AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/18/2008 Subject: Separated Tax Filing
Question My wife and I may separate. One of our biggest issues is the way she spends money. She owns her own business and makes a whole lot more than I do, however, we have not paid 2006 or 2007 taxes because she owes so much. My big concern is my liability to the taxes I feel like she should have paid. I should mention her business is a DBA which I believe would make me liable for half. My question is, would it benefit me to file my own 2006 and 2007 taxes as "Married Filing Separately"? Would that make me no longer responsible for paying the tax she owes?
Answer Jack,
Thank you for your question. Just a note, why did she not incorporate if the business was making so much money? This way the debt stays with the corporation and she would not be liable personally.
Yes, by filing married filing separately, your income is separated from your wife. You pay a higher tax rate then a married filing jointly status though.
If her business was under her name, if you file married filing jointly both are liable for the taxes owed on the return. The IRS can hold you liable for all the taxes owed.
I would suggest you get the returns filed and figure how much she owes and whether it is advantageous to file separately or jointly. At least if you get something on file, then you can try to reach an agreement with IRS and start to go forward. I would also strongly recommend that if the business is making money, consider incorporating.
