My husband and I separated in Aug of 2010. I have three kids, and in 2010 I filed through H & R block and I had to enlist the help of a tax advocate since my refund date changed and it dragged on with the IRS from Feb-June. In June I finally got my full refund due to hardship. There are back taxes due for three years when we filed jointly for his self employment and him never paying the quarterly estimated taxes. My ex has been on an installment plan with them. However last year they were going to apply my refund towards it but I explained to my Tax advocate that I was in hardship and he was able to get it for me. This year I filed HOH, since thats what the H7R block guy told me to due since I had the kids full time for 2011 tax year (where in 2010 I only had them on my own from Aug to the end of tax year) I e-filed with direct deposit and was due a refund. I did that on Jan 24th and it was accepted by the IRS on the 26th. I had an estimated date for Feb 1, but when I checked the IRS where's my refund it said it would be deposited on Feb 8th. In the mean time my friend lent me money to cover rent, and it was supposed to be short term since I showed him the where's my refund and the Feb 8th date. Woke up on Feb 8th and nothing was there, checked site again now it says processing and within 6 weeks. I called IRS since not having the refund was going to create issues paying my bills and supporting my 3 kids. I get paid bi-monthly and work through DDD which the state just recently cut hors and pay (developmentally disabled children) so I only made $16k last year. The IRS agent said to be patient that due to the system it bounce people out into limbo. I waited and called again and this time I was told to wait the 6 weeks but I explained I'm in desparate need of the refund, so they mentioned the tax advocate. I remember how much of help they were last year. I'm assuming its due to the same issue of back taxes. However this time I call tax advocate, had to explain what my hardship was and then I was assigned a case and an advocate. This advocate however is of very little help. Right off the bat she says my refund is going to go to back taxes. I told her I'm in hardship and going to face a more severe hardship without this refund. She asked what was my hardship and if I could so proof and to fax it over within a few days. I faxed over within an hour of talking to her, the approved forms to show I had to apply for food stamps, medical coverage. I also had to reach out to programs for my utilities for hardship and low income and showed I was approved, one just recently since I was awaiting my refund. I also sent over my lease to show rent, my pay stubs to show how little I make, the two judgements I have currently, one is garnishing my pay, sent proof of that, and once case just got a judment against me for $8k+, which I sent over as well. I also sent over proof of over $30k in medical debt, for emergency appendix surgery for my daughter in 2010, which is now in collections against me. The promisory note between myself and my neighbor who lent me my Feb rent, and my bank alert I recieved today showing my account dropped below $100, and my next pay isn't until the 23rd. This advocate tells me I'm not facing a hardship? Is she nuts? I'm worse off then I was last year, I made less money and the advocate last year had no problem helping me and getting my refund back. When I tell her that she says well I don't know how that office got it approved. She won't even sent it over to her manager to look at since I'm not in immediate "eviction" or utilities shut off??? Thats where I will be if I don't get the refund. Also how is it fair that my full refund goes to back taxes when I make so little and it leaves my ex then with no liability?Is there anything I can do? Am I entitled to this advocate to at least try and submit the documents to the IRS? Isn't that whats she is supposed to do? Should I call and talk to the IRS myself? Or ask for a new advocate or her manager? I'm panicing and freaking out. I don't know what my kids and I will do without this money, this is how I will survive and pay my bills. How am I not in hardship? Any help is much appreciated. Time is running out, she told me she will give me til the morning to gather any more that can proof I'm actually in hardship?

