My husband and I filed an injured spouse when we filed our taxes to prevent ORS from intercepting our refund. This debt was incurred by me, before we were married and I did not work last year. We know we "qualify" for it, as we filed one last year to get money that they took back. They ignored the injured spouse and took the money anyway. Is this unlawful?
I don't understand ORS, possibly "State of Utah - Office of Recovery Services"?
Remember that innocent spouse deals with IRS not taking:
Injured Spouse Claims. If spouses file a joint income tax return and an obligation described in IRC 6402 is owed by one of the spouses, the Service will generally offset the entire overpayment. Rev. Rul. 84-171, 1984-2 C.B. 310. If the spouse who does not owe the obligation (referred to as the "injured spouse") files a claim for his or her share of the overpayment (referred to as an "injured spouse claim"), the Service is required to refund his or her share of the overpayment. IRM 188.8.131.52.5, Relief from Joint and Several Liability-Injured Spouse Claims; 31 C.F.R. §§ 285.2(f) and (g). An injured spouse obtains his or her portion of the overpayment by filing a Form 8379, Injured Spouse Allocation. IRM 184.108.40.206.5, Relief from Joint and Several Liability-Injured Spouse Claims. An injured spouse claim can also be filed with an original return. As will be discussed below, in some circumstances the Service may have a common law right under state law to offset all or part of the injured spouse's community property share of the overpayment. These rights vary from state to state. IRM Exhibit 25.18.5-1, Amount of Overpayment That Can Be Offset To Satisfy A IRC 6402 Debt, contains examples of the application of injured spouse rules in various states and for various types of liabilities.
Injured Spouse v. Innocent Spouse. Injured spouse status and innocent spouse status are frequently confused with each other. Innocent spouse status relieves a spouse of the responsibility for paying [FEDERAL] taxes that may then be collected from the other spouse. Injured spouse status involves obtaining a refund of a spouse's interest in an overpayment that has been offset under IRC 6402.
The above is from the IRS-Internal Revenue Manual. Basically it even includes a warning that the state can take a refund, even if it has been partitioned for injured spouse.
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
This sounds like a state taking your refund. Keep in mind, the Injured Spouse claim is filed with the federal government and is not binding on a state government.
When you filed an injured spouse Form 8379 last year, you put in a year that you were were requesting relief for. You need to file one every year technically because you are seeking relief for a specific year, and my guess is that year was 2010.
Sounds like you are mixing Federal and State tax issues. If you filed an innocent spouse claim with the IRS, it does not protect you from state levies on your state tax refund. Also, just because you know you "qualify" for it does not mean that you actually qualify.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
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