My sister got a student loan years ago. She never paid on it for various reasons mainly not working. Now she is married and she wonders if they file jointly will the IRS keep their joint refund?
2007-01-08 16:27:49 · 6 answers · asked by Bubbles85 1 in Business & Finance ➔ Taxes ➔ United States
Yes, the IRS can keep their refund and worse, they can put a lien on her bank account and freeze her money. It is best that your sister calls the loan center she got her student loans from and the IRS and make payment arrangements- if she goes to buy a house with her husband, she will not be able to because her credit is ruined with the student loan default. Seriously, the IRS will freeze her bank account and they can also garnish her wages - they will contact her employer and the employer will have to take the money out to give to the IRS before she gets her check-- quite embarrassing- it happened to a guy that works with my husband-- and of course, everyone knows about it!
2007-01-08 17:15:53 · answer #1 · answered by mac 6 · 0⤊ 0⤋
They will keep any refund to satisfy her student loan debt for any return she files. The return can be a separate return or joint return, including a return where only her spouse had income and withholding. There is no time limit.
If some of the refund on a joint return is due to her spouse, and the spouse wants his part of the refund back and does not want it used to pay off the loan, then he should attach form Form 8379 to the return. This is an application for allocation of the refund, so he can get his part back.
2007-01-08 16:33:21 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
There is a 10 statute of limitations on the collection of taxes. If student loans are treated like taxes, then your sister's refunds for 10 years can be intercepted.
2007-01-08 18:27:07 · answer #3 · answered by mattapan26 7 · 0⤊ 0⤋
Well, there you go. The Republicans made sure that little tidbit was in there. If you owe taxes, and don't add on the penalty yourself, they would be hard pressed to collect it. However, I believe they can take it out of future years. However, it is health insurance. The qualifying part makes sure it contains certain provisions. This prevents someone from offering a health insurance plan that only consists of a bottle of aspirin and a box of band-aids. Let's face it, you will eventually need it.
2016-05-22 21:58:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'm not sure, but the IRS has to pay interest for keeping it if the loans are payed off.
2007-01-08 16:31:30 · answer #5 · answered by mojo2093@sbcglobal.net 5 · 0⤊ 0⤋
I don't know. Try Asking them! LOL
2007-01-08 16:33:09 · answer #6 · answered by flowwer_1371 5 · 0⤊ 0⤋