My wife owes the IRS about $25,000 from an old business. Because she is not making much money, they aren't requiring a payback at this time. However, whenever she has a refund, they take it. Last year we filed jointly, I also filed an Injured Spouse Allocation Form but they didn't refund my portion. I'm considering filing separately, but because she can't itemize (I own the house in my name only) we would each have to take the standard deduction and I'm afraid we would end up paying more than if they just took all our refund. Should we file separately or just file jointly and try the Injured Spouse Allocation form again?
