After divorce, judge orders me to sign a fraudulent joint tax return

[Colorado Belle]

What is the name of your state? Colorado

I was separated from my husband in 2000. He filed for divorce in Nov, 2002 and the divorce decree was granted without property settlement on August 15, 2003. Trial in 2004. Permanent orders in 2005. Appeal filed in 2006 and appeal brief due in less than a month:
In late 2004, I was ordered by a STate District Court judge to file a joint tax return for the years 2001 and 2002. In the tax years 2001 and 2002, we were separated and X had committed many prohibited transactions with our retirement plan for which he was held liable by the Department of Labor investigation. During that time he refused to file income tax returns. In 2003, prior to the divorce and 3 weeks from first trial date, I was granted a motion to compel the tax returns as my lawyer felt they were needed in making our case.
X gave me his proposed filings, but I determined that htey did NOT include all necessary income. He said he would get a letter from our accountant stating that all necessary income was included and I agreed to sign the filings when that letter was provided. It never was. The accountant actually told me NOT to sign as did the IRS. In 2004, an accountant friend of my X redid the tax returns, and included some of the missing income.
Also included was tax consequences for stocks X sold from his aunt's estate, claiming that money in the estate as his by right of inheritance. I questioned why I should pay taxes on money that was his alone. He agreed to give me additional info explaining the new returns. Never did. After the trial but before permanent orders, he motioned the Court that I should be ordered to sign these tax returns. In addition to the fact that at the time I was pro se and he did NOT send me a copy of the motion (indeed I never knew it had been filed) the Court ordered, without a hearing, that I must sign what I thought were fraudulent tax returns. The IRS position is that signing a joint return even when married, is an independent choice by each party. The IRS said that the State judge had no right to order me to sign AND that I could not claim innocent spouse exemption if I did sign, as I knew about the fruad. Sigh. So, I didn't sign. In 2005, X decided that rather than give me the promised accountings that he would file separately for 2001 andf 2002, as is his choice.
However he then told the Court that my refusing to sign jointly caused him to pay more in taxes. He of course also had to pay more in fees and penalties for not filing for 4 years . There was a hearing and lovely judge who has not been at all impartial in this matter, decided that I had to pay ALL of the extra taxes (in addition to half of the joint taxes which had already been paid out of marital assets) and all fees and penalties.

It is on appeal. So, it would be helpful to have some case law in re this matter. Also, an opinion from a tax expert on this matter. My opinion is that no state judge has a right to order me to sign a fraudulent joitn tax return.

Thanks for any help!

 

[LdiJ]

No state court judge has the authority to order you to sign ANY tax return, whether fraudulent or not. Unfortunately however, state court judges make illegal orders like that on a regular basis.

Federal law controls federal tax returns....and NO ONE, not even the IRS can force someone to sign a tax return. They can file one for you if you refuse to file but they can't force you to sign one.

If you have an attorney now (and you really need one for an appeal) you might suggest that your attorney have a brief consult with a tax attorney.

 

[Colorado Belle]

Thanks, LdiJ,
Yep, I do have an appeal attorney, just not an attorney for the post trial ongoing forever stuff. (!).

This judge has 3 times 'overturned' federal law IMHO: the tax return order, a Dept of Labor investigation /correction that found my X, as trustee and plan administrator responsible to prohibited transactions costing about $400,000 to cure (the judge said that I was equally responsible and that if in the future there would be further fines/tax consequences that I'd be equally responsible) and finally, he directed my X's lawyer to draw up MY QDRO and then ordered division of the retirement plan before the QDRO was approved (Against ERISA guidelines) and THEN, decided to approve a QDRO that had a bunch of illegal crap in it (like once it is divided I have no legal recourse should I find that the accounting was fraudulent). Oh...and the X is trustee and plan administrator so HE gets to approve the division.

As you say...these state judges seem to violate federal statutes all the time, but there doesn't seem to be too much to do about it.The judge already told me (and it sure felt like a threat to me) that even if I win the appeal it will only be remanded back to him...(pregnant pause) so the outlook is kinda grim.

I appreciate your answer. Thank you.

 

[LdiJ]

Thanks, LdiJ,
Yep, I do have an appeal attorney, just not an attorney for the post trial ongoing forever stuff. (!).

This judge has 3 times 'overturned' federal law IMHO: the tax return order, a Dept of Labor investigation /correction that found my X, as trustee and plan administrator responsible to prohibited transactions costing about $400,000 to cure (the judge said that I was equally responsible and that if in the future there would be further fines/tax consequences that I'd be equally responsible) and finally, he directed my X's lawyer to draw up MY QDRO and then ordered division of the retirement plan before the QDRO was approved (Against ERISA guidelines) and THEN, decided to approve a QDRO that had a bunch of illegal crap in it (like once it is divided I have no legal recourse should I find that the accounting was fraudulent). Oh...and the X is trustee and plan administrator so HE gets to approve the division.

As you say...these state judges seem to violate federal statutes all the time, but there doesn't seem to be too much to do about it.The judge already told me (and it sure felt like a threat to me) that even if I win the appeal it will only be remanded back to him...(pregnant pause) so the outlook is kinda grim.

I appreciate your answer. Thank you.

I have a very serious suggestion. File the appeal on everything that the judge did that was illegal and contrary to federal law. Include it all. I doubt that it will get remanded, but if it does, and the judge doesn't make valid, legal orders that time, then take it right back to the court of appeals. Believe me, if that happens the court of appeals is going to squash your judge like a bug, and he will DESERVE it.

