Back Taxes/New marriage

[JJ50]

What is the name of your state? Maryland

Three years ago when myself and ex-wife were divorced I agreed to continue an installment agreement with the IRS for back joint federal taxes(approx $25,000).The IRS also filed a Fed. Tax Lien but it has remained passive as long as the payments are made. To complicate matters more my ex-wife felt she did not have to report her 1/2 of my retirement money which was paid to her by check for 12 months until her QDRO was approved and as a result we are both being examined by the IRS which will probably trip up the installment agreement. I am considering a second marriage but am concerned that my spouse in the new marriage would become someway responsible for my tax liabilities and would not want to drag someone else into problems for $$ I owe. Is this a real concern or would a new spouse be unaffected (legally) by back taxes owed by me?

 

[LdiJ]

What is the name of your state? Maryland

Three years ago when myself and ex-wife were divorced I agreed to continue an installment agreement with the IRS for back joint federal taxes(approx $25,000).The IRS also filed a Fed. Tax Lien but it has remained passive as long as the payments are made. To complicate matters more my ex-wife felt she did not have to report her 1/2 of my retirement money which was paid to her by check for 12 months until her QDRO was approved and as a result we are both being examined by the IRS which will probably trip up the installment agreement. I am considering a second marriage but am concerned that my spouse in the new marriage would become someway responsible for my tax liabilities and would not want to drag someone else into problems for $$ I owe. Is this a real concern or would a new spouse be unaffected (legally) by back taxes owed by me?

Your ex-wife may not have been the one who was required to report the retirement distribution. If you were the one withdrawing the money and paying it to her, then you are the one who was required to report the monies. Most likely it WAS you if the QDRO wasn't completed and if you were the one who received the 1099 R.

It is certainly going to effect the installment agreement, because there will be taxes due on the distribution. However, if you both support each other with the IRS, and plead confusion and ignorance due to the divorce and property settlement, then the examining agent may cut you some slack as far as interest and penalties are concerned, and may simply refigure the installment agreement to include the additional taxes. (or set up a separate installment agreement for your ex if its somehow determined that she was the one who should have reported the distribution).

While your potential new spouse would not be directly responsible for the back taxes, the IRS will take any refund from any joint tax returns that you file and could put leins on any property that you might own jointly....and could levy any joint bank accounts etc. You would really need to keep all accounts and assets separate (including cars and homes) until such time as the back taxes are paid in full. Your wife could also file for Innocent Spouse Relief in order to try to keep her share of any refund you might have....however the IRS decides whether or not to grant that relief.

 

[JJ50]

I guess I was fortunate and had a sympathetic examiner, they requested copies of the checks I gave my ex-wife and shortly after notified me that no changes were being recommended on my tax return however they haven't notified my ex of the decision in her case ( she told them she didn't know govt. pensions were taxable income, even though after the qdro she pays taxes out of her monthly check) so either way one of us is going to cause a glitch in the installment plan. Thank s for the advice on the new marriage I will have to be very careful to keep all financial activities seperate until the back taxes are totally paid off and probably file seperate taxes for 1 or 2 years.