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Requiring joint tax filing?

  • 1.  Requiring joint tax filing?

    Posted 02-04-2015 04:44 PM

    Can a court order parties to file taxes jointly?  Prejudgment case with p.l. support being paid.  I've heard both on this -- that if it will benefit the parties to do so, a court can order the parties to file jointly, and that a court doesn't have the power to order someone to file a joint (or any) tax return.

    Hopefully this is an easy one?  LOL, they never seem to be.

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    David Perry Davis, Esq.
    112 West Franklin Avenue
    Pennington, NJ 08534
    Voice: 609-737-2222
    Fax: 609-737-3222
    http://www.FamilyLawNJ.pro
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  • 2.  RE: Requiring joint tax filing?

    Posted 02-04-2015 04:56 PM

    CheckBursztyn v. Bursztyn, 379 N.J. Super 385 (2005).  

    http://www.leagle.com/decision/20051008879A2d129_11007.xml/BURSZTYN%20v.%20BURSZTYN



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    Mary Jane Leland Esq.
    Freehold NJ
    (732)409-7777
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  • 3.  RE: Requiring joint tax filing?

    Posted 02-04-2015 04:58 PM
    A court can penalize a party for failing to minimize taxes, but cannot compel a party to file a certain type of tax return.



    Hanan




  • 4.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:01 PM
    There is no authority for a judge to order a taxpayer to sign a particular tax return as the signing of that tax return (even if under "duress") exposes the taxpayer to liability to the IRS (or the State) for what is on the return he/she has signed. That said, on rare occasions some power-crazed judges exceed their authority and do order parties to file jointly (although fortunately they are few and far between).

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  • 5.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:02 PM

    Dave,

    I seem to recall a case (of course I can't find it) that says that while court cannot require parties to file a joint return, the recalcitrant spouse can be compelled to contribute to the other's tax liability if s/he refuses to file jointly.  The parties would have an accountant prepare dummy returns and the non-joining spouse would have to make the other whole (i.e. if husband would owe $5,000 in taxes filing separately but the parties would get a $200 refund if filing jointly, wife would pay to husband $2,600 - half of the actual taxes payable on husband's return and half of the refund that would be payable on a joint return).

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    Lisa M. Radell, Esq.
    207 South Main Street
    Cape May Court House, NJ 08210
    Phone (609) 465-9910
    Fax (609) 465-9920
    E-Mail [email protected]
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  • 6.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:05 PM

    Oops - brain was fried in my last post.

    Wife would have to pay husband the full $5,000 plus half of the refund on the joint return.  

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    Lisa M. Radell, Esq.
    207 South Main Street
    Cape May Court House, NJ 08210
    Phone (609) 465-9910
    Fax (609) 465-9920
    E-Mail [email protected]
    ------------------------------




  • 7.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:25 PM
    It's Wadlow, I think

    Sent from my iPhone




  • 8.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:33 PM
    I agree with Bonnie - I'm pretty sure there is a case that says that. It is
    certainly common practice.

    Jane R. Altman, Esquire
    Altman, Legband & Mayrides




  • 9.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:39 PM

    Here is the relevant language from Wadlow:

     "We need not address that question here. We merely note in passing that the problem has not received uniform treatment in other jurisdictions. See, e.g., Wolk v. Wolk, 191 Conn. 328, 464 A.2d 780 (Sup.Ct. 1983); Leftwich v. Leftwich, 442 A.2d 139 (D.C.App. 1982); In re Marriage of Butler, 346 N.W.2d 45 (Iowa Ct. App. 1984); Frasse v. Frasse, 315 N.W.2d 271 (N.D.Sup.Ct. 1982). Assuming that the Chancery Division had the authority to order the parties to file a joint return, we discern no sound basis compelling that course within the context of the facts of this case. Under the Internal Revenue Code (26 U.S.C.A. § 6013(a)) a husband and wife may file "a single return jointly of income taxes." A joint return treats the married couple as a single taxable unit. Taft v. Helvering, 311 U.S. 195, 198, 61 S.Ct. 244, 246, 85 L.Ed. 122, 124 (1940); United States v. Allen, 551 F.2d 208, 210-211 (8 Cir.1977). Although such an election may result in substantial tax savings, see Parker v. United States, 524 F.2d 479, 481 (5 Cir.1975), and Estate of Upshaw v. Commissioner of Internal Revenue, 416 F.2d 737, 742 (7 Cir.1969), cert. den. 397 U.S. 962, 90 S.Ct. 993, 25 L.Ed.2d 254 (1970), the right cannot fairly be said to be inconsequential. Its exercise may have potential civil or even criminal ramifications. We note that "[m]arried individuals filing a joint return expose themselves to joint and several liability for any fraudulent or erroneous aspect" of the contents. Leftwich v. Leftwich, supra at 145. A spouse may be held liable on a joint return even though he or she never signed it. Kann v. Commissioner of Internal Revenue, 210 F.2d 247 (3 Cir.1953), cert. den. 347 U.S. 967, 74 S.Ct. 778, 98 L.Ed. 1109 (1954). Although an indemnification agreement may serve to resolve many of these problems, we can well understand the trial judge's reluctance to order the parties to file a joint return. Given defendant's substantial 380*380 interest in the choice of a filing status and the corresponding consequences, we find that it was not error for the court to deny plaintiff's application.

