QUESTION
Can the IRS hold up refunds that would be paying my child support because of our bankruptcy?
Asked on Jan 16th, 2012 on Taxation - Ohio
More details to this question:
I was divorced in 2007, we separated in 2006. My ex owes me approximately $35,000 in child support. They are supposed to seize his taxes to pay this. He has been self employed the whole time. He has an accountant doing his taxes all the way back to 2004/2005 when we were married. I was not working and we had filed bankruptcy. We lost our home in this bankruptcy & they are now telling him that it has to be claimed as income. Is this true? I have been told it is illegal for the IRS to say that. They are holding up refunds that would be paying my child support because of this. Can this affect me in any way? I believe, but am not sure that it was in my divorce papers that he was responsible for the returns for that year as I never worked. How does that work also? As a single Mom I could really use that money.
1 ANSWER
Trust Attorney serving Cincinnati, OH
at
Paul A. Nidich Attorney at Law
Update Your Profile
Whenever a debt is cancelled by the lender voluntarily or by court order, the amount of the accumulated debt will probably be treated as income to the person or people who were liable on the debt. The lender is obligated to send an IRS Form 1099-C to those who were liable for the debt by January 31st of the year after the debt was cancelled. If you were not liable as a co-signer on the mortgage, you may be able to file for Innocent Spouse relief. You should see a tax attorney to discuss your situation.
Answered on Jan 30th, 2012 at 2:49 PM