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Divorced, but have tax issues

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yerbudi

Member
What is the name of your state (only U.S. law)? MA

Three different divorce and tax questions.

1) IRS overpaid us on the refund a few thousand on our 2008 tax refund. They took the overpayment out of my tax refund from 2009. My EX has been notified and so hasn't her lawyer. When I get the paperwork stating that the total amount has been paid, and upon sending certified mail to her lawyer, how long should she have to repay me and do I have ground for contempt charges is she doesn't

2) In 2006, there was typographical error on my State taxes. It has been amended, and a copy sent to her lawyer. It is $500 in our favor. She refuses to sign the amended return.

3) In 2007, the tax professional erroneous left a deduction of $1500 off of our state taxes. She refuses to sign the amended return.

The silliest thing is that if I do take her to court on these charges, then her legal fees are going to be more than the split in the refunds. Unless she is receiving free legal help. I will be representing myself.

Seeking your advice.

Thanks in advance.
 


yerbudi

Member
That is the funny thing...I don't think that it is in there. I have read it over and over, and I can't find something. My previous lawyer (who was just the best) told me to file contempt against her. We were divorced and THEN these issues came to light.

The IRS tax bill, and the amended refunds are in BOTH names.

I guess I could file for modification, but to be honest, I can't understand why she wouldnt want $1,000 back from the state.
 

LdiJ

Senior Member
That is the funny thing...I don't think that it is in there. I have read it over and over, and I can't find something. My previous lawyer (who was just the best) told me to file contempt against her. We were divorced and THEN these issues came to light.

The IRS tax bill, and the amended refunds are in BOTH names.

I guess I could file for modification, but to be honest, I can't understand why she wouldnt want $1,000 back from the state.
If these issues were not addressed in your divorce decree, then she cannot beheld in contempt for not cooperating with you. I understand that they came to light after the divorce was final, but your only option at this point would be to file to re-open the property settlement to get them handled now.
 

yerbudi

Member
All this time I was missing page 26.

2. Each party hereby agrees to idemnify the other with respect to misrepresentations made by that party as to Federal and State Income Tax returns, past, present and future resulting in any liability, loss, charges, or expenses to the other. Said indemnification shall include reasonable costs for attorney's fees and accountant's fees.

Okay....now what does this mean? Doesn't this mean that she needs to "imdemnify" or compensate me the amount of the overpayment from the IRS?

And also, since there were amendments to 2006 and 2007 State returns, she needs to sign these, so that I can compensate her.

Or am I reading this too literally, too black and white.
 

Ohiogal

Queen Bee
All this time I was missing page 26.

2. Each party hereby agrees to idemnify the other with respect to misrepresentations made by that party as to Federal and State Income Tax returns, past, present and future resulting in any liability, loss, charges, or expenses to the other. Said indemnification shall include reasonable costs for attorney's fees and accountant's fees.

Okay....now what does this mean? Doesn't this mean that she needs to "imdemnify" or compensate me the amount of the overpayment from the IRS?

And also, since there were amendments to 2006 and 2007 State returns, she needs to sign these, so that I can compensate her.

Or am I reading this too literally, too black and white.
What misrepresentations were made? Is it HER fault that you folks overpaid?
 

yerbudi

Member
It was both of our faults that we over paid the State taxes.

It was the IRS's fault that they over paid us and we have to pay them back.

The refund coming back benefits both of us equally. The mistake by the IRS sending us too much back should also have to paid back equally.
 

Ohiogal

Queen Bee
It was both of our faults that we over paid the State taxes.

It was the IRS's fault that they over paid us and we have to pay them back.

The refund coming back benefits both of us equally. The mistake by the IRS sending us too much back should also have to paid back equally.
How was it BOTH of your faults? Who prepared the taxes? Who gave improper information? That is what the court would try to determine. Depending on whose error it is, that is the person who would have to pay the money back. And that is the person who would owe.
 

yerbudi

Member
Okay Ohiogal, you are misunderstanding me on this.

We are getting money back from the State taxes. That was our fault in 2006 we filed ourselves. In 2007 it was H&R Block who made the mistake. But we are getting money back from the State. We are getting money back, YET she still won't sign the amended returns.

From the IRS or the Federal Govt, they overpaid us. They inadvertantly placed someone else's payment into our account, and when we got the return, it was signed over to the lawyers. It was a couple of thousand too much.
 

Ohiogal

Queen Bee
Okay Ohiogal, you are misunderstanding me on this.

