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Question

Hello
My husband has been running a small business for the last 3 years. It is doing very bad. He lost the building he previously bought in Dec of 08. We had been doing joint taxes up to this last business venture. He worked it alone and I had nothing to do with it. I have another job. He is unable to pay someome to do the business taxes because the business is doing poorly, yet he still contines to do it. He had to take a night job to pay for unlimited business and family expenses.

I am worried that my pay check will be garnished and that I will be obligated to pay for business taxes on a business I never worked. We have not filed taxes in the last 3 years. He says he applied for "another extention." I am afraid he is jerking me around. I would like to file separetely, maybe this will get me off the hook. I cannot sleep nights and I have 2 minor children that would starve to death. Our home is also close to foreclosure. Please help me! Thanks, Dolores

Submitted: 125 days and 20 hours ago.
Category: Tax
Value: $20
Status: CLOSED

Accepted Answer

As long as you file a joint tax return - your both are equally responsible for all taxes based on that tax return.

If you want to distance yourself from your spouse's tax liability - you are correct - the best way is to file separate tax returns.

Please be aware that in most situations separate tax returns will result larger combined tax liability. You may want to try both ways and determine the difference before filing.

Also - if you later change your mind later - you have three years to amend your tax return and file a joint tax return and still claim additional refund (if any).

 

However - you still may file a joint tax return and request the innocent spouse relief from the IRS - using the Form 8857 - http://www.irs.gov/pub/irs-pdf/f8857.pdf

By law, the IRS must contact your spouse - there are no exceptions, even for victims of spousal abuse or domestic violence - your spouse would be informed that you filed Form 8857 and will allow him participate in the process. If you are requesting relief from joint and several liability on a joint return, the IRS must also inform him of its preliminary and final determinations regarding your request for relief.

Please see more information in the IRS publication 971 - http://www.irs.gov/pub/irs-pdf/p971.pdf

Let me know if you need any help.

 

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 7/20/2009

Tax Preparer

Taxes, Immigration, Labor Relations

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