! IRS & Marital Separation Agreement

[InnocentSpouse]

IRS audited a previously filed joint return, after date of separation, and assessed back taxes, penalties and interest owing for unreported income from my spouse. IRS granted me Innocent Spouse Relief and relieved me of the obligation to pay. My spouse claims I am responsible since the obligation was listed in our separation agreement. However, the obligation was zero at the time of separation. Two years after we signed the agreement, the debt was assessed and incurred.

 

To reiterate, note the agreement was a separation agreement and not a settlement agreement.

 

Who is responsible for this debt? Is it separate property since the debt was incurred after signing? Will the California Family Court honor the IRS determination of Innocent Spouse Relief and consider it separate property and liable to my spouse? Am I breaching the contract?

 

Also, I am having difficulty identifying applicable laws and/or previous cases and how my case applies to those laws.

 

Any advice will be much appreciated!

[amaysngrace]

If they've determined you to be an innocent spouse then why did you agree to pay it in your separation agreement?

 

If I were you I'd contact the IRS and allow them to answer any questions you may have.

[InnocentSpouse]

f they've determined you to be an innocent spouse then why did you agree to pay it in your separation agreement?

 

If I were you I'd contact the IRS and allow them to answer any questions you may have.

 

At the time we signed the agreement, the balance for that tax year was zero. Two years later, we were audited and I reached out to IRS for relief. I was granted.I was hoping from my post to get some family law advice.

Edited August 28, 2017 by a LoveShack.org Moderator
Fix quote

[amaysngrace]

At the time we signed the agreement, the balance for that tax year was zero. Two years later, we were audited and I reached out to IRS for relief. I was granted.I was hoping from my post to get some family law advice.

 

Oh sorry. When I need family law advice I contact a family lawyer.

[carhill]

Are you legally separated? You said 'separation agreement'. If you were to look up your case summary at the court, are there filing dates and a final judgment date in the summary? In the case of divorce, that would be a dissolution date. In the case of a legal separation it would be the final judgment of legal separation date.

 

Is there a fee clause in your legal separation agreement? A fee clause is a negotiated clause which apportions the costs of enforcing the judgment of the court should the petitioner or respondent need to go back to court to compel performance by the other party.

 

If you have the documents releasing you from IRS debt from the IRS, save them and IMO let it play out. If you want some peace of mind, you should be able to get a consult with a family law attorney for free and get basic answers during that consult and then decide to retain them, or get a referral to a tax attorney as appropriate.

 

Does your estranged spouse have your process service address? If no, be sure to provide that in any contact so you can be properly served regarding any court filings.

 

 

The biggie is that the IRS isn't hounding you. The innocent spouse thing, if it is in fact as you have related, should make a judge's job easy too, should it get that far. Best thing to remember is people spout off all the time and make claims that benefit themselves. Big difference between that and a lawsuit. Lawsuits cost money.

 

Oh, lastly, how much are we talking about? Under ten? Ten to Fifty? Six figures?

 

FWIW, I routinely have friends sitting on 7 figure negotiations with the IRS and they sleep fine at night. It sounds like you have zero and owe zero. That's a great place to be.

[d0nnivain]

Tax law is not for amateurs or the faint of heart. Pay for a good lawyer. Don't ask a bunch of international lay people on a message board.

[carhill]

Is that really necessary? Sounds pompous to me. I'm sure you didn't mean it that way but a sweeping dismissal of advice and experience, mine from the perspective of someone who's actually used the California court system and hired lawyers and been separated and divorced in it, still sounds pompous and superior. Does that come naturally or do you have to work at it?

[InnocentSpouse]

Are you legally separated? You said 'separation agreement'. If you were to look up your case summary at the court, are there filing dates and a final judgment date in the summary? In the case of divorce, that would be a dissolution date. In the case of a legal separation it would be the final judgment of legal separation date.

 

Is there a fee clause in your legal separation agreement? A fee clause is a negotiated clause which apportions the costs of enforcing the judgment of the court should the petitioner or respondent need to go back to court to compel performance by the other party.

 

If you have the documents releasing you from IRS debt from the IRS, save them and IMO let it play out. If you want some peace of mind, you should be able to get a consult with a family law attorney for free and get basic answers during that consult and then decide to retain them, or get a referral to a tax attorney as appropriate.

 

Does your estranged spouse have your process service address? If no, be sure to provide that in any contact so you can be properly served regarding any court filings.

 

 

The biggie is that the IRS isn't hounding you. The innocent spouse thing, if it is in fact as you have related, should make a judge's job easy too, should it get that far. Best thing to remember is people spout off all the time and make claims that benefit themselves. Big difference between that and a lawsuit. Lawsuits cost money.

 

Oh, lastly, how much are we talking about? Under ten? Ten to Fifty? Six figures?

 

FWIW, I routinely have friends sitting on 7 figure negotiations with the IRS and they sleep fine at night. It sounds like you have zero and owe zero. That's a great place to be.

 

Thanks for your reply.

 

There is a file for my petition but the agreement was not filed with the court. I need to prepare my trial briefs and determine my arguments. No orders at present.

 

Yes there is a fee clause to enforce or modify the agreement. We are both, in pro per.

 

Yes I have the IRS docs and will be included as exhibits. Also she has my address.

 

Closer to 50 I would presume. Don't have current balance because of relief of obligation.

[Popsicle]

I had an issue with something to do with taxes and the California Family Court honors the IRS rules.

[InnocentSpouse]

I had an issue with something to do with taxes and the California Family Court honors the IRS rules.

 

Excellent. Did you have taxes in your MSA?

[d0nnivain]

Is that really necessary? Sounds pompous to me. I'm sure you didn't mean it that way but a sweeping dismissal of advice and experience, mine from the perspective of someone who's actually used the California court system and hired lawyers and been separated and divorced in it, still sounds pompous and superior. Does that come naturally or do you have to work at it?

 

 

 

If that was directed at me, it comes naturally but it was neither pompous nor superior. It was simply factual.

 

 

Fooling around with tax law is a bad idea! Colloquial examples are not valid interpretations of Chapter 26 of the United States Code. There are reasons that people must have a license to practice law. The OP is clearly somewhat sophisticated because they already knew about the Innocent Spouse aspects of IRS law & have availed themselves of it's benefits but for a bunch of non lawyers who have never reviewed the OP's PSA to give the OP advice about how or if the tax code can be reconciled with a state court family law agreement is irresponsible. Because the two issues arise in different forums we cannot know if there was enough comity to invoke principles of res judictata.

[Popsicle]

Excellent. Did you have taxes in your MSA?

 

No. And that's why we ended up back in court.

 

I suggest you put it in yours.