We are getting money back from the State taxes. That was our fault in 2006 we filed ourselves. In 2007 it was H&R Block who made the mistake. But we are getting money back from the State. We are getting money back, YET she still won't sign the amended returns.

From the IRS or the Federal Govt, they overpaid us. They inadvertantly placed someone else's payment into our account, and when we got the return, it was signed over to the lawyers. It was a couple of thousand too much.
You are misunderstanding me. The reason being is because of the word indemnify. The court will have to make a determination as to who was at fault before they decide the outcome of that clause and how that will be enforced.
 

yerbudi

Member
Well then the Federal Gvt or the IRS overpayment is by no way either of our faults. That is the fault of the Federal Gvt for putting the money into the wrong account.

But as for he State, since we did it ourselves, and we will still married, it would again be both of our faults, because be both signed the information. Actually, it was a typographical error. $1,000 deduction should have been $1,500.

For the 2007 while we were going through everything, the H&R Block agent made the error. I took the taxes to a different tax professional, and they corrected the error that the H&R Block agent made. That was for $1,500.

After your information and answers, I am sure that the court will make her sign the tax returns. I just don't understand why her lawyer said not to sign, knowing that she was going to get money back!
 

LdiJ

Senior Member
Okay Ohiogal, you are misunderstanding me on this.

We are getting money back from the State taxes. That was our fault in 2006 we filed ourselves. In 2007 it was H&R Block who made the mistake. But we are getting money back from the State. We are getting money back, YET she still won't sign the amended returns.
Give her all of the info, copies of the amended returns and suggest she consult her own tax professional to determine whether or not it would be in her best interest to sign the returns. Do not insist on a direct deposit of the additional refunds, let them come in a check that both of you must sign in order for it to be cashed.

From the IRS or the Federal Govt, they overpaid us. They inadvertantly placed someone else's payment into our account, and when we got the return, it was signed over to the lawyers. It was a couple of thousand too much.
I am sorry, but I call BS on this part. While its not impossible for an error to be made on a direct deposit (ie money deposited to the wrong account...but it would be extremely rare) that would have meant that the IRS would have made two separate deposits to your bank account...or sent two separate checks. One for the correct refund, and one for the error.

Under federal tax law, if you receive a refund from the IRS that is higher than the refund you expected, or a second check, you are required to make reasonable inquiries of the IRS to assure that the money rightfully belongs to you, before spending it....and it could only happen on a direct deposit, any check would NOT be written in the wrong name.

If your ex was my tax client, I would be advising her not to cooperate with the state returns unless/until she could be assured that she would receive her half of the additional refunds.

I would also be advising her not to cooperate at all regarding the "overpayment" from the IRS, unless I could review each and every letter from the IRS and could view full disclosure as to exactly how the money came in and exactly where the money went.
 

yerbudi

Member
I am not sure what BS stands for, unless it comes from the back end of a bull, but I assure you that is not the case.

Some one with the same last name as us had to make a payment on their 2007 IRS taxes. The IRS took that money and placed it into my account. So that when the refund was issued to us, in check form, it was issued for more than it should have been issued.

Her lawyer has been informed off all of the happenings with the IRS, and she has also received all of the paperwork that I have received from the IRS. I have kept them in the loop the whole time.

LdiJ, I have no problems forwarding the paperwork to you to show that this surely did happen, and was not our fault at all, but the fault of the IRS.
 

LdiJ

Senior Member
I am not sure what BS stands for, unless it comes from the back end of a bull, but I assure you that is not the case.

Some one with the same last name as us had to make a payment on their 2007 IRS taxes. The IRS took that money and placed it into my account. So that when the refund was issued to us, in check form, it was issued for more than it should have been issued.

Her lawyer has been informed off all of the happenings with the IRS, and she has also received all of the paperwork that I have received from the IRS. I have kept them in the loop the whole time.

LdiJ, I have no problems forwarding the paperwork to you to show that this surely did happen, and was not our fault at all, but the fault of the IRS.
Ok...I will accept that the IRS made a mistake. Its extremely rare, but it does happen. However, you knew that the IRS made a mistake when you received more money than your tax return indicated that you should receive. You in turn spent that money intead of returning it to the IRS.

What exactly did the extra money pay for? Who controlled what happened with the extra money?
 

yerbudi

Member
The checks were signed and given to the lawyer to put into an escrow account until they could be divided up. She eventually got 66%, I got 34% of the refund.

Yes we both signed the checks. Yes neither one of us verified the amount on the check with the tax return. We just signed the checks and turned them over to the lawyer.
 

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