I file a joint return with my wife for our 2019 taxes and expected a refund of around 5500$ but they took all of it to satisfy only her back taxes from 2008 and 2009. I thought there was a statute of limitations or something? This is especially devastating bc of the Covid19 outbreak and the loss of income we are experiencing.
The IRS has 10 years from the date the taxes were filed to collect. Additional time may be added if your wife did anything to stop the statue of limitations from running. If the debt was solely your wife's debt then you can file form 8379 and request injured spouse relief to get back your share of the refund. You will get back what you would have received if you had not filed a joint return. It will take some time for the IRS to process the form.
If your wife filed late and still has a lot of time left on the statute of limitations then now would be a good time for her to consult with a tax attorney to set up a collection alternative. Particularly if she has been affected by the current economic downturn. Most of us offer a free consultation. Just stay away from the places you see advertised on TV.
