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The IRS requires most Americans to file a tax return every year to ensure they’re up to date on the taxes they owe.
The IRS typically won’t knock on your front door over a missed filing date, but that doesn’t mean your unpaid taxes won’t eventually catch up to you.
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For instance, the IRS could garnish your wages if you owe back taxes and don’t make any effort to pay, such as signing up for an installment agreement. They can also put a federal tax lien on assets you own, including your home.
That’s why it’s best to stay current on your tax obligations. But let’s say your father has fallen behind on filing his tax returns and now owes the IRS $200,000. Worse yet, what if there’s now a lien on the house your mother paid for as a result of your father’s poor tax habits?
You may be inclined to want to help out as much as possible, but it’s important to know how to navigate this tricky situation.
When one spouse drops the ball on taxes
In situations like this, it’s completely understandable to want to protect your mother — especially if she wasn’t the one who mishandled the taxes. The first thing to determine is whether your parents filed jointly or not. If they filed separately, your mother generally wouldn’t be responsible for your father’s tax debt, assuming she filed her own return and paid what she owed.
Even if they filed jointly, your mother may still be protected under the IRS’ Innocent Spouse Relief policy. This allows one spouse to avoid being held liable for additional taxes caused by the other spouse’s errors — such as underreporting income or claiming incorrect deductions — provided they were unaware of the mistake.
But timing matters. Your mother needs to apply within two years of receiving an IRS notice about the debt. Meanwhile, your father may still be able to resolve what he owes — especially if his tax debt is over $10,000.
That’s where Anthem Tax Services can help. They specialize in helping you negotiate with the IRS, reduce your tax bills and set up affordable repayment plans.
With a 100% money-back guarantee and a strong track record of lowering debt, Anthem Tax Services can be a smart call if you feel overwhelmed by tax debt.
Even better, when you end up on a call with the IRS, a representative from Anthem will be right there with you on the line to protect your interests.
It’s tough watching a loved one face tax trouble — especially when only one spouse is at fault. Connecting your parents with a tax attorney, CPA or enrolled agent — especially through a service like Anthem — can make all the difference in protecting their financial future.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Should you get involved in your parents’ financial mess?
It’s pretty common for parents to help their adult children out financially. In fact, half of parents provide financial support to their grown children, according to a Savings.com survey.
On the other hand, 14% of parents received financial help from their children aged 18 to 34 in the past year, based on 2024 Pew Research Center data.
If you can help your father deal with his IRS mess, it’s certainly not a bad thing to offer support. Just make sure you’re not doing it to the detriment of your own finances.
But a better way to help may be to set your parents up with a financial expert to make sense of their situation. Remember, you may not be in the best position to dig through the numbers because you’re emotionally involved. A professional, however, can handle the situation more objectively.
Just keep in mind that — even with the best of intentions — your parents may not react well to you getting involved. A 2024 U.S. Bank survey found that parents would rather talk to their children about their choice of political candidates than finances. Baby boomer parents were particularly resistant to financial discussions.
So it may be in everyone’s best interest to help out peripherally instead of directly.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
