Did you know that there can be implications of your spouse's history of IRS issues on your finances? Many people incorrectly assume that their spouses tax problems are not their own. When you file your taxes jointly as a married couple you are not only entitled to half of your spouse's earnings and assets but also to his/her tax issues. This means that the IRS may very well hold you accountable for your spouses past tax indiscretions and expect you to pay up. Here are some things that you can do to minimize your accountability. If you do not want to pay the tax debts that belong to your spouse:
Bankruptcy Lawyers In Knoxville TN, Bankruptcy Attorney Tucson, Bankruptcy Lawyers In San Diego,
Stay away from the concept of our money
If you don't want to be held accountable for the over payment or under payment of taxes that was your spouse's folly, keep your earnings separate. Maintain separate bank accounts. If there is trouble with the IRS and they choose to levy your joint bank account, you will lose all the money including your money kept in that account. As far as the IRS is concerned, there is no difference in the funds held in the same bank account and they will seize them regardless of who it belongs to. In some cases, a person may be able to recover his earnings from the IRS but it is a long and arduous process. So to avoid trouble go for separate tax accounts even after the " do's".
Don't own assets together:
Ensure that the properties bought by you before and after marriage are titled solely to you, proving that you are the sole owner. If your spouse does not co-own an asset with you the IRS cannot seize it to make up for your spouses tax payments. Such assets can include real estate, jewelry, equities, mutual finds, cash savings etc.
Get a Pre Nuptial Agreement signed
Even though a prenuptial agreement is not the most romantic thing in the world, it can certainly save you from a lot of tax troubles. This particularly holds true if you reside in a community property state. In these states getting a prenuptial signed from your spouse may be the single most important way to safeguard your assets from state and federal taxation laws.
File your taxes separately
This is an extremely crucial step to safeguard your income and holdings. Even though this would mean that you will have to pay more in taxes when you file individually instead of jointly with your spouse, a few dollars paid more today are certainly better than losing thousands or more later in case of tax trouble. If you file your taxes separately from your souse, the IRS will not be able to hold you responsible for your spouses tax issues and they will certainly not be able to make you pay for them. Also, filing your taxes independently of your spouse may prove to be very useful in case you have to file for bankruptcy. Only the spouse who is liable will have to file for it which means that the spouse who is uninvolved can go about his her life with a good credit. Even one person with a good credit rating when the other spouse has filed for bankruptcy can be a life saver, simply because bankruptcy can wreak havoc on your credit scores.
If you are not sure about what to do to avoid the burden of your spouses tax payments, get in touch with a Dallas tax attorney for advice. Alternatively, you could also contact an accountant and ask him to help you out.
Ideally, you should try your best to avoid trouble with the IRS, simply because they can cause a lot of trouble including imposing humongous penalties and steep interest rates on you. If you do not give in, they may even try you on criminal charges, so you need to be very careful when handling tax related matters to avoid opening the proverbial Pandora's box.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Dallas Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment