The IRS uses Notice CP39 to inform you they have taken your spouse’s or ex-spouse’s refund to be applied to other taxes. This may be a surprise to many people who weren’t aware of the problem or its effects. It is obvious the IRS believes you owe the taxes. Yet, often no tax is due. So, it is important to investigate your specific case before reacting! The IRS may also use Notice CP42 to inform you about the seizure.
Refunds are often taken for the debt of a spouse or ex-spouse. Your reaction might be to file an Innocent Spouse claim or request a state divorce court adjustment. The IRS isn’t the only place where you can seek justice. Most likely, the only reason why this a a problem is because the tax remains unpaid.
So, if applicable, you could file Form 8857 requesting relief from the joint liability of the tax debt. Or, if a divorce was involved, you could pursue contempt of court charges in state court for disobeying a court order (if applicable). Or less aggressively, you and your ex-spouse could equitably arrange where one spouse pays the other and/or the taxes to dissolve the IRS action.
But, at the least, to prevent any further refunds from being seized make sure you don’t overpay your current taxes by using Form W-4 to adjust your withholding. We need to investigate your case and prepare an Action Plan for you. You only have two years to retrieve any refunds you are due and only two years to recover any refunds taken.
TaxHelpLaw repairs the old and new taxes to get refunds when due! Please follow the IRS Notice CP-39 Prep Steps and see Mr. Hopkins in Denver or Colorado Springs before proceeding!