Joint Tax Accounts equal Giant Tax Disaster: He said, she said- who's the real culprit? Who has to pay? Expect a disaster of epic proportions when two people owe tax jointly. With a little prior knowledge, you might be able to survive the IRS nightmare.
Same Household: live in the same household with your partner in crime? I have some bad news. If you share a mortgage and a debt with your spouse or girlfriend, you both owe the tax debt. The IRS will need complete income information from both people.
Different household: Joint accounts where a divorce is pending is even more difficult. As soon as a couple splits and starts maintaining two households, two different payment plans will be arranged. But it's still the same debt
Non Liable Spouse Issues: I get a lot of calls from Taxpayers that owe, when their spouse does not. They ask me how they can protect their innocent spouse. Their cause may be noble, but a lot of the time, there's nothing I can do to help them. If they live in the same household as their spouse, the spouse owes it too.
Innocent Spouse Relief: Trying to achieve Innocent Spouse Relief? Good luck to you, this is going to be difficult. There's a lot of rules that govern Innocent Spouse Relief, and most people won't qualify. For example, here's the biggest deal breaker:
If you signed the Tax Return, you do not qualify for Innocent Spouse Relief.
If you signed the Tax Return, you're guilty. Even if you didn't touch the finances, even if you simply did not know about the Tax Issue. It's your responsibility to investigate the Tax situation before you sign the Tax Return.
Equitable Relief: When you apply for Innocent Spouse Relief, you are automatically considered for Equitable Relief. Equitable Relief relies on many of the same qualifiers as Innocent Spouse Relief. But Equitable Relied considers issues like spousal abuse and other extreme situations.
Get Help: If you're facing a Joint Account issue, you're probably going to need professional help to rectify the complicated issue. Consider working with a Tax Resolution Professional or Qualified Tax Attorney if the task is too daunting to take on by yourself.
Labels: Marriage and Taxes