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.


Asked on 12/18/08, 9:43 am

1 Answer from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

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!

Read more
Answered on 12/19/08, 12:18 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California