AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/7/2008 Subject: Stimulus Offset
Question My husband and I were required to file form 8379 (injured spouse allocation) with our 2007 tax return so that he could receive his portion of our tax refund. At that time, I had some defaulted student loans that were an issue, and my portion was to be offset as payment toward my balance.
In March, I contacted the agency that held my loans and made arrangements to rehabilitate the loans by making satisfactory payment arrangements. I am continuing to do so successfully.
We just received a notice from the Department of the Treasury Financial Management Service that our entire Stimulus payment has been offset due to my defaulted loans, and a notice was included stating that we could file form 8379 to allow the "injured spouse" to receive his/her share.
My question is: Is it necessary to file a second injured spouse allocation form in this case? I thought that it was only necessary to send the one that we filed with our 2007 return. Also (and I understand if you are unable to help with this part of my question) since my loans are in the process of being rehabilitated has our stimulus payment been offset in error? I tried to call the number on the notice to get help with this, but only got a recording. Any help or advice you could give me is greatly appreciated.
Thanks in advance.
Answer Angela,
Thank you for your question. On your 2007 return, did they give your husband back his share of the refund?
As to the economic stimulus payment, this had never been done before, so if they would like another form 8379, can you just send them another copy? It should not be necessary. They should have it on file. That is why I asked the first question.
I would say that the IRS is only acting upon a third party, namely the agency that held your loans. It is up to the agency to have their lien removed from your account. This can also be done by providing a copy of the agreement you made with the agency.
According to the IRS web site:
If you have any questions about your payment, please call the toll-free Rebate Hotline at 1-866-234-2942.
