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Subject Author Date
claiming MFJ status when unmarried John D. Goulden 09-21-2008
Posted by John D. Goulden on September 21, 2008, 3:48 pm
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What are the consequences if an unmarried couple (living together as husband
and wife) in a common-law-marriage state file MFJ? One of our preparers
claims that we just "married them at our desk;" others disagree. What if
they're NOT in a common-law marriage state? I've browsed around irs.gov but
found nothing specific there; references would be appreciated.

Thanks,

--
John D. Goulden

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Posted by Phil Marti on September 21, 2008, 4:51 pm
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"John D. Goulden" wrote:

> What are the consequences if an unmarried couple (living together as
> husband and wife) in a common-law-marriage state file MFJ?

You're asking the wrong question.

For Federal tax purposes your marital status is determined on the last day
of the tax year. Except for legally married same-sex couples if you are
married on 12/31 under state law, you are married for the entire year for
Federal tax purposes.

Some states recognize common law marriage; some do not. If you establish a
common law marriage in a state where that is possible you remain married
even if you move to a state where you couldn't establish such a marriage.

For legal purposes a common law marriage is the same as one with a license
and a ceremony. You're married until you divorce or the marriage is
anulled. IOW, it's not a "I think we'll be married this year" proposition.

For certain in no case would you become married simply by filing a joint tax
return. Remember that your marital status was determined the prior December
31.

Married people file either Married, Filing Jointly or Married, Filing
Separately. (Same-sex married couples file Federal returns as Single or
Unmarried Head of Household.) Under certain circumstances a person legally
married may be "considered unmarried" for Federal tax purposes. See IRS
Publication 501.
--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Dick Adams on September 21, 2008, 6:28 pm
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> What are the consequences if an unmarried couple
> (living together as husband and wife) in a
> common-law-marriage state file MFJ? One of our
> preparers claims that we just "married them at
> our desk;" others disagree. What if they're NOT
> in a common-law marriage state? I've browsed
> around irs.gov but found nothing specific there;
> references would be appreciated.

Of course, the answer is "It depends".

As a strong advocate of "Living in Sin for Fun and
Profit", I can tell you there are some problems in
common-law marriages. In order for there to be a
common-law, there MUST be a clear present-tense
agreement to be married

The IRS is prone to attack CLM's because they
represent unpaid taxes plus interest, and penalties.
In the case of a Utah couple, the IRS successfully
attacked the CLM.

One the other hand, a CLM may be valid for the
purposes of divorce. Look at the Palimony cases.
The New York Supreme Court validated a CLM of a
couple who had lived together for 25 or some
years, owned property in PA as H&W, had registered
as H&W in hotels in other CLM jurisdictions.

IMRHO (the R stands for rarely), a couple living
in unmarried cohabition is somewhere between
ignorant and stupid to file MFJ. It's not Pandora's
Box. It's more like a raising an infant tiger
who may take a big bite of in a few years.

Rule #1: Never willfully and knowingly sign your
name to a false statement.

Dick

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on September 22, 2008, 11:56 am
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On Sep 21, 3:28 pm, rdad...@panix.com (Dick Adams) wrote:

> The IRS is prone to attack CLM's because they
> represent unpaid taxes plus interest, and penalties.
> In the case of a Utah couple, the IRS successfully
> attacked the CLM.

But if both members are working and each making a bit of money, then
the marriage penalty kicks in and they pay more tax. The tax rates
are higher, phaseout of itemized deductions, exemption, AMT exemption
are higher, stock loss is same as for single, etc. The Bush tax cut
eliminated the penalty for those at lower incomes. So surely the IRS
would not object to MFJ for these people.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Stuart Bronstein on September 23, 2008, 6:30 pm
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rdadams@panix.com (Dick Adams) wrote:
>
>> What are the consequences if an unmarried couple
>> (living together as husband and wife) in a
>> common-law-marriage state file MFJ? One of our
>> preparers claims that we just "married them at
>> our desk;" others disagree. What if they're NOT
>> in a common-law marriage state? I've browsed
>> around irs.gov but found nothing specific there;
>> references would be appreciated.
>
> Of course, the answer is "It depends".
>
> As a strong advocate of "Living in Sin for Fun and
> Profit", I can tell you there are some problems in
> common-law marriages. In order for there to be a
> common-law, there MUST be a clear present-tense
> agreement to be married

True. However that element can often be inferred from the element of
"holding out" as husband and wife. That is to say that if they tell
people they are married (signing into a hotel as Mr. & Mrs. can be
enough) the courts may conclude from that fact alone that there is an
agreement to be married.

Stu

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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