After a divorce are both parties responsible for tax debt during the marriage if they filed joint?

Question

I have been divorced a few years. During my marriage my ex and I took our taxes to be done by some friend. Anyway it turns out that this "friend" was bloating the numbers so we could get a better return. Now I have bills for three years of doing taxes with her. They add up to around 6,000 dollars. My wife and I are divorced and she has said that she shouldn't have to pay because I was the one who was working so it is my income. I have said that since we were married and we both signed the returns then we both are liable. Does anyone have any answers?

Answer 1

Judy is almost correct. They will collect the money from whoever they can collect it from first! Yes, you both are responsible.

Hope this Helps

Footnote: If the IRS is hiring people that don't know the answer to this...my job is going to be a lot easier in the future. There is nothing a tax attorney can do in this case (it doesn't even matter if it is in the divorce decree). And the idea of a tax lawyer referring a return like this  to a CPA is actually funny...most CPA's aren't tax professionals (they are auditors...if you don't believe it check the want ads in the next few months...CPAs will be looking for people to hire to do tax returns). But, to be fair I do know several CPAs that specialize in taxation that are very good.

Answer 2

Yes. Never sign the return until you are sure the information is true and accurate. You are jointly and separately responsible for any taxes or penalties due.

If you file jointly, it doesn't matter who works. The tax table is set for married, assuming two individuals. It doesn't want to know who earned the money.

Beg, borrow or steal the money for a competent tax attorney. Most specialize in only taxes. The lawyer will have a CPA review the returns.

Ya just can't cheat the government.

Answer 3

If you live in a community property state, you split it 50-50. Her argument holds no water; in fact, it supports your claim!

Answer 4

The IRS doesnt care. They will collect from whoever has the money.  

Answer 5

You are both responsible for it.  The IRS will collect from whoever has the money for them to collect from.

Answer 6

She is just as responsible for the back taxes as you are and IRS doesn't care which of you pays the tax.  IRS will take any tax refunds from both of you until the debt is paid in full.  

If you were my client I would adjust your withholding or estimated tax payments so that you will get a small refund or have a small balance due from now until the tax is paid.  That way her refunds will be taken instead of yours.  If your name was listed first on the return, you will probably be the one to enter into an installment agreement not your ex.  Once an installment agreement is set up collection action will stop so they will stop looking for her unless she has some other tax problem or gets a refund.

If either of you ends up paying more than your share you might have a case in small claims or divorce court.

Answer 7

The IRS has a concept called "innocent spouse"--your wife may be shocked to realize that the IRS says that she benefited from the errors due to the larger refund.  Since she benefited, she doesn't get a free ride from paying back the money.