Question

Jasper and Crewella Dahvill were married in year 0. They filed joint tax returns in years 1 and 2. In year 3, their relationship was strained and Jasper insisted on filing a separate tax return. In year 4, the couple divorced. Both Jasper and Crewella filed single tax returns in year 4. In year 5, the IRS audited the couple’s joint year 2 tax return and each spouse’s separate year 3 tax returns. The IRS determined that the year 2 joint return and Crewella’s separate year 3 tax return understated Crewella’s self-employment income, causing the joint return year 2 tax liability to be understated by $12,700 and Crewella’s year 3 separate return tax liability to be understated by $7,350. The IRS also assessed penalties and interest on both of these tax returns. Try as it might, the IRS has not been able to locate Crewella, but they have been able to find Jasper.

b. What amount of tax can the IRS require Jasper to pay for Crewella’s year 3 separate tax return?

Answer 1

SOl Gavero doto Jospes and coewella Dohvill uese massied in yea O They fled int 3 eturons inyeass and 2.1n yeoð "3. Theis setotionship wos Stsained and Josper însisted on fiuing a Secte toz seturon Tn yeos 4, the couple divosced Both Jaspes and Csewello iged single tex getryns in yeans 4 . In years 5. the IRS (Intes nal evenue sesviceaudited the couples oint yeors 2 ta geturon and each SPOuses Serarsate uec 3 tex etons Intesnal Revenue sesvice CTRS)- The iortesnas sevenue sesvice isO breau as te Derorstrment aToeasury that isHa sted uwith the enoce ment tncome ta lows and ovessees the collection o fedesos ircome taies The joint eturs0 yeos 2to iabiity to te undessa ted by $2.700 and CoewelloS year 3 sePorsoute eteron la iabiity to be undes stated by7350. The TRS odso assessecd Penasties and intesest On koth o threse ta &tuóns

TRS has not een able ło locase Cdewella, but they The able to find Jaspes have keen (b.) Db the anmount d6 ta Can the TRS seuie Jospes to POy fors sewelio S yeos 3 seporsate t eteo0, Because the field sefarstey in yeas 3 Jagpes is not esponsible fos any s the .350.