IRS Tax Liens

6 Replies

Scenario (using fake names): Kathy and Mike are married but separated. Kathy has a house where the mortgage is in her name only, but the title is in both names. Kathy is looking to sell the house. Problem is that Mike has $100k worth of IRS tax liens in his name. Can Kathy do a quit claim from Kathy and Mike to put the property solely in her name only in order to get around Mike's liens that are blocking the sale of the property??

If not, then what are her options?

*When i say a quit claim, I don't mean a quit claim to the potential buyer, but a quit claim from Kathy and Mike to just Kathy. So if the mortgage and title are now only in the name of Kathy will she still have to worry about the tax liens that are in Mike's name???

I'm not an attorney or accountant nor do I play one, this is just my opinion... if they file their taxes jointly Kathy may still be at risk of being pulled into her hubby's IRS mess. However, there is an IRS department called Innocent Spouse. Kathy might want to make contact with them a.s.a.p. They will tell her what she needs to do. Sorry I don't have the direct toll free number but check www.irs.gov and type in the keyword 'innocent spouse' and some info should pop up. @Brian Jobson     

Kudos,

Mary

They have never filed jointly even though they are married. They always filed separately. 

I will definitely look into that innocent spouse department. Thanks.

@Mary B.  

Originally posted by @Brian Jobson :

They have never filed jointly even though they are married. They always filed separately. 

I will definitely look into that innocent spouse department. Thanks.

@Mary B. 

Great as so many couples do but often shouldn't especially if one or both are entrepreneurs. 

Kudos,

Mary

@Mary B.  

 Good advice. I gotta keep that in mind for future reference. 

Quick update. So far from reading online at the irs.gov site it seems as though you can only file for innocent spouse relief if you filed jointly or separate in a common property state. 

I'm going to have her call the IRS tomorrow and see what they say though. 

@Mary B.  

Originally posted by @Brian Jobson :

Quick update. So far from reading online at the irs.gov site it seems as though you can only file for innocent spouse relief if you filed jointly or separate in a common property state. 

I'm going to have her call the IRS tomorrow and see what they say though. 

@Mary B. 

Oh ok. Hope everything works out.

Kudos,

Mary