OIC Question

[erchess]

Taxpayer is married now and wife has some income but he was not married when he incurred tax debt for which we are looking at his options. Is his wife's income relevant to what he can be forced to pay?

[geekgirldany]

I just finished a continuing education course on OICs. According to their information the IRS can factor it in to determine the ability to pay. IRS can not legally claim the nonliable spouses' assets or income.

Form 656 instructions discuss about completing an accurate collection information statement. It says that the responsible spouse should include only his/her assets and liabilities on his/her collection statement. However the income and expenses of the entire household is required on teh responsible spouse's collection information statement.. This is necessary for the IRS to evaluate the income and expenses allocable to the liable taxpayer. There is then a paragra on community property states. This is on page 4.

[erchess]

Continuing ED Course

Was the course a self study and if so could you post or pm me info on where to buy it? Many thanks.

[geekgirldany]

It was at CPE Depot. Name of it was "guide to tax resolution, solving irs problems". 12 hours of credit I believe. Pretty good material. A really good read on what is expected during the OIC process.

[erchess]

I am in Luck

I already use CPE Depot on their unlimited plan so I will study this course at once. Many thanks.

[DaveO]

The Form 656 doesn't really give you a space to seperate out the spouses income and expense. I attach an Excell spreadsheet tied to the line numbers on the return to show how I arrived at each number. I've got just such a case on my desk now.