Lydia and John Wickham filed jointly in year 1. They divorced in year 2. In late year 2, the IRS discovered that the Wickham's 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 did Lydia. Who is legally liable for the tax underpayment?

Question

Quizplus · Accepted Answer

When a couple files a joint tax return, both parties are jointly and severally liable for any tax underpayment. This means that both Lydia and John are legally liable for the $2,000 tax underpayment in year 1, even though John had less tax withheld from his income. This remains true even though Lydia and John are now divorced.

Lydia and John Wickham Filed Jointly in Year 1