Over the last 24-plus years, I have encountered hundreds of tax debt situations where a divorce has left one side of the marital party saying, “Why is the IRS coming after me when my ex was assigned responsibility for the debt in our divorce decree???” Unfortunately, this is a common issue for the newly-minted divorcée when the separation of a marriage occurs with a tax bill attached.

While the divorce decree may stipulate that one spouse will be responsible for the tax debt owed to the IRS, the Federal Government will glance at the document but not officially recognize it. Remember that state, not federal, laws regulate marriage and divorce. From the IRS’ viewpoint, if two individuals sign an income tax return claiming “Married Filing Jointly,” both parties attest to being equally responsible for any unpaid tax bills associated with the return.

Even though the divorcing parties may be contentious at best and sometimes downright nasty at worst, having the IRS knocking on both parties’ doors while the ink on the divorce decree is still wet isn’t going to benefit anybody. This is why individuals considering a divorce (or their trustworthy attorneys!) should encourage a proactive, impartial assessment of how past-due tax debt can be addressed between both sides before everything is finalized.

Now, several factors will come into play:

• What was the cause of the tax debt accrual?
• What is the income level of each party compared to the recognized National Standards the IRS employs when considering the collectibility of a taxpayer?
• What marital assets are held jointly by the couple that could be liquidated or borrowed against to address the debt?
• What other community debts must the soon-to-be separated couple consider and address?

Though both sides will have a natural inclination to look out for themselves and, in some instances, “put the screws” to the ex-, any attorney worth their salt will know that when it comes to an IRS bill that both sides will be pursued to address, coming to amicable terms on this one factor is in everybody’s best interest.

At Golden Lion Tax Solutions, we offer Divorce Mediation Testimony. The report we produce provides an impartial assessment of the total tax debts owed, any compliance issues that need to be addressed before final resolution can be achieved, a financial evaluation of each party using the IRS’ methods for consideration, and a summary of each option available to the couple to address the tax debt before the final separation is determined.

Because each side in a divorce must cooperate for the most efficient assessment, Golden Lion Tax Solutions only collaborates with the attorneys instead of the individuals. All records needed to make the assessment are secured directly from the IRS and the attorneys, with full disclosure to each side through the official report. Further, both sides are responsible for paying for this service 50/50. Impartiality is imperative in these types of situations, no matter how amicable the negotiations appear to be in the beginning.

Sometimes we encounter a couple who are “consciously uncoupling,” and no animosity exists between the two sides. In these situations, mediators are typically employed to help both parties walk through the process. Golden Lion Tax Solutions handles these situations a tad differently, working directly with the mediator with some minimal input from the individuals involved. However, again, both sides are provided the full report and can work through the mediator to determine the best option to address the past-due tax debt before the divorce is finalized.

Going through a divorce can be one of the most trying things an individual can face in their lifetime; add a tax debt into the mix, and it can multiply the unpleasantness of the process by one hundred. By offering an impartial, third-party testimonial that outlines the resolution options available to address an IRS tax debt before the final separation occurs, we can provide some experienced guidance that brings some semblance of control and peace to the stressed, soon-to-be separated couple.

If you or your client is divorcing and a joint IRS tax bill needs to be addressed, be proactive and reach out to us quickly. With our decades of tax debt resolution experience, we can provide honest, thorough, and dependable answers to complex situations.

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Trust. Protection. Wisdom.

Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.

For help with your tax debts, email contactus@goldenliontaxsolutions.com or call 833-LION-TAX (833-546-6829)

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.