The IRS cannot take collection action against the separate income of a non-liable spouse. If separate tax returns are filed, only the person who signed and filed the return is legally obligated to pay the taxes. If your spouse did not sign or file a joint return with you, then the IRS cannot collect from [...]
Innocent spouse
The list of when the IRS cannot take property is fairly extensive, so I will do this in parts to break it down simply. Here is Part I of when the IRS is prohibited from taking collection action: When there is insufficient equity in the property. There must be sufficient net proceeds from the sale [...]
If I file bankruptcy on the IRS, but my spouse does not, will the filing stop the IRS to both of us?
When a bankruptcy is filed on the IRS, Section 362 of the Bankruptcy Code imposes what is called an “automatic stay” on collection activity by creditors, including the IRS. The automatic stay requires the IRS to release any levys and to cease any further collection action. But what if a husband and wife owe back taxes on [...]
