Spouse Liability

[KM2053]

Couple married and living in California (community property state) for many years. Wife has $80,000+ income job, Husband makes $800 per month construction. He gambles and has won $10 to $15k at times. He can use "Player's Card" to show losses during the year. The have always file MFS until 2006 and 2007 where they filed MFJ. He has been assessed approx $25k for 2000 thru 2004. Her refund of $12k has been withheld to pay his debt. She has contacted the IRS and said the filing of MFJ was a mistake and the IRS has sent her a form and now the liability letters are coming in his name only.

1. Can the refile 2006 and 2007 as MFS and will she get a refund.

2. Is she liable for the outstanding debt?

[Gary]

No

You can't change from MFJ to MFS after due date of the return.

[MLINDER42]

Liability

File injured spouse form for 2006 and 2007.I would also check into what generated the IRS debt.Where losses taken to offset gambling gains.

[bertrans]

Joint liability

It sounds like an injured spouse claim: Form 8379; however, there are special allocation rules for community property states. See Pub 555.