2 installment agreements for divorced couple

[JBP]

A couple who filed jointly in 2018 received a CP2000 recently. Some adjustments are being disputed, but I'm expecting a $21,000ish balance once it's settled.

Couple is now divorced.

Is it possible to for the IRS to split this into two accounts for them to each create their own installment agreement? (Last I checked several years ago this wasn't possible) Or is there some other way to have each be responsible for half? They are unwilling to work together at this point.

[New York Enrolled Agent]

Or is there some other way to have each be responsible for half? They are unwilling to work together at this point.

There's no overcoming §6013 except be able to use §6015 as an innocent spouse.

IRC §6013(d) Special rules

For purposes of this section -

... and

(3) if a joint return is made, the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several.

[JBP]

Yes, thank you. I understand and agree.

My primary concern is that the taxpayer already has an installment agreement (separate from ex-spouse) and I can imagine the total shared liability being automatically rolled into his account only. At that point there will be no way to hold the ex-spouse accountable for her share, unless he defaults.

My past understanding was that as long as one person was making payments, the IRS will not pursue the other spouse for payment. I'm looking for an approach to take up front that would hold both parties accountable. Any strategies or past experience with this would be appreciated.

[spanel]

Your talking $100,000+ in additional income... Whos was this??? Was it his or hers? Maybe innocent spouse?

Chris

[TaxGuyBill]

Couple is now divorced.

First check the divorce agreement. It could possibly say what is to happen with any joint debts. For example, if one person ends up paying the full amount of a joint debt, then the other spouse may end up owing the first spouse for their share. If it is not in the divorce agreement, it may be a good idea for them to talk to their divorce lawyers about the matter.

But as pointed out, the IRS will take it from whoever they can. But the final long-term result might be able to be solved through the divorce attorneys.

[JBP]

It was from his 401k distribution that wasn't reported. (1099R was overlooked by them during a medical crisis)
The funds were mostly used to improve the home she now lives in.

I appreciate the input received, thank you.

[spanel]

If your dealing with the taxpayer, innocent spouse clearly will not work. His only recourse is divorce attorneys.

Chris

[Enoki]

Yes, if you or the TP indicates that TP is divorced, even though the liability is J&S, they will set up a separate Installment Agreement for your taxpayer. The payments will reduce the liability on both accounts, but they can have separate IAs.