I have a client who filed married filing jointly in 2014. They owed $570.00 for 2014 to IRS. The husband was suppose to pay it and he never has. Now, they are legally separated at 12/31/15 and the spouse is still getting the IRS notices for the tax due plus penalty and interest. Forgot to add that the husband forged her signature on the return. She has tried to talk to the IRS and finally got to speak to someone today who told her to amend the 2014 tax return from married jointly to married filing separately. (I didn't know you could do this.) Any help with this would be great.
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You cannot usually amend from MFJ to MFS. Only from MFS to MFJ is normally allowed. However, since he forged her signature, it is not a valid return. Did she know about the MFJ filing at the time or agree to it? How did he get her income information? Did she not have any income? Does she have a copy of the return? It appears to me that a case may possibly be made for identity theft, and she might be able to file an MFS return for the prior year that way with the proper documentation and/or affadavits. It's worth a try. Apparently, money was due on the MFJ. Would she owe on MFS? Get a refund? Recently had the same situation but the spouse DID sign the return. He never paid. And she wound up having to cough up 100% of the money. If it was part of the divorce/separation decree that he had to pay it, she might have recourse in a civil action.Last edited by Burke; 02-09-2016, 05:32 PM. -
So she was aware that she had not filed a tax return for 2014, and it is only just now something she is paying attention to? What will be the late filing and possibly late payment penalties for not filing her own MFS return? I think it will be a tremendous uphill battle to get the IRS to go along with this, almost certainly costing more in time and/or professional help than the balance due.Originally posted by Vanessa View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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Did she keep the IRS employee's name and ID number. Do the 1040X as MFS and attach a detailed explanation statement along with any documents to support her claim that she did not sign the return. Who prepared it? Perhaps they would be able to say whether or not they witnessed her signing the return.
I don't think that the fact that he was supposed to pay and didn't is a valid reason on the IRS's part to change a MFJ return and the rule does say you can't go from MFJ to MFS but she could argue administrative error on the part of the IRS employee.
I would also report the return as fraudulent if he, in fact, signed for her without her prior knowledge.Believe nothing you have not personally researched and verified.Comment
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Originally posted by VanessaThe above are contradictory statements.Originally posted by Vanessa
How do you know she didn't sign the MFJ return?Roland Slugg
"I do what I can."Comment
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Nope.
No oral statement. Won't work because, oral statements that IRS representatives make are unenforceable (Pierre Boulez, v. Commissioner of Internal Revenue, 810 F.2d 209)Originally posted by taxea View PostLast edited by TAXNJ; 02-09-2016, 10:30 PM.Always cite your source for support to defend your opinionComment
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This situation brings up an interesting question. It is not indicated whether the return was self-prepared, e-filed, or done by a proessional preparer. In any event, if a return is self-prepared using one of the off-the-shelf products (or free on-line), is a Form 8879 or some other documentation/verification part of it? Does it have to be printed off and kept for 3 years? In light of all the identity theft issues with early e-files, obviously the proper parties are not signing (or verifying) anything in those cases.Comment
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If you file your own return you don't need an 8879. If he didn't do the return I would want to see a copy and her signature on the 8879. If he did the return I would have her get a notarized statement for the IRS that says she didn't authorize her signature on the return. Then I would attach it to a 2014 MFS return and mail it in with a detailed explanation of what happened.Originally posted by Burke View Post
I also suggest, before the return is filed, that you get a POA and request an accounting and return transcript.Believe nothing you have not personally researched and verified.Comment
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I'd probably tell the client that the charges for me to sort through this mess would exceed the $570 (plus the $75 of accumulated P&I), so she would be better off paying the balance due. Besides, after doing all the work, we might discover that she owes the same or more on a MFS return, in the unlikely event that it can even be filed in this situation. If she doesn't have the money, a payment arrangement would buy her some time while she pressures the ex to come up with all or part of the balance due.
Sometimes it's better to cut your losses and move on.Last edited by JohnH; 02-11-2016, 06:16 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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I had the same thoughts.....Comment
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Let ig go
JohnH speaks wisely.Originally posted by Burke View Post
I concur. Would suggest they visit the store-front tax operations for resolution, as their patience and the deepness of their pockets are greater than my own when matters of this type arise.
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