Unfortunately Signed a 1040x for My Ex

[Min]

What is the name of your state? Southern California (Orange County)

My ex-husband and I legally separated in 2001. He refused to file our 2001 taxes as a married couple so I filed on my own and received a refund. My CPA filed my taxes incorrectly by stating I was single instead of married but separated. I would have still received a refund if he had filed my status correctly.. just not as much of course.

On 6/20/03 (divorce final 2/28/02) my ex asked me to do him a favor by signing a 1040x form. We were friends at that time and I trusted him unfortunately. It was a blank 1040x that I signed. My ex moved to Florida on 6/21/03 to open his own business.

In 2004 he finally filed the 2001 taxes with the IRS. The blank 1040x form was dated 7/28/03 by his CPA I believe. My ex owed the IRS a lot of money and made arrangements to make payments but didn't. When I filed my 2004 taxes, the IRS withheld the entire refund to put towards the 2001 balance due. There is still a balance due for 2001 and the IRS is only targeting me?? The IRS informed me that I don't qualify for Innocent Spouse, etc. because I willingly signed the 1040x form.

Since this nightmare started my ex has promised to pay the entire balance back to me. He actually mailed me a check for $600 at one time. I have several voice mails he left for me on disk if needed to support my case. I also have many letters that I've sent to my ex and IRS for the past 1.5 years.

My ex is no longer returning my calls or responding to my letters. Last week I learned that he had sold his business in Florida at the end of August. I never knew his home address -- only his business address. I don't know where he is now or what he's doing. I only know that he hasn't filed his 2005 taxes yet like myself. My extension expires mid-October and I don't know what to do.

My ex made twice as much as my salary in 2001. I wouldn't have owed any money to the IRS even if my CPA filed my 2001 taxes with the correct status. I did a good but stupid deed for someone I spent 10 years with and now paying for it. Do I have a case against my ex?... even though I don't know his current residence or work status?

Please help. Any advice will be greatly appreciated.

 

[Snipes5]

Oh, you can try to take him to court if you like. Sue the *******, if you can find him.

Unfortunately, the moral of this story is NEVER SIGN ANYTHING until you read it first, and NEVER EVER sign anything that's blank.

You're screwed, well and proper. The IRS is going after you because when there is a joint return, if they can't find one taxpayer, they will go after the other.

You do have one option, however. You can try to file innocent spouse. That tax year is still considered "open" for you since the 1040x was filed so late.

Go see an Enrolled Agent, NOW, and ask about filing an innocent spouse claim. It's your only hope.

Oh, and I just had another thought. If you were LEGALLY separated, you were considered SINGLE for tax year 2001, so that may actually make the 1040X fraudulent... in which case you might be able to wiggle your way out of it with a competent EA, if you can prove that you signed the return under false pretenses presented by your ex-husband.

Might want to find a copy of those separation papers.

Snipes

 

[Min]

After your reply, I included additional information to my posting. I didn't receive any other responses however so I wanted to ask you some important questions.

You recommended that I submit an application for Innocent Spouse Relief with the IRS. I actually went to visit the IRS in LA months ago to learn if I'm eligible for Innocent Spouse, Equitable Relief, etc. but I unfortunately don't because I willingly signed the 1040x form. They said this should be a civil case between myself and my ex-husband.

In your opinion, do I have a good chance in winning this case if I chose to take him to court? Do I need a tax lawyer for my case? Do I need to find out where he's currently living first or can a lawyer research for me? Would he have to personally appear in court if he is still residing out of state (FL most likely)? If I win the case, am I able to place a lien on his credit report if he doesn't pay me?

To avoid additional penalties and interest being added to our current outstanding balance, should I just pay the IRS myself??

Thanks again,

Debbie
Southern California (Orange County)

 

[Snipes5]

If you did not actually SUBMIT the innocent spouse claim, that is what I would do first. Submit it, and let them deny if if they're going to. If all you did was go talk to someone at the local office, who is NOT someone that is actually working in the Innocent Spouse unit, you have not gone far enough with that yet. Most, if not all "innocent spouses" willingly sign the tax forms. That's part of the problem. They had no reason to think the spouse was doing anything unlawful. That's what makes them innocent. It's BECAUSE they signed the forms willingly that they are in this position.

Once you have done that, if it is denied, you may be able to take your case to the office of the Taxpayer Advocate.

Since you are contemplating going through the courts, I would recommend consulting a Tax Attorney, although an Enrolled Agent (EA) will cost less.

Sorry, I can't answer any questions that have to do with court or lawsuits or anything like that, I know tax law (I'm an EA) and workings of the IRS only.

Snipes

 

[Min]

Hello again,

Thank you very much for all your advice. I've decided to file Innocent Spouse and Equitable Relief with the IRS per your recommendation. I'm hoping to mail out my packet sometime this week.

As an EA yourself, are you able/willing to represent me or refer me to someone? I'm having a very difficult time finding a tax lawyer because most of them don't want to get involved in a case that's less than $10K. The others are too expensive. So far, the IRS has withheld $5K from my 2003 tax refund and now wanting another $2500+. I'm wanting a full refund from the IRS and/or my ex-husband.

Thanks, Debbie

 

[Snipes5]

Sorry, I am not able to represent you. I am located in Washington state.

You can find an EA in your area by going to www.naea.org.

You don't need an attorney in this case, since you are not facing criminal tax charges. An EA or a CPA will do.

Snipes