I filed an information referral to the IRS on my ex-wife. Basically she has been making gobs of money under the table, much of which I don't have ALL the evidence for even though I knew there was more there. She was supposed to get me tax paperwork for last year's taxes and it never happened. I was going to file something then, but my divorce lawyer told me to wait to use it as leverage in the divorce. Well, nothing has been done yet and we're going into the 2008 tax year.
I had my tax preparer file a 1040X and change last years status to married filing separate. I itemized so, the preparer said that my wife will be forced to file and itemize herself. In the information referral, I sent along documents proving some type of resources available to my ex-wife including the cash purchase of a $24,000 vehicle and her signing a purchase contract on a $105,000 house. I also sent along the financial affidavit that she signed when I took her to supprt court (I have custody of the kids). She show her $900/mo mortgage payment and all her utilities, but in nice clear print states that she is unemployed and continually stated that throughout the support hearings. Since, they took her word for it rather than all the financial evidence that I submitted, I lost in support court and just sent the information referral and supporting documents to the IRS in Fresno. I figure if they catch up with her I can take that back to support court.
In the referral, what I could show was; at least $50,000+ in unclaimed income for 2007 and $60,000+ for this tax year, 2008. Now my question is:
1) Will the IRS really take a look at her or, is this just chump change to them?
2) If they do audit her, how long does something like that typically take to happen, after the information referral is filed? (I am expecting that I will also get called into this audit and luckily - am a pack-rat when it comes to keeping documents. Ex isn't...