IRS Taking My Refund for Ex-Husband's Back Taxes - Innocent Spouse Relief?

You need to file Form 8857 for Innocent Spouse Relief. This is specifically designed for your situation. The IRS shouldn't hold you responsible for tax debts that are solely your ex-husband's, especially from a year you were still married but now divorced. You'll need to prove you didn't know about or benefit from whatever caused the tax debt. Do you have your divorce decree? That will be helpful documentation.

You have exactly 2 years from the date of the first collection activity to file for Innocent Spouse Relief. Based on your transcript update, your clock started ticking today. I'd recommend gathering these documents: your divorce decree, any separation agreements, tax returns from 2022, and any proof showing the tax debt was from his income/deductions. The IRS typically processes these claims in 6-8 months, though I've seen some resolved in as few as 98 days when the documentation was thorough.

When I was dealing with this Injured Spouse situation, I couldn't get through to the IRS for weeks. The hold times were ridiculous - I'd wait 2+ hours only to get disconnected. Finally used Claimyr.com to get through to an agent in about 15 minutes. They connected me directly to the Innocent Spouse Relief department, which saved me from being transferred multiple times. The agent walked me through exactly what documentation I needed for my Form 8857. Given your situation with the Offset Bypass Refund potential, getting to an actual human at the IRS quickly might be critical. Here's their link: https://youtu.be/_kiP6q8DX5c

Have you considered requesting an Offset Bypass Refund (OBR) while your Innocent Spouse Relief claim is being processed? This is something many taxpayers don't know about. If you're experiencing economic hardship, the IRS can release your refund despite the offset. But here's the catch - you must request it BEFORE the offset occurs. Has your refund been officially offset yet? Or is it just showing as pending? If it's still pending, you might have a narrow window of opportunity. Would an immediate release of funds help with any current financial emergencies you're facing?

It seems like you might possibly qualify for Innocent Spouse Relief, but there are actually three types of relief you should probably consider: 1. Innocent Spouse Relief - If you can somewhat prove you didn't know about the underreporting of income or incorrect deductions 2. Separation of Liability - This might be more applicable in your situation, as it divides the understated tax between you and your ex-spouse 3. Equitable Relief - This is sort of a catch-all if you don't qualify for the other two You'll likely need to gather financial records, bank statements, and perhaps even testimony showing you weren't involved in or aware of whatever created the tax debt. The IRS publication 971 explains all of this in detail, though it's admittedly rather complex.

I had a situation similar to yours, but with student loan offsets instead of back taxes. It's like being told you're responsible for your roommate's parking tickets from three years ago! I filed Form 8379 (Injured Spouse) initially before realizing I needed Form 8857 (Innocent Spouse). The difference in response time was shocking - the Injured Spouse claim sat for months while the Innocent Spouse claim got assigned to a specialist within weeks. Compared to dealing with student loan offsets, the IRS innocent spouse department was surprisingly responsive.

According to IRS Internal Revenue Manual 25.15.3.4.1, you may qualify for streamlined determination if your case meets certain criteria. The Tax Court ruling in Henson v. Commissioner established that knowledge of the activity causing the understatement doesn't automatically disqualify you from relief. Consider filing Form 911 (Taxpayer Advocate Service request) alongside your Form 8857 if you're experiencing financial hardship due to this offset. The Taxpayer Advocate can sometimes expedite innocent spouse claims when there's demonstrated economic burden under IRC §7811.