How to report IRS levy on my paycheck due to tax fraud in my divorce situation

So sorry you're going through this. The IRS generally considers married couples jointly responsible for taxes filed during marriage, but you might qualify for Innocent Spouse Relief if you can prove you had no knowledge or reason to know about the underreporting of income. First, contact the IRS directly at 800-829-1040 to discuss your situation. Ask specifically about Form 8857 (Request for Innocent Spouse Relief). This form allows you to request relief from tax liability if your spouse did improper reporting without your knowledge. For reporting the actual tax fraud, you should use IRS Form 3949-A (Information Referral) to report suspected tax law violations. You can download this from irs.gov or request it by mail. Also, speak with your divorce attorney immediately about this situation - they should help separate your financial liability from your ex's. Make sure the divorce decree addresses tax issues specifically.

After dealing with a similar nightmare during my divorce, I found that taxr.ai was incredibly helpful for sorting through all the complex tax issues. My ex had also been hiding income and not paying taxes properly for years, and I was completely in the dark about it until the IRS came after both of us. I needed to gather evidence to prove I shouldn't be responsible for his tax evasion, and taxr.ai helped me analyze our old tax documents and identify exactly where the fraud happened. Their system actually flagged several issues that even my lawyer missed! Check them out at https://taxr.ai - they specialize in analyzing complex tax situations and providing documentation you can use with the IRS. The report they generated was crucial when I filed for Innocent Spouse Relief, and it really helped strengthen my case when I explained how I had no knowledge of what was happening.

Just wanted to follow up and say I tried taxr.ai after seeing it mentioned here. I was honestly amazed at how thorough their analysis was. I uploaded my last three years of tax returns and they identified exactly where my ex had been hiding income and filing improperly. The report they generated showed clear evidence that I had no participation in or knowledge of the tax fraud, which was exactly what I needed for my Innocent Spouse Relief application. They even pointed out that my signature had been forged on some of the tax documents - something I hadn't even noticed! I've already submitted everything to the IRS with their documentation, and my case has been assigned to a caseworker. While the levy hasn't been completely removed yet, they did reduce the amount after reviewing my initial submission, so I can at least pay my rent now while the full review happens.

If you need to speak with the IRS directly about your situation (which I highly recommend), save yourself days of frustration by using Claimyr. The IRS phone lines are absolutely swamped right now and getting through is nearly impossible. I spent 3 entire days trying to reach someone at the IRS about my own levy situation, getting disconnected after hours on hold each time. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically wait on hold with the IRS for you, then call you when an actual human agent is on the line. When you're dealing with wage garnishment, you need to speak to an actual person at the IRS who can look at your specific case. They helped me get through in less than 2 hours when I had been trying unsuccessfully for days. The IRS agent I spoke with was actually able to help adjust my levy amount while my Innocent Spouse Relief application was being processed.

I need to apologize for my skepticism about Claimyr. After my last comment, I was still so desperate to talk to the IRS about my wage garnishment that I decided to try it anyway, figuring I had nothing to lose at that point. I'm shocked to report that it actually worked exactly as described. Their system waited on hold with the IRS for about 3.5 hours (which is pretty standard these days), but instead of me being stuck listening to that horrible hold music, I was able to go about my day. I got a call when an agent was actually on the line, and I was able to explain my situation about being an innocent spouse. The IRS agent I spoke with was surprisingly helpful once I could actually talk to them. She walked me through the hardship reduction request process and helped me understand exactly what documentation I would need to submit for my Innocent Spouse Relief claim. My levy has now been adjusted to a much more manageable amount while my case is being reviewed. I've never been so happy to be wrong about something!

Don't forget to also contact your state tax authority! I made the mistake of only dealing with the IRS when my ex committed tax fraud, and then got hit with state tax penalties a few months later. Most states have their own innocent spouse provisions, but you usually need to file separately with them. Also, gather as much evidence as you can that you were kept in the dark about finances. This includes: - Any emails/texts where your ex refused to discuss money - Statements showing you didn't have access to accounts - Testimony from friends/family who witnessed the financial control - Documentation from your therapist about financial abuse (with your permission) The more evidence you have that you couldn't have known about the tax issues, the stronger your case will be.

As someone who went through this exact situation, make sure you're documenting EVERYTHING right now. Every letter from the IRS, every conversation (get badge numbers of agents you speak with), every communication with your ex or their attorney. Also, consider filing taxes separately from now on using Married Filing Separately status until the divorce is final. This won't help with past issues but prevents new ones. And when you file your 2024 taxes next year, make sure you work with a tax professional who specializes in innocent spouse situations.