Lydia and John Wickham filed jointly in Year 1. They divorced in Year 2.Late in Year 2, the IRS discovered that the Wickhamshad 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

Since Lydia and John filed jointly in Year 1, they are both responsible for the tax underpayment. This is known as joint and several liability. Even though John had $2,000 less tax withheld, both individuals signed the joint tax return and are equally responsible for any tax liabilities.

Lydia and John Wickham Filed Jointly in Year 1