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IRS Tax Law question that is complex and involves marital property (Family/Real Estate Law)...

Clermont, FL |

Will the IRS answer a tax law question that I cannot get a straight answer on from a professional (I have met with a bankruptcy attorney, a tax attorney, a family law attorney, a CPA AND an accountant and gotten different answers to my question)
or should I simply file my taxes w a certified letter explaining how and why i filed the way I did and cross my fingers? If I can write to them, what address should I use? Should I lay it out as a scenario and not mention names, etc (I know they could figure it out by my return address but that would at least take some effort on THEIR part :P

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Attorney answers 3

Posted

Sorry, but I do not understand your question. If it is a tax question, I would hire the tax attorney to advise you and stop soliciting tax opinions from others less versed in tax law. The IRS is not bound by what they tell you, and it's impossible to tell you what you should do. You can schedule an appointment at your local IRS office and talk to someone face to face. Perhaps they will give you the answer you seek. Good luck

The above "answer" is for discussion purposes only and is neither intended as legal advice nor to create an attorney-client relationship. An attorney-client relationship is not created until after an in person consultation and I agree in writing to provide representation. I am licensed solely in the state of Arizona. You should consult with a knowledgeable attorney in your jurisdiction.

Asker

Posted

Person A acquired $55k in student loan debt between 1996-2007 no co-signers Person B bought a home 2005 Person A & Person B married in 2009 Person A became disabled in 2010 and defaulted on student loans Person A 2013 successfully got student loans written off based on disability Person A 2014 gets 1099-C for $55k for loan write off and will now be taxed as if it were income Person A wants to file a form 982 for insolvency (excluding the marital home bc technically this is not an asset in that it was in Florida which is not a community property state and therefore not an asset of Person A's (not on the loan or the Deed). If Person A filed the 982 excluding the marital home it would read Assets $5k (vehicle) Debt $55k therefore $50k insolvent That is the scenario laid out in a nutshell. So it involves Real Estate Law (the home) Family Law (marriage) and Tax Law (income tax). I can't get a straight answer. The accountants have said don't file joint. Then one said file joint but file and injured spouse form. The Family and Real Estate lawyers know nothing about tax and the tax lawyer knows nothing about family and real estate law. If the IRS were a regular creditor they could not get to Person B's house (ie place a lien on it) so why can or I should say CAN the IRS?

Asker

Posted

Thank you for taking the time to reply! I really appreciate it!

Charles R Smith

Charles R Smith

Posted

There are a number of ways you can get to the result you desire. No particular way of filing will insure that the IRS agrees. Unless it is going to cost you a lot more in taxes, I suggest filing separately. Until the income tax return numbers are run, you cannot make an intelligent decision about which way to go. Even if the IRS disagrees, there are still procedures to address the problem. There is no way to guarantee or predict future IRS actions.

Posted

Your question is, candidly, not that clear, and that may be due to the nature of your inquiry. That is why it would be better for your consult counsel privately, rather than seek an answer to an admittedly complex question on a site like Avvo, as great as the site is. As for explaining why you file a certain way, that may possible depending on your situation. For example, international taxpayers seeking to avoid double taxation under a bilateral tax treaty must "take a position" and explain to the IRS when they file...and there is a form just for that.

Asker

Posted

Person A acquired $55k in student loan debt between 1996-2007 no co-signers Person B bought a home 2005 Person A & Person B married in 2009 Person A became disabled in 2010 and defaulted on student loans Person A 2013 successfully got student loans written off based on disability Person A 2014 gets 1099-C for $55k for loan write off and will now be taxed as if it were income Person A wants to file a form 982 for insolvency (excluding the marital home bc technically this is not an asset in that it was in Florida which is not a community property state and therefore not an asset of Person A's (not on the loan or the Deed). If Person A filed the 982 excluding the marital home it would read Assets $5k (vehicle) Debt $55k therefore $50k insolvent If I can justify it like that to the IRS can I still get into trouble?

Asker

Posted

Thank you for taking the time to reply! I really appreciate it!

Tara Marie Warrington

Tara Marie Warrington

Posted

Your welcome. As an aside, after reviewing your other comments, I fully understand your situation and have rendered legal opinions on the exact scenario you discuss. As mentioned in my answer, though, Avvo is not the place to seek such specific legal advice.

Posted

Sometimes there is no "correct" answer. The law - especially tax law - is complex, usually with alternating interpretations. If you are considering taking a position on your tax return that you are concerned the IRS will disagree with, I strongly recommend you seek the advice of a tax attorney well versed in the issue at hand. There are specific procedures to follow to put yourself in the best position to defend your position.

This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.

Asker

Posted

YOU are SO correct! It is really up to a judge's interpretation I would say.... That would explain why I keep getting different advice depending on which expert that I ask....

Asker

Posted

Thank you for taking the time to reply! I really appreciate it!