What hidden assets can a tax return reveal?
- posted: Sep. 27, 2019
People going through a divorce in Georgia who are concerned that their partner may be trying to conceal money or accounts have a resource that may reveal any number of hidden assets: their tax returns. Even if someone does not report assets as part of personal income, there are still other places on the return, according to CNBC, where a person may check to see if assets are being hidden.
Some spouses set up accounts to hide money from a partner. However, a tax return provides a place to report an interest income statement if interest is accumulated on the account. Schedule B is where interest and dividend details are listed, so this is a good place to check for evidence of a hidden account. Additionally, some people remove money from a brokerage account but do not reinvest it. Evidence of this can be discovered in Schedule D.
Another form to be aware of is Form 1099-R. Some spouses remove money from a retirement account and distribute it to other accounts or financial holdings. These activities can go unnoticed if you do not regularly keep track of your financial accounts. A Form 1099-R, however, might alert you that a spouse has been moving retirement money around without your knowledge.
There are also spouses who try to make their income after taxes look smaller than it really is by putting money into a 401(k) or a deferred compensation plan. If you feel your spouse is earning more money than he or she is revealing, a Form W-2 is an important place to look. Form W-2s contain valuable information, such as the amount a person earns in wages and amounts withheld in income taxes. W-2s also list amounts saved in workplace plans.
This article is written to provide general information on the topic of property division. It is not a substitute for the advice of a professional attorney.