Hi my name is XXXXX XXXXX I will be helping you today with your tax question. Just to clarify, the man in this situation filed jointly with his wife, but she handled everything all he did was sign the returns. Years later he realized that the spouse was cheating on the taxes but isnt sure whether to report it because he doesnt want to have issues as well.
Is that correct?
yes correct, and the detail of cheating was - for 14 years she included on tax her father who was dead all this time.....
There is a such thing as an innocent spouse claim where in some cases you can report a spouse for fraud on a return, but then file an innocent spouse claim saying you had no knowledge of the issue and then be exempt from any consequences if the IRS accepts it. However in this case, when you signed the return you should have used normal care and prudent to understand what you were signing and the IRS's standpoint will likely be that you should have reviewed the return and saw that her father was taken as a exemption and knew that he was deceased and therefore refused to sign the return. So you can be just as liable as she is. I would recommend that you do not blow the whistle on this. It may end up hurting you.