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IRS is holding funds...won't tell me why....

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OverTheIRS

Junior Member
What is the name of your state (only U.S. law)? Indiana

So, my ex and I had a deficit in our 2012 taxes, and we knew they would take a portion of our tax return this year. We also had both filed Bankruptcy (chapter 7) and it was discharged within the last fiscal year.

My refund last year was over the allowable dollar figure, so the trustee was due to take a portion of it.

Long story short, both she and I were due a refund this year in our individual returns. They took MINE and covered the debt, sending me back a smaller portion, which due to the EIC was returned to me in full by the trustee. However, they originally held her return, to cover the debt....but as mine covered the debt, they never disbursed her funds to that debt. So there is 4k$ plus sitting at the IRS for 3 months now.

We both have called, the first time we were told it would be released to her soon. Then nothing. The second time, we were told it had been transferred to another department, and was on hold....again.....for thirty days. Yesterday was day 30, and we were told to call in and authorize the release of the funds. BUT, when we called in they told us it had AGAIN been moved, and now we had to wait ANOTHER 30 days to release the funds, BUT the kicker is, they can't, or won't tell us why?

For the record.

1. Her refund last year was nonexistent. She owed, so the trustees won't take anything from this, so the bankruptcy isn't holding it up.
2. They won't even tell us the department it is being held by, nor will they allow us (or her) to talk to them.
3. There are NO further debts to the IRS, as the 2012 issue was taken care of with my return. (which BTW, my return was already processed and returned to me and the trustees. So what I don't understand is why hers is being held up, and mine isn't)

Why would they be holding this? Any suggestions for expediting the return? are there any legal ramifications?

thanks in advance
 



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