IRS problems married couples alternating between MFJ and MFS

Technical topics regarding tax preparation.
#1
ode923  
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129
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Location:
USA
Is there a trick of the trade I am missing when it comes to working with married clients who, in any given year, may file separately or jointly depending on what saves them the most money?

Common issue 1: Couple filed MFJ in 2019. Couple filed MFS in 2020. Spouse B had a balance due. Spouse A handles the family's financial stuff and must've paid under his SSN. (My instructions tell them to be sure to use Spouse B's SSN when paying, but plenty of people forget to do that).

IRS sends Spouse B a scary letter about failure to pay taxes.

The couple must now figure out how to contact the IRS to rectify this. Inevitably, if they are able to get ahold of a human being on the phone, the human being says "Oh yeah, I see it was tagged to the wrong account. Let me fix that." Voila. Done.

Common issue 2: Couple filed MFJ in 2019. Couple will likely file MFJ in 2020. They file an extension before April 15 2021. Come October 2021, it's clear MFS will save them the most money. Spouse B (who was the "Spouse" on the extension that was filed) owes some money.

IRS sends Spouse B a scary letter about failure to pay taxes AND failure to file.

The couple must now figure out how to contact a human at the IRS to rectify this.

Does this happen to anyone else when they work with married clients? Is there something I am missing? It doesn't help that they cannot get ahold of anyone on the phone at the IRS. Also, why doesn't the IRS look to Spouse A's account when a payment meant for Spouse B is mistakenly tagged to Spouse A's account?
 

#2
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2318
Joined:
21-Apr-2014 10:39am
Location:
Los Angeles, California
Yes, its a common problem. Always file separate extensions for anyone who may file separately. Estimated and extension payments are a pain also.
 

#3
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86
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12-May-2016 9:51am
Location:
AZ
Don't forget community property issues in CP states!
 


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