Recently, after many years of research I have published my 2d book on asset protection, Asset Protection 2015: IRS Tax Audits & Lawsuits.
A specialized issue for community property includes the community liability for separate property debts of either spouse. These separate property debts may include those debts arising pre-marriage or during marriage. It may include federal/state taxes due by either spouse, judgment liens, and pending litigation (or prospective litigation e.g. personal guarantees).
More intricate tax issues include: spousal joint and several liability for taxes due under joint tax returns (which as of 2015 may include gay spouses who marry).
In addition, compelling tax issues (with penalties for civil tax fraud i.e. up to 75% of the tax due, and criminal tax evasion both penalties & jail) include: failure to report off-shore bank accounts over $10k (“FBAR filing”/Fincen 114), failure to file Form 8938 to report foreign financial assets over $50k (as required under the FATCA rules), failure to disclose the existence of offshore accounts on Form 1040 Schedule B/Part 3 (line 7). Any one of these failures of tax compliance may suspend the IRS statute of limitations for civil tax compliance indefinitely given the IRS open-ended opportunity to audit returns and impose tax, penalty and interest.
For you and your clients, to be “forewarned is to be forearmed”. I enclose an excerpt from the book on Community Property Liability.
Please click here to download your free copy.