Legal Question in Tax Law in Texas

Re: 7 years of non filing with the IRS

You can be in significant trouble both criminally and civily. You should file a tax return every year. If you had income, you are responsibile for filing your own tax return. Filing jointly is an option for married couples; it is not required.

The first thing you need to do is contact a tax lawyer, not an accountant. There is confidentiality for your communications with a lawyer and not the accountant if there is a potential criminal prosecution. If you are called by the IRS, just get the name and telephone number. Do not answer ANY questions. Even an innocuous sounding question such as "don't you know you did not file your taxes" could get you convicted.

Please see more information on my web site http://www.taxesq.com/

Re: 7 years of non filing with the IRS

While criminal penalties do exist for tax evasion, it is unlikely that IRS would use any of these laws against you at this point.

However, unless you and your husband are operating 100% in an "underground" economy (that is to say, all-cash and very low-profile consumption) it is likely that IRS will eventually prepare tax returns for you and your husband and will then proceed to collect the tax due through the use of liens and levies.

Texas is a community property state. This means that 1/2 of all your husband's income is legally yours, and thus you should be reporting 1/2 of his income on a tax return each year, plus 1/2 of your own (1/2 or your income belongs to your husband under the community property law).

You have several alternatives, including filing a return using "married filing separately" status. Anything you do is likely to affect your husband, since you are required to supply his name and social security number when you file separately. Since the situation is rather complex, I agree with Mr. Cappuccio that you need to consult a tax lawyer. If you're in the neighborhood of San Antonio or Austin I'd be happy to talk to you. You can reach me at 210-223-9389 (San Antonio) or 512-470-8225 (Austin).