Why
Non-Liable Parties and Spouses Have to Provide Financial Information
when dealing
with the Collection Division
This
report is to explain why your roommate's or spouse's information is required to negotiate a
reasonable agreement with the IRS on resolving your delinquent taxes, even
though he/she is not jointly liable for the taxes owing.
The
IRS must determine the reasonable collection potential of your tax debt.
When one party or spouse is not jointly liable for the taxes, that
person’s
income and assets are protected from IRS collection actions, such as levy or
seizure. The IRS cannot touch
them (in States that do not have community property law). If the non-liable
spouse holds a joint interest in property with the spouse who does owe, the
non-liable spouse’s share is exempt from IRS collections (dependent on State
law).
When
one spouse owes taxes the IRS must determine reasonable payment potential.
The IRS has to look at total household income and allocate joint
household expenses to the liable party.
If you live in a state with community property laws
then your roommate or spouse may be jointly and severally liable for your taxes. You
should consult with a family law attorney in your state.
Community property states:
AZ, CA, ID, LA, NV, NM, TX, WA, WI
Back to Top
Contact Us
Copyright © 2001-2010 by Gary W. Lundgren, EA
