Ex filed a fales 2005 return

[dsi]

H&W divorced in 2005. Divorce papers support this. H filed a fraudulent tax return for 2005 as MFJ and signed W's name.

In filing the fraudulent tax return, H omitted some taxable income. TheIRS is now trying to collect the underpayment from W.

When W subsequently filed her 2005 tax returns, theIRS sent her a letter saying her claim was denied.

W filed her 2006 returns, and received a refund.

W filed her 2007 returns, and theIRS is keeping her refund to satisfy the taxes owed on the fraudulent 2005 returns that H filed.

How best to approach this?

[BHoffman]

Would the Tax Advocate be able to help?

[DTS]

Dave

I'm surprised the IRS is not more interested in getting up close and personal with the ex for these shenanigans that I would consider criminal. And why won't they, the IRS, scrutinize each return and make the determination for your client? My thinking is that the actions of the ex will not bode well for him, but will for your client. There has to be something your client can do to clear her name and turn this around on the ex??

Also, a couple of clients, as well as my wife calling on behalf of her mother, have had very good luck with the advocate, as BHoffman suggests. Do contact them and see what they suggest in handling this. They just might have the right fix for a good outcome for your client.

D

[dsi]

Thanks for your suggestions...I will discuss them with my client.

[Burke]

TP Advocate is great, but they usually want you to try to resolve thru normal channels first, then them if that fails.

[ED SMITH]

Write a letter to ACS detailing very clearly what happened. In the letter ask them to reverse the assessment, penalties and interest. At the end of the letter put in a 'jurat' statement, 'under penalty of perjury I swear that the foregoing statements are true and accurate'. Have the client sign it.

It should be mailed to ACS support. You will have to find out which one of the four
support centers to send it to.

What stage of collections is the client in? Has the client received a CP504, Final Notice of Intent to Levy? If so, call ACS and let them know what is going on and that you want 60 days for the request to process. (They can also give you the correct ACS Support address)

[VT-EA]

Innocent Spouse

Sound like innocent spouse relief would be possible for the ex-wife. It has not been more than 2 years since the IRS started to collect.

[Kram BergGold]

No on innocent spouse

You can't claim she is an innocent spouse as she was not married.

[taxea]

Ex filed a fales 2005 return

Your client should contact the IRS fraud unit and report the incident to them. Did your client file a tax return for 2005? What filing status did she use? taxea

[travis bickle]

Here is the url

Your client should contact the IRS fraud unit and report the incident to them. Did your client file a tax return for 2005? What filing status did she use? taxea

that tells you/your client how to file Form 3949-A concerning a fraudulent return [which is what good ole hubby did, if he did forge her signature as your op states].

http://www.irs.gov/individuals/article/0,,id=106778,00.html

I would also communicate with the office that contacted her and told her that her 2007 refund is being denied due to the fraudulent 2005 return. Make sure that that office undersands that fraud is involved so that they can take the appropriate steps to resolve this expeditiously in favor of your client.