Anyone have experience mirroring IRS accounts to split shared debt?
January 4, 2024 8:39 PM Subscribe
Taxes fun with an ex – trying to find a resolution that will allow me to pay a "share" of our currently shared past tax debt. More under the fold...
My ex-spouse and I share tax debt from two years, going back about 7-8 years now. We filed married/joint, they were the primary and I was secondary, and so we both are responsible for the full delinquent amount. I understand this and am not trying to weasel out of paying; rather I want to pay my share or 50%, and be DONE with it. And then my ex can deal with their share...or not, if history has anything to say about it.
Today I spoke with the IRS and learned about the concept of getting mirrored accounts, which would allow either a 50/50 split of that debt, or could possibly parse it out based on what we each actually owed for those two years. The first person I spoke with sent me to the taxpayer advocacy line, which after a few more transfers sent me back to the same department that first person worked in. By that point I didn't have time to be on hold, so will resume this quest tomorrow morning.
My questions: Have you ever successfully mirrored IRS accounts with someone? If so, how did it go? Or are you a CPA that would know something about this? I don't think I qualify for the Innocent Spouse deal, nor the Offer to Compromise. And you may be wondering, can't you guys set up a payment plan with the IRS and both pay into it until it's paid off? Simple answer: I can't rely on my ex to even pay that, and I really, really need to be free of their poor financial practices. Commiserating also welcome.
My ex-spouse and I share tax debt from two years, going back about 7-8 years now. We filed married/joint, they were the primary and I was secondary, and so we both are responsible for the full delinquent amount. I understand this and am not trying to weasel out of paying; rather I want to pay my share or 50%, and be DONE with it. And then my ex can deal with their share...or not, if history has anything to say about it.
Today I spoke with the IRS and learned about the concept of getting mirrored accounts, which would allow either a 50/50 split of that debt, or could possibly parse it out based on what we each actually owed for those two years. The first person I spoke with sent me to the taxpayer advocacy line, which after a few more transfers sent me back to the same department that first person worked in. By that point I didn't have time to be on hold, so will resume this quest tomorrow morning.
My questions: Have you ever successfully mirrored IRS accounts with someone? If so, how did it go? Or are you a CPA that would know something about this? I don't think I qualify for the Innocent Spouse deal, nor the Offer to Compromise. And you may be wondering, can't you guys set up a payment plan with the IRS and both pay into it until it's paid off? Simple answer: I can't rely on my ex to even pay that, and I really, really need to be free of their poor financial practices. Commiserating also welcome.
This has come up a bit on Reddit's Personal Finance subreddit - see here.
posted by NotMyselfRightNow at 4:36 AM on January 5
posted by NotMyselfRightNow at 4:36 AM on January 5
I'm a CPA and have never heard of 'mirrored accounts', but regardless, that won't absolve you of joint and several liability for the entire tax debt.
The only way you can get out of being liable for your ex-spouse's share of the tax debt would be if you qualify for Innocent Spouse Relief and I've linked to the IRS rules on this issue.
Offer-In-Compromise would involve you and your ex-spouse putting together a super-detailed financial disclosure, so, based on your comments, that doesn't sound desirable and you'd also have to show that you and your spouse don't have the financial means to pay off this debt within 10 years.
The IRS will, forever, consider 100% of the MFJ due from one or both of you, unless you qualify for Innocent Spouse Relief.
If you owe under $50,000, you can go online and set up a payment plan with a direct debit from a bank account. Would it be possible to set up an independent 'Tax Debt' bank account just to use as a fund source for this tax debt, with funding from you and your ex-spouse? If the debt is under $50k, you can repay it over 6 years (with interest).
posted by dngrangl at 2:18 PM on January 5
The only way you can get out of being liable for your ex-spouse's share of the tax debt would be if you qualify for Innocent Spouse Relief and I've linked to the IRS rules on this issue.
Offer-In-Compromise would involve you and your ex-spouse putting together a super-detailed financial disclosure, so, based on your comments, that doesn't sound desirable and you'd also have to show that you and your spouse don't have the financial means to pay off this debt within 10 years.
The IRS will, forever, consider 100% of the MFJ due from one or both of you, unless you qualify for Innocent Spouse Relief.
If you owe under $50,000, you can go online and set up a payment plan with a direct debit from a bank account. Would it be possible to set up an independent 'Tax Debt' bank account just to use as a fund source for this tax debt, with funding from you and your ex-spouse? If the debt is under $50k, you can repay it over 6 years (with interest).
posted by dngrangl at 2:18 PM on January 5
Response by poster: From what dngrangl linked to, it looks like I may qualify for the 'equitable relief' type of the innocent spouse option. I finally got an IRS person on the phone long enough to help me figure out the best way forward, and she said to fill out a 911 form and send it to my local Tax Advocate Service office. This would allow me to work with just one person assigned to help me, rather than play some ridiculous mash-up of Whack-a-Mole and Musical Chairs trying to navigate the IRS phone system. They should get back to me within two weeks (inshallah!) and I can bring the equitable relief option up with them and go from there. Still curious about the mirrored accounts, but that's something I can ask about as well. We owe *far* less than $50k, but unfortunately I can't rely on them to follow through even on a shared bank account.
posted by Molasses808 at 5:36 PM on January 5
posted by Molasses808 at 5:36 PM on January 5
Good to hear! FWIW, I’ve had good experiences with the Taxpayer Advocate Service as they are genuinely there to help taxpayers cut through red tape. Good luck!
posted by dngrangl at 2:22 AM on January 8
posted by dngrangl at 2:22 AM on January 8
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Also untangling from a financially irresponsible ex. It is harder than it ought to be because his choices are still affecting our children, ages 16-28. I feel for you so hard.
I recently filed the Innocent Spouse form, and, if you haven't looked at it, it is really not onerous. It might be worth filing even if you're not sure you qualify, because it is really straightforward. There was room for me to explain our situation in detail (I think I attached a page). And I heard back quickly, though, sadly, I had put the wrong tax year on the form, so the response was, "you put the wrong tax year on here." Oops.
I don't know enough to advise you beyond that; fortunately, our 2022 tax liability really is my ex's responsibility and even they agree to that. Really, I'm just here to commiserate. One of the hardest lessons I've learned in the year since I left is that divorce/a break up doesn't actually free you from your ex's bad behavior, especially if you have kids or shared assets. It's better, don't get my wrong. But I'm still in it, alas.
I'll be reading this with interest.
posted by Well I never at 9:38 PM on January 4 [2 favorites]