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

Both Lydia and John are legally liable for the tax underpayment because they filed jointly and both signed the return. The IRS holds both parties responsible for paying any taxes owed, regardless of who earned the income or who had more tax withheld. Both parties may be held individually or jointly responsible for the entire tax liability.

Lydia and John Wickham Filed Jointly in Year 1