I have a client who divorced in 2008. I filed her 2007 return MFS because the now ex would not share his financial info. I filed her 2008 return and the state held her entire refund do to unpaid taxes in 2005. She then got a notice recently of state taxes due for 2006. It seems the ex had been trading online for years and either didn't report it or reported it incorrectly, not including his cost in the shares sold. It is now catching up with them. My client knew nothing of his online trading nor any of their financial info. He took care of all the finances in the house. She just signed the returns. I am wondering if there is anything equivalent to the innocent spouse/injured spouse at the state level? I fear this is only going to get worse for her and he is already behind on child support and can not keep steady employment. Would filing those forms at the fed level carry to the state level?
Thanks ahead for any input.
Thanks ahead for any input.
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