Lydia and John Wickham filed jointly in year 1.They divorced in year 2. Late in 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?
A)Lydia.
B)John.
C)Both Lydia and John.
D)Neither Lydia nor John.

Question

Lydia and John Wickham filed jointly in year 1.They divorced in year 2. Late in 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?
A)Lydia.
B)John.
C)Both Lydia and John.
D)Neither Lydia nor John.

Quizplus · Accepted Answer

When filing a joint return, both parties are jointly and severally liable for all taxes due. This means that the IRS can go after either party for the full amount of the tax underpayment, regardless of who earned more income or who had more taxes withheld. Therefore, both Lydia and John are legally liable for the $2,000 tax underpayment in year 1.

Lydia and John Wickham Filed Jointly in Year 1