Venar Ayar

Getting married means that you will share your life with your spouse in a lot of ways including your finances. With that being said, it is not uncommon to find spouses that did not talk about their finances before saying ‘I do’. This may bring about some unprecedented problems such as finding out that your partner owes back taxes. In most cases, you will still be liable for these back taxes too even if they were incurred before your marriage and you currently file joint returns. While this may seem unfair, the IRS has instituted a couple of options and tax reliefs to help spouses deal with their partner’s tax reliefs. Here are some of the options and tax reliefs that you can claim if your partner owes the IRS back taxes. But first.

Do You Know Where The Tax Debt Is Coming From?

Tax arrears and debt are not romantic things that spouses want to discuss, especially before marriage. However, it is imperative for marriage partners to understand each other’s financial situation. Is the debt from late child support payments? Is your spouse late in making student debt payment? Regardless of the reason or whether you are responsible for your spouse’s debt, the IRS views the joint return as a fair game. This means that once each of you signs a joint return, you are both responsible for any tax, interest or even penalty incurred by the other spouse. What can you do when you realize that your spouse owes the IRS when you file joint tax returns?

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Many married taxpayers choose to file a joint tax return because of the benefits to be derived from this filing status. On a joint return, both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the return, even if they later divorce. This is true even if a divorce decree should state that your former spouse will be solely responsible for any amounts due on previously filed joint returns.

The situation can exist, then, where one spouse could be held responsible for all the tax due, even if all the income was earned by the other spouse. In cases like this, the IRS, in the interest of equity may allow a spouse in such a situation to be relieved of tax, interest, and penalties that are due on the joint tax return. Read More