How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Phillip B, EA Your Own Question
Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
Type Your Tax Question Here...
Phillip B, EA is online now
A new question is answered every 9 seconds

Im nearing completion of my divorce here in Arizona, my question

This answer was rated:

I'm nearing completion of my divorce here in Arizona, my question is am I liable for any taxes that my soon to be ex-wife hasn't paid with her single member llc. The business operated for 18 months, she only reported Credit Card Income on her Schedule C for both 2010 & 2011 to her CPA, in addition she didn't report the Capital Gains once she sold the business in July 2011. I did email her CPA about the Capital Gains but don't know if it was reported.
Thanks for using!

If you filed separate returns for 2010 and 2011 (as it sounds like you did) then you will have zero liability on her income taxes.

If you filed joint income tax returns for those years, then you the IRS and your state can hold you liable for her (and your's, if the return is joint) unpaid taxes.

If there are any sales or employment tax issues, the IRS or the state of AZ would likely only be able to hold you liable for those taxes if you were a responsible person in her business. The responsible person threshold is crossed if you could sign checks from her business account.

If this answers your question, please rate my performance between OK and Excellent so that I may be paid. If you have additional questions or need clarification, please reply to this answer.
Customer: replied 4 years ago.

Hi Phillip,

The main question is her LLC Business, I was a non member, am I still liable for her business taxes. I will be filing with IRS the Injured Spouse Form for 2010, this was a jount Tax filing.

You are only liable for income taxes related to her business on the returns that were filed jointly. You are liable for any of her income or self-employment taxes on the 2010 return. You will not be held liable for any of her income, capital gains, or self-employment taxes related to the 2011 return.

For any other business taxes (like state fees, sales taxes, or employment taxes) you will not be held liable because you were not an owner or responsible person in her business.

Let me know if I can do anything else.
Phillip B, EA and other Tax Specialists are ready to help you