IRS Installment Agreement

[S T]

Odd question arose

I have a situation on a 2009 Tax Assessment (CP 2000) taxpayers filed married joint, however, since the filing the taxpayer's are in the midst of a divorce. Yes this has been a "challenge" as each of them are not talking to the other - addresses and phone numbers, are to be secret, etc. So I have been caught right in the middle of trying to resolve the CP 2000 notice.

Now the question, taxes are due for the CP2000 notice, and an installment agreement will have to be requested for the payment. It is large as in $ 8,500.

Will IRS accept one installment agreement for an amount from the husband, and a second installment agreement for an amount from the wife?? So that they are each paying an amount monthly. ?????

Neither are disputing the amount of the tax owed, each just wants to pay one-half, but wants to make sure the other one is paying their half.

Anyone had experience with an issue similar to this.

Thanks,

Sandy

[erchess]

My Understanding

is that as long as it all gets paid the IRS does not mind getting two checks each month. But I don't know if the IRS is open to doing two installment agreements because from its point of view it has the right indeed the duty to collect whatever can be collected from either. So in other words they're not going to sign a deal with each spouse that when that spouse has paid half he or she is absolved of further obligation. On the other hand they may have devised a workaround and maybe someone here (Koss and NYEA strike me as two experts on nuts and bolts at the IRS) or the PPL can tell you what it is.

What I know would work would be to have an IA in place between both of them and the IRS for payment of the full amount and a contract between them for one spouse to mail the IRS their check and the other spouse to pay half of each payment and receive a copy of the cancelled check to the IRS. They may also want to put it in the divorce decree that either is to have a will providing for payment to the other spouse of the decedent's half of the remaining tax. If they are in the midst of a divorce then there are two lawyers who should be able to hammer out a contract that will see to it that justice is done. I don't know whether a separate contract or just an addition to the divorce agreement would be best but I imagine the lawyers can solve that issue.

[taxea]

I think the IRS position will be that a MFJ return was submitted/signed by both parties. Where does the addition income stem from? Are they both responsible for the income? Just curious.
The IRS IA will have to be signed by both of them and the IRS will expect the monthly payment in full on time or the IA will be revoked. How they work it out between themselves is of no concern to Uncle Sam.
I am not sure about separate checks each month to IRS, it would probably be okay as long as the total amount owed is paid by the due date. The IRS is not going to pay any attention to agreements made between the spouses. They also will not look at the signed IA as each spouse responsible for 1/2. By signing the IA each spouse is agreeing that the full amount is the responsibility of both collectively or individually so if one doesn't make their payment/s the other is responsible to be sure the full monthly payment is made on time.