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Well, I had a recent notice received from the IRS for tax debt from a year when I was
married to my former spouse. I was unaware of this tax debt because I thought it had been addressed
and I run a really tight budget and I have my debt snowball very planned and I'm wondering if
I pivot from that to take care of this tax debt because it had that notice of lien. It hasn't been,
there has not been a lien yet and I realized... How much is it? It's $7,900. What do you make?
I make $132. Okay. And what year is this from? 2018. Okay. And you were obviously married then
and you filed married filing jointly? That year, yes. Okay. And you were not aware that the taxes
were not paid. How much money do you have to make where budgeting is just optional?
If you chose C, watch this. She makes about $170. I make about $115. Hold on. Did you go back after
you paid off everything, borrow some more money? Oh yeah. Oh no, Carlos. We like to go here and
there and we get to Mercedes. Oh no, we went full South Beach. It's not just about how much you make.
It's about having a plan for what you've got. So start budgeting with every dollar for free today.
You were not aware that the taxes were not paid? That's correct. We had settled in 2020
and the equitable distribution required that he pay that and now he's incarcerated.
So I think that his payment plan has ceased and they're coming after me for it. Okay. I'm not
positive if this will work, but before you decide to pay it, I want you to get in touch with one of
our tax professionals at RamseySolutions.com that we endorse, the Ramsey Trusted. And I want you to
ask and I want you to tell them every detail of the situation and see if you qualify for a thing
called the innocent spouse. Okay. Okay. So an example would be, and this sounds like it qualifies,
but I'm not, you know, without getting into every stinking detail, I'm not positive. And even if we
did, I'm not sure I would know, but the innocent spouse provision of the IRS code sounds like this.
A good example would be me. Okay. My wife is a full-time mom. I have a business and we do married
filing jointly. The number of minutes or hours she spends looking at our tax return is precisely
three and a half seconds. Okay. So she signs it and assumes that me and the tax people that we're
using know what the flip we're doing. Right. And then later on a tax bill comes up and then she
gets some notice in the mail like you did. Okay. Well, obviously she didn't have anything to do
with it. And so she could file under the innocent spouse provision and say, yeah, we filed married
filing jointly. Yes, I did sign the return, but I have no working knowledge of that stupid business
or that stupid man. Okay. And so I'm innocent of this tax bill and they will take it off of you
and send it to him. And of course he's incarcerated, so they're not going to get paid, but
that doesn't matter. What matters is, is it comes off of you. I think you're going to qualify for
that. Okay. Based on what you told me, you see why? Because this is a thing, A, he was supposed
and B, it was a long, long ago, but, but the circumstances were that you had no knowledge
that the bills were not being taken care of properly and you signed the return. Correct.
And that, that's why I'm thinking you're going to qualify for this innocent spouse provision,
which is an $8,000 switch in this conversation. So that's the first thing I want you to do.
Because I'm, I'm like 80, 90% sure you're getting out of this. Okay. Now, if you don't, let's go
back to your question. If I'm wrong. Okay. Then what do we do with the 7,900? Uh, we put it at
the top of the list and we pay it off as soon as you can. Okay. Now my debt snowball. It goes
to the top of the debt snowball. Okay. And you knock it out as fast as you possibly can, or you
go borrow $8,000 from the credit union and pay it off and then put that in the debt snowball. I don't
care which, but you get rid of the IRS. You do not want these people in your life. They have
unlimited power, no brains, and they charge all kinds of penalties and interest minute by minute
by minute as you go along. Yeah. It's the one exception of the debt snowball, Sarah. We always
say if there is IRS static, it's moved to the very front. Okay. Okay. That was my question.
Or I would refinance it on a credit card or down to credit union. One of the two.
Okay. Yeah. Get it cleared up, but don't put it on an IRS payment plan unless you have no other
options and then put it at the top of your debt snowball. Okay. I'm sure hope I'm right about the
other thing though, don't you? I certainly do. I didn't know that existed. Um, I do feel it was,
it was definitely out of a left field. Um, cause I've been doing quite well on my own with four
kids, but that kind of threw me for a loop. Oh, that's so frustrating, Sarah. I'm sorry.
So you make $130,000 a year doing what? I am a regional asset manager.
What is he in jail for? Embezzlement. No way. That makes the story even better about you being
an innocent spouse. It sure does. The embezzlement boy is in jail. I mean, wow. That's got like
drama on it. That's so, I'm so sorry y'all been through that. And he's the father of your four
kids. Yes, sir. I'm so sorry. How old are you? Um, I'm 41 man. You've been through some hell,
but you are strong. You are strong and you are smart. I'm proud of you. Thank you. I'm doing
the best I know how to do to take care of these kids and, and God is good. And so we're just
trying to make sure I honor him with the next right decision. You are bent. You've been very,
very wise and very, very, uh, that's amazing. Amazing. Yeah. Yeah. Go, go to our folk and
they'll help you. I think I'm pretty sure that's going to work. Woo. Hey, you know,
sometimes it's free advice around here is valuable. Could save her 8,000 bucks. There
you go. Glad she called in. Yeah. So then all the good vibes your way, Sarah. Charge a commission.
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