QUESTION

What is the wife's liability?

Asked on Apr 09th, 2013 on Taxation - California
More details to this question:
I had several years of unpaid taxes (2004 - 2011) that I recently filed all together. I was advise by the agent who prepared the taxes to pay all of the taxes for everything due all at once and wait for the IRS to respond before settling the penalties and fees, and did. For 3 months I heard nothing back from the IRS until last October I received a letter stating I still owed $150.77 worth of penalties and fees for 2011. Nothing else about any of the previously unfiled returns. I wrote a check that day and put it in the mail. I tried calling the IRS several times between then through the turn of the year but met a message each time saying they weren't taking calls due to all the new tax laws. In December my wife and I visited another tax agent to help us refill our 2011 returns as married to try and claim some money left out there. We got a letter back a few months later in March saying we were owed an extra $949 and to expect a check in the mail in a couple weeks. One week later we got another letter saying we would be refunded $0 due to all of it being applied to taxes I still owed from 2010. Still receiving nothing else from the IRS and not being able to get a hold of a live person, we went into HR Block. They helped us file our 2012 taxes and were able to get me in touch with a live person at the IRS. They informed me there on the phone that I still owed $924.49 for 2007, $3877.34 for 2008, and $401.10 for 2010, totaling $5202.93, and that I have already been passed on to their collections department. Unfortunately we learned while there that for 2012 we owe $2309 to the Fed and $1108 to the state. My wife and I have been married since 2008 and she has been filing her taxes (married separate) all along, all of the past debt is under my social security number. Not until recently refilling our 2011 return (and our soon to be filed 2012 return) have we filed anything together.
Report Abuse

2 ANSWERS

Elder Law Attorney serving Hollister, CA at Charles R. Perry
Update Your Profile
All of your and your wife's community property can be reached to pay any tax liability owed since the time of your marriage. The same is also true for tax liability accrued before the marriage. See Family Code ? 910. A small exception exists for earnings by your wife that are kept in a separate deposit account to which you have no access. Family Code ? 911. Your wife's separate property is not subject to the payment of your debts, unless they are considered "necessaries of life." I have not researched whether tax liabilities fall within this category. Of course, your separate property is subject to attachment to pay your tax debt. There are ways to mitigate this problem by way what is known as a "transmutation agreement." You will need to consult a family law attorney for more information on or the preparation of this agreement.
Answered on Apr 11th, 2013 at 1:46 AM

Report Abuse
Taxation Law Attorney serving Glendale, CA at Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Your wife is liable for your 2011 and 2012 taxes only. You probably could save some money (on tax, interest and penalty) if you switch to joint for 2009 and/or 2010. (Note, if she filed on time, then you have only until Monday to file an amended return for 2009. If your preparer cannot do it that fast, I could. While she is not liable for you earlier tax debts, your community property and any joint accounts can be taken by the IRS if it gets that far. Likely, they will agree to let you pay in installments, at a level that you can afford.
Answered on Apr 10th, 2013 at 1:51 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters