An injured spouse is a taxpayer who files a joint tax return for which all or part of his or her share of the tax refund was, or is expected to be, applied against the other spouse’s past-due debt. The IRS closed a total of 730,956 injured spouse cases in calendar years 2014 and 2015, according to the report.
The report, by the Treasury Inspector General for Tax Administration, pointed out that the IRS is required by law to apply a taxpayer’s tax refund to any past-due federal tax debt, child or spousal support debt, federal agency nontax debt (such as a student loan), or state income tax obligation before issuing the refund. If a taxpayer files a joint tax return resulting in a refund, that refund may be used to pay a past due amount of either spouse’s debts. However, the IRS can refund all or a portion of the refund if the taxpayer qualifies as an injured spouse.
The IRS did address a prior recommendation to identify and revise all IRS documents containing injured spouse information to refer taxpayers to Form 8379 and its instructions for guidance.
In recent years, the IRS has streamlined the procedures for obtaining innocent spouse relief and eliminated a two-year statute of limitations on requests for innocent spouse relief (see IRS Streamlines Innocent Spouse Relief).
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