Lydia and John Wickham filed jointly in Year 1.They divorced in Year 2.Late in Year 2, the IRS discovered that the Wickhams underpaid their Year 1 taxes by $2,000.Both Lydia and John worked in Year 1 and received equal income but John had $2,000 less tax withheld than Lydia did.Who is legally liable for the tax underpayment?
A)Lydia.
B)John.
C)Both Lydia and John.
D)Neither Lydia nor John.

Question

Quizplus · Accepted Answer

Both Lydia and John are legally liable for the tax underpayment because they filed a joint tax return in Year 1. When they filed jointly, they assumed joint and several liability for any tax owed on the return. This means that the IRS can collect the entire amount owed from either spouse, regardless of who may have caused the underpayment. Therefore, both Lydia and John are responsible for paying the $2,000 tax underpayment.

Lydia and John Wickham Filed Jointly in Year 1