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I married a person who is in the process of making an offer to the IRS, will my income affect the offer they are making?

Portland, OR |

The offer in compromise forms ask for wages of spouse to determine total household income, our combined incomes along with other factors will obviously increase that number. How can we fill that out to our best advantage? None of our assets have been or will be co-mingled, at least not in the near future. Thanks.

Attorney Answers 3


  1. Once you are married, the IRS will allocate the household expenses based on the ratio of your spouses income to your income. Her personal expenses would not be affected. Keep in mind that submitting an Offer is a lengthy process and can take up to a year.

    Even if you are sharing living expenses now and are not married, your fiance can only claim the portion she is actually paying.

    The fact that you do not co-mingle your assets does not matter for an Offer. It will is to your benefit to keep them separate until she has resolved her matter, so that the IRS will not levy any joint bank accounts, etc.

    Your fiance would benefit from at least speaking with a tax attorney before submitting the Offer. Most of us offer a free consultation. Please feel free to contact me directly if I can be of further assistance.

    info@cttaxhelp.com Office number: (860) 255-7423 Website: www.cttaxhelp.com. Our reply to your question has not created an attorney-client relationship. It should not be considered legal advice. You should contact an Attorney who can give you legal advice after acquainting themselves with the specifics of your case.


  2. As of today, the amount you offer to the IRS is a two part formula: (1) The liquidation value of your assets, plus (2) your disposable monthly income multiplied by 12 or 24. The liquidation value of assets owned by the non-liable spouse are not taken into consideration for offer purposes. The monthly income of the non-liable spouse is taken into consideration, because it will affect the amount of expenses allocated to the liable spouse for offer purposes.

    For example, if the non-liable spouse makes 90% of the household income and the liable spouse makes 10% of the household income, then the IRS will generally only allow the liable spouse to take 10% of the household expenses. However, there are way to increase the percentage of allocated expenses to the liable spouse.

    I suggest you talk to a tax attorney who is familiar with preparing and submitting Offers in Compromise.

    This material does not constitute tax, legal or accounting advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS or NYS penalty. The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. This response is not intended to create, and does not create, an attorney-client relationship between you and the author.


  3. YES. Once married, the IRS will consider both spouses incomes. Be sure your fiancee' is working with someone who is credible. Anyone who is a tax professional should know that a marriage would change the numbers. You may want to consider a CPA or Tax attorney

    This answer does not establish an attorney-client relationship, Moreover, this attorney is Licensed to practiced law ONLY in LOUISIANA and answers to questions from other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state.

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