Oh, and I forgot to add, don't pay one penny of the money, taxes etc. that the judge ordered you to pay until/unless the court of appeals rules against you.....however, I honestly can't see that happening.

 

[Golfball]

I am *not* an attorney, however, I'm pretty sure that there is actual court precedent (I think the case is Leftwich v. Leftwich, but I don't have a citation) that states that one cannot be compelled by *any* court to sign a joint tax return, the decision to sign a joint tax return (rather than a separate return) is solely the decision of the taxpayer, and either taxpayer on a joint return has the ability to "veto" the joint return.

Now, the decision to sign a separate return (rather than a joint return) can affect property distribution. I'm not an attorney, so take this with the appropriate 50 pound salt lick.

 

[Colorado Belle]

Thanks Golfball,
I only just now came back to this site...so forgive me for not knowing you had responsed to my problem.

My brief was filed in early September and we are now awaiting the cross appeal brief by X. The brief turned out pretty good, IMHO. My attorney found a page of caselaw vis a vis the tax return issue and also addressed the 'waste' issue (the judge ordered me to pay $67,000 of the $73,000 in extra taxes that X had to pay for filing separately and for his delay in filing at all from 2001 until 2006 (fees, penalties and interest).

Now I'm dealing with a very angry judge who has recently ruled that I have to pay...you'll love this....@ $11,000 in X's attorney fees because I filed a response to a motion pro se at the same time my appeal attorney filed a stay motion in the district court...She was filing 'as limited representation' we thought because she had to file the stay in district court before she was allowed to file it in appeal court. X's attorney took the position that I was represented by the appeal attorney and thus my response needed to be struck..which the court of course allowed. Then X attorney said that it cost him $11,000 to file the one page motion to stirke and asked for attonrey fees, which the court, without an evidentiary hearing, allowed. I objected, and pulled up colorado law pertaining to the specific reasons under which a court can award attorney fees to opposing counsel in the case of a Pro SE litigant. (Have to have a finding that I acted substantially egregiously, vexatious etc.
Actually it was a darn good objection with substantial case law and citation. The judge ordered that he had made the award pursuant to CRS 14-10-119 and not CRS 13-17-101....which says that he can after considering the financial resources of both parties.....pretty much do whatever he wants. Of course he didn't consider the financial resources of both parties...since I have 0 income and X makes about $360,000 a year. Funny, back when I asked for attorney fees for a Contempt hearing brought against me, and even tho I was found innocent of contempt, same judge said no to attorney fees because he said the citation wasn't frivilous (it actually was). It is a severe abuse of what these judges get away with. And my only alternative, I gather, is to file another appeal which I fear may harm me in appeal court. This sure sucks, and it doesn't look to get better any time soon.
I feel like publcizing this in the newspaper, but I imagine it might backfire down the road.

Anyway, thank you for your help and it DID help. I f anyone needs the citations used by my appeal attorney re the tax issue, please let me know and I'll forward it to you!

 

[h18wheeler]

Case Law

How comforting to know that I am not alone in this issue! I would appreciate any information you can provide on the case law/citations your attorney used in disputing this illegal court order to sign a joint tax return. Thank you!

 

[LdiJ]

Thanks Golfball,
I only just now came back to this site...so forgive me for not knowing you had responsed to my problem.

My brief was filed in early September and we are now awaiting the cross appeal brief by X. The brief turned out pretty good, IMHO. My attorney found a page of caselaw vis a vis the tax return issue and also addressed the 'waste' issue (the judge ordered me to pay $67,000 of the $73,000 in extra taxes that X had to pay for filing separately and for his delay in filing at all from 2001 until 2006 (fees, penalties and interest).

Now I'm dealing with a very angry judge who has recently ruled that I have to pay...you'll love this....@ $11,000 in X's attorney fees because I filed a response to a motion pro se at the same time my appeal attorney filed a stay motion in the district court...She was filing 'as limited representation' we thought because she had to file the stay in district court before she was allowed to file it in appeal court. X's attorney took the position that I was represented by the appeal attorney and thus my response needed to be struck..which the court of course allowed. Then X attorney said that it cost him $11,000 to file the one page motion to stirke and asked for attonrey fees, which the court, without an evidentiary hearing, allowed. I objected, and pulled up colorado law pertaining to the specific reasons under which a court can award attorney fees to opposing counsel in the case of a Pro SE litigant. (Have to have a finding that I acted substantially egregiously, vexatious etc.
Actually it was a darn good objection with substantial case law and citation. The judge ordered that he had made the award pursuant to CRS 14-10-119 and not CRS 13-17-101....which says that he can after considering the financial resources of both parties.....pretty much do whatever he wants. Of course he didn't consider the financial resources of both parties...since I have 0 income and X makes about $360,000 a year. Funny, back when I asked for attorney fees for a Contempt hearing brought against me, and even tho I was found innocent of contempt, same judge said no to attorney fees because he said the citation wasn't frivilous (it actually was). It is a severe abuse of what these judges get away with. And my only alternative, I gather, is to file another appeal which I fear may harm me in appeal court. This sure sucks, and it doesn't look to get better any time soon.
I feel like publcizing this in the newspaper, but I imagine it might backfire down the road.

Anyway, thank you for your help and it DID help. I f anyone needs the citations used by my appeal attorney re the tax issue, please let me know and I'll forward it to you!

It absolutely does not hurt you to file another appeal. It simply demonstrates just how out in left field this judge is.

 

[Colorado Belle]

Tried to PM the info

H18Wheeler:
I'd be happy to send you this info, but you don't have a PM or email in your personal profile. If you want to PM me with your email address or PM I'd be happy to send it to you.