Lydia and John Wickham Tax Dispute
Introduction
Lydia and John Wickham filed their taxes jointly in year 1 but later divorced in year 2. In a twist of events, the IRS discovered that the Wickhams underpaid their taxes for year 1 by $2,000. Both Lydia and John were employed in year 1, earning equal income. However, John had $2,000 less tax withheld compared to Lydia.
Who is Legally Liable?
According to tax laws, the spouse who is legally liable for the tax underpayment is John Wickham. Since John had $2,000 less tax withheld during year 1, he effectively paid lower taxes compared to Lydia. As a result, John would bear the responsibility for the tax underpayment discovered by the IRS.
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?Answer:
John because he paid more taxes and got less back from the IRS so he would get the underpayment.