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Subject:  Re: Splittling deductions on separate returns Date:  8/26/2011  11:36 PM
Author:  billjam Number:  113872 of 127753

I'm asking this for a friend who's husband seems to have gotten her into a mess with IRS. She has received notice that she owes $2100 due to a problem with mortgage interest deduction. She filed married filing separately but used the numbers he gave her. She assumes he split the mortgage interest between the two of them. He makes the mortgage payments but the house title and mortgage are joint.

I've advised her to consult a CPA before responding to IRS or making any payment. I know I haven't been able to provide much info but wonder if you see anything wrong based on the little info I have. My friend is terribly upset because she always keeps her financial affairs in good order. It took me a while to convince her not to just send the IRS what they asked for just to get them off her back.

Here's an update on my post from two months ago: I convinced her to fight this and she worked through the paperwork herself. She had documentation that the loan is in both names even though the bank only put his SS# on the tax statement. Today she got a notice that IRS has accepted her response and she owes nothing. She's very happy.

This was for 2009, the first year she filed married filing seperately. I told her to be sure to keep everything where she can find it. She'll probably have the same problem with 2010 tax return when IRS gets around to looking at it, but now she knows how to fight it.
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