Tax Brake with Robert G. Nath, Esq.
"When the IRS Knocks and you Don't Owe"
- Week of 7/29/02 -
|
| Divorced and separated couples have enough difficulties between themselves, without the added burden of the IRS coming knocking. But that's what happens, in the real world, and because of a lack of communication, it can sometimes be a big surprise. Should it be? Not always.
One scenario is this: Couple A has been divorced two years, with little or no communication. They filed joint returns until the divorce, separate returns thereafter. The IRS comes to Wife A's door, asking about Husband A. Where is he? “Where does he work? He owes Uncle Sam $10,000 for the past two years. Tell us where we can find him.” Since Wife A owes no taxes, she has no financial interest in the search for Husband A. Of course, that does not mean she has NO interest. Everyone has a duty to cooperate with government agencies, although not a legally compelled duty absent a summons or subpoena. But if you answer the agent's questions, you MUST tell the truth. Lying to a government agent, even orally, is a felony, and has been prosecuted many times. In this scenario, it may be in Wife A's interest to cooperate, or maybe not. That's an individual decision. Of course, Wife A can always ask for time and consult professional help. Scenario Two: Couple B has been divorced two years, with little or no communication. The IRS is seeking to collect back taxes for joint returns (filed when they were married). The agent comes to Husband B's door, looking for both him and Wife B, and for money. Husband B has none, says so, but tells the agent where he can find Wife A. After all, says Husband B, she got the house in the divorce. Under the law, the house is exposed to the debts of either spouse, and it has appreciated in value (after all, their stocks have gone very south). This type of scenario happens all the time. And variations on both happen all the time. So how to deal with this? First, try to make the divorce as clear as possible regarding any past taxes. Remember that the IRS is not bound by provisions in state divorce decrees that require A or B to pay past taxes. Second, try to ensure that assets are clearly divided, so that there is no dispute over ownership. |
|
Suggest this page to a friend. © 2002 LawTek Media Group, LLC |
|
This website and the linked publications
contain the opinions and ideas of its author(s) and are designed
to provide useful discussion to the reader on the subject matter
covered. Any references to products or services do not constitute
or imply an endorsement or recommendation. The advice or
discussion presented in this website or linked publications are
not intended for use by any particular person and do not constitute
the rendering of legal, accounting, financial, or other advise
of any type. The publisher and the author(s) specifically
disclaim any responsibility for any liability, loss or risk (financial,
personal or otherwise) which may be claimed or incurred as a consequence,
directly or indirectly, of the use and/or application of any of
the contents of this website or the linked publications.
Information on this website and linked publications is provided
"as is" without any warranty of any kind, either express
or implied. All intellectual property, including without
limitation trademarks, trade secrets and copyrights, are the property
of Robert G. Nath, Esq. and any unauthorized use thereof is strictly
prohibited. Any person is hereby authorized to view the
information available on this website for informational purposes
only. No part of the information on this site may be used,
redistributed, copied or reproduced without the prior written
consent of Mr. Robert Nath or LawTek Media Group, LLC. Linked
websites are not under the control of Mr. Robert Nath or LawTek
Media Group, LLC and no representation whatsoever is made about
any other website (or information found therein) which you may
access through this website. Links are provided only as
a convenience and the inclusion of any link does not imply endorsements
or acceptance of any liabilith whatsoever for the contents or
the use of such website. IN NO EVENT WILL MR. NATH BE LIABLE TO ANY PARTY FOR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES WITH ANY USE OF THIS WEBSITE, OR ON ANY OTHER LINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ENTIRE RISK ARISING OUT OF THE USE OF ANY INFORMATION FOUND HEREIN REMAINS WITH THE RECIPIENT. BY USING THIS WEBSITE AND ANY LINKED WEBSITE OR PUBLICATIONS REFERENCED THEREIN, THE USER OR READER AGREES IN ADVANCE WITH ALL OF THE ABOVE TERMS AND CONDITIONS AS A CONDITION PRECEDENT TO SUCH USE. No information or materials posted here are intended to constitute legal advice, nor can we guarantee the accuracy of posted information, especially as to each individual situation. LawTek does not independently check the information contained herein and does not refer or endorse any product, service, or firm. This site does not constitute an attorney-client relationship; local counsel should always be consulted. |