Question about filing "married filing separately" even if I didn't work last year

[EarthyMamaofDaisy]

After I met DH I found out that he hadn't filed taxes in several years. I guess way way back he lied on his taxes and had to pay $20,000 but never paid it and just never filed since. He moved around a lot and always switched jobs so they never caught up to him. I told him as a condition to get married he needed to straighten things out with the IRS. Well, my parents were pushing me to get married since we'd already had a baby so he swore he'd fix it after we got married. So he did go back and file his previous tax years and his accountant even wrote up a proposal to settle his debt with the IRS. Then we fould out the cheapest payment plan he would qualify for was $250/month, which we simply cannot afford. So he has procrastinated and never filed the settlement paperwork. Last year was our first year being married at tax time and we filed separately as we both had jobs. Now it's almost deadline time and he hasn't even filed yet. I really don't want to file with him since I feel like his situation is a liability so I wanted to file separately but I didn't even work in 2007.
Any thoughts on his this works?

[xmysticprincessx]

i know that "married filing jointly" has a lower tax rate. is it possible to do married filing jointly this year and put your refund towards what your dh owes the IRS? if you get the EITC or child tax credit, that should be a chunk that you could put towards the tax debt and maybe see what kind of payment plan you'd get after putting your refund towards his back taxes.

how about calling the accountant and asking him/her?

[EarthyMamaofDaisy]

He hasn't used the accountant since tax time last year. I don't even remember the name of the guy. He is taking his sweet time in filing this year, I don't know if he plans on doing his taxes himself or hiring someone or what. He won't qualify for the EITC and I didn't work so if I file separately it's not like I'm going to get a refund. Can you file and say "I earned nothing"? Or do you only file if you've earned. I just don't want my name on his tax form.

[JennaW]

http://www.irs.gov/individuals/artic...=96623,00.html

Maybe try this, you take a little quiz and it tells you if you need to file.

[alicia622]

Even if you file separatly you still have to list your spouses name and SS# on each return so you will be connected to his return anyway. The IRS site has a list of things http://www.irs.gov/publications/p501/ar02.html#d0e1652 (about halfway down the page) you can't claim if you file separately so you'd need to see how that will effect 'his refund' (how much will be going towards his back taxes). The faster this can be paid off the better- I'd try to think of a plan to pay the 250 a month and get on track to paying it off.

[tonyarn]

I don't know if this relates in this instance, but could you file an injured spouse form? I had a friend who used to do this because her DH owed so much child support.

[superstella]

I was going to suggest the injured spouse form as well. Then whatever portion of the refund is yours will not be withheld, and it officially separates you from his past liability.

[shayinme]

Speaking as someone who owes way more back taxes than your dh, he really needs to get a payment plan with them because the longer he puts it off he is a greater rsik that they will garnish his wages, levy your bank accounts and basically make life unpleasant. The IRS is not someone to play with, in our case we filed but didn't make payments for a few years (self employed) and the interest and penalties that the IRS charges are nothing nice. I would be more fearful of having my account levied (that happened to us and it took a while to work things out) or wages garnished.

Also the settlement you mentioned is called an offer in compromise and its not that easy to get, in requires reams of paperwork and is an ordeal in itself. When applying for it, they will take into consideration his previous history with them as far as payment so it really would be in his and your best interest to get a payment plan started ASAP. I hear what you are saying as far as afforadability factor, before I lost my job our monthly payments were $600 to the IRS plus $200 on back state taxes. With the IRS you want to pay as much as you can because interest accrues daily.

You need to talk with an tax accountant who is an enrolled agent, meaning they have the right to negotiate with the IRS, not just a regular accountant.

Shay