-employed and never paid any taxes on jointly filed tax returns. The divorce decree says that the husband is responsible for paying all the back taxes. The IRS is coming after the wife. Will the divorce decree stop IRS action against the wife?

First, if you are an innocent spouse you might first seek relief under the innocent spouse relief rules. The IRS will consider factors like your knowledge of the unpaid taxes, spousal abuse claims and whether you received some benefit from the unpaid taxes.

Second, the divorce decree does not limit the IRS from taking action against you. When you signed a jointly filed tax return you accepted responsibility for the accuracy of the return and payment of the taxes owed.

Third, if your signature was forged or you signed the return under fraud or duress, the IRS will convert your joint liability to married filing separately. You will be responsible for paying taxes only on your income.

Fourth, you have several options available to settle with the IRS if you are held responsible for the taxes owed on the jointly filed return. These include: filing for discharge of taxes due with a bankruptcy, an offer in compromise, qualifying for non collectible status or the statute of limitations on collection.

Scott Allen E. A.

Tax Debt Advisors Inc Mesa