Concord, CA asked in Tax Law for California

Q: Is "tax debt" a transient value? If judgement references "tax debt" is this the amount at filing date, or other date?

Signed stipulation for judgement says:

"Tax Returns:

Each party shall solely be responsible to pay his/her one-half share of the tax debt for 2013 and 2014 in a timely manner."

Since the "tax debt" amount is not specified, and the tax debt value changed over time (for example some of this tax debt was paid with community funds during the marriage, and for some time after filing for dissolution, also some tax debt was paid with individual funds post filing but before judgement), what is the amount of "tax debt" the signed stipulation is referring to? Can I consider the amount of "tax debt" at the time of signing the stipulation (marriage dissolution date)?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: From a tax perspective the "tax debt" is the amount of tax liability assessed, all penalties and interest, less payments made.

My interpretation would be the amount of debt at the time the agreement was entered into plus all interest accrued after the signing date.

The IRS doesn't care what your state court judgement says, they will actively collect from whoever they can.

Can't speak to what a CA domestic court would do.

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