a company together. He was the only signature on the payroll account. Presently he owes personal taxes. I just want to make sure I will not be involved, since he is just a tenant.
If he is the only one that has a tax issue and you guys are legally divorced, then you will face no tax liability. There is no reason why the IRS would come after you. For example, if live with my mom and create a tax liability, the IRS cannot come after my mom for taxes that I would owe. Hope this clears things up.
Isai Bismark Cortez, Esq. www.bismarktax.com Office 855-829-6055 DISCLAIMER: THE ABOVE INFORMATION IS NOT LEGAL ADVICE. THIS IS GENERAL INFORMATION AND LAWS VARY FROM STATE TO STATE. PLEASE CHECK WITH A LOCAL ATTORNEY OR CONTACT THE IRS OR STATE TAXING AUTHORITY WITH ANY QUESTIONS.
The mere fact that you rent a room to your exspouse does not make you liable for the taxes. However, if you owned the company together and it was not a separate legal entity like a corporation or LLC, then he could have been held liable for the payroll taxes, and you may have been too. Alternatively, he could have been held liable for the trust fund recovery penalty portion of the payroll taxes, and if you were a responsible person, you could have been held liable too. However, it has been so long, I think you would have known by now if the IRS had held you liable for either the taxes or the penalty. You might want to consult with a tax attorney and inform him or her of all the facts to get a complete answer.
This information is provided for educational purposes only, and is not to be relied upon as legal advice. You should consult with an attorney with full disclosure of all facts and opportunity to consider all or alternative options.
Agree with my colleagues here - renting the room won't give rise to liability unless there are other factors that connect you to him.
Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.