Alexis and Terry Have Been Married Five Years and File

question 418

Essay

Alexis and Terry have been married five years and file joint tax returns. Alexis began embezzling funds from her employer during the third year of their marriage. Last year, Alexis suddenly left the country and Terry does not know where she is. In the current year, Terry learned that the IRS had assessed him $27,000 in unpaid taxes due to Alexis's embezzlement. What tax issue(s) are present in Terry's situation? What questions would you ask Terry to determine his appropriate response to the IRS?

---

Definitions:

Self-Esteem

An individual's subjective evaluation of their own worth and abilities.

Sense of Purpose

The feeling or belief that one has a meaningful direction in life or contributes to something greater than oneself.

Social Learning

A theory that proposes individuals can learn new behaviors or knowledge by observing and imitating others within a social context.

Albert Bandura

A psychologist renowned for his work on social cognitive theory, including the concept of self-efficacy and observational learning.