My husband did not pay our taxes for some years. After the shock he took it to an accountant ( I think) and an enrolled agent.) This woman is giving him all kinds of horrible advice like we could still buy a house even though we owe the money etc.

I want to go to an attorney ( he says we cannot afford) or at least a professional office. He wants to continue with this woman and then go to the IRS tax advocate. What should we do? I cannot sleep or eat.


Thank you,

Roxanne

Remember, you don't have to file a joint return with him. If he owes based on his income, you can separate yourself from it by filing MFS, that is if you have a filing requirement. If you need to file, and you've had adequate withholding set aside for your taxes, file MFS, you don't need to wait for your spouse to file.
If you can't do your own returns, you don't need to go to a fancy accountant, a normal one is fine. If you didn't work, or have little income, you may want to seriously consider not signing a MFJ return with him if there is going to be a significant balance owing. He can always set up a payment plan with the government if he can't pay it in full

Thank you

I forgot to mention that you may have to tell him you don't want to file MFJ, as he may go to a preparer and electronically file MFJ, where your signature is put on electronically. The IRS allows you to go around this if you quickly state your position and had no desire to file MFJ, and filing your own return MFS at that time will underscore that you didn't have an intention, even if you have no filing requirement.

Another point is the State your in, if it's a community property state, your income is assumed to be divided in half, so even if you have no income he can file MFS and report half, and your required to report the other half, even if you had no income. There are exceptions to this rule, explained in Pub 555 Community Property , on the IRS website. Normally, taxpayers don't file this way however

If the IRS denies your separation from filing MFJ request, you can however still file an Innocent Spouse claim that allows you to remove yourself from all or part of those balances on a MFJ return.
There are timeframes for making that filing however.

From what you've described, your husband owes back taxes. That seems to mean there are already charges assessed, which can only come from an actual return filed or and IRS substitute return filed.
So you want to check if they were filed MFJ or MFS.

If you don't mind filing MFJ with him, you are only left with working out a pymt plan with the IRS. If the balance is too huge to pay, try filing and offer in compromise (Form 656) with the IRS to offer to pay a reduced balance. Additionally, some penalties maybe waivable.

Going to the taxpayer advocate doesn't make sense to me, as they intervene when a taxpayer has problems that aren't being resolved through normal channes with the IRS. If the balance owed is legitimate, there's nothing they can do to reduce the balance. And they're not allowed to set you upo on a payment plan, they'll refer you to the IRS. This should not be ignored, as the IRS can go after your property and bank balances, in addition to setting liens on what you own.

You mentioned the statement from the enrolled agent:
It is possible to buy a house and at the same time owe a large amount to the IRS, it depends if the mortagage co, or broker will accept your financial condition. So its possible, you have to make the financial decisions that make sense to you..


If he hasn't, of course your husband should get a sound grip on why he owes the balance and how it came about, if he is unclear. Looking at the returns and speaking to the IRS directly should resolve it.

Sometimes you have to look at things matter-of-factly. If a balance is owed, its owed, there's nothing to do about it. Its your husbands error not yours. Set up a payment plan with the IRS to settle it. Or request an offer in compromise.
And if you want to separate yourself from the balance, file MFS yourself, with explantation about the MFJ previous fling and it was not your intention to file MFJ. If that's not allowed by the IRS, file an Innocent spouse form to request removal from the MFJ balance. Contact the IRS on this procedure.

Please ask if you have further questions