During the preparation of tax returns or representation of a client for an Internal Revenue Service (IRS) issue, Enrolled Agents should be aware of the Injured Spouse Allocation. The Injured Spouse Allocation is used to protect one spouse's share of an overpayment (IRS refund) from being applied to a past-due obligation. Enrolled Agents should use this tool before considering an offer in compromise if there is a possibility a client's IRS refund may be offset.
↧