A woman from Montana called into “The Ramsey Show” with a story that left hosts Dave Ramsey and Rachel Cruze shocked and frustrated. She’s a nurse who had maintained a steady career while her husband pursued real estate full time. In 2021, they earned enough money that they owed $82,000 in taxes. The money was available in her husband's business account. She trusted him to handle it. He didn't.
He Spent The Tax Money Behind Her Back
Instead of paying the IRS, her husband secretly used the money on a failed business venture. He ignored their certified public accountant's repeated attempts to reach him and even hid IRS notices from her. The couple’s CPA eventually filed the taxes without signatures in early 2023 just to avoid penalties.
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She only found out when she signed for a certified letter: the IRS now intends to levy their home over a $150,000 debt. "I feel blindsided and betrayed," she said. Now she's considering taking out a second mortgage or selling the home to get out of the mess, even though she's planning to divorce him.
Ramsey was direct: "No, I would not bail him out. I would bail us out if we are staying together."
Is She On The Hook For His Taxes?
Ramsey said it sounds like the tax liability is tied entirely to the husband's business income. If she divorces him, she can likely file under the IRS's innocent spouse provision, which protects someone who didn't know about their partner's unpaid taxes or deceptive financial behavior.
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"You would need a tax attorney or a great CPA that knows how to work that," Ramsey said. If the house is sold and she qualifies, the IRS would only be able to take money from his portion of the home.
But if she stays, the situation changes. "Then the two of you have got to reestablish some footing on trust and betrayal and lies and deception, and then put all of our income in one pile to clean up the mess that he made," Ramsey said.
A Crisis Of Integrity
Ramsey connected the story to a broader lesson about wealth and character, referencing the late Tom Stanley, author of “The Millionaire Next Door” and “The Millionaire Mind.” According to Ramsey, Stanley found that billionaires shared one top trait: "fanatical levels of integrity."
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"That would be the other end of the spectrum from the man in this email," Ramsey said. "Running the scheme, running a scam, trying to find a shortcut, trying to find a get-rich-quick thing. I’m making good money in real estate, but I still got a side hustle that’s screwing up. I find some way to burn money… That's the opposite of integrity."
But he added that it's not too late for her husband to change. "Integrity is a decision. He can just decide to be a man of integrity starting today. But if he doesn't, you got issues, sister."
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