“Also how is it fair that my full refund goes to back taxes when I make so little and it leaves my ex then with no liability?Is there anything I can do?”----> If you sign the joint return, the IRS may be able to collect any tax relating to that return from you even if your spouse was the one who reported incorrectly. You're eligible for relief if you filed a joint return on which there was an understatement of tax due to an erroneous item relating to your spouse.;you didn't know, and had no reason to know, about the understatement when you signed the return;looking at all the facts and circumstances, it would be unfair to make you pay the tax. You apply for relief under this provision within two years after the IRS begins trying to collect the tax from you. If you meet all these requirements as said ABOVE, then you don't have to pay the portion of tax that relates to this erroneous item.The rule is available if you have assets of your own and want to protect them from collection by the IRS, these rules determine whether you can be held liable. Innocent spouse relief applies only to tax liability that arises from an "erroneous item." That means you can't use this provision for relief if you sign a correct return and your spouse simply fails to pay the amount shown on the tax return. This requirement is one of the biggest problems in obtaining innocent spouse relief. You don’t get relief if you knew the return was incorrect or even if the court thinks you should have known. Some court decisions indicate that you can't satisfy this condition unless you actually examine the return and ask questions about anything that doesn't seem right an unrealistic expectation in many marriages. If you qualify for relief under this rule, you're relieved of liability for tax, interest and penalties relating to the understatement. In most cases this will produce the same result as the separate liability election. But there are circumstances where you might obtain only partial relief under the separate liability election. That would happen if the tax item claimed by your spouse provided a benefit relative to your income. It appears that the rule described on this page provides full relief even in that circumstance. So in some cases you should try to qualify under both rules, and take whichever one provides better relief.OR If you sign a joint return, the IRS may be able to collect any tax relating to that return from you — even if your spouse was the one who reported incorrectly.However, you may be able to obtain relief using the separate liability election. This rule is considerably more liberal than the innocent spouse rule. But you can still be stuck if you signed a return you knew was wrong.To be eligible, you need to sastify either one of the two requirements.The person with whom you filed the joint return has died OR you haven't been a member of the same household with that person at any time in the 12-month period ending on the date you filed the election. Relief doesn't apply to any item your spouse reported incorrectly if you had actual knowledge that it was incorrect at the time you signed the return. The IRS has the burden of demonstrating that you had actual knowledge, however, and it isn't enough for the IRS to show that you should have known about the error. Relief under this rule isn't available if one spouse transfers assets to the other as part of a fraudulent scheme. The IRS won't automatically grant you relief under this provision, even if you clearly meet all the requirements described above. You have to elect this treatment by filing Form 8857, Request for Innocent Spouse Relief with the IRS. (This form is used for the separate liability election as well as innocent spouse relief.). I guess you may explain the back tax situation to the IRS.
“Am I entitled to this advocate to at least try and submit the documents to the IRS? Isn't that whats she is supposed to do? Should I call and talk to the IRS myself ? Isn't that whats she is supposed to do? Should I call and talk to the IRS myself? Or ask for a new advocate or her manager? ----->Everyone has their own definition of what an economic hardship might be in their own situation. When you have an IRS problem, the IRS has it’s own definition of an economic hardship. When your liability can be collected in full, but collection of the federal tax would create an economic hardship, the IRS will consider all facts before taking collection action or enforcement action such as federal tax liens or federal tax levies. An Economic hardship occurs when you are unable to pay reasonable basic living expenses. The determination of a reasonable amount for basic living expenses will be made by the IRS and will vary according to the unique circumstances of every individual taxpayer. Your financial information and special circumstances must be examined and fully documented to determine if they qualify for an economic hardship. Financial analysis includes reviewing basic living expenses as well as other considerations. The IRS may go back for the last 3 years, examine all canceled checks and will complete a full asset check.They will examine credit reports and loan applications and sale of assets for the last 3 years. Your income and basic living expenses must be considered to determine if the claim for economic hardship should be accepted. Basic living expenses are those expenses that provide for health, welfare, and production of your income and your family. National and local standard expense amounts are designed to provide accuracy and consistency in determining your basic living expenses. In addition to the basic living expenses, other factors to consider that have impact upon the taxpayers financial condition include your age and employment status , Number, age, and health of the taxpayers dependents, cost of living in the area the taxpayer resides, and Medical situations that have effected the life of the taxpayer or others in his family or etc. Other factors that support an economic hardship determination may ; you has assets, but is unable to borrow against the equity in those assets, and liquidation to pay the outstanding tax liabilities would render you unable to meet basic living expenses;you may have a set monthly income and no other means of support and the income is exhausted each month in providing for the care of dependents.
