Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
How long ago did the 401(k) incident happen?
2011. We agreed to pay april 2013
When did the IRS ask you for tax? Was it in 2013?
Okay. There are three different remedies that you could consider: innocent spouse, separation of liability, and equitable relief
I do not believe you qualify for innocent spouse, because you would have reasonably known that he withdrew the money from his 401(k) at the time he did so
You can't file for separation of liability relief until you are legally separated or divorced
But, once you are divorced, you could file for separation of liability relief and claim that it would be unfair to hold you responsible to pay tax on his 401(k) withdrawal
If granted, then you would be excused from liability on that tax item.
thank you. the other small problem is that I had one smaller withdrawl also. but his amount was so large it also added an extra fee. He withdrew 20k and mine was 4k
But you paid tax on your withdrawal, correct?
i don't think it was enough. but yes i paid some
Okay - you would just ask for separation of liability on the $20,000 withdrawal
what is equitable relief?
It's for when you don't qualify for innocent spouse or separation of liability - it's when you say that holding you responsible for the tax debt would not be fair
oh ok. thank you very much!