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IRS/bankruptcy/innocent spouse???

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taxwoes

Junior Member
undefinedWhat is the name of your state? Missouri

Long story short...My husband owed the IRS in excess of 100,000 from several years ago. He was an independent contractor. He made the money, did the tax returns and *ASSUMED* she mailed the checks. By time he found out she didn't, the money was gone and he was hugely in debt.

About 1 1/2 years ago he filed bankruptcy because of all the debt from her and the divorce. After much researching we found that we could include the IRS debt if he met all the criteria which he did. The bankruptcy was discharged last year. We never received anything from the IRS about it or after that so we thought it was taken care of. In the past years they has withheld his tax refund but we received it this year reinforcing the thought.

Flash forward to a couple months ago. We received a letter from the IRS stating that his ex-wife was requesting innocent spouse relief. After reading up on the requirements to get the innocent spouse we didn't think she stood a chance but we filed the paperwork they requested regarding information about the tax years and he thought they shouldn't grant her the relief. Well according to the letter we received today, they are going to grant her relief and that if they did, he would be held solely liable for the debt.

My questions are this...can the IRS come back after the bankruptcy and try to collect the debt? ANY thoughts, help would be greatly appreciated. We can't afford an attorney but looks like we are going to have to get another one anyway...

cross posting under bankruptcy also...
 
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rezguy

Member
Each IRS region has an Insolvency office .. get with them have your BK discharge paperwork in hand and check you tax debt status.. Generally they will tell you taxes are non-dischargeable but you are right if you meet certain criteria.. some are.. just because the IRS didn't fight/object to the BK doesn't mean anything. you'll either owe taxes plus penalties and interest or not.

If you owe get a Enrolled Agent in your area www.naea.org and see if they can save you some money..
also
http://www.taxhelpers.com/tax-collections-1.html
 

Some Random Guy

Senior Member
Talk to an enrolled agent as specified. I would think that you would want to object ot her 'innocent spouse' relief since she was far from innocent in this matter.

Do you have any proof of your version of events?
 

bstoned

Junior Member
I'm on the other end

I have recently received a notice from the IRS regarding delinquent taxes from 1998. The debt is now $7,500 (penalty, interest, etc). I filed jointly with my then husband. He was self employed and did not make the quarterly payments on his income. I worked outside the home and my taxes were deducted from my earnings. As I recall an installment agreement was initiated, however the payments weren't made. We have since divorced (following extremely bizarre behavior on his part in addition to serious domestic violence directed at me). My ex filed for divorce after his second arrest in four months. The first arrest resulted in one misdemeanor charge (domestic battery) and he entered a plea of guilty and was placed on probation. The following four months were filled with atrocious and violent attacks on me. The grand finale came when he attacked me with a 12 inch knife. When the police arrived he refused to drop the knife and was "subdued" by eleven officers. He was removed from the home and prohibited from returning. He is now a middle aged, angry felon. His goal is now to see me pushing a shopping cart filled with empty pop bottles. I have no assets and am disabled. My ex hired an attorney (female) who allowed him to continue harassing me by sending emails, letters, faxes doctored up to appear that she was generating and sending such items. His terms of felony probation prohibited him from having contact with me directly or through another person. His attorney (female) admitted to me that was what had been happening. In the property settlement, my ex made a point of trying to dump the IRS debt on me. He tried to intimidate me into allowing him to deduct payments from my alimony. That was a no go so he tried to arrange to have the debt deducted from my share of the proceeds from the sale of the marital home. Again, no go. I had incurred heavy debt (medical expenses) and that's where my share went.
When I received the letter of demand from the IRS, I contacted the IRS and was advised to request relief as an innocent spouse. I was quite suprised to learn how much consideration is given to the issue of domestic violence. My ex hasn't learned yet that I have taken this action. This will surely lead to a rather unpleasant, if not deadly incidence, however the IRS agent has assured me that I will be given advance notice of my ex receiving the preliminary decision. He will be given the opportunity to dispute the relief however, given his history his voice will most likely not be heard.
To make a short story longer, I will advize that the domestic violence was a result of my surviving two catastrophic surgeries to repair two large aortic aneurysms. I was placed on a ventilator for three weeks as a result of complications from the second surgery. I was in a medically induced coma during which time my ex met a sympathetic woman in a bar and entered into an extra marital affair. I was on life support for two weeks and my ex (then husband) requested that I be taken off. I was 49 years old and NOT terminal. My adult daughter from a previous marriage was consulted and would not agree to "let me go". I simply needed time to heal. The surgeon refused my ex's request and left me on one more week. My ex was filled with rage because I survived. He was not the grieving young widower he had been practicing to be. He was a common cheat. The domestic battery began two weeks following my release from a five week hospitalization, most of which was in ICU in a coma.
I have researched the issue of "innocent spouse" and have learned that the non requesting spouse is also entitled to seek relief. There are three forms of relief from the debt. The first two address the issue of "unreported or erroneous information". The third resolution adresses "underpayment". The terms of the property settlement in the Judgement of Divorce are given no consideration by the IRS. I will NOT be in contempt for not paying as ordered by the propertly settlement. You will most likely hear my story on the eleven o'clock news when my ex is notified of my action! The "Innocent Spouse" form asks if there is any concern of retaliation. YA THINK?!!!
The point of my story is to alert you that you, the non requesting spouse, are also entitled to seek relief from the debt. There are several options available to settle the debt (offer in compromise, installment agreement, equitable division based on the income and amount of taxes paid by each spouse) which you should explore.
Please give updates as to what is happening. I'm curious.
 

Snipes5

Senior Member
Learn to write in paragraphs.

The question and comments posted by the OP have nothing to do with your situation.
 

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