Question:
My mother and father divorced in 2002 and because they filed Married Filing Jointly they owed over $100,000.00 in taxes to the IRS.  My mother does not have a job and has never worked outside of the home.   My father agreed to pay all of the taxes in the divorce, but now the IRS is trying to make my mother pay.  What should she do?
Answer:
Thanks for your question.  Unfortunately, since you parents filed jointly they are both individually liable for the entire amount of tax due, and even though your father retained liability for the entire tax amount in their divorce action the IRS does not recognize the divorce decree as removing her liability.  There are a couple of ways your mother can negotiate her liability with the IRS.  Since she is still not working outside of the home, I would assume that she is receiving some sort of alimony as income.   She may be a very good candidate for an offer in compromise.  An offer in compromise is an agreement between your mother and the IRS for the IRS to accept less than the tax, interest and penalties due.  It is based on your mother’s income, expenses, and realizable equity that she has in her property and there are several methods of arranging the offer in compromise so we can find one that suits your mother best.  We also handle estate planning, real estate and probate matters.  Please call our office today to set up your free consultation.