QUESTION
Will the IRS continue to apply any refunds due to me now if my husband filed bankruptcy?
Asked on Jun 14th, 2012 on Taxation - Michigan
More details to this question:
My ex-husband and I filed our last joint return in 2009. We owed the IRS. I gave my ex $1500 to pay toward the balance which he did not. I am currently seeking Innocent Spouse Relief. He filed bankruptcy in June 2012 under Chapter 13 and is paying off his debts over five years. The IRS applied my 2010 individual return to and I have filed an extension for 2011. I have since remarried. Will the IRS continue to apply any refunds due to me now that he has filed even if I file jointly with my new husband?
3 ANSWERS
Appellate Practice Attorney serving Cheyenne, WY
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Lynn Boak Attorney at Law
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Yes, unless they grant you innocent spouse relief. The 2009 debt to the IRS is a joint liability and they will collect it from the spouse who is able to pay it.
Answered on Jun 26th, 2012 at 3:32 PM
Trust Attorney serving Cincinnati, OH
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Paul A. Nidich Attorney at Law
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Yes, the IRS will continue to take your refunds. Although there is something called "Injured Spouse Allocation" which is supposed to allow taxpayers to take advantage of the joint filing credit, but have IRS determine that you new husband not be contributing to pay your tax debt, it may be safer to file separately. There are two other issues: a) what has your divorce attorney said about this? You should contact him/her about this; b) did your ex-husband list your $1,500 as a debt in his Chapter 13? Have you discussed that with you divorce attorney or, if he/she doesn't do bankruptcy, with a bankruptcy attorney? You might also want to explore an offer in compromise with a tax attorney.
Answered on Jun 25th, 2012 at 5:18 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You need to consult a tax attorney as the situation is getting quite complicated and needs to be fully understood before an opinion can be formed.
Answered on Jun 25th, 2012 at 5:17 PM