Please help! IRS & MSA

[ReliefGranted]

What is the name of your state (only U.S. law)? CA

IRS audited a previously filed joint return, after date of separation, and assessed back taxes, penalties and interest owing for unreported income from my spouse. IRS granted me Innocent Spouse Relief and relieved me of the obligation to pay. My spouse claims I am responsible since the obligation was listed in our settlement agreement. However, the obligation was zero at the time of separation. Two years after we signed the agreement, the debt was assessed and incurred.

Who is responsible for this debt? Is it separate property since the debt was incurred after signing? Will the California Family Court honor the IRS determination of Innocent Spouse Relief and consider it separate property and liable to my spouse? Am I breaching the contract?

Also, I am having difficulty identifying applicable laws and/or previous cases and how my case applies to those laws.

Any advice will be much appreciated!

 

[LdiJ]

What is the name of your state (only U.S. law)? CA

IRS audited a previously filed joint return, after date of separation, and assessed back taxes, penalties and interest owing for unreported income from my spouse. IRS granted me Innocent Spouse Relief and relieved me of the obligation to pay. My spouse claims I am responsible since the obligation was listed in our settlement agreement. However, the obligation was zero at the time of separation. Two years after we signed the agreement, the debt was assessed and incurred.

Who is responsible for this debt? Is it separate property since the debt was incurred after signing? Will the California Family Court honor the IRS determination of Innocent Spouse Relief and consider it separate property and liable to my spouse? Am I breaching the contract?

Also, I am having difficulty identifying applicable laws and/or previous cases and how my case applies to those laws.

Any advice will be much appreciated!

Well, as far as the IRS is concerned its 100% her debt so they will never go after you for it now. The CA state tax folks will generally honor the IRS Innocent Spouse Relief (yes, you will have to deal with the CA tax folks too on that additional income).

It definitely was a marital debt because even though the IRS did not catch it until after you were divorced, it still was incurred while you were married. However, since the debt was entirely her fault (due to her unreported income) I cannot guess how family court would handle it.

 

[Ohiogal]

Well, as far as the IRS is concerned its 100% her debt so they will never go after you for it now. The CA state tax folks will generally honor the IRS Innocent Spouse Relief (yes, you will have to deal with the CA tax folks too on that additional income).

It definitely was a marital debt because even though the IRS did not catch it until after you were divorced, it still was incurred while you were married. However, since the debt was entirely her fault (due to her unreported income) I cannot guess how family court would handle it.

Did I miss where OP is the ex husband?

 

[LdiJ]

Did I miss where OP is the ex husband?

I picked a pronoun.

 

[stealth2]

To be fair, if LDi had gone in the other direction, she'd have been called out for that, too. So what's a girl to do? Neutrality can often be awkward. LOL I know!

p.s. Based on a post in the mens' room, OP is, actually, the guy.