Married Filing Joint Status vs. Married Filing Separate Status
Karen Hawkins, the former Director of the Office of Professional Responsibility (the oversight arm of the
IRS that polices tax preparers) has gone on record stating that a conflict of interest exists every time a
tax professional files a married filing joint (MFJ) tax return. Because of this conflict, she has stated all
tax preparers should obtain informed consent regarding the preparation of an MFJ tax return.
The conflict of interest exists as both parties signing the return are accepting the “joint and several
liability” for all taxes related to this return now and in the future. This means if you owe, you both owe
100% of the balance, and they will enforce collections on both of you until they receive the full amount.
This means if this return is later found to have additional taxes due through audit or other examination,
both of you will owe 100% of the taxes, and they will collect from both of you until the balance is paid in
full. This is true even if you have divorced and court documents state that only one spouse is
responsible for the taxes.
Most of the states in the US are non-community property states, and in those states it might make sense
for couples to consider filing as Married Filing Separate. Though the tax brackets are higher, certain
credits and deductions are lost, and it may generate a higher tax liability, it is at least a decent option.
Community property states, (California, Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas,
Washington and Wisconsin) however, see little to no benefit in filing separately. In these states, all
earned income is attributed equally to both spouses, as are deductions and taxes. There are some
exceptions related to properly titled, managed and held separate property. It is possible to split the
income 50/50 and then file separately. This would likely generate significantly higher taxes; however it
would properly separate the liability.
In an effort to adhere to Ms. Hawkins advice, we are asking both parties to sign this document
acknowledging we have discussed the issues involving Married Filing Jointly vs. Married Filing
Separately. You are encouraged to talk to your preparer about any questions you may have on this
matter before you sign, and before you commit to a filing status.
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Signature
Name
Date
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Signature
Name
Date