Discussion:Failure to File
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Discussion Forum Index --> Tax Questions --> Failure to File
| 5 November 2006 | |
| I have a situation...taxpayer has not filed for many years. Now filing 2002,2003,2004 after IRS sent notice and is about to force file these returns. There is a large amount due. I am concerned that these returns (even after filing which will bring amounts down) plus prior years (no notice given yet) will put taxpayer into bankruptcy. Question....does it make any since to file married filing separate to protect the wife? Any other advice is appreciated. thanks | |
Bottom Line (talk|edits) said: | 5 November 2006 |
| Need more info. Does wife have income/assets? What are marital assets vs individual assets? | |
| 5 November 2006 | |
| Agree with BottomLine, need more info. When were the taxpayers married? Was there a pre/postnup? What are other assets like? Might consider an OIC after the final assessment. | |
| 6 November 2006 | |
| Addtl info:
Couple have been married of over 30 yrs No pre / postnup Other assets: IRA and 401K (husband), primary home with equity, and vacation home with substantial equity (real estate Jt w rt of survivor) Wife has no income except Social Security check..... | |
| 7 November 2006 | |
| Sounds like you might have a problem with an OIC after assessment. If there is more equity in the homes and other assets, then the amount of the liability it will be challenging to complete an OIC. Age, work history, health all play into OIC. Run the numbers and that should tell you what you need to know. If you live in a community property state then the wife may have some liability due to community property laws in your state. Did she have reasonable knowledge of what was going on? Innocent spouse? Might consider to relieve her. Difficult to accomplish in most cases as to what we have seen. | |
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