Legal Question in Credit and Debt Law in California
Domestic partner owes -IRS
mu partner received a settlement
of 20K and her accountant failed to
include that in her 2006 or 07 tax
statement . The IRS was asking for
5,000 it's now up to 7,000.
My question is can/will they ganish my pay? She is my legal
domestic partner.
1 Answer from Attorneys
Re: Domestic partner owes -IRS
No. You did not file joint federal tax returns so her taxes are not your liability.
However, if you have a joint bank account, that might be a different story because her name is on it, too.
Also, there will be a state tax bite eventually. The Franchise Tax Board is slow in picking up IRS changes, but it will do so. If you filed a joint return, that could complicate the situation.
One other thing -- she should also speak to a new accountant (not the old one who made the mistake) about whether there should be a tax consequence at all -- especially if the settlement was for a personal injury. Good luck!
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