AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/31/2008 Subject: Married filing seperately with itemization, but spouse will not cooperate
Question I am asking this in proxy for my girlfriend. She is still legally married, but living apart from her spouse for the last few years. Due to the nature of her work, she needs to file a full 1040, itemizing her deductions to get reimbursed for her expenses. Her spouse has already filed, and filed single (definitely not correct), and also claimed the standard deduction, and got and spent his refund. What I know is that by filing 1040 and itemizing (married filing separately), her spouse cannot claim the standard deduction. Since he has refused to refile correctly, and change from single to married filing separately, and itemize his deductions, she is having her hand forced. Will she be ok by filing and itemizing the way she needs to? Will he simply be penalized for his mis-file, and obvious lying on his return, or will she also be penalized at some point? Understand, it is no concern to us what happens to him at this point. I do not feel she should have to miss out on $3000 worth of extra deductions because of his inability to communicate and follow tax law. What is your opinion?
Answer If she filed MFS, the IRS will likely contact her husband and he may be compelled to file MFS and he may end up owing a lot of money. They cannot compel him to itemize. However, she might get lucky when they adjust his returns, and notify him he cannot take the standard deduction. I think there is a chance though that she may be contacted and and advised she can't itemize.
The worst thing that could happen to her is they reduce her deductions to the standard and she will owe additional tax and interest. Penalties will not be bad if she pays promptly.
