- quote -

I was responding to someone who said essentially that she
was a dead duck and cited the four qualifications for
injured spouse. But people living in CP states only have to
meet two of the four: filed a joint return and not
responsible for the past-due amount.

There are five qualifications for innocent spouse, and there
is no special treatment for residents of CP states.

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Ed Durall wrote:

- quote -

It's not clear to me the point you are trying to make. She
signed the joint return. This act made her fair game for
collection. If she can show that she is an annocent spouse,
she may be able to avoid the tax. Are you saying that CP
states have a special set of rules for making the innocent
spouse argument?

--
Alan
http://taxtopics.net

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She lives in a community property state. In those states,
you only have to prove that you filed a joint return and
that you are not required to pay the past-due amount.

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Ed Durall wrote:

- quote -

Based on the facts provided, this person is not an injured
spouse. She filed a joint return with her husband and did
not report IRA income and/or possibly the 10% penalty for
early withdrawal. It appears that she is required to pay
the past due amount. As such, she can not be an injured
spouse. It's possible she may be an innocent spouse if she
can show that she did not know, and had no reason to know,
that there was an understatement of tax for that year and
the 2 year clock from the start of collection activity has
not run its course.

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"Ed Durall" <edurall[at]aol.com> wrote:

- quote -

I think you mean innocent spouse, and the Form is 8857.
Injured spouse refers to seizing one spouse's refunds due to
the other spouse's debt.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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This is a textbook example of an injured spouse.

She should file Form 8379 and claim status as an injured
spouse. In a community property state, all she has to prove
is that she filed a joint return and that she is not
required to pay the debt. It's not her debt. It was his
IRA.

That should clear her.

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"eddingfield[at]sedona.net" <bonnie[at]sedona.net> wrote:

- quote -

On a joint return, each party is just as responsible as the
other, meaning that IRS can come back on her for ALL of the
taxes if IRS cannot get the taxes due from him. It matters
not that she had no income.

Sorry to be the bearer of bad news.

Missy Doyle

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The IRS is after my 68 year old sister for back taxes, and I
need information to see if she has any recourse. They filed
a joint return and lived in a community property state. Her
husband cashed out his IRA that year at age of 57 and did
not pay any tax when it was withdrawn. This was the only
income they had for the year. Is there any ruling on taxes
due from the owner of the IRA as opposed to them both being
liable. She earned no income. Thanks.

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