Ownership by tenancies by the entirety cannot be used as a defense to defeat IRS tax liens, an appeals court confirms, even when only one spouse owes the taxes.

This precedent was set by the Supreme Court in a 2002 ruling. In the current case, only the husband owed back taxes. But the couple tried to conceal their ownership of real estate that they owned as tenants by the entirety, and it backfired on them.

Only after IRS foreclosed on the realty and sold it did the wife admit to co-owning it. She argued she was owed half the sales price. The court said no because of her deceit and failure to assert her interest until after the property was sold.

Bogart, 3rd Cir.

Pin It on Pinterest