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Crnchnmbrs
This may be more of a legal question than a tax question,
but any help or suggestions from someone who has dealt with
this is appreciated. As I understand it (please correct me
if I am mistaken), in community property states when married
couples are living together, and all funds are co-mingled,
they must split net income and witholding 50/50 on their
respective MFS returns.
SE tax remains to the earner.
1) What happens if one spouse gets hit for more tax in audit?
2) Would half of the adjustment be expected on the other return?
3) Is there any other way to protect the "innocent" spouse
from the other's liability?
4) Is there a way to split withholding without generating a
CP2000 due to the mismatch?
Thanks in advance...
but any help or suggestions from someone who has dealt with
this is appreciated. As I understand it (please correct me
if I am mistaken), in community property states when married
couples are living together, and all funds are co-mingled,
they must split net income and witholding 50/50 on their
respective MFS returns.
SE tax remains to the earner.
1) What happens if one spouse gets hit for more tax in audit?
2) Would half of the adjustment be expected on the other return?
3) Is there any other way to protect the "innocent" spouse
from the other's liability?
4) Is there a way to split withholding without generating a
CP2000 due to the mismatch?
Thanks in advance...