    What has been said thus far does not mean that the trial judge was obliged to ignore the tax ramifications of his decisions. To the contrary, when determining an equitable division of property the court is free to consider the financial consequences of one party's refusal to file a joint return and grant an appropriate credit. See Leftwich v. Leftwich, supra at 146; In re Marriage of Butler, supra at 47. In light of the potential problems to which we have alluded, that would appear to be the far wiser course in this case."


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    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
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  • 10.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:46 PM

    Wadlow was decided in 1985; Burszstyn was decided in 2005.  Both are published decisions.  What I took from both cases is that, while a Court has the authority to require parties to file joint taxes under the appropriate circumstances, it is within the discretion of the Court to make that determination based upon the facts of the case.  If one party suffers as a result of the other refusing to file joint taxes, the Court can and should require adjustments be made as to distributions between the parties as a result thereof.

    Bottom line, as with all other family cases, it depends upon your facts as to whether a Court will require the parties to file jointly.

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    Nancy Marchioni Esq.
    Middlesex NJ
    (732)667-3668
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  • 11.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:53 PM
    and in many cases it depends on which party the judge is more favorable toand which party did you watch disfavors.


    Sent from my Verizon Wireless 4G LTE smartphone




  • 12.  RE: Requiring joint tax filing?

    Posted 02-05-2015 12:40 PM
    Yup - it's Wadlow. I tried it and Karen Thompson did the appeal. Martha and I won that point and the one on being able to recoup funds deposited into a joint account, but lost on deducting a realtor's commission in a buy-out.

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    Pamela Copeland Esq.
    Watchung NJ
    (908)561-6800
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  • 13.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:03 PM

    Dave:

     

    I say yes, in NJ.

     

    A typical case permitting such an order is the New Jersey decision in Bursztyn v. Bursztyn, 879 A.2d 129 (N.J. Super. Ct. App. Div. 2005):

    We do not find persuasive the argument that individuals have a federal statutory right to choose whether to file joint or separate income tax returns which may not be abridged by state courts.  In matrimonial actions, courts routinely issue orders which have significant effects on individuals' rights.  For example, courts may infringe upon a parent's right to relocate from one state to another.  Baures v. Lewis, 167 N.J. 91, 770 A.2d 214 (2001).  By contrast, limiting an individual's statutory right to choose between filing a joint or individual federal income tax return seems a minor intrusion.

    Id. at 136.


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    Robert Goldstein Esq.
    Manalapan NJ
    (732)972-1600
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  • 14.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:06 PM
    Take a look at Bursztyn v. Bursztyn 379 NJ Super 385 (App. Div. 2005). Generally speaking, if a spouse refuses to file jointly while having the right to do so, the other party may calculate the loss and receive a credit in the overall resolution (Agreement or Trial).




  • 15.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:17 PM
    The Court should consider the reasoning for refusing to sign a joint tax return. There are many cases where there is little reason not to file jointly other than to hurt the other spouse. In other cases, a joint filing could expose the dependent spouse to considerable damages upon an IRS audit of the income and deductions of the other spouse. In addition, if a return is complex, the spouse who is being asked to sign should be given independent advice on whether to sign and a full explanation of what is on the return. If the accountant is unwilling to do that, a Court should be concerned. "Trust me" doesn't always cut it in the context of a divorce proceeding.

    Richard M. Schlaifer, Esquire
    L.L.M. Tax
    Earp Cohn P.C.
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  • 16.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:48 PM
    Bursztyn says it can be done, but should rarely be done, and I've never seen it done. Calculate offsets, yes. Force a tax filing, no. But it can be ordered in NJ. News to me.



    Hanan




  • 17.  RE: Requiring joint tax filing?

    Posted 02-04-2015 05:36 PM
    YES

    Alice M. Plastoris, Esq.
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