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:

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers that provide high tensile strength and support to various structures of the body.

Internal Organs

Essential parts of an organism located within its body cavity that perform various vital functions.

Epithelial Tissue

A type of tissue that lines the outer surfaces of organs and blood vessels, as well as the internal surfaces of cavities in many internal organs.

Absorption

The process by which one substance takes up or takes in another substance, often referring to the way nutrients are absorbed from the digestive tract into the bloodstream.