Mr bl had no idea his wife had gone to such lengths on his


Mr. and Mrs. BL filed a joint tax return reporting $24,000 AGI. During the year, Mr. BL was extremely ill and was hospitalized for four months. Mrs. BL, desperate for funds to pay her husband's medical bills, took a night job as a bartender. She earned approximately $7,000 in tips, none of which she reported on the return. Mr. BL had no idea his wife had gone to such lengths on his behalf. After auditing this return, the IRS notified Mr. BL that he owed a $1,100 deficiency plus interest because of the unreported tip income. Can he avoid liability as an innocent spouse? Explain your conclusion.

Solution Preview :

Prepared by a verified Expert
Financial Management: Mr bl had no idea his wife had gone to such lengths on his
Reference No:- TGS01184318

Now Priced at $15 (50% Discount)

Recommended (96%)

Rated (4.8/5)