I guess you need to prove your economic hardship; if you would like to file for hardship and get the IRS off your back for a minimum of six months and possible up to a few years you will need to meet requirements for IRS hardship. Once you have determined you are a likely candidate for being declared uncollectible or status 53, you will be required to to file detailed financial information about yourself with the IRS. The IRS does not grant uncollectible status lightly. You will need to thoroughly convince the IRS that you do indeed qualify for this treatment and if they were to collect it would create severe economic hardship.I guess you need to contact the IRS on the levy (back taxes)or correspondence immediately and explain your financial situation. ONLY the IRS can settle this issue down. Good luck~~

Wnhough
Thanks for all the info. Its so confusing and I did lots of research online and was reading up on what you just talked about. I will call the IRS then and talk about the back taxes and the economic hardship. SInce my income is well absorbed for the basic living necessities for my 3 kids ( all between 12-15) and myself. I will try that avenue. I just thought since they released the refund last year based on that and I was worse off this year that I would have a better chance. However its hard when you go through an advocate I guess since she believes I don't have a hardship, unless I'm in eviction right now. Again thank you for the info.

I finally got a call from my advocate stating that after getting all my stuff she was going to go ahead with the IRS refund and the hardship. Great news, but not, then came the bad. She said that before she can do anything she has to run my SSI through the Treasury Offset Program and something was in there saying I had a debt for $6700 and due to that she can no longer go ahead and bypass the back tax problem due to hardship. That she was sorry but she has no choice but to write up a letter and have it signed by her manager to go ahead and have the refund applied to the back taxes and my case would be closed. I asked her what the Treasury Offset was and she gave me the number so I could call and find out any info on it, since I have no idea what this debt could be from besides back taxes. I called and it said child support in NY, I was dumbfounded and immediately called the NY child support # since I knew this was in correct. I called and bottom line was after I was asked a whole bunch of questions the guy said that this was an error and I would have to write in to the address in NY to get them to open, view and then remove the file attached to my SSI. I told him the huge problem this error/mistaking idenity caused and he said that when its over any refund that is sent will go back to me. I told him they weren't getting anything because now the advocate is going to allow the IRS to apply it to back taxes. I asked him if he could give me when it was opened or the amount and he said he couldn't since it was not my account. I then immediatley called my advocate back and left 4 voicemails on not to please send over the letter since that offset was not mine and incorrect. I also left a message with the secertary telling her to please have her call me its urgent and I have new info on the case about the offset. Never heard from the advocate. So then I called the 877# for the tax advocate and the lady was very helpful, she said she would send a note and I asked her to see if the letter was written yet and she looked in the history and indeed it was at 2:15pm, an half an hour after I talked to her. Is it now too late? Is there any way for the refund to not go since I don't owe back child support??? The Child support told me to contact the IRS and the advocate as well as make sure I write that letter to them. I also called the Treasury offset and explained it to the guy who answered and he said to calm down , not to worry that its an error and the refund will come back to me. I told him how can it if they apply it to back taxes and he said it will since it was all based on the wrong info/error. Is that true, will I be able to get it back? I'm freaking out cause I desperately need this money. I have no idea where to go from here. Oh based on the lady at the advocate 877# I also faxed my advocate a letter stating the whole error. Thanks

“She said that before she can do anything she has to run my SSI through the Treasury Offset Program and something was in there saying I had a debt for $6700 and due to that she can no longer go ahead and bypass the back tax problem due to hardship.”---->Assume that if(as long as) you owe back child support, debts to a federal agency, state income taxes or unemployment debts owed to a state, you could find your tax refund is reduced or completely withheld by the Internal Revenue Service. The mechanism by which the IRS keeps all or part of your tax refund is called the Treasury Offset Program. When the IRS is notified of a debt, it will place that notification in a payment file. When your refund is processed, the IRS will deduct any amounts showing in your payment file. You'll be issued a refund for the reduced amount. The IRS will send you a letter notifying you of what payments were made to which agency. You'll be given the name and address of the agency to whom the offset amount was sent in case you want to dispute the validity of the debt
“I told him how can it if they apply it to back taxes and he said it will since it was all based on the wrong info/error.”--->Good for you.I guess you need to wait and see. Good luck~````