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[TAXMAN]

Has anybody had any luck in this situation. TP filed Joint 2008. Spouse deceased 2009. Spouse made 90% of income(self employed) but they never paid the tax. TP also self employed. Service is after TP to now pay all the the tax. TP wants to pay only his share of the Fed tax and only his share of the self employed tax (7.65%). Since TP was not licensed in the business his only income came from doing gopher work for the company she worked for. TP does not have the capability of earning the kind of income she made. What do you think?

[MDEA]

Sounds like a partial pay installment agreement based on ability to pay.Need complete financials. I do not see that she did not make the money work.They will want what she has the ability to pay.

[MsTabbyKats]

Well, taxpayer may only want to pay his share, but what he wants and what he's supposed to do aren't the same thing.

You could try MFS...which will be rejected since the IRS is already on it.

I'd tell TP he needs to see a tax attorney....who may have a solution. (It also depends on the dollar amount of the tax vs the cost of the attorney.)

[kcjenkins]

They filed a joint return, so each spouse is liable for all the taxes on that return.  There is no way he can now separate "his" liability.  MDEA is correct, the ONLY option is an installment agreement.  I would start with a 433-D, filing that out will give you a much clearer view of the likelihood of success at either an OIC or an acceptable installment offer. 

[Max W]

The taxpayer can request that the IRS Split the account.  That way he would only be responsible for a smaller amount.

It does take someone who is experienced in this to get a Split Spousal Assessment.

http://www.irs.gov/irm/part21/irm_21-006-008.html

 

[kcjenkins]

Max, I thought that only could be done when it involved innocent spouse, which just proves you can always learn something new.  The dead spouse might qualify for CNC I suppose?  

[Max W]

Max, I thought that only could be done when it involved innocent spouse, which just proves you can always learn something new.  The dead spouse might qualify for CNC I suppose? 

 

There are nine different circumstances under which the Split account can be granted.  The most common is Bankruptcy.

For a death situation - "

• Exam agreed / unagreed cases — when only one spouse agrees to the tax deficiency, while the other spouse does not agree, but does not appeal or file a petition (this could include a deceased taxpayer and neither the surviving spouse nor the executor sign the Revenue Agent Report).

Edited July 24, 2015 by jklcpa
Moved answer in response out of the quote box