Unfortunately for married couples in Texas who are are considering divorce, the IRS sometimes finds a union’s dissolution to be just cause for an audit. This could happen regularly, as statistics show that more than one-half of all marriages end in divorce.
The Internal Revenue Service knows when a taxpayer is married filing jointly, married filing separately, single or the head of a household, based upon the particular status used in filing the return. Couples going through a contested divorce will usually be required to divulge all of their income and assets, and a judge who is alerted to a fraudulent or otherwise illegal attempt at tax evasion is ethically required to report it to the IRS.
The simple fact is that more Americans are divorcing not just once or even twice, but three or even more times. Every time a person goes through the process is another possibility that the judge will think he or she sees something that could be in violation of tax codes. The more divorces, the more chances there may be to end up with this particular kind of audit. The IRS is allowed a statute of limitations period of three years following a marital dissolution to perform such an audit.
The possibility of an IRS audit following a divorce with complex property division issues is just one more factor in the process that couples must be prepared for. Working out spousal support, deciding on child custody and performing other tasks that need to be done at the end of a marriage may be made easier with the assistance of a legal professional. Mediators may be appointed by a divorce court judge to assist couples in reaching an agreement.
Source: Forbes, “Divorce Causes Tax Audits“, Cameron Keng, February 10, 2014