Who gets paid first - Treasury or Child Support

[Tom in Seattle]

Husband and separated wife overwithheld in the 2010 tax year, so would ordinarily be due a refund.
Past year's federal tax liablilities are being paid down but an amount is still owed. H & W are jointly liable.
H has a child support obligation outstanding from a previous marriage.

Since W is certainly on the hook for the past tax liabilities, but not personally responsible for past child support, she is keen to know how the IRS prioritizes application of overpayments.

Thanks.

[Burke]

I am pretty sure the IRS applies to their outstanding tax obligations first, as child support and state taxes are a state issue. They usually would take a second position. IRS has entered into reciprocal agreements with the states but I am not sure if it is all of them. If the TP's file separately, they could not take her refund to apply against the child support.

[taxea]

I am pretty sure the IRS applies to their outstanding tax obligations first, as child support and state taxes are a state issue. They usually would take a second position. IRS has entered into reciprocal agreements with the states but I am not sure if it is all of them. If the TP's file separately, they could not take her refund to apply against the child support.

Tax liability first then, in unknown order child support, state taxes, etc.
Depending on the circumstances she may qualify for innocent spouse at some point in time...but probably not as she seems to be signing the MFJ while being aware of the situation.

[New York Enrolled Agent]

Husband and separated wife overwithheld in the 2010 tax year, so would ordinarily be due a refund.
Past year's federal tax liablilities are being paid down but an amount is still owed. H & W are jointly liable.
H has a child support obligation outstanding from a previous marriage.

Since W is certainly on the hook for the past tax liabilities, but not personally responsible for past child support, she is keen to know how the IRS prioritizes application of overpayments.

Thanks.

§6402 provides the order - putting the section into simple language

a) IRS
b) child support
c) federal agencies (most commonly student loans)
d) state tax
e) unemployment

[JoshinNC]

Nyea

You always answer very quickly and with specific references. What tax research tool(s) do you use and what type of cost? I use a subscription to RIA through Drake but have wondered if a standalone subscription service would be better, faster, more thorough, etc.

[New York Enrolled Agent]

You always answer very quickly and with specific references. What tax research tool(s) do you use and what type of cost? I use a subscription to RIA through Drake but have wondered if a standalone subscription service would be better, faster, more thorough, etc.

I use the RIA link through Drake but I also use real books. I buy a copy of the 2 volume Internal Revenue Code every year from CCH (NAEA members get a 30% discount) and the six volume income tax regulations every couple of years.

A great 2 volume annual set of books from National Underwriter is called Tax Facts (on investments and insurance and employee benefits). All in Q&A format.

[JoshinNC]

Great

thanks! We are moving into a new office in May and will have a conference room for client appointments that I can fill up with Volumes of books!

[Burke]

I buy a copy of the 2 volume Internal Revenue Code every year from CCH (NAEA members get a 30% discount)

I usually do the same. Haven't done the Regs books before, but will look into it based on your reference.

[joanmcq]

I have a lot of books, but I'm running out of space for them. Next year I may try the CD based versions. Now that I have two monitors it will be easier to deal with.