Can the IRS levy my accounts if my spouse didn't file our joint taxes?
Filing taxes as a couple can bring risks and that can be identified if the IRS detects that neither of you filed or paid the taxes on time.
Filing taxes jointly can help many married couples in the United States obtain certain tax benefits. However, it also implies a shared responsibility to the Internal Revenue Service (IRS). That means that if one of you does not comply with tax obligations, both could face financial consequences, including seizure of bank accounts or assets.
Many couples are unaware that, by filing a joint return, both taxpayers remain legally responsible for the tax debt. It doesn't matter who earned the income or who was supposed to send the return; To the IRS, you are both responsible for paying taxes, penalties and interest.
The IRS explains that a tax lien, known as a “levy,” is the “legal seizure” of assets to “satisfy a tax debt.” The agency notes that it can withhold wages, withdraw money from bank or financial accounts and even seize property, vehicles or other personal assets.
When a married couple fails to file their tax return or pay money owed, the IRS can begin a collection process. Official letters and notices usually arrive first. If taxpayers ignore those notices and don't try to resolve the debt, the agency can move toward more severe measures.
Although many people fear an immediate garnishment, the IRS clarifies that this measure is typically used as a last resort. Before reaching that point, the agency attempts to contact the taxpayer and give them opportunities to resolve the problem.
“Lenches are generally used only after the IRS has exhausted other collection efforts,” the IRS notes.
In the case of marriages that file joint taxes, the problem can affect both spouses even if one of them has not participated directly in financial management. For example, the IRS could freeze or withdraw money from shared bank accounts if there is outstanding debt related to a joint return.
In addition to garnishing accounts, the IRS has the authority to impose other penalties. These include penalties for not filing taxes on time, fees for nonpayment, and interest accrued on the debt.
The agency also explains that, if assets are confiscated, they can be sold to cover the amount owed. The money obtained is used first to pay the costs of the sale and then to reduce the tax debt. If there is money left over after covering everything pending, the taxpayer can receive the rest.
“The IRS generally waits at least 10 days before selling property after issuing a public notice,” the federal tax agency explains in its official information on liens.
Fortunately, there are options to avoid reaching this scenario. The IRS recommends always filing tax returns on time, even if you can't pay the full amount right away. It is also possible to request an extension to file the return or establish monthly payment plans.
“If you cannot pay the full amount you owe, pay as much as you can now and work with the IRS to resolve the remaining balance,” the IRS advises.