My Mom was just informed her wages at work were going to be garnished due to her lovely ex-husband. In 1994 he did not pay taxes on a very profitable crabbing year in Bristol Bay. He evidently told them that he has no money but they might want to try and go after his her seeing as though they were married at the time.
This week's paycheck they took 3/4!! Leaving her with $400!! She has a mortgage, a car payment and not to mention a 16 year old son now living at home because his father "is over it." 2 weeks ago he put my 2 brother's on a plane from California to Washington State to live with her because "he can't handle teenagers."
I guess my question(s) are, can they really take that much money?!! Just because they were married...why is she solely responsible? It was his income...under his name!
What should she do? I hate to see her loose her house and everything else she's worked so hard for after leaving this man over 15 years ago!
Answers & Comments
Verified answer
A couple of things here:
As a person who filed jointly with an ex, your mother is equally liable with him unless there is some reason that she could be found to be an innocent spouse. I suspect this won't apply.
The normal statute of limitations for collection is 10 years from the date of the first bill. 1994 is awful old to still be good unless someone did something to extend the statute of limitations. A bankruptcy or offer in compromise filing would do it but only for the person who did it. Maybe it was extended on the ex but not her. I obviously can't tell from your narrative.
IRS must notify a delinquent taxpayer of its intent to levy if it hasn't taken any action in the previous six months. If your mother did not receive any notification directed specifically to her in this time, the levy is improper and should be released.
She needs to find out what the details are before dealing with the problem.
If they lived in Washington or California when this income came in, she is jointly liable as both are community property states. You don't say whether he filed the return then, late or IRS just did a substitute-for-return.
This didn't just happen to your mom. It has been coming for some time and I think she has received notice but didn't take effective action. Many people just don't really believe it will happen to them.
She needs to hire a good Enrolled Agent, CPA or tax attorney who deals with matters of representation in collections. She may also have some recourse legally against this man by taking him to court but that will take time. A good rep may be able to help more quickly.
If they filed a joint return together, she is as liable as he is. That is what "joint" means - they are filing as if they were one person. And any current hardships don't really matter to them. He and/or her were supposed to pay tax on that "very profitable crabbing year" when it happened. Because they did not do so then, they are still required to now.
If it was really for 1994, she may be able to get the collections stopped. The statute of limitations on collections is 10 years after a tax return is filed. Unless fraud is suspected or if they didn't file a return at all for 1994, in which case there is no statue of limitations.
If there have been a difficulty along with his taxes that coated 10 years, the IRS could have observed it via now. not even the President can see Romney's tax returns or all of us's tax returns with out showing a valid could see them.
she should contact a lawyer or a CPA that specializes in this kind of work. she could try to file as an innocent spouse, but since she is on the return she is partially responsible. obviously collections have been going on a while too.
She would have gotten a letter telling her they would be doing so. From there, it is up to her to prove they weren't married. How were the taxes files? If joint - then it would look like they were.
She needs a lawyer (and to come clean - she may not be telling you everything).