Our joint return showed tax due, not hidden income. Can equitable relief still help if my spouse promised to pay and never did?
I am from South Korea and filed jointly with my spouse when we were still operating a U.S. services business together. The return itself was not inaccurate, but it showed about $41,000 due. My spouse said the payment would be handled from business cash, then drained the accounts and left. I did not realize the balance was still outstanding until the IRS notices escalated.
Most of the examples online talk about unreported income. My problem is different because the tax was shown correctly on the return. I want to know whether Form 8857 still has a path for an unpaid balance situation like this.
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