Location: NJ
My ex-husband agreed to take full responsibility for the tax debt in our divorce settlement. He didn’t pay it within the specified time frame and now my tax return has been taken and applied to his debt. I’m also in the midst of buying a home and afraid that I won’t be able to close with this past debt in my name.
I’m going to file the injured spouse form. What are the chances that I will get my money back?
I was also told by the IRS rep that the status of the past due balance was “uncollectible” for now, so why was my return taken?
Additionally, I feel like my lawyer didn’t protect me in making sure that consequences were spelled out if he did not pay this debt within the agree upon due date. Especially after I told her that he was a liar and has a spending addiction. He’ll say and agree to anything in the moment, to have his way. Now I’m here, still being affected by his money issues and horrible financial decisions.
I don’t have the funds to hire another lawyer and take him back to court. What can I do to enforce what he agreed to in the divorce settlement?
Facts:
• We were filing “married filing jointly”during the time period owed.
• The amount owed is around 30K for two years because he claimed income that he did not pay any taxes on and didn’t file any expenses.
• Even though the divorce decree states that he takes full responsibility and it should have been paid by March of 2025, the IRS does not care about that and still holds me equally responsible for this debt.
• Not only has he not paid it, but he hasn’t even set up a payment plan.
My tax return was taken because of my ex-husband’s tax debt.
byu/Turbulent-Dig9143 intax
Posted by Turbulent-Dig9143
5 Comments
This something you’ll have to go after him for most likely. The IRS doesn’t care what’s in your divorce decree.
As you’ve seen, IRS is not required to go by your divorce agreement. The law allows them to collect from whoever they can collect from so you and your ex cannot make an agreement with each other that results in limiting the IRS collection authority. “Uncollectible” means they aren’t trying to make you pay, but taking refunds is just money that falls into their lap, they will ALWAYS take the refund of anyone who owes. You should probably adjust your withholding so that you don’t owe. And you can sue your husband for the money later but that’s not IRS problem.
If you’re MFJ and have unpaid tax, they’re going to go after whoever’s tax id number is on the owed return, so that’s why they garnished your refund.
You’ll need to contact your attorney and sue to make your husband uphold his end of the divorce decree. The IRS considers you married and part owner of the tax liability, so they don’t really care what arrangement you had.
Submit an injured spouse form, as you mentioned in your post.
The form that you file is the return. Any overpayment you get back is the refund.