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Legalease
Legalease, Attorney
Category: Business Law
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Experience:  14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
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A non-us citizen with no tax liability in the US, living outside

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A non-us citizen with no tax liability in the US, living outside of the US, is the acting President of a US company. She was given a notorized Proxy by her husband, who is a US citizen prior to his admittance to a voluntary AA in-patient recovery program.

They are now in a divorce proceeding. The husband refuses to give any information regarding the company books and demands that the wife file the taxes or he will file criminal charges. The husband is accusing the wife of stealing all his money when he is the one who closed the bank accounts taking 20k of their joint money. The wife has very little information and needs to file corporate tax returns for the company by Sept. 15.

The husband closed out all the corporate bank accounts as well as their personal accounts.

If the wife does not file the corporate taxes by the 15th of September, is she personally liable for any reason with the US IRS?

Should she write a letter to the IRS outlining what has taken place and why she is not able to file the taxes?

I appreciate any help you may offer.
Submitted: 11 months ago.
Category: Business Law
Expert:  Legalease replied 11 months ago.

Hello there

-

THe wife does not have to call the IRS or get involved with the US taxing authorities in any way -- in this situation the husband is not telling her the truth about the tax filings needed in the US from this corporation -- there are no criminal charges that can be filed against her for making a late filing on the tax returns (the IRS will simply attach more interest and penalties to the amount due as taxes as a payment for the later filing of the tax returns). If she has no real knowledge of the business and simply permitted him to name her as proxy for the time period while he was in AA rehab, then there will be no personal responsibility put upon her by the IRS to pay these charges (she will be considered an "innocent spouse" under IRS regulations). My suggestion at this point is that she prepare a written revocation of the proxy granted to her by the husband for his company -- the good thing about when someone is given a proxy or a power of attorney, the person who is named as the proxy or Power of Attorney (POA) of another person is that the person who granted the proxy AND the person who received the proxy (the WIFE) has the legal right to rescind the proxy at any time. While I cannot write the revocation for you because that is too close to legal representation, it should state something like -- XXXXX hereby declines the continued appointment as proxy of XXXXX company and turns full power, control and ownership back over to XXXXXXXX as of XXXXX date. Then she needs to appear for the divorce proceedings or have someone appear for her (an attorney or an appointed representative) and ask the divorce court for an order stating that the husband must take over the company business accounts and perform all activities relating thereto.

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MARY

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Customer: replied 11 months ago.

Dear XXXXX,


 


Thank you for your response.


 


I understand that she can renounce the POA. If she renounces after the date to file the taxes, will she still be protected?


 


Basically the husband owns 100% of the company. She has helped to manage the company, more so while he has been in recovery. However, she cannot do the filings as she does not have enough information and is not a certified tax accountant.


 


I believe she is waiting until the divorce is over to renounce the POA. If she does this will it be a problem for her?


 


Thank you for your insights.

Expert:  Legalease replied 11 months ago.

Hello again EG --

-

If she can deal with listening to his harassment then there should be no problem with her keeping it until after the divorce. If there are ever any actions brought against her,l as I said earlier she can prove she had limited involvement and claim innocent sppouse relief. MARY

Legalease, Attorney
Category: Business Law
Satisfied Customers: 14489
Experience: 14 years experience corps, LLC's and partnerships; preparation, negotiation of complex contracts and business agreements
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