Federal tax lien from joint return - how to resolve?

Asked over 1 year ago - Matthews, NC

I have a federal tax lien being reported on my credit reports for an $11000 tax liability from a joint return. Ex has all tax liability in our divorce papers, but IRS doesn't accept court orders to release one from tax liability.

Should I ask to have the debt divided and enter an installment agreement so that I can have the lien removed? Then go after the ex in court for the money later? Any other suggestions for handling this quickly?

Additional information

Unfortunately, I don't have the money to pay off the entire debt, so I'm trying to find a way to remove the lien from my credit report without paying the entire amount.

Attorney answers (4)

  1. John P Corrigan

    Contributor Level 19

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    Answered . Pay off the IRS and request they remove the lien (it does not happen automatically). Then you would essentially sue ex for contempt to extent he breached the divorce decree by not paying the back taxes.

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a... more
  2. Evan A Nielsen

    Contributor Level 18

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    Lawyers agree

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    Answered . Since you don't have the funds to payoff the lien, you may want to consider an offer-in-compromise. And seeking innocent spouse relief may also be an option depending on the circumstances. If your ex is liable, don't overlook the approach of pursuing the ex to address the issue.

    Good luck.

    Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The... more
  3. Linda Simmons Campbell

    Pro

    Contributor Level 14

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    Answered . Unfortunately if the IRS can collect from you they are going to keep up collection action against you until the liability is paid in full or you reach a collection alternative. There are several options that may be available to you.

    I offer a free consultation if you would like to discuss your different options.

    info@cttaxhelp.com Office number: (860) 255-7423 Website: www.cttaxhelp.com. Our reply to your question has not... more
  4. Gilbert L. Carey Jr.

    Contributor Level 4

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    Answered . As you stated, the IRS does not look to the divorce decree to determine liability. Innocent spouse relief might be the best option for you as suggested. However, this option is only available under particular circumstances. I have found the IRS is very responsive to applications for innocent spouse relief in those situations where taxpayers meet the criteria.

    IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.... more

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