Home > Research Legal Advice > Tax > I received a letter from the IRS stating I owed $6000 from 2006, my wife...
Asked 5 months ago - Gilbert, AZ
FlagI am confused and have received some conflicting advice. If I set up a payment plan for the 2006 debt prior to filing and file jointly will the IRS take our return to offset the debt ? Or would we be better off filing separately ? I do know there are disadvantages to filing separatey I am currently unemployed and a full time student any return would bey helpful, we are working with the IRS to come up with a payment plan. Thank you in advance for your advice. Recomendations would be very helpful.
Even if you are in a payment plan the IRS will take any refund due to you (or your spouse if you file a joint return) to pay the back amounts owed. If you and your spouse would be due a refund if you a file joint you may want to consider filing as married filing separate. But you need to weigh this with the loss of deductions.
Your spouse may file for injured spouse relief if they take her portion of the refund, even if you file jointly. Additionally, the IRS could seize both of your refunds even if you file separately. This is a helpful resource. http://www.irs.gov/irm/part25/irm_25-018-005.html
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