Flying Solo
Nextsteps FlyingSolo Our Store About Us Life Management Home

 
Browse Resources:

Bankruptcy

Columns

Divorce & Estate Planning

Divorce & Separation

Divorce Mediation

Divorce Tax

Divorce Tips

Frequently Asked Questions

General Divorce

Military Divorce

Remarriage & Stepfamilies

State Information

Un-Married Couples

 
Sample Tax Indemnification Agreement May Help Solve Future Tax Liability At Divorce

STATE OF SOUTH CAROLINA )

WARNING: THIS IS A FORM THAT CONTAINS LANGUAGE THAT MAY OR MAY NOT HELP YOU. THIS DOCUMENT IS NOT DESIGNED OR INTENDED TO BE A SUBSTITUTE FOR LEGAL OR TAX ADVICE. YOU ARE CAUTIONED NOT TO USE THIS FORM FOR ANYTHING BUT INFORMATION, AND YOU ARE ENCOURAGED TO SEEK LEGAL AND TAX ADVICE BEFORE SIGNING ANY DOCUMENT THAT MAY AFFECT YOUR MONETARY OR OTHER RIGHTS. DO NOT RELY ON THIS DOCUMENT OR USE IT WITHOUT THE ADVICE OF YOUR LAWYER OR CPA

 

STATE OF ___________________ )

) TAX INDEMNIFICATION

COUNTY OF __________ ) AGREEMENT

This agreement entered into this day of ______________, 19____ between ________________ and __________________, hereinafter referred to respectively as Husband and Wife.

WHEREAS:

1. Wife and Husband have been living separate and apart since _____________; and

2. Wife and Husband have previously filed joint federal and state tax returns and Husband desires to have Wife join with him in filing joint returns for the year 19___; and

3. Husband has provided the information for and procured the preparation of all such joint returns, including the returns for 19___ and Wife has no knowledge or information about the content of such returns or upon what the returns have been based, including the 19___ return which has been presented to Wife for signature; and

4. Wife has relied and continues to rely upon the representations of Husband regarding the preparation and statements contained within said returns; and

5. In consideration of Wife agreeing to join in signing joint returns for 19___, Husband agrees to assume certain responsibilities and warrant the accuracy of the information contained in all of the prior returns, including specifically the returns for 19___.

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties agree as follows:

I. Joint Returns for 19___ :

Wife agrees to join with Husband in filing joint federal and state income tax returns for 19___ upon the express provision that Husband shall be responsible for the preparation and filing of said returns.

II. Payment of Amounts Due/Refunded:

Husband shall be solely responsible for and shall pay any and all payments due, whether for taxes, interest, penalties, deficiency claims, assessments or otherwise in connection with the joint federal and state income tax returns for the year 19__ and all previous years wherein joint returns were filed by the parties. If any refunds are generated by the 19__ returns, the refunds shall be escrowed by counsel for Husband pending further Agreement or Order by the Family Court.

III. Warranties as to Accuracy:

A. Husband warrants that the federal and state joint returns for 19__ to be filed will be true, accurate and complete.

B. Husband warrants and represents that the representations and statements including specifically his personal or business income and expenses to be reported on the 19__ returns and all prior joint returns are true and accurate.

C. Husband warrants that he shall not cause any amended return to be filed without the express written agreement of Wife.

IV. Indemnification and Hold Harmless Protection:

A. Husband shall indemnify and hold Wife harmless from any and all financial responsibility or sums found to be due arising out of the filing of the 19__ joint returns, any other return, and for any later imposed tax payments, interest, penalties, assessments or deficiency claims on said returns or any joint returns previously filed by the parties.

B. In the event that Wife retains counsel to represent her interest due to any audit, deficiency assessment or other proceeding related to the 19__ joint returns or any joint returns heretofore filed by the parties, any costs incurred by her for such purpose shall be assumed and paid by the Husband who hereby indemnifies and holds the Wife harmless from the payment of any such costs.

V. Full Cooperation:

Husband and Wife agree to fully cooperate in the signing of any and all powers of attorney or other documents which may be necessary for them or their authorized agents to defend against deficiency claims, claims for deficiency, penalty or interest assessment and/or papers required to complete any tax audits. The parties shall extend the same full cooperation as expressed in the foregoing sentence to any papers compromising or settling any disputes which may arise with regard to previously filed joint tax returns.

VI. Revocable Power of Attorney:

On request of the Husband or his authorized representatives, the Wife shall sign a revocable power of attorney to designate Husband or his designated agent as her attorney-in-fact to sign her name on any papers related to tax audits or asserted claims for tax deficiency, penalties or interest. The Husband or his representatives shall inform the Wife when the revocable power of attorney is used by the Husband or the designated agent. Copies shall be provided to the Wife or her counsel. Such power of attorney provided for in this Article shall be limited to matters arising out of filed joint tax returns.

 

VII. Amendments:

If deemed appropriate, joint returns may be amended and the Husband or his designated agent shall have the right to file such amended returns, after first submitting same to Wife. The Full Cooperation and Revocable Power of Attorney articles of this agreement shall apply equally to any amended return so filed. All provisions of the Indemnification and Hold Harmless Protection article shall apply to any amended returns so filed. If any refunds are generated by amended returns, the parties shall be entitled to same equally.

Both parties represent and acknowledge that they have sought and received the benefit of independent legal counsel before signing this agreement.

IN WITNESS WHEREOF, the parties have signed and acknowledged this indemnification agreement in four counterparts, each of which shall constitute an original.

(SEAL)

WITNESS Husband

 

(SEAL)

WITNESS Wife

 

 

© 1997 Flying Solo



Need more advice or help with this topic? Click here to get information about taking the "Next Step".

Create your personal health plan now and make your wishes known ® using My Final Decisions

© 1986 - 2018 Jan Warner. Please See our Terms of Service and Privacy Policy.
Please feel free to contact us with any comments.

Planning Your Future with 20-20 Vision™

 

 


Today, more than 36 million Americans are age 65 or over. There are more than 22 million family-member caregivers. Then there are the Baby Boomers. All are grappling with the major decisions that accompany the latter stages of life. This book is for them. Written by two experts with decades of experience between them, it is a comprehensive guide that instructs readers about how to create a plan to deal with all aspects of aging, helps maximize options and ensure wishes are carried out.

Learn More
Order the book
Create your personal health plan now and make your wishes known ® using My Final Decisions
Suggested Reading:
Separation and Divorce Guidebook
Click for more ....

FS-Be Wary of Credit Issues with Ex
Click for more ....


FS-Becareful of Bargaining Away Alimony As Child Support
Click for more ....


FS-Lawyer Tells Me to Lie & Pension Double Dipped
Click for more ....


FS-On and Off Again Reconciles Can Create Agreement Disasters
Click for more ....


FS-The Dangers of Family Loans
Click for more ....


FS-Transference of Affection & 10 Tips of Divorce
Click for more ....



Other
Recommended
Resources