Belt Auction

Will the IRS try to get money from my wife's paycheck or small business income or bank accounts?

I was in the Real Estate Business from 2005 to 2008. I eneded up owing taxes for those 4 years to the tune of 18,000. I got married in Feb. 2007 but my wife and I have never filed a joint tax return. NEVER! In Sept of 2009, I filed for bankruptcy and it was discharged in March of 2010. My wife is the only with and income right now. I have been trying to put together real estate deals with no luck as of yet. My wife brings home about 2400 a month from her job and has a very small side business with avon and ebay. she may make an extra 300 a month off that, I am not sure, but it is not significant. Our expenses are as follows $1100 for rent $360 for car note $100 car insurance $500-600 food $100 Utilities $60 Term Life Insurance $250 Clothes $250 Misc Note: We have a 9 year old son We don't have any saving at all but she does have a 401K with her job. I have not brought in a dime since 2008 hence the reason I filed bankruptcy. My question is... Do I qualify for non-collectible status and also, will they try and make my wife pay for my debts since she is working? Will they come after her bank account or wages Also, I do not own a car. I sold it as a part of my bankruptcy in 2009. We have no joint back accounts We have never filed jointly on tax returns to keep or finances seprate. Is my wife's business income safe as well?

Public Comments

1. Well, usually they come put a lien on whatever they can that you own.. so since you do not Own a home they cannot put a lien on that.. But you do have a car.. so they May try to put a lien on that. But yes any taxes unpaid During your marriage means they can go after your wife.. their is a good chance at some point they will seize either the bank and/or checking account OR just deduct from her wages.. but only for the half owed when you were married.. they cannot come after the wages on the taxes you missed when unmarried. No taxes do not go in the category of non collectible.
2. If you file a joint return with your wife they will take any refund unless she files an injured spouse claim. Once you have file a joint return they may go after her assets unless she has file the injured spouse claim. they will surely go after any joint assets.
3. You seem to have a pretty good wall between matters financial with your wife; but here are a couple of things to take into consideration. If you (she) file returns as married, filing seperate, you forfeit any CTC & EIC; a way around this is to file a married, filing joint, return and include an injured spouse allocation form 8379. This form will put a wall between your dollars tax wise on the joint form; your wife can collect the EIC & CTC; and not one penny of it can be taken by the IRS for your indebtedness. Make sure your name is not on any of her bank accounts and yada to keep them from being considered joint accounts and therefore touchable.
4. they can't touch your wife's income, but the penalties and interest are going to keep accumulating and sooner or later when you do get a job, expect to get 25% of pay after withholding taxes to be garnished and they may also come after YOUR bank accts in the future why do you need $3000/yr for clothing? and whet is $3000/yr of "misc"?
5. If you never filed a joint return, they likely cannot.
6. They will not take. They will freeze her assets. She can file an injured spouse form to force them to undo all the account freezes. Bankrupcy does not forgive tax liability. Not sure about qualifying for uncollectable status, but you can try to negotiate out of it.
7. In most states, no. There are a couple states where she is jointly responsible for your debts since you're married.
8. if you have always filed separately her SSN is still on your return as the separate spouse and anywhere her SSN is present it is possible for those accounts to be levied she does have the option of filing the injured spouse form to separate yours and her liabilities
9. If you do not live in a community property state, and your wife does not file a joint return with you, then your wife is not responsible for your back taxes. If you live in a community property state, it depends on the state, but her assets will be at risk for your back tax debt. If you had income in the past, and you are young enough and healthy enough to work, don't expect the IRS to put your debt into non-collectible status. Non-collectible status does not stop the accrual of penalties and interest. The IRS will expect that you will return to work and pay off your debt. By the way, your wife does receive the Child Tax Credit of $1,000 even if she files a separate return. She will not qualify for the Earned Income Credit, which with her income is around $500.