If you’ve signed a divorce decree, you’re relying on its terms to be binding, especially for IRS tax debt. But you might be surprised when the IRS doesn’t act in accordance with the decree. If your divorce decree frees you of tax liability—meaning your former spouse has agreed to pay an outstanding tax debt—the IRS may still come after you for the amount owed.
Why Isn’t the IRS Following the Terms of a Divorce Decree?
A divorce decree is an agreement between you and your former spouse. The IRS has no involvement in the decree’s terms, nor any obligation to abide by them.
When you filed joint taxes with your then-spouse, you accepted joint and several liability, meaning both you and your spouse are responsible for the entire tax debt. This gives the IRS the legal right to collect the entire amount from either you or your ex.
While the divorce decree may assign legal responsibility for the tax debt to your former spouse, federal tax law supersedes state court orders. So, if your ex doesn’t pay as they’re supposed to, the IRS has the legal right to come after you for the outstanding amount.
How Do You Free Yourself from Your Ex’s Tax Responsibilities?
If your former spouse is failing to meet the conditions of the divorce decree and pay the taxes in question, you have several options available to you for relief:
- If your ex understated taxes on a joint return without your knowledge, you can file Form 8857 to apply for innocent spouse relief. This can free you from your ex’s portion of the tax deficiency if you didn’t know about, or have reason to know about, the understatement.
- You can request separation-of-liability relief. The IRS will then review the joint return and calculate your and your former spouse’s taxes individually based on each person’s income and deductions.
- You can apply for equitable relief, where the IRS will consider fairness factors. A divorce decree assigning the debt to your ex will weigh heavily in your favor.
- You can pay the IRS for the outstanding amount and then sue your ex in civil court, using the divorce decree as grounds for reimbursement.
- You can file a motion in family court to hold your former spouse in contempt of court for violating the divorce decree. This may spur your ex to pay, but it won’t stop the IRS from coming after you in the meantime.
Highland Tax Group Can Help Address Your Tax Debt
The tax experts at Highland Tax Group can help you deal with the IRS in cases of spousal deficiency after a divorce decree. We can help you file the correct forms and follow proper IRS procedures to remedy outstanding debt that shouldn’t belong to you.