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?

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Definitions:

Wilhelm Wundt

A German physician, physiologist, and philosopher widely regarded as the father of experimental psychology, who established the first psychology laboratory.

Psychologists

Professionals specializing in the study of the mind and behavior.

Basic Research

Fundamental scientific research aimed at increasing knowledge or understanding of the subject without immediate practical application in mind.

Applied Research

A form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' (the academia's) accumulated theories, knowledge, methods, and techniques, for a specific, often state-, business-, or client-driven purpose.