Question

Grant and Haley married in2019. Grant owes $19000 on hia student loans, but he has not been paying on them and they are indefault. They filde MFJ 2019. The IRS offset their refunf because of Grant's default on the loan. Haley is not obliged to pay Grant's loan. and she wishes to receive her portion of their tax refund.

As the couples tax preparer, what advice would you offer?.

A Grant should request a certificate of non-attachment.

B Grant and Haley should submitma joint offer in compromise

C Hayley should request relief as an injured spouse.

D Hayley should request relief as innocent spouse.

Answer 1

The correct answer is C. Hayley should request relief as an injured spouse. Since a joint return has been filed and Haley is not obliged to pay Grant's loan, then she is entitled to request her portion of the refund back from the IRS. She may file a claim for this amount by filing form - Injured spouse allocation. She may submit the form by itself after receiving notification of an offset of their refund because of Grant's default on the loan.