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Non-filed returns

Submitted by on Fri, 01/25/2008 - 10:58
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I hope someone out there has an answer for me, I could not find anything on IRS.gov.

My husband and I have not filed a return in about 5 years. Bad, I know. He was laid off in January 2003, and decided to start his own business.(Sole Proprietorship)

Since we always filed jointly, mine have not been filed as he has never gotten his papers together to actually do it.

We have since separated. My question is, should I file married filing separately going back to the first unfilled return? Is this even something I can do myself at this point or do I need to see a tax professional?

Any idea how badly screwed I might be on this??


A tax professional would be a good idea. But think about the ramifications of this filing status. For starters, if you don't itemize, the standard deduction is much less, which isn't great news. Also, if you have children, you need to be careful about the IRS's dependency tests that need to be used in order to claim them on both your returns. Did you both contribute to at least half their support and did they live with you for at least 6 months in the year in question?
The tax brackets are also different in this status--and you can see this when you are at the final step and go to the tax tables for that year. And trust me, married filing joint is a much better deal.
But definately, definately work on getting those returns in--and probably the IRS is sending him notices asking for them.
If you ignore them, they can file a return for you for that year and that isn't any fun.


Submitted by kscornell on Sat, 01/26/2008 - 14:13

kscornell

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We do have a child. The daycare expenses came completely from my paychecks, the only steady income we had until he got a job a few months ago. Our son has always lived with both of us. I am moving out in about a month-I could not afford it until he could take responsibility for the daycare. It's over 800.00 per month.

Surprisingly, we have not gotten any notices about the returns. I know it is a way better deal to file together, but i can't get him to get his stuff together so we can.

We usually did itemize, and if i file on my own i have quite a number of prescription and doctor receipts i can possibly use for a deduction. And if I do file on my own, I am going to take the deduction for the childcare.

I am just really concerned with how this will affect me by us not filing.


Submitted by on Sun, 01/27/2008 - 19:43

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Hello - hopefully you are checking back for updates on your situation. I was in a very similar situation - you may be interested to hear the outcome.

First things first, file head of household. You can do this if you have been separated and not living together for 6 months out of the year (I believe - check the IRS qualifications).

Second of all, call the IRS Tax Advocate for advice.

Here's how they helped me: In 1990 I married 2nd husband, we had a baby, I quit my job & was a stay-at-home mom. I found out he never filed taxes. Why? I have no idea - we were always due money. He was an angry alcolholic & I honestly think he just wasn't up to this tedious task. I urged & urged - year after year we argued. What was I to do? I was not working - he was. He had to be the one to file - I was one of his dependents.

In 1999 we split up and upon getting back into the workforce I filed taxes in 2000. Much to my surprise & due a refund of over $2,000, the IRS told me I owed $4,000 for an unfiled 1990 return (the 1st year of our marriage). Apparently the IRS did the 1990 return themselves & incorrectly at that - not giving credit for my two dependent children from a prior marriage.

I felt helpless. In 2001 I was owed another $2,000 refund. Again - they were going to keep it & apply it to the $4,000.

Now I was determined to prove them wrong. Luckily my ex left all his W2 forms behind, so I did all our tax returns from 1990 thru 1999 when we split up & convinced my ex to sign them. He did - slightly intoxicated - but he signed non-the-less.

Now I had proof to the IRS that we actually were owed money over all those years that we did not get. They told me I couldn't amend the incorrect 1990 return - even though it was wrong. They would still keep my refunds to apply to the $4,000 owed & that was that. As for the other returns we were owed money on - we waited too long and we got nothing. They could have cared less.....

I noticed an IRS Tax Advocate phone number in the back of my IRS 1040 instruction book. I called expecting nothing. Boy was I wrong. She reversed everything in a matter of days. You can find the IRS Advocate number on the IRS website or in their publications. After I explained my situation she urged me to immediatly type up & fax a hardship letter to her (I was a financially struggling single mom behind on my mortagage payments). Upon receipt she got my amended 1990 return accepted and got my 2000 & 2001 refund expedited - I had it in my hands in 2 weeks.

Good luck to you! Call them & keep us posted.


Submitted by on Wed, 02/20/2008 - 18:47

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