IRS Payment Plans for Divorced Taxpayers: Relief and Options to Manage What You Owe
Divorce or legal separation often brings financial complications beyond daily expenses. One of the most challenging issues divorced taxpayers face is handling a tax bill when joint tax returns, unreported income, or understated taxes are involved. The Internal Revenue Service provides several payment plan options that allow individuals to resolve tax liability fairly, whether through a short-term payment plan, a long-term payment plan, or an installment agreement. These arrangements can be tailored to the financial situation of each taxpayer, ensuring they have a structured way to manage unpaid taxes without creating further hardship. Many people discover after divorce that they owe taxes tied to their former spouse’s income or joint return filings. Sometimes, a divorce decree states which person is responsible, but the IRS may hold both parties accountable for the same taxes. This reality often leads to confusion, especially when additional taxes, accrued penalties, or incorrect deductions for unreported income appear in an IRS notice. Understanding the relief programs available, such as innocent spouse relief, equitable relief, and separation of liability relief, becomes essential in avoiding unnecessary burdens. Payment plan options exist to help divorced or legally separated taxpayers meet obligations through monthly payments, direct debit agreements, or even lump sum payment methods. Claim relief programs, such as injured spouse relief, also provide safeguards when refunds are intercepted due to a former spouse’s debt. Whether a person seeks to request relief because a spouse transferred assets or because domestic abuse prevented accurate filings, knowing the steps to pay taxes under the law is crucial. Each option the IRS determines available can protect financial stability while addressing both tax debt and personal circumstances.
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