Passing the special enrollment examination provides an individual with the designation of enrolled agent in order to represent taxpayers before the IRS. Direct dealings with the Financial Management Service are required when IRS refunds are affected by the Treasury Offset Program. Tax refunds are issued by the Financial Management Service, another division of the US Treasury Department.
A taxpayer’s refund can be reduced or eliminated by the Treasury Offset Program in order to repay debts owed for delinquent child support or obligations to a federal agency, state income tax authority, or state unemployment agency.
The Federal Management Service provides information by written notice as well as response to telephone inquiries by taxpayers or their enrolled agent representatives. The details conveyed are the agency to which an offset debt is owed as well as its address and phone number.
Sometimes taxpayers on joint tax returns experience refund offsets for debts that only their spouses are responsible for paying. These circumstances usually require assistance of a tax professional who has completed the enrolled agent exam.
Injured spouse relief is available when Form 8379 is submitted. The IRS will process a partition of refund between jointly filing spouses before the offset occurs. The taxpayers receive the benefits of filing jointly but obtain separate allocations of the refund.
Form 8379 can be filed with a tax return or separately. When an amended return is filed that requests a joint refund, Form 8379 is attached to avoid an offset against the refund portion attributable to the spouse not liable for the past due obligation.
A tax professional who has completed enrolled agent continuing education can assure that Form 8379 is ready for processing by the IRS. When the form is submitted separately from a tax return, the IRS requires sufficient information to divide tax liability and provide segregation of the refund. Therefore, Form W-2 wage reports and similar income reporting documents are attached to Form 8379. This shows the IRS the withholding amounts of each spouse.
The IRS apportions a refund based upon the separate tax payments of the jointly filing taxpayers. For residents of a community property state, the allocations are calculated based upon local law. Injured spouse relief is much easier to obtain than innocent spouse status. Enrolled agent CPE reveals that an injured spouse claim is a relief from the burden of joint liability on a tax return.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
Article Source: http://www.articlesbase.com/taxes-articles/enrolled-agent-help-for-injured-spouses-on-irs-refund-offsets-4698694.html
About the Author