concerned for my mom

In California. My mom has been married to my step dad for little over 20 years. My stepdad is a subcontractor in the carpet business, he recently got behind in his taxes and has not been paying them, he ows quite a bit now. He just got diagnosed with terminal cancer and will not be around much longer. My concern is now for my mom, they own nothing, but a aluminum boat, a 1970 something motor home and a work truck........they have no savings ......nothing.......will my mom owe these back taxes now, because she was married to him? I'm so worried for her if she does, she cant work, has no savings or anything......Im so mad at them for not planning anything, I mean how much is his barrial going to cost my mom, that has no money!! Does anyone no whats going to happen to her....I dont even think he has a will, for what little they do own.......help with advise please anyone, please!

He should go to an office supply store & get a will kit, if he won't have one drawn up by an attorney. It's better than nothing.

She will owe the taxes if she signed the tax returns. however, if they can't pay, they can make an offer in compromise. It's an offer to settle the back taxes for less than is owed. OICs are accepted based on the collectibility of the debt. They should see an attorney or enrolled agent who handles OICs to help them prepare the offer.

Another possibility would be Innocent Spouse, Separation of Liability. Check the www.irs.gov web site for Form 8857.

She won't qualify for innocent spouse relief unless she didn't know they owed taxes & had no reason to know they owed taxes. IE, if he was hiding income from her & there were no clues to tip her off. Since she signed the returns, innocent spouse won't work unless she can show by clear & convincig evidence that he coerced her signature. That usually requires a documented history of domestic abuse or a neutral witness.

Equitable Relief (Publication 971) may apply in this case.

California, I think you should post this on the bankruptcy board & ask if his estate can declare BK after he dies & discharge the debt that way.

Frankly, I think an offer in compromise is probably best. An OIC can be accepted based on the unlikelihood of the IRS ever collecting the debt. Since she doesn't have any money, there's a good chance the IRS would accept some token payment & write off the rest of the debt. I doubt the IRS would grant equitable relief. (I think she has too many of the negative factors.) BUT, all those equitable relief factors can be cited in her proposed OIC.

Talk to an enrolled agent or tax attorney about whether it's better to file the OIC now when he's sick or after he dies.