Injured Spouse Amendment

[Chowdahead]

Have a client files MFJ who neglected to tell me she is in default of a student loan. Of course the IRS offset her refund.

Now she and her husband would like to see if I can file an amendment with an injured spouse claim to see if some of the refund can be recovered.

I have filed injured spouse claims with original returns before, but never as the sole reason for an amendment.

Can this even be done? I'm thinking that once the IRS has sent the money to the loan creditor, that money isn't come back to the client from the IRS.

Although she may be confused and it may be the student loan creditor or Financial Management Systems that is requesting the injured spouse form... I need to try to clarify with the client.

But is an amendment even possible for claiming injured spouse?

[MsTabbyKats]

I don't think there would be a point to it. As you said...the money has been distributed. The creditor isn't going to return it.

Tell the client you're putting a note in their files about this...and next year you'll put the form in with the original return.

[Jack from Ohio]

The injured spouse form stands on its own. It can be sent directly to the IRS. Check the Software or IRS website for correct address. No need to amend.

[jainen]

>>once the IRS has sent the money to the loan creditor, that money isn't come back to the client from the IRS.<<

That's the IRS position if you DISPUTE the debt--you have to work it out with the agency that requested the offset.

But injured spouse is different. In fact, according to the Instructions for Form 8379 it is EASIER to get your refund if you wait to file until after the offset has been processed. Really, I'm not making that up! It only takes 8 weeks that way, instead of the normal 14 weeks!

[kcjenkins]

I agree with Jainen. You CAN file the form, by itself, and if the numbers work, like when the innocent spouse has all or most of the withholding, they WILL get the refund. Don't know how IRS works that out with lenders, and don't care. It does work.