Many clients asking for help never
thought they would have an IRS Problem. Then they married someone who, known or unknown to them, had
problems with the IRS. Sometimes,
even the spouse with the problem didn’t even know that a problem
existed. These issues create
a terrible strain on the people involved. What I hope to accomplish here is to give you some tips on how to
avoid these problems.
If you live in one of the community
property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) you are at highest
risk. The IRS considers most income as community (shared) property
in those states.
This
means half your paycheck belongs to your spouse and can be seized for a
problem you had nothing to do with!
Secret 1----A prenuptial
agreement is recognized by IRS Collections. Prior to marriage, have an
attorney draw up a prenuptial agreement keeping your property separate.
It is not expensive and could save you heartache and thousands of
dollars. It isn’t a bad
idea for other reasons as well. To see a sample
Pre-Nuptial Agreement click here
Secret 2----Check with your
county clerk for tax liens filed against either of you.
Secret 3----Have each call the
IRS at (800) 829-1040 with the other listening in to determine if any tax
returns have not been filed, and if the IRS shows any unpaid tax
assessments.
Secret 4----Each should get
their own credit reports from all three credit bureaus and check for tax
liens and unpaid judgments.
Secret 5----Review the
other’s last three years of tax returns to see if an audit is likely. Look for unreasonable business expenses and other adjustments and
deductions. Is all business
income reported as income? Don’t
assume anything. Better to know the truth before you are married.
Secret 6----If one of the
parties will not share this information, embarrassing as it might be, you
are asking for big time trouble. There
will be more secrets after marriage, not fewer.
If you discover unfiled returns,
unpaid assessments, or questionable tax returns:
DO NOT GET MARRIED YET.
IT WILL BE FAR CHEAPER FOR BOTH OF YOU
TO END THE PROBLEM PRIOR TO MARRIAGE. IRS COLLECTIONS HAS TO CONSIDER TOTAL HOUSEHOLD INCOME IN MAKING A
DEAL. KEEP THE INCOME LOWER BY STAYING SINGLE. SOLVE THE PROBLEM, THEN GET MARRIED AND ENJOY LIFE.
GET PROFESSIONAL ASSISTANCE
IMMEDIATELY. IF YOUR INTENDED
WILL NOT ACT TO SOLVE THE PROBLEM, DO NOT MARRY THAT PERSON.
If you get married and your new spouse
has an IRS problem, some of the things that may happen are:
- An
IRS lien will probably find its way onto your credit report.
- You
will have difficulty obtaining credit or borrowing money even in your
own name.
- The
IRS may seize or try to seize your property, even property you owned
before marriage.
- Your
marriage will be in turmoil over the issues.
- You
may end up having to pay for tax problems from an earlier marriage of
your spouse, known or unknown.
I like seeing people happy as much as
anyone else. The heartbreak
these problems can bring cannot be overestimated. It is really difficult to get over and make the marriage successful
during and after these problems. Many
fine people have issues with the IRS. Just don’t take on a problem you had nothing to do with.
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