I filed two 1040x to change from MFJ to MFS, and now received a IRS letter saying they cannot process

[karljian]

I filed two 1040X, one for me and one for my spouse, before 04/15 to change our filing status from the previously filed MFJ to MFS. Now 4 months later, we received a letter from IRS for my spouse claiming that they cannot process her 1040X and need verification such as divorce decree.

did we do the change of filing status wrong? any advice what to do now?

[rjs]

My advice is to consult a local tax professional or tax lawyer who has experience representing clients before the IRS. You are allowed to change from MFJ to MFS before the due date of the original tax return, but doing so is very rare. I can't find any IRS instructions for how to do it. You are not likely to find a tax professional who has ever done this for a client. The Internal Revenue Manual, which is a manual of procedures followed by IRS employees, says that you can do it, but it doesn't have any instructions for the taxpayers. You can tell the tax professional to refer to IRM 21.6.1.5.5.

When you meet with the tax professional, bring copies of your original joint tax return, the amended returns that you filed, and the letter from the IRS.

[VolvoGirl]

Wouldn’t t you just file one 1040X for the Joint return?   Changing it into a MFS for you.   Then do a new regular 1040 MFS for your spouse.  

[karljian]

thanks @VolvoGirl . i thought both of us were having the MFJ status, so did 1040X for both of us. otherwise, what filing status did my spouse have in a MFJ filing?

[karljian]

thanks @rjs. when i did it, i thought it is not uncommon and there seems to be a lot of discussion of it online and here. i'm going to call IRS and see if they will give me instructions.

[rjs]

@karljian 

Whatever instructions you find, keep a couple of things in mind.

(a)  You are no longer starting from the beginning. There have been a few actions taken, by you, your spouse, and the IRS, that complicate the situation. I don't think you are going to find any instructions for what to do at this point.

(b)  Your wife's options may be limited by the fact that it is now after the due date of the return. You cannot change from MFJ to MFS after the due date of the return.

Also, in your original question you said that the IRS letter asks for "verification such as divorce decree." That doesn't make sense. You would not need a divorce decree to file as married filing separately. In fact, a divorce (before the end of the tax year) would prevent filing as MFS. So there must be some kind of mistake or misunderstanding somewhere in the chain of events.

All these complications are why I think you need to get a tax professional to straighten out the mess that you are now in. This is no longer a do-it-yourself project.

[karljian]

@rjs Thanks. So the 1-800 number would not get me to someone who knows what is going on. Instead, a tax professional has the resources to present my questions and confusion to the right persons? Is that a correct understanding?

[rjs]

That's basically correct. It's not just a matter of getting your questions answered, though. A good tax professional will have the resources to work with the IRS bureaucracy to resolve the issues and accomplish what you are trying to do.

Tax professionals do have lines of communication in the IRS that are not available to taxpayers, and they have access to higher-level contacts. They also have experience using those lines of communication to find out what's going on, clear up misunderstandings, and make sure that the right actions are taken. The first-level person who answers the 800 number is not going to have any idea why your wife got the letter, or what you should do. The people who answer the 800 number are good at answering routine questions about tax rules and handling simple, routine problems. Your situation is far from routine.

[karljian]

@rjs that's very helpful! thank you