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Name: Faithful1 New Member   Title: Need advice: Discovered he has been cheating the IRS!

I could use all the advice I can get. Several months ago I learned of my husband's long-term affair with a (now former) good friend & neighbor of mine. Learning of the affair compelled me to look closer at his financial affairs. After thoroughly investigating this matter (he is self-employed), I learned that he has been cheating the IRS big time! I refused to file jointly in 2009 because of what I learned about him. I can prove he makes more than double what he is saying he makes. Now that's what I can prove... I'm sure he's made more than I can prove too.

Currently, I am divorcing him. I need the courts to order that I am NOT responsible for his tax activity past, present, or in the future. My lawyer has told me that I am an Innocent Spouse and will not need to worry about the IRS myself, but I still do anyway. AFTER my divorce is finalized, I can report him to the IRS.

My question is: What will the IRS do? Can I get in trouble because of his wrong doings? How likely would it be that he will do jail time (and for how long?) Also, if he does go to jail, am I entitled to child support from him while he is in jail OR will it at least accrue while he is jailed and then he will have to pay it back after he is released? Also, how will this affect his record?

Any advice you can give me is greatly appreciated! Thank you for your time!

Name: Barbara_Lynn New Member

First of all, it is a very good choice that you have a lawyer! Not filing a joing 2009 return is probably a great decision. However, you may still have some consequences from prior years joint returns.

Unfortunately, it does not matter what a divorce decree says about responsibility for joint debts, the creditor is not bound by the language of the decree. To simplify that, think about a joint credit card debt, which your spouse is ordered to pay but fails to do so. After your spouse defaults on that credit card debt, that creditor could still come after you for payment NO MATTER WHAT YOUR DECREE SAYS. The same holds true for the IRS.

Calculations for child support, and potentially spousal support/alimony, are based upon the combined income of the parties. You will want to present your "proof" of income during this part of the process so that the court correctly computes support. Any support award should continue regardless of whether or not your (ex) spouse is incarcerated.

Depending upon your lawyer's personal expertise (not many family law attorneys are well versed in tax law) you may want to consult with a criminal tax attorney. That will be your best source of information about potential consequences and possibly negotiations with the IRS to provide information against your (ex) spouse in return for no liability and no prosecution for you for past joint returns. From your comments, I really encourage you to get some expert advice from a criminal tax attorney.

Good Luck!

Barbara Lynn
www.NavigatingDivorce.net