I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

Recently, Joe Blow taxpayer. Received a Final Determination concerning the taxpayer’s Form 8857 Request for Innocent Spouse Relief for three of the last four tax years, in which full relief was granted.  The taxpayer was extremely grateful to be granted the relief.

            Upon receipt of the Final Determination, the taxpayer called IRS Automated Collection System (“ACS”) to request a refund of the levied payments that were taken from their personal account.  Best way to demonstrate this to the IRS is to use Form 1040 transcript, and look for the levy code and give the amount next to the code to the rep on the phone. If the levied payment meets the criteria for a refund, taxpayer will be granted relief under IRC 6015(f) and as long as the tax was paid within the two (2)-year period prior to her making the innocent spouse request. IRS ACS will indicate that their records state the TAXPAYER is still liable for the entire sum owed on tax years referenced, and that they would not be able to grant a refund due to the outstanding balances.

Under these circumstances, taxpayers should always respectfully request confirmation that they owe no balance for the tax periods in which she was granted full relief under IRC 6015(f) and that they should be issued a refund for the full amount that was levied from their bank account.  Close by asking that you (the taxpayer be contacted directly at the most appropriate phone number)

If ever you’re feeling overburdened by your tax situation or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs.  Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us with any questions you may have in approaching your specific tax scenario.