Tax Liability

[annefan]

What is the name of your state? PA

My husband recently received a notice informing him that $785 is due to Commonwealth of PA for state income taxes owed from years 1995, 1997 and 1999. Each year they were small amounts due ($110-200) and they accumulated interest and penalties during this time. He was previously married to someone at that time, who had an accountant prepare the taxes yearly and he basically signed them without reviewing the details of what they contained. This notice he received is the first time he's been made aware that there was money owed to state income taxes. They filed the taxes jointly and were divorced in 2001 (no property/divorce settlement, simple Section 3301(d) no fault divorce) .

Q: Is my husband solely responsible for the tax amount due or will some responsibility fall on the ex-wife?

[abezon]

He is jointly & severally responsible for the entire amount, which means the revenue dept can collect from whoever they find first.

He should contact the accountant immediately. There may have been some guarantee where the accountant agreed to cover any interest & penalties. Also, the accountant can review the PA returns & see if you really owe the extra tax or if the D of Rev is wrong. Finally, you should check to see when the taxes were assessed -- the state may have assessed the deficiency too late to be able to collect it now.