Fiscal Tax Forums / 2007 Income Tax Help / 2007 General Tax Help / Back Taxes Owed - Innocent Spouse Help!
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| Posted: 10 May 2008 01:47 | ||
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Posts: 1 Join Date: May 2008 |
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I hope that someone can help me with a problem I am facing. I am not sure if I could be considered an "Innocent Spouse" or something of the sort.
We have already set up a payment plan with the IRS because they said that we owe back taxes. My husband and I have always filed a joint return and we have always gotten back a pretty nice size refund each year. We haven't ever had any problems until all of a sudden we received notice that we owed the IRS money from the tax years 2004 and 2005. The IRS said that we did not include all of our income on our taxes that year. I do not have any income to report from these years. I was a student and we have a son, so I do not earn income from employment. My husband has the taxes done each year and since we file Married filing joint, I sign the return. I never thought that there would be any kind of issue with the return because we do not even itemize deductions. My husband did include his employment income on the taxes so I had no idea they were not accurate. The problem ended up being that my husband had worked at another company for a short period of time at the beginning of the year. He had not remembered that in Jan he was working with the other company and the end of Jan is when he started his new job. That company did not send his W2's out to our new address and he only filed the w2s from his current job. Also, when he left the old job he went ahead and had the money he put in his 401K sent to him. He had only been putting money into the 401K for a short time and normally with the type of job my husband has the companies never offer 401K so he knew that transferring it to the new company wasn't a possibility. He did not know that he was suppose to file that money received. My husband said that he thought since that check was taxed at the time he received it, it wouldn't be taxed again. I wasn't even aware that he had gotten the check from his 401K. My husband deals with everything to do with the finances. However, now I also owe the IRS this money. My husband has set up a payment plan and $125 is paid to the IRS each month. That payment plan only covers one of the years owed. Now, I just received a certified letter stating that we owe 3K from the 05 year as well and our property will be levied on May 21st if we do not pay the 3K or set up more payment arrangements. They sent ME this notice, but both of our names are on the paperwork. Then another notice arrived stating that our 07 tax refund of 1588 was applied to back money owed. We also qualify for $900 stimulus rebate this year, which I am sure will be put towards this debt. I am wondering if I explain the situation to the IRS will they still continue to hold me liable for this debt? I am also wondering if the IRS would allow me to actually receive even a portion of the stimulus rebate? I understand that I did sign the return, but I truly had no knowledge of the errors that were made and I do not deal with the finances at all. My husband says because he is having to make these payments to the IRS and they are keeping our refund and rebate I will not be able to complete my college courses. Considering the fact that if I am able to attend this year I will graduate in 2009, I really do not want to drop out! I am afraid that if I drop out I will end up not returning and I have worked really hard to get where I am right now. Another issue is that if I were to get a part time job to help out, the IRS may garnish my wages to pay off this tax debt. I realize that my husband and I are married, but I did not receive one penney of the tax refund that my husband is now paying back. Any help or advice anyone can provide me with would be greatly appreciated. |
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