Dealing with Taxes after Divorce: What IRS Revenue Officers Recommend

Wednesday, May 30, 2012

Each year IRS revenue officers answer hundreds of questions in regards to divorce and taxes. Since divorced individuals still have to file a final tax return for their year together, things can get difficult especially if the divorce finalized mid-year or even at the start of the year.

Financial Planning is a Must

IRS revenue officers recommend that any couple going through a divorce or who has finalized a divorce should seek financial planning counseling from a certified accountant or financial planner. When dealing with divorce attorneys, IRS revenue officers recommend that divorced couples look into individual accountants to sift through the accounts, debts and of course, tax issues, to ensure that there are no errors along the way.

Keep Everything Up to Date

When a couple divorces, paperwork is lost and often unorganized. IRS revenue officers state that couple’s divorcing should make copies of paperwork they need to share as well as create filing system for all paperwork that applies to them as a married and divorced couple. This will help when tax season rolls around, especially since they will need detailed information for their tax returns.

Withholdings and Payments

When married, couples have the advantage of changing their dependents and withholdings to a higher number. IRS revenue officers state that the biggest error couples make after divorce is forgetting to change this. That means their paychecks have too much deducted and then they end up owing funds at the end of the year. Therefore, IRS revenue officers recommend that all individuals getting divorced immediately contact their payroll department to situate payments and withholdings to prevent from owing at the end of the year.

Income Tax Return Copies

Always get income tax return copies, according to IRS revenue officers. Even if the income tax returns were filed during marriage or at the end of the divorce, IRS revenue officers recommend that couples keep a copy of all returns filed for the duration of the marriage in case an audit or tax balance ever shows up in the future. That way, tax payers have a way to get out of any balances due, especially if they belong to an ex-spouse and not themselves.

If you are dealing with IRS revenue officers after a divorce, contact the professionals at My Tax Attorney today for assistance. My Tax Attorney understands how difficult it is to file taxes and deal with IRS revenue officers after a divorce and they can help you negotiate balances or even receive Innocent Spouse Relief after your divorce is finalized.

Looking for more resources on spousal relief?  The IRS tax information for innocent spouses can be found online.  Are you an eligible innocent spouse?  Head to Google to do a local search on what your state might say about innocent spouse relief.  You can also visit the Beverly Hills Bar Association.