Legal Question in Tax Law in California

I am requesting a "FINANCIAL HARDSHIP" from the Franchise Tax Board (STATE of CALIFORNIA) and already filed my 2012 taxes as married, but separately. I am currently filling out the "FINANCIAL STATEMENT" form because of a large amount of debt incurred with my previous spouse. Presently, I am newly married, therefore, my questions are about my current husband's position in my financial debts and they are as follows:

1) How do I consider my current spouse a "NON-LIABLE SPOUSE"?

2) Since I have to indicate on the form his employment/and current income, do I have to put down his Bank accounts and/or car information, even though I DO NOT HAVE MY NAME ON ANY OF THESE?

3) Can the IRS put a lien on any of his assets, because of my debt?

Asked on 8/22/13, 1:24 am

1 Answer from Attorneys

Christian Montgomery Montgomery & Wetenkamp, Attorneys At Law
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There are several collection alternatives available to taxpayers who are unable to pay their Internal Revenue Service (IRS) and Franchise Tax Board (FTB) taxes. Situations involving a non-liable spouse are usually more difficult because the taxing entity is often confused about the situation. Therefore, it is very important to understand the applicable rules and requirements, because in many situations, the taxing entity does not.

Question 1: “How do I consider my current spouse a "NON-LIABLE SPOUSE"?”

Answer 1: The spouse is either liable or they are not. Even a non-liable spouse may be subject to collection action in a community property state, such as California, for the tax debt of a spouse.

Question 2: “Since I have to indicate on the form his employment/and current income, do I have to put down his Bank accounts and/or car information, even though I DO NOT HAVE MY NAME ON ANY OF THESE?”

Answer 2: The standard financial disclosure form does not request information for only a liable spouse; therefore, you would need to disclose the requested information. Depending on your unique facts and circumstances, options other than full disclosure of your financial situation may be beneficial and available to you.

Question 3: “Can the IRS put a lien on any of his assets, because of my debt?”

Answer 3: This depends on many factors including how the property is held and the jurisdiction of the property.

An experienced tax relief attorney should be able to review your options with you, often through a free consultation. http://www.mwattorneys.com/

This response should not be considered legal advice. No attorney-client relationship is formed by this response, which reflects only the opinion of the author. The response should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question and could change if additional facts were made available

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Answered on 8/23/13, 11:34 am

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