They give you the following information regarding the home: Fair market value Mortgage. Equity $165,000 $125,000...

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They give you the following information regarding the home: Fair market value Mortgage. Equity $165,000 $125,000 $40,000 Bill and Betty want to know what will happen to the mortgage if the house is sold and they want to know whether the IRS will pay off the irst mortgage for them. They also want to know whether the IRS can evy on their joint equity in the house or only on Bill's equity. n answering this question, assume that the tax being collected by the eizure is as follows: A) The assessment is $45,000, representing the balance due on their joint 2005 and 2006 federal income tax returns. (B) The assessment is $45,000 and represents the balance due on Bill's separate returns for 2007 and 2008. Bill had filed using the married filing separate status because the marriage was on the rocks at the time. The time to elect to file a joint return has not yet expired, and filing jointly would save them approximately $3,000. (C) The assessment is $45,000 resulting from an audit of their 2007 and 2008 income tax return. The auditor found that Betty had not reported approximately $40,000 of gross receipts each year resulting from her real estate business. Bill did not know how successful Betty's real estate business was, and he never saw any of the money because Betty was always reinvesting it in new properties. The assessment was made jointly against Bill and Betty. They give you the following information regarding the home: Fair market value Mortgage. Equity $165,000 $125,000 $40,000 Bill and Betty want to know what will happen to the mortgage if the house is sold and they want to know whether the IRS will pay off the irst mortgage for them. They also want to know whether the IRS can evy on their joint equity in the house or only on Bill's equity. n answering this question, assume that the tax being collected by the eizure is as follows: A) The assessment is $45,000, representing the balance due on their joint 2005 and 2006 federal income tax returns. (B) The assessment is $45,000 and represents the balance due on Bill's separate returns for 2007 and 2008. Bill had filed using the married filing separate status because the marriage was on the rocks at the time. The time to elect to file a joint return has not yet expired, and filing jointly would save them approximately $3,000. (C) The assessment is $45,000 resulting from an audit of their 2007 and 2008 income tax return. The auditor found that Betty had not reported approximately $40,000 of gross receipts each year resulting from her real estate business. Bill did not know how successful Betty's real estate business was, and he never saw any of the money because Betty was always reinvesting it in new properties. The assessment was made jointly against Bill and Betty.

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