innocent spouse divorce decree dispositive

[ricclaahsen]

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

What is the legal effect when a divorce decree places burden for tax liability on one spouse, labeling the other as "innocent spouse" but when the so called innocent spouse files for Innocent Spouse relief with the IRS, the IRS rules that the innocent spouse is only partially innocent - meaning a portion of the tax liability is due from the requesting spouse. Can the divorce decree still be enforced on its terms without taking the IRS ruling into account?

 

[Ohiogal]

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

What is the legal effect when a divorce decree places burden for tax liability on one spouse, labeling the other as "innocent spouse" but when the so called innocent spouse files for Innocent Spouse relief with the IRS, the IRS rules that the innocent spouse is only partially innocent - meaning a portion of the tax liability is due from the requesting spouse. Can the divorce decree still be enforced on its terms without taking the IRS ruling into account?

You can enforce the divorce decree through state court and NOT through the IRS. If the tax liability is placed on one spouse in the divorce decree, the state court can hold that person liable. The IRS does not have to do so.

 

[LdiJ]

You can enforce the divorce decree through state court and NOT through the IRS. If the tax liability is placed on one spouse in the divorce decree, the state court can hold that person liable. The IRS does not have to do so.

I agree, but as long as the balance is outstanding the IRS will seize the refunds of both parties to pay off the debt, therefore there may be a problem collecting from the party who was ordered to pay.

If possible, until the matter is resolved with the IRS, the party who was not ordered to pay should try to minimize refunds by adjusting their withholding and/or claiming advance EIC.