Legal Question in Tax Law in California
Federal Under-paid Back Taxes with ex-spouse
I am divorced and owe w/my ex-husband under-paid back taxes for 1996 and 2000. He refuses to help me pay them. We both get the notices, but they always seem to go after me and he makes more money than I do. I pay my taxes. I have re-married, but we file separately so he doesn't lose his return. Is there a way that I could get the IRS to reduce the amount of the taxes? Right now they are around $3500 - 4000 (for both years). I don't qualify for Innocent Spousal Relief and I don't have the $$ to take my ex to court. I'm not able to get a loan to pay it off because I don't have good enough credit or collateral to secure a loan. If there is a way to reduce it, I may be able to pay it off with credit cards...say 1/2 to 3/4 reduced. Thank you for your help.
1 Answer from Attorneys
Re: Federal Under-paid Back Taxes with ex-spouse
You have a number of options, but they all pretty much require professional assistance. First, you shouldn't rule out taking your ex back to court. You might be able to find an attorney who would work on a contigent fee and your divorce decree must say something about the issue.
Next, you might consider making an Offer in Compromise. Sometimes the IRS will compromise old tax debts just to get it off the books. You should see a CPA, tax attorney or maybe a service like www.irstaxhelp.com to see if this is a good option for you.
Finally, the taxes might be dischargeable in bankruptcy. And you should see a qualified bankruptcy. Remember that new law will filing bankruptcy much harder as of 10/17/05.