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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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I need case law on interceding where my spouse wants to enter

Customer Question

I need case law on interceding where my spouse wants to enter a lawuit with me againist the IRS so that I can carry his losses on my prior taxes for years 2000, 2001, 2002, 2003

I have been audited by the IRS and they are trying to deny me taking my spouses lossses by not allowing me to file as MFJ or MFS when they know I have provided them proof that I am married to him.
Submitted: 6 years ago.
Category: Tax
Expert:  ShawnA replied 6 years ago.
Chat Conversation Started
Shawn P Adamo, QFP, CPA/P :

I'm not sure the issue is the status of your marriage. Why do you believe YOU would be allowed SPOUSES losses unless filing joint?

Customer: replied 6 years ago.
Relist: No answer yet.
I need case law(s) on interceding or intervening where my spouse wants to
enter a lawuit with me againist the IRS (TAX Court) so that I can carry his
losses on my prior taxes for years 2000, 2001, 2002, 2003 I was married to him
during this time frame and still is married to him.
>>
>> I have been audited by the IRS and they are trying to deny me taking from
taking 1/2 of his losses ( I live in Texas). All of my spouses losses are
legimate IRS has confirmed.
I need an answer in a couple of days
Expert:  ShawnA replied 6 years ago.

YOU cannot claim HIS losses (NOT EVEN 1/2) if you are MFS.

 

If you and he refiled as Married filing Joint then he could take all his loss.

 

I realize this is not what you WANT to hear but that's why the IRS will never allow YOU to take HIS losses...

 

I believe this answers your question(s). If not, please let me know.

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If you understand my response, please *Accept

Customer: replied 6 years ago.

I know if we file jointly I can take 1/2 of his losses that is not the issue ... I am in negotiations with IRS tax court attorney (prior to tax court) who asked me to bring in all our paper work to substantiate our losses and rtns that a Revenue Agent had us prepare per audit as MFJ for the years listed earlier in my prior questions. The Revenue Agent agree to a 50/50 split but 2 weeks later after he received them from me he said according to statue he could not allow the split. ( I spent over $10,000.00 getting the returns prepared (partnership returns and individual) So I went through the process of the IRS and thus ended up pre- tax court negotiations. The tax attorney agree to let me take 1/2 of my spouses loses ( 50/50 split) and to allow us to file as MFS and according to a law he said in 2000 or 2002 I could go back 5 years on the NOL.. After it was found by the tax attorney for IRS through an analysis of my spouses business documents that his losses were much more than anticipated ( Net income losses over $400,000) the attorney decided to not allow us to file MFS but for me to single. ( He went back on his word. ( Is a verbal contract just as good as a written one)?

If I file single per the statutory notice of IRS I will owe.

Expert:  ShawnA replied 6 years ago.

I understand the revenue agent (IRS Employee). When you say the "TAX ATTORNEY" are you still referring to the IRS agent ?

I believe so.

 

When you say the attorney decided not to "allow us to file MFS (married filing single?) but for me to single......do you mean he said we could NOT file Married Filing JOINT and I had to file Married Filing Single?

 

If I am understanding what you said ....You were in pre court with the IRS agent/attorney and he said (at first) you could file married filing single and take 1/2 the loss THEN he changed his mind and said "no deal" you have to file as married filing single but can't take 1/2 the loss"

 

I just need to be clear.

 

I believe in the end you WILL have to file married JOINT to get the entire loss...The fact that the IRS "changed his mind" is of no consequence as you did not have anything in writing. He may even say you misunderstood. At the end of the day I would ask for his/her supervisor and explain your situation. Bet the IRS agent/attorney tells a different story than you do (just wait and see)...



Edited by Shawn P Adamo, QFP, CPA/PFS, CRPC on 10/7/2010 at 12:25 AM EST
Customer: replied 6 years ago.

IT IS THE CALL OF THE TAX ATTORNEY WHO IS ANALYZING THE CASE TO SEE IF SETTLEMENT CAN BE REACHED, IT CANNOT DUE TO HIM CHANGING HIS MIND. BY THE WAY HIS SUPERVISOR WAS IN THE MEETING WHEN HE SAID I COULD TAKE 1/2 OF MY SPOUSE'S LOSSES. NO IT IS NOT IN WRITING BUT I HAVE 2 OTHER WITNESSESS THAT WERE PRESENT AT THAT MEETING AND HEARD WHAT HE SAID. MY DILEMA IF A CASE LAW WOULD JUSTIFY A VERBAL AGREEMENT BEING JUST AT LEGIMATE AS A WRITTEN ONE. FACT ALL PARTIES THOUGHT THE PERSUMED LIABILITES TO BE ASSESSED WERE CLEARED UNTIL THE CHANGE OF MIND. I KNOW ANYONE CAN CHANGE THEIR MINE

Expert:  ShawnA replied 6 years ago.
in this case verbal does not suffice. Who were the other witnesses?
Customer: replied 6 years ago.

My spouse and my IRS representative (is a CPA and a recently retired Appeals Settlement Officer/ Revenue Agent). Myself and the attorney analyzing the case and his boss.

 

Expert:  ShawnA replied 6 years ago.

too bad. You vs all the IRS. You lose. They will deny or claim change of mind...sorry...ps. Do not refer to IRS agent as "my IRS representative"...that's confusing...sounds like he is FOR you instead of against you.

 

Ask the IRSupervisor (for an answer in writing) why the agent changed his statement..