IRS Tax debt after divorce
Q.My friend made a big tax mistake about two years ago when she was married (filing jointly w/her husband) and ended up with a tax debt around $6000 for which she is currently paying. They have since divorced, and he has already demonstrated his lack of responsibility paying on this debt. As a result, although he is the primary filer, she has been paying the payments for fear that the IRS will come after her. Is there any way to split this debt up so that the failure of one party to pay does not affect the standing of the other party? Being divorced, both are now filing separately, of course. Any help in this matter would be greatly appreciated.
A.It depends on a whole host of factors including who made the money and whether or not one or both of them failed to pay the proper tax liability. It is impossible to answer the question without first examining the return. Under new rules, your friend MAY have a way out, but it's the particular circumstances that determine the options. Can she claim innocent spouse after the number of years, and making payments on the debt? Sounds to me like she is or has claimed some responsibility by making the payments and not claiming innocent spouse earlier. For sure she won't get the money back that she paid up to now. I rarely see a truly innocent spouse, or client for that matter. You can do three step: 1) See the IRS literature regarding "Injured Spouse" (but NOT "innocent spouse" - these are two different things). However, as you say, if the cause of the debt was HER fault, and NOT her ex-husband's, there's nothing to be done here, at the federal level. 2) Did the divorce decree say anything regarding tax adjustments? Maybe a judgment from a local court is needed.... 3) Ask a "collection expert." I'm not one, but some of the other practitioners here appear to only deal with collection issues.
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